Oilsands Quest Announces Review Of Strategic Alternatives (BQI)

Oilsands Quest Inc.

("OQI" or the "Company") today announced that its Board of Directors has initiated a process to explore strategic alternatives for enhancing shareholder value. The Board's decision reflects careful consideration of OQI's current financial position and the capital required to execute the business plan, as well as recent expressions of interest received from third parties. In light of the significant incremental capital required to advance OQI's oil sands assets in Saskatchewan and Alberta toward commercial development, the Board determined that it is in the best interests of shareholders to hire financial advisors and formally explore all alternatives. The process of exploring and evaluating strategic alternatives will be overseen by a Special Committee chaired by Brian MacNeill, and including Ronald Blakely and Paul Ching, all of whom are independent directors. The Special Committee will consider all alternatives to increase shareholder value, including strategic financing opportunities, asset divestitures, joint ventures and/or a corporate sale, merger or other business combination, and will ultimately recommend a course of action to the Company's full Board. The Company has retained TD Securities Inc. as financial advisor to assist it with this process.