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 2012.

Michael Binnion, President and Chief Executive
Officer, commented, "Our significant investment in oil
shale at the end of the first quarter capped a year of
looking for new high-impact projects. Our recently
acquired assets could add in excess of several hundred
million barrels in resources, complementing our
multi-Tcf discovery in Quebec. Our goal for the next
two years is to move these assets along the learning
curve towards commercial development."

He added, "To generate near-term cash flow and build
capital value, we also invested in our conventional
assets. Developing Antler remained a priority, though
growth in the quarter was delayed as strict municipal
road bans shut-in production. We successfully drilled
our first well in the liquids-rich window of the
Montney shale and the results were better than expected."

Highlights

·	Invested $40 million in oil shale acquiring an
equity interest in Red Leaf Resources Inc., licensing
rights to their EcoShale process and a 20% interest in
oil shale acreage in Wyoming 
·	Completed core hole drilling program on oil shale
acreage in Pasquia Hills, Saskatchewan
·	Spud first Montney well targeting liquids-rich
natural gas in Alberta
·	Early spring breakup and resulting road bans slowed
light oil drilling program in Antler, Saskatchewan
·	Improved oil weighting generated cash flow from
operations of $3.29 million with average daily
production of 725 boe/d
·	Balance sheet strength preserved with $55 million in
positive working capital and no debt

Production increased to 725 boe/d during the first
quarter of 2012 from 650 boe/d in the prior year first
quarter with growth impacted by road bans that shut-in
production in Saskatchewan. With 85% of production
from oil and natural gas liquids, Questerre reported
cash flow from operations of $3.29 million (2011:
$1.64 million). In addition to its $40 million
investment in oil shale assets, Questerre invested
$14.79 million in the first quarter of 2012.
Approximately 80% was invested in Antler and the
remainder was invested primarily in the Montney in
Alberta and the core hole program for our oil shale
acreage in Saskatchewan.

As at March 31, 2012, the Company reported a working
capital surplus of $55.05 million.

The term "cash flow from operations" is a non-GAAP
measure. Please see the reconciliation elsewhere in
this press release.

Questerre Energy Corporation is an independent energy
company focused on non-conventional oil and gas
resources. The Company is currently developing a
portfolio of oil shale assets in North America. It is
also securing a social license to commercialize its
Utica natural gas discovery in Quebec. The Company is
underpinned by light oil assets and a strong balance
sheet.  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 media release contains certain statements which
constitute forward-looking statements or information
("forward-looking statements"), including the
potential to add several hundred million barrels in
resources, moving these assets to commercial
development, and the results from our Montney well.
Although Questerre 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 Questerre.  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
information.  As such, readers are cautioned not to
place undue reliance on the forward looking
information, 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, Questerre 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.

This press release contains the terms "cash flow from
operations" and "netbacks" which are non-GAAP terms.
Questerre uses these measures to help evaluate its
performance. 

As an indicator of Questerre's performance, cash flow
from operations should not be considered as an
alternative to, or more meaningful than, net cash from
operating activities as determined in accordance with
GAAP. Questerre's determination of cash flow from
operations may not be comparable to that reported by
other companies. Questerre considers cash flow from
operations to be a key measure as it demonstrates the
Company's ability to generate the cash necessary to
fund operations and support activities related to its
major assets. 

For the three months ended March 31,	2012	2011
Net cash from operating activities	$ 740,800	$ 866,496
Change in non-cash operating working capital	
2,550,354	770,454
Cash flow from operations	$ 3,291,154	$ 1,636,950

The Company considers netbacks a key measure as it
demonstrates its profitability relative to current
commodity prices. Operating netbacks per boe equal
total petroleum and natural gas revenue per boe
adjusted for royalties per boe and direct operating
expenses per boe. 

The Company also uses the term "working capital
surplus". Working capital surplus, as presented, does
not have any standardized meaning prescribed by GAAP
and may not be comparable with the calculation of
similar measures for other entities. Working capital
surplus, as used by the Company, is calculated as
current assets less current liabilities excluding the
current portions of the share based compensation
liability and risk management contracts.