CanWest Petroleum Says Firebag Deemed a 'Discovered Resource'

Firebag East
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CanWest Petroleum and Oilsands Quest Inc. announce that a review of preliminary results of the Firebag East exploration coring program in northwest Saskatchewan by the Company's independent geologic consultants, will result in the bitumen resources being classified as "Discovered Resources". This classification means that the resources on exploration permits in the area known as Firebag East are recognized as being from known accumulations.

Nineteen of the 24 resource delineation holes drilled in the Phase I exploration program have intersected bitumen saturated sands believed to be in the McMurray Formation. Initial results from core analysis indicate that there is good bitumen content in these intersections.

"Although we have not yet completed a final evaluation of the drilling results from our Phase I exploration program, this discovery status confirms our success," said Christopher Hopkins, President & CEO of Oilsands Quest. "Until now, no one knew definitively that oil sands were present as an accumulation in Saskatchewan. This classification is simply a formal recognition of our discovery and it does not indicate economic or producible status."

The drilling results from the Phase I program are currently being analyzed, and additional details are expected to be released this summer when the analysis of these results has been completed. Up to 150 holes are planned for the Phase II exploration program, which is currently underway. This Phase II program will be completed during the 2006 / 2007 winter season.

The Discovered Resources classification is in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH), which is a primary reference for reporting resources under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The definition of Discovered Resources is given as: "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent reserves, respectively".

Oilsands Quest Inc. is a private Alberta corporation of which CanWest Petroleum Corporation owns a 63.1 percent interest on a fully diluted basis.


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