Mr. Michael Binnion reports

QUEBEC SUPERIOR COURT SUSPENDS PROVISIONS OF BILL 21

The Quebec Superior Court (civil division) has ruled on Questerre Energy Corp.'s application to stay certain provisions of the act ending exploration for petroleum and underground reservoirs and production of petroleum and brine for the duration of the judicial proceedings.

Michael Binnion, president and chief executive officer of Questerre, commented: "This exceptional ruling in our favour preserves our legal rights as we continue to work for a political and business solution to the situation in Quebec. We remain hopeful for a solution that will materially reduce Canadian greenhouse gas emissions while improving energy security."

In the ruling issued yesterday, the justice assessed the key criteria for a stay and deemed that the company's application met these criteria. This included the existence of a serious legal matter and the serious or irreparable harm if the request for a stay is refused.

The attorney-general argued that Civil Code of Quebec and the Quebec's Charter of human rights and freedoms provisions, while protecting the right to property of citizens and companies against unreasonable use of government powers, do not apply if the government chooses to use those same powers to override them. The justice noted that the circular nature of the attorney-general's argument gave rise to a serious legal matter.

Mr. Binnion added: "The argument of the attorney-general is, in effect, that the powers of the legislature are supreme even over laws intended to limit the powers of the legislature. This would, in effect, nullify the provisions of the Civil Code and Charter protecting citizens from abuse of government powers. It is a hallmark of constitutional democracies that the government has limits on its power, and the disguised expropriation of our assets in Quebec should be compensated for."

Recognizing that this is an exceptional measure, the justice also ruled that the judgment be enforced even if the attorney-general files an appeal, also known as provisional execution. He noted that Questerre and the other plaintiffs run the risk of serious and irreparable harm in the absence of this order for provisional execution.

Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low-permeability reservoirs to acquire significant high-quality resources. The company believes it can transition its energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, it can sustain both human progress and its natural environment.

Questerre is a believer that the future success of the energy industry depends on a balance of economics, environment and society. It is committed to being transparent and is respectful that the public must be part of making the important choices for the energy future.

We seek Safe Harbor.