Oilsands Quest successfully acquires lands in Alberta contiguous to its Axe Lake Discovery



    Amex:   BQI

    CALGARY, March 22 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) announces the
company has added four blocks of oil sands exploration permits in Alberta
totaling 27,136 hectares (67,053 acres), as the result of successful bids at
recent Alberta land sales. The permits are located directly west and
contiguous to Oilsands Quest's Axe Lake Discovery lands on its oil sands
permits in Saskatchewan. The total consideration paid, which includes the
permit rental costs for the first year, to the Alberta government for the
permits purchased in the March 21, 2007 land sale was US$21,657,699
($25,075,488 Cdn).
    "We are extremely pleased with the successful conclusion of our bids,"
said Christopher H. Hopkins, President & Chief Executive Officer of Oilsands
Quest. "In addition to what our drilling program is proving on our Axe Lake
Discovery lands in Saskatchewan, seismic surveys that we conducted over lands
on both sides of the Alberta/Saskatchewan border earlier this winter strongly
supported the acquisition of these parcels."

    
    Results of Alberta Land Sale Announced March 21, 2007 ($ Cdn)

    Block  Description                                Total Ha(1)   Price/Ha

    P9039  North half of Township 92, Range 1,
           West of the 4th Meridian                     4,608       $1,085.10

    P9040  East half of Township 93 and 94,
           Range 1, West of the 4th Meridian            9,216       $1,193.00

    P9041  West half of Township 93 and 94,
           excluding sections 32 and 33, Range 1,
           West of the 4th Meridian                     8,704       $1,034.00

    (1)  One (1) Hectare (Ha) equals approximately 2.471 acres.

    

    With the purchase of the north half of Township 92, Oilsands Quest now
owns exploration permits for the whole township, as it had successfully bid on
the south half of Township 92, Range 1, West of the 4th Meridian on August 9,
2006 (P0098 - 4,608 hectares).
    The acquisition of the permits was funded by a line of credit from The
Toronto-Dominion Bank pursuant to a Credit Agreement dated as of March 19,
2007. Oilsands Quest Sask Inc., the Company's subsidiary, is the borrower
under the facility and the Company has provided a secured guarantee. The
facility is repayable on or before October 31, 2007.

    Conference Call

    Oilsands Quest will host a conference call on Monday, March 26, 2007 to
provide a comprehensive update of this winter's exploration program and to
discuss the implications of this purchase of oil sands permits in Alberta.
Details regarding the time of the conference call and topics of discussion
will be announced in a news release and posted on the Company's website as
soon as they are finalized.

    Forward-Looking Information

    Except for statements of historical fact relating to the company, this
news release contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may" "will" or "could" occur.
Forward-looking statements such as the references to Oilsands Quest Inc.'s
drilling program, geophysical programs, testing and analysis programs and
timing of such programs are based on the opinions and estimates of management
at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking statements,
which include but are not limited to risks inherent in the oil sands industry,
regulatory and economic risks, and risks associated with the company's ability
to implement its business plan. There are uncertainties inherent in
forward-looking information, including factors beyond Oilsands Quest Inc.'s
control, and no assurance can be given that the programs will be completed on
time, on budget or at all. Oilsands Quest Inc. undertakes no obligation to
update forward-looking information if circumstances or management's estimates
or opinions should change, except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. The risks and
uncertainties set forth above are not exhausting. Readers should refer to
Oilsands Quest's current annual report on Form 10KSB and other document
filings, which are available at www.sedar.com and at www.sec.gov for a
detailed discussion of these risks and uncertainties and details regarding the
location and extent of the Oilsands Quest permit lands.





For further information:

For further information: General inquiries and retail investors, contact
Hedlin Lauder Investor Relations Ltd., Toll Free 1-800-299-7823, Office (403)
232-6251, Email: irinfo@hedlinlauder.com; Institutional investors, contact The
Buick Group, Toll Free 1-877-748-0914, Office (416) 915-0915, Email:
jbuick@buickgroup.com

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