Oilsands Quest Inc. announces terms of previously-announced offering



    NYSE Amex:   BQI

    CALGARY, April 30 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) (the "Company")
announced today that it has priced its previously-announced marketed public
offering (the "Offering") of 30,500,000 units ("Units"). The offering of the
Units has been priced at US$0.85 per Unit.
    Each Unit will be comprised of one common share ("Share") and one-half of
a common share purchase warrant of the Company ("Warrant") with each whole
Warrant entitling the purchaser to purchase one Share of the Company for
US$1.10 for a period of 24 months following closing of the Offering.
    The Offering will be made by a syndicate of agents led by Genuity Capital
Markets, TD Securities Inc. as well as Canaccord Capital Corporation, Dundee
Securities Corporation and RBC Capital Markets Inc. (the "Agents"). The
Company has agreed to grant the Agents an over-allotment option to purchase up
to an additional 4,575,000 Shares and 2,287,500 Warrants pursuant to the
Offering. The Agents may exercise the over-allotment option, in whole or in
part, at any time up to 30 days from the closing of the Offering. The Offering
is subject to certain conditions, including stock exchange approval.
    The Company will use the funds to continue its testing activities at Test
Sites 1 and 3, continue its exploration activities on its existing permits and
licenses and for general corporate purposes. Specific allocations of the
proceeds for such purposes have not been made at this time.
    The Offering is expected to close on or about May 12, 2009.
    A copy of the prospectus may be obtained from TD Securities (USA) LLC. in
the United States and Genuity Capital Markets in Canada at the following
addresses:

    
    In the United States:           In Canada:
    TD Securities (USA) LLC         Genuity Capital Markets
    ATTN: Paula Kourian             ATTN: Sandy Delaney
    31 W. 52nd Street               40 King St W, Suite 4900
    New York, NY 10019              PO Box 1007
                                    Toronto, Ontario M5H 3Y2
    

    The Company has filed a registration statement, including a prospectus,
(SEC File No. 333-147200) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the Company has filed with the
SEC for more complete information about the Company and this offering. You may
get these documents for free by visiting EDGAR on the SEC website at
www.sec.gov. Alternatively, the Company, any agent or any dealer participating
in the offering will arrange to send you the prospectus if you request by
calling toll-free 1-877-718-8941 or by emailing ir@oilsandsquest.com.

    About Oilsands

    Quest Oilsands Quest Inc. is exploring Canada's largest holding of
contiguous oil sands permits and licences, located in Saskatchewan and
Alberta, and developing Saskatchewan's first global-scale oil sands discovery.
It is leading the establishment of the province of Saskatchewan's emerging oil
sands industry.

    Forward-looking information:

    Forward-Looking Statements: This news release contains certain
"forward-looking information" within the meaning of applicable securities law
including statements regarding the Company's expected use of proceeds of the
Offering and the expected date of closing of the Offering. Forward-looking
information is frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", "conceptual", "may",
"will", "would", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur. These
statements are only predictions. Forward-looking information is based on the
opinions and estimates of management at the date the information is provided,
and is subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those projected
in the forward-looking information. These factors include risks relating to
the ability of the Company to complete the proposed equity financing as
contemplated. For a description of the risks and uncertainties facing the
Company and its business and affairs, readers should refer to the Company's
Annual Report on Form 10K for the year ended April 30, 2008, as amended. The
Company undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change, unless
required by law. The reader is cautioned not to place undue reliance on
forward-looking statements.





For further information:

For further information: Paul K. O'Donoghue, MBA, Vice President,
Investor Relations and Corporate Planning, Email: ir@oilsandsquest.com,
Investor Line: 1-877-718-8941

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Oilsands Quest Inc.

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