Oilsands Quest Enters Private Placement for Proceeds of $9MM

Oilsands Quest has entered into a non-brokered private placement in which accredited institutional investors have agreed to purchase a total of 8.57 million common shares of Oilsands Quest at a price of US$1.05 per share for total gross proceeds to Oilsands Quest of approximately US $9 million.


The shares will be issued on a private placement basis pursuant to certain exemptions from the registration requirements under U.S. Securities laws and the prospectus requirements under Canadian Securities laws. The proceeds of the Offering will be used for funding the testing program at our Axe Lake prospect and general corporate purposes. Specific allocations of the proceeds have not been made at this time. Closing of the Offering is expected to occur on or about December 22, 2009 and is subject to approval of NYSE AMEX and the delivery of customary closing documents.