Questerre Energy — Earnings Release 2010

May 17, 2010

Questerre derisking significant Utica shale gas resource

Calgary, Alberta -- Questerre Energy Corporation

("Questerre" or the "Company") (TSX,OSE:QEC) reported

today on its operating and financial results for the

first quarter of 2010.

Michael Binnion, President and Chief Executive

Officer of Questerre, commented, "The St. Edouard

horizontal well results in the St. Lawrence Lowlands,

Québec, marked the beginning of a new chapter for

Questerre."

Mr. Binnion added, "Our primary goal now is to

continue derisking our significant discovered Utica

shale gas resource. Over the next 12 months, subject

to results, our goals are to add three to six

additional results to the ongoing pilot program,

acquire 3-D seismic, construct a 'first gas' pipeline

and see passage of new hydrocarbon legislation."

Highlights

· St. Edouard 1A horizontal well tested at an

initial stabilized rate of approximately 6 MMcf/d

from the Utica shale in the St. Lawrence Lowlands,

Québec

· Completed $128 million equity offering to

primarily finance commercialization and early

development of the Utica

· Positive cash flow from operations of $0.52

million and production of 600 boe/d with limited

investment in developed assets

· Strengthened financial position with $166

million in positive working capital and no debt

Cash flow from operations for the first quarter of

this year was $0.52 million as compared to $1.06

million in 2009. The results reflect the limited

investment in developed assets in the prior year

partially offset by materially higher oil prices.

Petroleum and natural gas revenue in the first

quarter of 2010 was $2.98 million (2009: $3.72

million). Production averaged 600 boe/d (2009: 1,049

boe/d) with crude oil and liquids accounting for 49%

of the volumes (2009: 44%). The Company reported a

working capital surplus of $165.60 million at March

31, 2010 as compared to $51.76 million at March 31,

Questerre Energy Corporation is an independent energy

company focused on shale gas in North America. The

Company is concentrated on establishing commerciality

of its Utica shale gas discovery in the St. Lawrence

Lowlands, Québec.

For further information, please contact:

Questerre Energy Corporation

Anela Dido, Investor Relations

(403) 777-1185 | (403) 777-1578 (FAX) |Email:

info@questerre.com

This news release contains certain statements which

constitute forward-looking statements or information

("forward-looking statements"), including the results

from our horizontal wells, the estimated recovery of

resources. 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.

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.

Barrel of oil equivalent ("boe") amounts may be

misleading, particularly if used in isolation. A boe

conversion ratio has been calculated using a

conversion rate of six thousand cubic feet of natural

gas to one barrel of oil and is based on an energy

equivalent conversion method application at the

burner tip and does not necessarily represent an

economic value equivalent at the wellhead.