Questerre Energy Corporation

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2010) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO: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.

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.