Canadian Quantum Energy Corporation
NEX BOARD : CQM.H

Canadian Quantum Energy Corporation

December 22, 2008 09:21 ET

Canadian Quantum Announces Conditional Approval of Graduation From NEX to TSX Venture Exchange Tier 2

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2008) - Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Corporation") (NEX BOARD:CQM.H) listed for trading on the NEX board of the TSX Venture Exchange ("NEX") is pleased to announce that the TSX Venture Exchange ("TSX-V"), by letter dated December 11, 2008, has granted conditional approval regarding the NEX reactivation to the TSX-V. The shares of Canadian Quantum will commence trading on the TSX-V, Tier 2 on December 23, 2008 under the trading symbol CQM.

Summary of Properties

The Corporation owns various working and royalty interests in four permits encompassing over 169,300 gross acres in the St. Lawrence Lowlands Basin situated primarily on the south shore of the St. Lawrence River between Montreal and Quebec City that were recently valued by Martin & Brusset Associates.

Canadian Quantum also has minor oil and gas production interests in Ontario.

Recent Activity

In 2007, the Corporation participated in the drilling of the Gentilly #1 Well ("the Gentilly Well") on Quebec Permit #2006PG907 (35,600 gross acres). The Gentilly Well was cored within the shales and then drilled through the Ordovician section testing gas from the Trenton at significant rates. Additional testing of the Gentilly Well bore in 2008 has yielded promising results in the Utica Shale section (800 mcf/d on an 18 day test post-frac). Testing is continuing in the upper Lorraine section.

Utica Shales

The Utica shale deposits are relatively thick and regionally present in this basin, however, the primary area of prospectively is a narrow fairway paralleling the south shore of the St. Lawrence River (the "Fairway"). The Fairway is bounded to the south-east by a line of thrust faults known as Logans Line and to the north-west by the Yamaska Growth fault. The Fairway shales are largely undisturbed and the thermal maturity and average depth of approximately 1,220 meters are considered conducive for the generation of natural gas.

Permits

The Corporation has an interest in 3 contiguous permits along the south shore of the St Lawrence, just east of the town of Becancour, totalling approximately 115,000 gross acres. These lands are prospective for the Utica Shale with part of the lands lying north of the Yamaska Growth fault. The Corporation's Gentilly Well was drilled on the western most permit. Canadian Quantum owns a 3.75% working interest and a 0.75% gross overriding royalty interest in these permits.

The Corporation's fourth permit, # 2002RS056, referred to as the Nicholet Permit, is subject to two agreements. The first agreement requires Junex Inc. to drill and complete two earning wells plus pay $250,000 to the Corporation to earn a 50% working interest in the Nicholet Permit to the base of the Utica Shales. The second agreement that the Corporation has entered into provides for a major oil and gas company to make a cash payment to the Corporation of $300,000 and shoot a 6 km seismic program in order to earn 100% of the Corporation's deep rights below the Utica Shales and a 20% working interest from surface to the base of the Utica Shales subject to the payment of a 5% gross overriding royalty to the Corporation based on their earned interest. The Nicholet Permit, consisting of approximately 54,600 gross acres, is ideally located straddling the Fairway and sitting reasonably central in the St. Lawrence Lowlands Basin play.

Future Development

The Corporation plans to participate with its partners on the Gentilly permits, although no specific plans have been announced at this time for the 2009 calendar year.

With respect to the Nicholet Permit, the Corporation does not foresee any significant capital expenditures for 2008 as the two Junex earning wells will have to be drilled and analyzed prior to making any further capital related decisions.

Current Financial Position and Planned Expenditures

As at December 1, 2008, the Corporation had net working capital of $344,633 and total assets of $248,411 as compared to total assets of $227,117 as at April 30, 2008. Management believes this working capital along with the consideration committed to be paid to the Corporation by its industry partners will be sufficient to fund all of its currently budgeted costs. Throughout the next 6 to 12 month period, the Corporation anticipates spending an estimated $150,000 on further developing its properties.

Corporate Strategy and Objectives

Management is committed to the Corporation being active in the Quebec Shale Play. Participation with quality partners in the various permits will allow the sharing of operational expertise in this new and developing play. Management remains open to evaluating additional opportunities as they arise, with the goal to building value for the Corporation's shareholders.

About Canadian Quantum

Canadian Quantum is currently active in the Quebec Lowlands Utica Shale Play holding various interests in approximately 170,000 acres. Re-completion work continues on the Gentilly No. 1 Well by the operator, Talisman Energy Canada. The Corporation continues to work with Junex Inc. regarding finalization of a formal agreement detailing the terms agreed to in the May 20, 2008, "Letter Of Intent" designed to settle the outstanding litigation on the Nicholet Property.

This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects the Corporation's current beliefs and is based on information currently available to the Corporation and on assumptions the Corporation believes are reasonable. These assumptions include, but are not limited to, the estimates and the ability of the Corporation and Talisman Energy Canada to successfully complete work on the Gentilly #1 Well and the Corporation's ability to reach an agreement with Junex Inc. in order to settle the lawsuit on the Nicholet Property. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation, its subsidiaries or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Corporation; general business, economic, competitive, political and social uncertainties; uncertainties as to market acceptability of the Corporation; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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