Oilsands Quest Receives Court Approval of $7 Million Sale of Eagles Nest Asset

Oilsands Quest Inc. (NYSE: BQI) has received approval from the Alberta Court of Queen's Bench for the sale of the Company's non-core Eagles Nest asset to FAMA Capital Ltd., an unrelated third party, for CDN$7.0 million.

This approval follows a short Court-directed limited bidding process, resulting in a higher sale price than previously disclosed. The Company has signed a Purchase and Sale Agreement with FAMA and the transaction, subject to normal closing conditions, is expected to close on or before March 23, 2012. FAMA has also agreed to pay a deposit of CDN$400,000 by February 24, 2012.