Qwest Energy 2004 Financial Corp.

Qwest Energy 2004 Financial Corp.
Qwest Energy 2005 Financial Corp.

Qwest Energy 2005 Financial Corp.

December 29, 2008 18:26 ET

Qwest Energy 2004 Financial Corp. and Qwest Energy 2005 Financial Corp. Jointly Announce Amalgamation on January 1, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 29, 2008) - Qwest Energy 2004 Financial Corp. ("Qwest 2004") and Qwest Energy 2005 Financial Corp. ("Qwest 2005"), both wholly owned subsidiaries of Knightswood Financial Corp., a corporation listed on the TSX Venture Exchange under the symbol KWF, are pleased to announce today that the two companies will amalgamate pursuant to Section 184(2) of the Canadian Business Corporations Act effective January 1, 2009. The amalgamated company will operate under the name "Qwest Energy Financial Corp.". Qwest 2004 and Qwest 2005 confirm that immediately upon the effective date of the amalgamation, the corporation will assume liability for the due and punctual payment of all bonds and the interest thereon and all other moneys payable under the principle indentures and will covenant to pay the same and agree to observe and perform all covenants and obligations of Qwest 2004 and Qwest 2005 under the principle indentures and the bonds.

Qwest Energy Financial Corp. will be managed by the same management team of Qwest 2004 and Qwest 2005. The purpose of the amalgamation is to streamline operations and enhance operational efficiency. Management believes that the amalgamation will preserve and not impair any of the rights and powers of the trustee and the bondholders under the principle indentures.

ON BEHALF OF THE BOARD OF DIRECTORS

Qwest Energy 2004 Financial Corp.

Qwest Energy 2005 Financial Corp.

Maurice Levesque, President and Director

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