Oilsands Quest Closes Previously Announced Offering

Oilsands Quest completed its previously-announced marketed public offering (the "Offering"). A total of 35,075,000 units ("Units") were issued to investors at a price of US $0.85 per Unit for gross proceeds to Oilsands Quest of US $29.8 million, including the over-allotment option.

Each Unit is comprised of one common share ("Share") and one-half of a common share purchase warrant of the Company ("Warrant") with each whole Warrant entitling the purchaser to purchase one Share of the Company for US$1.10 until May 12, 2011.

The Warrants associated with these Units are listed for trading on the NYSE Amex under the symbol BQI.WS.A.

The Offering was made through a syndicate of agents led by Genuity Capital Markets and TD Securities Inc. and included Canaccord Capital Corporation, Dundee Securities Corporation and RBC Capital Markets (the "Agents"). The over-allotment option granted to the Agents was exercised to purchase 4,575,000 Shares and 2,287,500 Warrants.

The Company will use the funds to continue its testing activities at Test Sites 1 and 3, continue its exploration activities on its existing permits and licenses and for general corporate purposes. Specific allocations of the proceeds for such purposes have not been made at this time.