HYTK Industries, Inc.
P. O. Box 100
Benedict, KS 66714
316-698-2250 phone
316-698-3030 fax
To: All shareholders Date: May 31, 2000
Enclosed is an Information Statement which notifies all HYTK Industries, Inc.
("the Company") stockholders that the name of the Company is about to be changed
to Quest Resource Corporation effective June 25, 2000. This name change is
needed to reflect the Company's transition into the oil and gas industry. Prior
to this transition the Company had not engaged in active operations for several
years. Since this is the first written material that you have received from this
office, the following paragraphs are provided as an update on the Company.
On December 31, 1998, the Company transitioned from a dormant Company into the
oil and gas business in southeast Kansas via the acquisition of Quest Resource
Corporation. The Company gained new management and its headquarters was moved to
Benedict, Kansas. Several acquisitions and mergers were accomplished that have
created a financial statement with assets of nearly $4.4 million and
stockholder's equity of $2.8 million, and with revenues of approximately $2.0
million per year, all as reported in the latest Form 10-QSB as filed with the
SEC on April 13, 2000.
The Company's stock symbol is currently QRCP and the Company web site can be
found at www.qrcp.net. On May 31, 2000 the closing price of QRCP stock was $2.50
per share with a high of $10.00 and a low of $1.00 during the past year. Those
HYTK shareholders who held stock prior to December 31, 1996 have significantly
less shares than you originally purchased due to certain reverse stock splits
conducted by prior management. The number of shares that you currently own is
shown in the top right hand corner of this page. Please understand that current
management was not involved in doing the reverse stock splits and has very
limited knowledge of the Company's status during that era. If you desire more
information about the reverse stock splits, please refer to the Company's
reports filed by prior management with the SEC at the time the splits were done
@ www.sec.gov.
The Company's financial status has improved considerably as disclosed by the
Form 10-QSB for the quarter ended February 29, 2000 and by the press release
dated May 8, 2000. The Company is well positioned in the natural gas business to
achieve significant growth from the development of natural gas reserves in the
500 square mile area served by the Company's gas gathering pipeline network in
southeast Kansas. Management has recently achieved local bank financing for the
development of these gas reserves which is taking place now. There are fourteen
employees, several of which are ten year veterans of this business, all of whom
are very dedicated to the productive operation of Company assets. Another
significant event is that the price for natural gas has risen considerably in
recent weeks to very attractive levels. All of these factors cause management to
remain confident and optimistic about the future for Quest Resource Corporation.
Sincerely,
/s/ Douglas L. Lamb
Douglas L. Lamb, President
