Oilsands Quest Inc. announces terms of previously-announced offering

    Amex:   BQI

    CALGARY, Nov. 21 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) (the "Company")
announced today that it has priced its previously-announced marketed public
offering (the "Offering") of 11,000,000 units ("Units") and 2,600,000 common
shares on a flow-through basis ("Flow-through Shares"). Investors in the
United States should be aware that Flow-through Shares will not be offered in
the United States.
    The offering of Units has been priced at US$5.00 per Unit, while the
offering of Flow-through Shares has been priced at C$6.17 per Flow-through
    Each Unit is comprised of one common share (a "Share") and one-half of a
common share purchase warrant of the Company (a "Warrant") with each whole
Warrant entitling the holder to purchase one Share of the Company for a period
of 24 months following closing of the Offering.
    The Offering will be made by a syndicate of underwriters (the
"Underwriters") bookrun by TD Securities (USA) LLC in the United States and TD
Securities Inc. in Canada. The Company has agreed to grant the Underwriters an
over-allotment option to purchase up to 1,650,000 Shares and 825,000 Warrants,
exercisable at any time up to 30 days from the closing of the Offering. The
Offering is subject to certain conditions, including regulatory approval.
    The Company intends to use the proceeds of the offering of Units for
reservoir testing and other costs associated with the Axe Lake Discovery and
for general corporate purposes. Specific allocations of the proceeds for such
purposes have not been made at this time.
    The Company intends to use the proceeds from the offering of the
Flow-through Shares to incur Canadian Exploration Expenses through exploration
activities relating to its permit lands.
    The Offering is expected to close on or about December 5, 2007.
    A copy of the prospectus may be obtained from TD Securities (USA) LLC in
the United States and TD Securities Inc. in Canada at the following addresses:

    In the United States:

    TD Securities (USA) LLC
    ATTN: Paula Kourian
    31 W. 52nd Street
    New York, NY

    In Canada:

    TD Securities Inc.
    ATTN: Nikita Tziavas
    222 Bay Street, 7th Floor
    Toronto, Ontario
    M5K 1A2

    This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities in the United States and shall
not constitute an offer to sell or the solicitation of any offer to buy any
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.

    The Company has filed a registration statement, including a prospectus,
(SEC File No. 333-147200) with the Securities and Exchange Commission ("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
underwriter or any dealer participating in this offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-299-7823 or
1-866-794-7288 or by emailing info@oilsandsquest.com.

    About Oilsands Quest Inc.

    Oilsands Quest Inc. is aggressively exploring Canada's largest contiguous
oil sands land holding by applying its technical expertise to develop multiple
potential global-scale discoveries. The company (www.oilsandsquest.com) is the
originator of Saskatchewan's emerging oil sands industry.

    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 statements such as references to
Oilsands Quest's exploration, technical and development programs and future
discoveries 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.
These risks, uncertainties and other factors include, but are not limited to,
exploration and technical 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's
control, and no assurance can be given that the programs will be completed on
time, on budget or at all. Oilsands Quest 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 exhaustive. Readers should refer to
Oilsands Quest's current annual report on Form 10-KSB 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 Oilsands Quest's land holdings.

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
BarnesMcInerney Inc., Toll Free 1-866-794-7288, Office (416) 371-0510, Email

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