Oilsands Closes Finance Option for Additional $7.8 Million in Net Proceeds

Oilsands Quest's over-allotment option is for the purchase of 1,650,000 units (each comprised of one common share and one-half of a common share purchase warrant of the Company, or a total of 1,650,000 shares and 825,000 warrants) which results in an additional US$7.8 million in net proceeds to the Company.

Total net proceeds to the Company from the Offering are approximately US$75.5 million. In total the Offering was comprised of 12,650,000 common shares, 6,325,000 common share warrants and 2,600,000 common shares on a flow-through basis.

The Offering was made through a syndicate of underwriters bookrun by TD Securities Inc. and including Genuity Capital Markets, CIBC World Markets Inc., Desjardins Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation and Lehman Brothers Canada Inc. in Canada and their respective U.S. registered broker dealer affiliates.

The Company intends to use the proceeds of the Offering for reservoir testing and other costs associated with the Axe Lake Discovery and for general corporate purposes. The Company's shares and warrants are listed for trading on the American Stock Exchange (Amex) under the symbols BQI and BQI.WS.