CanWest Says Five Cores Drilled at Firebag East Oil Sands Project

CanWest Petroleum reports that five core holes have been completed to date with a sixth core hole not completed due to a loss of circulation and will be re-drilled later in the program. A seventh core hole was started on February 04. The core samples are being transported to laboratory facilities for analysis, including hydrocarbon assay.

The first core's initial assay reports a grade of 12% to 17% bitumen (oil) by weight with an approximate average grade of 15%. Final assay reports may change this grade by a minor amount.

The production of bitumen in the Athabasca oil sands comes principally from the McMurray Formation. Five of the six holes have intersected bitumen-bearing McMurray Formation sands with thicknesses ranging from 5 to 27 meters (16 to 89 feet). The core holes are being drilled on 800 meter (2,625 feet) spacing.

As the drilling proceeds, the direction, grade, depth and thickness of the bitumen deposition will become known. The Company notes that at this early stage of exploration, the results are very encouraging given initial grade as well as the thickness of the bitumen.

In addition, CanWest has completed a funding of Oilsands Quest by purchasing $15,000,000 CDN of Oilsands Quest equity. On funding a further $1,295,000 CDN, it will then own 69.2% of Oilsands Quest on an issued and outstanding basis. As part of this financing CanWest will be nominating an additional Director to Oilsands Quest's Board of Directors. With the acceptance of this nomination by Oilsands Quest Inc., CanWest will have nominated three of the then five members of Oilsands Quest's Board of Directors. Oilsands Quest Inc., a private Alberta company, is the operator of the project and owns 100% of the Firebag East permits.