Questerre Energy — Earnings Release 2010

Aug 13, 2010

Questerre spuds two more Utica horizontal wells in the second quarter

Calgary, Alberta -- Questerre Energy Corporation

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

today on its operating and financial results for the

second quarter of 2010.

Michael Binnion, President and Chief Executive Officer

of Questerre, commented, "The excellent results from

St. Edouard No. 1A provided the impetus for Questerre

to begin planning work on the next phase of early

commercialization - a demonstration project."

Mr. Binnion added, "Our goal for this next phase is to

have a pad development producing and selling natural

gas in Québec. We are currently in negotiations with

our partners including GazMetro, the pipeline

distribution company, for this project. Subject to the

final results from the pilot horizontal well program

and the ongoing negotiations, the current time line

could see gas on production as early as mid 2011."

Q2 Highlights

· Two Utica shale horizontal wells spud in St.

Lawrence Lowlands, Québec

· Completed long term testing of St. Edouard No. 1A

exceeded expectations

· Commenced negotiations and planning work on Utica

shale commercial demonstration project in the Lowlands

· Included in the Oslo Bors main OBX and TSX S&P 500

indices

· Positive cash flow from operations of $0.19 million

and production of 620 boe/d with minimal spending on

developed assets

· Maintained balance sheet strength with over $160

million in positive working capital and no debt

Production of 620 boe/d over the second quarter (2009:

806 boe/d) was relatively unchanged from the first

quarter and reflects the limited investment in our

development assets over the last 18 months.

Higher commodity prices in the quarter largely offset

the lower production volumes over the prior year.

Petroleum and natural gas revenue in the second

quarter was $2.81 million (2009: $2.97 million) with

oil and natural gas liquids accounting for

approximately 50% of the product mix. Due to an

adjustment for prior period Crown and overriding

royalties in Alberta, cash flow for the period was

$0.19 million (2009: $0.72 million).

The Company reported a working capital surplus of

$160.93 million at June 30, 2010 compared to $50.95

million at June 30, 2009.

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. Questerre is committed to the

economic development of its resources in an

environmentally conscious and socially responsible manner.

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 and the timing and scope of the commercial

demonstration 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.

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.