Questerre Energy — Earnings Release 2010

Nov 12, 2010

Questerre lays groundwork for commercial development of Utica

Calgary, Alberta -- Questerre Energy Corporation

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

today on its operating and financial results for the

third quarter of 2010.

Michael Binnion, President and Chief Executive Officer

of Questerre, commented, "During the quarter we began

to address some of the prerequisites to the next phase

of establishing commerciality of the Utica shale. We

are looking forward to the completion and testing of

St. Gertrude and Fortierville next year and further

work on our commercial demonstration project in the

St. Lawrence Lowlands."

He added, "Despite the delays to the previously

announced timeline, we intend to use this time to lay

the groundwork for the next phase. The additional

technical information and new hydrocarbon legislation

will give industry the comfort it needs to make the

necessary investment in the multi-well program. A

local service sector will follow which increases the

likelihood of optimizing well costs. This will move

the Utica out of the pilot phase and, with continued

success, to validating the reserve potential of this

massive resource."

Highlights

· Gentilly horizontal well test meets expectations at

an initial stabilized rate of 720 Mcf/d from three

fracs in the middle Utica or approximately 240 Mcf/d

per frac

· Completion of Fortierville and St. Gertrude

horizontals deferred by operator to the first half of 2011

· Concluded pipeline agreement and commenced

permitting a 3-D seismic program for the commercial

demonstration project targeting the St. Edouard area

· Cash flow from operations of $1.44 million and

production of 649 boe/d with improved operating

efficiencies during the quarter

· Sustained financial position with over $154 million

in positive working capital and no debt

Production of 649 boe/d over the third quarter (2009:

632 boe/d) was improved from the second quarter

volumes of 620 boe/d and includes early additions from

our ongoing drilling program in Antler. Petroleum and

natural gas revenue in the third quarter was $2.95

million (2009: $2.79 million) with oil and natural gas

liquids accounting for 53% of the product mix.

Improved operating efficiencies resulted in cash flow

for the period of $1.44 million for the quarter (2009:

$0.50 million) and $2.15 million (2009: $2.28 million)

for the year to date.

The Company reported a working capital surplus of

$154.53 million at September 30, 2010 compared to

$49.02 million at September 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.

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 and the timing and scope of

future operations. 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.