Questerre Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Dec. 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) (OSE:QEC) announced today that the Toronto Stock Exchange ("TSX") has accepted its Notice of Intention to Make a Normal Course Issuer Bid (the "2011 Issuer Bid") which will be carried out on the TSX and the Oslo Stock Exchange ("OSE").

Under the terms of the 2011 Issuer Bid, Questerre is authorized to acquire up to an aggregate of 11,706,586 of its Class "A" common shares ("Common Shares") over the next 12-month period representing approximately 5% of its issued and outstanding Common Shares as at December 16, 2010.

A maximum of 282,792 Common Shares may be purchased by Questerre on any one day through the facilities of the TSX, subject to any exemptions permitted by the TSX. A maximum of 184,968 Common Shares may be purchased on any one day through the facilities of the OSE, subject to any exemptions permitted by the OSE and applicable regulations.

All Common Shares purchased by Questerre under the 2011 Issuer Bid will be returned to treasury and cancelled. As at today's date, Questerre has 234,131,728 Common Shares issued and outstanding. Although Questerre has a present intention to acquire Common Shares, it is not obligated to make any purchases pursuant to the 2011 Issuer Bid. In the past 12 months, Questerre has not acquired Common Shares pursuant to a normal course issuer bid.

The 2011 Issuer Bid shall commence on December 22, 2010 and terminate on December 21, 2011, or the earlier of the date all Common Shares which are subject to the 2011 Issuer Bid are purchased.

In the opinion of the Board of Directors of Questerre, the market price of the Common Shares does not accurately reflect the value of those shares. As a result, Common Shares may become available for purchase at prices which make them an appropriate use of funds of Questerre. All purchases will be effected at market prices through the facilities of the TSX or the OSE, as the case may be, and in accordance with the rules and policies of the TSX and the OSE and applicable regulations. Shareholders may obtain a copy of the 2011 Issuer Bid, without charge, by contacting Questerre.

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. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.

This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the intention of Questerre to purchase its Common Shares pursuant to the 2011 Issuer Bid and the availability of Common Shares for purchase at appropriate prices. There is no assurance that Common Shares will be purchased under the 2011 Issuer Bid and Questerre may elect to suspend or discontinue the 2011 Issuer Bid at any time. 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 and Questerre's current ability to purchase its Common Shares. 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.

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