Mr. Jason D'Silva reports

QUESTERRE CLOSES ACQUISITION OF RED LEAF RESOURCES INC.

Questerre Energy Corp. has closed the acquisition of Red Leaf Resources Inc. through the exchange of Red Leaf common shares for Class A common voting shares.

Michael Binnion, president and chief executive officer of Questerre, commented: "The closing of the Red Leaf acquisition is another step forward in our strategy to commercialize oil shale as a globally competitive resource. Red Leaf hold rights to over several hundred million barrels of oil share resource in Utah. In Jordan, we are negotiating an extension to our exclusive rights to the Isfir-Jafr project with over several billion barrels of oil shale resource. The recently acquired PX Energy has existing oil shale reserves and resources and is currently producing over 4,000 barrels per day of oil equivalent using the Petrosix technology developed by a Brazilian supermajor. We believe Red Leaf's HCCO technology represents a significant improvement in efficiency and economics to unlock these oil shale resources globally."

The company issued a total of 17.25 million Questerre common shares to acquire just over 50 per cent of the outstanding common share capital of Red Leaf from the selling shareholders. Including the nearly 40 per cent currently held by Questerre, Questerre now owns over 90 per cent of the issued and outstanding common shares of Red Leaf. Pursuant to the Red Leaf stockholder agreement, the selling shareholders have exercised the drag-along provisions requiring the remaining common shareholders to accept the offer on the same terms. Subject to applicable securities regulations, it is anticipated that up to an additional 3.1 million Questerre common shares or equivalent consideration will be issued to acquire this remaining interest.

The company also reported that the majority of the preferred shareholders of Red Leaf, including the chief executive officer of Questerre, have agreed to sell their preferred shares for the face value plus accrued dividends. Excluding the 16 per cent of the preferred share capital held by Questerre, the company will pay approximately $1.6-million (U.S.) to acquire these preferred shares.

Red Leaf is a private U.S.-based technology company whose principal assets include its patented HCCO oil shale processing technology and mineral leases in the state of Utah. Its other assets include mineral leases in the state of Utah for oil shale, a permit for a wax processing facility and title to over 7,000 acres in the Uintah basin, and cash and investments of $9-million (U.S.).

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 successfully transition its energy portfolio.

Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment and society. The company 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.