Oilsands Quest announces terms of previously announced private placement of common stock

    Amex:   BQI

    CALGARY, April 18 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) announced today
that it has agreed to terms of the previously announced private placement 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. Oilsands Quest intends to issue 14 million common
shares at a price of US$2.75 per share for aggregate gross proceeds of
US$38.5 million. The proceeds will be used to repay debt incurred in
conjunction with recently announced property acquisitions, for pre-commercial
recovery testing and analysis, 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. Following the closing, the Company will have approximately
US$76 million in cash, which is expected to be sufficient to satisfy the
Company's estimated exploration budget, planned pre-commercial recovery
testing and analysis activity for the 2007/2008 winter program, eliminate
outstanding debt, and fulfill working capital requirements until April 2008.
    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, exploration and pre-commercial recovery testing and analysis
budgets, and working capital requirements 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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