Oilsands Quest announces private placement of common stock

    Amex:   BQI

    CALGARY, April 17 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) announced today
that it intends to issue shares of its common stock to investors in Canada and
the United States pursuant to certain exemptions from prospectus requirements
(the "Common Shares") through a syndicate of underwriters. Pricing of the
private placement will follow marketing to investors and will be determined in
the context of the market. It is expected that the total gross proceeds to
Oilsands Quest will be approximately US$30 million. The proceeds will be used
to repay debt incurred in conjunction with recently announced property
acquisitions, for pre-commercial feasibility testing, working capital and
general corporate purposes. Closing of the private placement is expected to
occur on or about May 1, 2007 and is subject to regulatory approval and the
completion of definitive documentation.
    The Common Shares have not been registered under the United States
Securities Act of 1933, as amended (the "Securities Act") and will be offered
or sold only in compliance with Regulation S and Regulation D under the
Securities Act.
    This notice is not an offer to sell or a solicitation of an offer to buy
such securities and is issued pursuant to Rule 135c under the Securities Act
of 1933.

    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 in this news release
is 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
financing plans 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 financing will be completed on
time 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.

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,

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Oilsands Quest Inc.

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