Quest Resource Corporation (QRCP)

[dragon man]

On January 5, 2009, the Compensation Committee of the Board of Directors of Quest Resource Corporation (the “Company”) terminated the Long-Term Management Compensation Program (the “LTI Plan”). The LTI Plan was an incentive compensation program established to promote the interests of the Company by providing to employees of the Company and its affiliates incentive compensation awards for superior performance that are based on shares of the Company’s common stock. The Company has determined that the LTI Plan no longer fits within the Company’s long-term compensation strategy and believes it is in the best interests of the Company and its shareholders to terminate the LTI Plan effective as of January 1, 2009. The Company’s named executive officers were participants in the LTI Plan. No payments will be made to plan participants for 2008. The Company will continue to evaluate the merits of similar LTI Plans in the future.