Quest International Resources Corp. appoints Thomas J. Menning chairman of the board and chief executive officer; corporate headquarters to move to the United States

Business Wire, May 29, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 29, 1996--Quest International Resources (NASDAQ:QIXXF) (TSE:QIX) Wednesday announced changes regarding management, a proposed new auditing firm, and a new corporate headquarters to be located in the United States.

Thomas J. Menning, age 45, who was previously chief operating officer, has been appointed as chairman of the board and as chief executive officer. Menning replaces Karl Rollke, who has resigned from his position as chairman of the board. Rollke will assume the position of chairman emeritus, and he will remain as a member of the board of directors.

Menning's accomplishments since joining Quest in 1995 include restructuring the company's operations to focus on building gold reserves and to bringing gold properties into production.

Menning has overseen a dramatic improvement in the company's balance sheet. Since he assumed his duties, the company's total liabilities have been slashed from approximately $30 million to less than $800,000 plus current accounts payable. Further, the company currently has a net positive cash position exceeding $1 million.

Menning is responsible for negotiating a two-year financing commitment with Canadian/American Resources for $18 million. This commitment will fund operations at Damoti Lake in the Northwest Territories, where Quest has delineated 600,000 ounces of gold to date.

A major underground program will commence at Damoti Lake this summer. This program is designed to "prove" the gold resource at the Horseshoe zone, which is one of several known gold zones at Damoti Lake. The Canadian/American Resources financing will also fund an exploration program at the Matthews gold project in the state of Washington, and it will provide general corporate funds for Quest.

In addition to the Damoti Lake and Wenatchee programs, Menning has budgeted exploration programs for 1996 including:

-- The Zopolite (Honduras) project, where 300,000 ounces of

gold has been outlined so far.

-- The Ice property in British Columbia, where gem-quality

diamonds have been discovered.

-- The group of base metal prospects in southeastern British

Columbia, where the target is a Sullivan-type lead/zinc

deposit.

Prior to joining Quest in 1995, Menning was president of Thomas J. Menning Co., based in Incline Village, Nev. The company has operating and investment interests in manufacturing and other businesses in the United States and abroad. He served on the board of directors of Eisenhower Medical Center in Rancho Mirage, Calif., and also as a trustee for National Health Care, a nonprofit organization based in Washington, D.C.

He received his bachelor's degree in economics and finance from California State University at Fullerton in 1977.

The company further reported that Dr. Robert J. Miller will resign his position as president of Quest. Miller will remain a member of the board of directors and he will remain active with the company. The position of president is expected to be filled shortly by an individual from a major mining company.

The board of directors has also accepted the resignation of Antonios Kripotos, who served as head of investor relations/Europe.

The company further reported that it has decided to recommend to shareholders that the current auditor for the company, Doane Raymond, be replaced by Coopers & Lybrand.

The board of directors has also resolved that, effective Oct. 1, 1996, Quest International Resources will relocate its administrative offices from Vancouver, British Columbia, to Reno, Nev. The company will remain a Canadian corporation and maintain a presence in Vancouver.

CONTACT: Quest International Resources Corp.

Bob Hunziker, 310/452-0730

Tom Menning, 800/663-8947

Mark Elenowitz, 800/810-9163