Questerre Completes Investment in Oil Shale Assets

CALGARY, ALBERTA--(Marketwire - April 2, 2012) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) reported today that it has successfully concluded its Letter of Intent with Red Leaf Resources, Inc. ("Red Leaf") to invest in the company and its oil shale assets in Wyoming and Utah.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "This could be a complete game changer, not only for us, but for energy markets. Commercial oil shale mining would unlock one of the world's great resources. The assets we have now invested in are in Wyoming and Utah and are situated in the main fairway for oil shale in the United States. The US Geological Survey estimates there are 1.5 trillion barrels of oil in place in Utah, Wyoming and Colorado. Red Leaf estimates the surface recoverable oil resources using their proprietary technology for their Utah and Wyoming acreage are approximately 400 million barrels and 800 million barrels respectively."

He added, "Red Leaf's proprietary EcoShale In-Capsule Process could be the key to unlocking these significant resources. A ground breaking pilot project was completed in Utah and produced oil in line with expectations. They have just entered into a joint venture agreement with a supermajor that contemplates initially investing up to $300 million directly in the Utah project." Red Leaf's existing acreage in Utah covers approximately 17,000 acres.

He further added, "Although at an earlier stage in development, we believe the acreage in Wyoming could be as prospective. We intend to participate in a program this summer to gather additional data and validate the existing resource assessment and compatibility with their EcoShale process." Questerre has a joint venture agreement to participate as a 20% working interest partner in the Wyoming project covering 5,120 acres.

Questerre increased its commitment to Red Leaf to US$40 million representing just under 6% of the common equity. Red Leaf has no debt. Questerre received a board seat on Red Leaf in conjunction with this commitment and has appointed Michael Binnion, Chief Executive Officer of Questerre.

Questerre also has an agreement to obtain licenses to use the Red Leaf EcoShale Process.

Questerre Energy Corporation is an independent energy company focused on non-conventional oil and gas resources. The Company is currently developing a portfolio of oil shale assets in North America. It is also securing a social license to commercialize its Utica natural gas discovery in Quebec. The Company is underpinned by light oil assets and a strong balance sheet. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the potential impact of oil shale on energy markets, the commercial potential of Red Leaf's EcoShale In-Capsule Process, the estimate of oil in place for the Utah and Wyoming properties, participation to earn a 20% interest in Red Leaf's Wyoming properties, the carrying out of a preliminary field assessment program on the Wyoming lands this summer and anticipated joint venture operations with the supermajor on the Utah project. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Red Leaf's assets in Wyoming and Utah do not currently have any production or any reserves or resources as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Estimates of "oil in place" or "barrels" presented in this press release as prepared by Red Leaf have not been prepared in accordance with NI 51-101 due to the absence of sufficient information to establish the economic feasibility of the recovery of the oil-in-place necessary to meet the regulation guidelines. References to "oil in-place" or "barrels" refer to quantities of petroleum that are estimated to exist originally in naturally occurring accumulations. Such references include that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. There is no certainty that any portion of such resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of such resources.

Resources referred to as estimated "oil in-place" or "barrels" are not classified as reserves or resources due to the lack of regulatory approval, the absence of a commercial development program that includes a firm intent to develop within a reasonable timeframe, the absence of sufficient information to establish the economic feasibility of the recovery of the hydrocarbons necessary to meet the regulation guidelines, the absence of certain geographic, engineering and reservoir characteristics data, and the uncertainty of funding for development. Estimates of resources contained in Red Leaf's properties have not been evaluated by a qualified reserves evaluator. References to "oil in-place" or "barrels" do not constitute, and should not be confused with, reserves or resources.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.