Questerre Closes Canadian Financing

CALGARY, ALBERTA--(Marketwire - March 17, 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 that it has closed its previously announced Canadian offering for gross proceeds of $43.12 million.

The offering consisted of the issuance of 10,028,000 Common Shares of the Company at $4.30 per Common Share. The offering was managed by a syndicate of agents led by Dundee Securities Corporation (bookrunner) and Cormark Securities Inc., including Mackie Research Capital Corporation, Industrial Alliance Securities Inc., Fraser Mackenzie Limited, Clarus Securities Inc., National Bank Financial Inc. and Maison Placements Canada Inc.

This Canadian tranche in conjunction with the Norwegian tranche completed last week resulted in the issuance of a total of 30,000,000 Common Shares at $4.30 per Common Share for gross proceeds of approximately $129 million.

The Company plans to use the net proceeds from this equity issue to fund the continued assessment of the Utica shale gas discovery in the St. Lawrence Lowlands, Quebec.

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, Quebec.

This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the offering. Although Questerre believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Questerre can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at www.sedar.com. The intended use of the proceeds of the offering by Questerre might change if the Board of Directors of Questerre determines that it would be in the best interests of Questerre to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and Questerre undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or solicitation would be unlawful.