CanWest Petroleum Corporation
OTC Bulletin Board : CWPC

CanWest Petroleum Corporation

October 26, 2005 10:00 ET

CanWest Petroleum Corporation Proposes to Acquire Minority Shareholder Interests in Oilsands Quest Inc.

CALGARY, ALBERTA--(CCNMatthews - Oct. 26, 2005) -

Oilsands Quest Management Team will Operate the Combined Company

The Board of Directors and managements of both CanWest Petroleum Corporation and Oilsands Quest Inc. are pleased to announce their approval of a letter of intent for CanWest to acquire the remaining Oilsands Quest's equity and convertible debt securities that are held by its minority shareholders in exchange for CanWest common shares and warrants. CanWest currently owns a 54.55% equity interest in Oilsands Quest Inc. The transaction is based on evaluating Oilsands Quest's common shares at $8.00 CDN per share to be paid for in units of CanWest priced at $3.00 USD. Each unit consists of one common share and a one half warrant with a term of 2 years at an exercise price of $4.00 USD per share.

If all the minority equity and convertible notes are acquired then CanWest will issue, approximately, 19,540,000 common shares and 9,770,000 warrants.

Other terms of the letter of intent include an immediate best efforts undertaking by CanWest to list on a senior American stock exchange; subject to satisfactory due diligence, a formal agreement before November 15, 2005; the granting of 2,000,000 incentive stock options at an exercise price of $3.00 USD per share to the new CanWest management team; and a six person Board of Directors with two board members appointed by Oilsands Quest Inc. Closing is expected to occur by mid-to late January 2006 and is subject to regulatory approvals.

On completion of the transaction the Oilsands Quest's management team will be appointed to manage the combined CanWest including its President, Chief Operating Officer, Chief Financial Officer and Vice-President, Exploration.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.

Cusip# 138748 10 8

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