Oilsands Quest Announces Equity Offering

Oilsands Quest has commenced an overnight marketed public offering of 25,000,000 units and 4,000,000 common shares on a flow-through basis in the United States under an effective shelf registration statement on file with the Securities and Exchange Commission and in all provinces of Canada, except Quebec, by way of the Multi-jurisdictional Disclosure System.

Each Unit is comprised of one common share (a "Share") and one-half of a common share purchase warrant of the Company (a "Warrant") with each whole Warrant entitling the holder to purchase one Share of the Company for a period of 24 months following closing of the Offering.

The Offering will be made by a syndicate of underwriters bookrun by TD Securities (USA) LLC in the United States and TD Securities Inc. in Canada. The Company has agreed to grant the Underwriters an over-allotment option to purchase up to 3,750,000 Shares and 1,875,000 Warrants, exercisable at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including regulatory approval.

The Offering will be priced in the context of the market with final terms of the Offering to be determined at the time of pricing. The Company anticipates that the pricing of the Offering will be announced Wednesday morning, November 21, 2007.

The Company intends to use the proceeds of the offering of Units for reservoir testing and other costs associated with the Axe Lake Discovery and for general corporate purposes. Specific allocations of the proceeds for such purposes have not been made at this time.

The Company intends to use the proceeds from the offering of the Flow-through Shares to incur Canadian Exploration Expenses through exploration activities relating to its permit lands.

The Offering is expected to close on or about December 5, 2007.