Questerre Energy Corporation CorporatePresentation Pareto Securities Oil & Offshore Conference August 29, 2007

Forward-Looking Statement This presentation contains forward-looking information. Implicit in this information are assumptions regarding oil and natural gas prices, production, royalties and expenses that, although considered reasonable by Questerre at the time of preparation, may prove to be incorrect. These forward- looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in Questerre’s plans, changes in commodity prices, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee by Questerre that actual results achieved will be the same as those forecast herein. Estimated values in this presentation do not represent fair market value.

Presentation Outline Company Overview –Asset Overview –Management & Directors –Capitalization & Financial Highlights Recent Achievements Magnus Acquisition Area Overview –Beaver River Field, British Columbia –St. Lawrence Lowlands, Quebec –Alberta Outlook Investment Case

Company Overview Strategy –Acquire significant land positions in overlooked or underdeveloped areas with opportunity to leverage technical expertise –Mitigate risk through understanding the rocks, partnerships and portfolio diversification Success to date –Based on Questerre ideas, our shareholders are exposed to a portfolio of opportunities to discover world-scale natural gas fields with access to markets –Recently agreed to acquire a significant oil resource play to further diversify our portfolio –Talisman and Transeuro have farmed in on Questerre generated natural gas prospects –Company is underpinned by a growing base of value with current production expected to be approximately 2,000 boe/d by year-end

Asset Overview Diversified portfolio of assets –St. Lawrence Lowlands, Quebec large scale exploration with discreet prospective plays –Beaver River Field, British Columbia tight gas resource play and deep exploitation and exploration plays –Southern and Central Alberta conventional E&P targets –Southeast Saskatchewan Oil resource play with near-term cash flow Risk mitigation –Extensive technical work completed on key projects –High-impact projects funded by partners –Conventional projects provide growing cash flow base St. Lawrence Lowlands Quebec Southern & Central Alberta QUEBEC ALBERTA Beaver River Field British Columbia Antler Saskatchewan BRITISH COLUMBIA SASKATCHEWAN

Management & Directors Management has extensive experience in large scale international E&P projects, unconventional reservoirs and conventional smaller scale Alberta production Founders of CanArgo Energy Corporation (CNR:AMEX,OSE) and Flowing Energy Corporation (Production growth : 0 to 3,000 boe/d in three years; sold to Daylight Energy Trust Ltd.) Management and Directors have invested approximately $12 million and own 19% of the Company

Management Michael Binnion, President & Chief Executive Officer John Brodylo, VP Exploration (Nexen) Peter Coldham, VP Engineering & Operations (Chevron) Jason D’Silva, VP Finance (CanArgo, Flowing) Wayne Hauck, Geophysicist (Murphy Oil, Philips) Richard Mindus, Operations Manager (Nexen) Ian Nicholson, Manager, Alberta (Beau Canada, Kerr McGee) Maria Rees, Corporate Secretary (CanArgo, Flowing) Rick Tityk, VP Land (Hunt Oil) Senior multi-disciplinary team well experienced in large-scale and conventional projects

Board of Directors Les Beddoes, Jr. –International Exploration - Former VP Exploration for Bow Valley Industries, Victoria, BC Michael Binnion, President & Chief Executive Officer Russ Hammond –Corporate Finance - Former Managing Director, Greenwell Montague, London, UK David Mallory –Chairman of Audit, Corporate Governance and Reserves Committee –Financial Management & Governance - Former CFO Guardian Exploration, Flowing Energy, Calgary, Alberta Tom Landry, Jr. –Oil & Gas E&P and Service Sector - Oil and gas investor & lawyer, Dallas, Texas Peder Paus, Chairman –Merchant banker – Former Managing Director Manufacturers Hanover Trust, London, New York, Oslo Jed Wood –Oil & Gas E&P and Service Sector - Founder and CEO High Arctic Energy Services, Red Deer, Alberta

Capitalization & Financial Highlights Directors, Management & Other Insiders29,331,42419% Free Float 125,876,15981% Total155,207,583 Options (Average exercise price $0.60) 12,946,253 Net working capital (At June 30, 2007)$29.9 million Cash flow from operations (First half of 2007)$6.23 million Corporate Debt (At June 30, 2007)Nil Average daily production (First half of 2007)1,572 boe/d

Canada Canada is world’s 3 rd largest natural gas producer and 8 th largest crude oil producer Largest energy supplier to the United States through well established infrastructure –Canada produces 17 Bcf/d and exports 10 Bcf/d to the US –Canada produces 2.6 mmbbl/d and exports 1.6 mmbbl/d to the US Reserves in Canada receive premium prices Source: CAPP, JS Herold 2007 Jan-Aug World M&A Metrics Purchase Price in US$ per BOE

Canadian Frontier vs. Developing Nations Similar pool potential of 10 million boe to 1 billion boe Similar operational and logistical challenges Significant cultural and political advantages Significant market advantages –Liquid market for proven reserves –Premium pricing for natural gas –Farm-in partners available for technical and financial risk mitigation –Conventional debt financing available for reserve development More difficult to access prospective land proximate to infrastructure Western Canadian Gas Resources – Conventional and New Source: CAPP

Recent Achievements

Beaver River Field, British Columbia –Spud A-8 well to test multiple horizons including prolific Nahanni formation –Received $10 million in cash from Transeuro to complete their earning on the Field in April 2007 –Preliminary results from A-7 and B-3 wells confirm commerciality of Mattson resource play St. Lawrence Lowlands, Quebec –Gentilly #1 discovery well a breakthrough technical success – Talisman has committed to additional seismic in advance of two potential wells in first half of 2008 –Farmout of Yamaska permits – two wells drilled with Forest Oil to test Utica shale resource play –Commenced exploration on St. Jean permits with high-res aeromag survey Southern & Central Alberta –Expanded landholdings through 30 sq. km (12 sq. mile) joint venture –Evaluating waterflood to add 500,000 to 750,000 barrels (net) at oil pool

Recent Achievements Corporate –Realized return from conventional assets developed in 2005 and 2006 Daily production in first half of 2007 averaged 1,572 boe/d up 238% from 464 in the first half of 2006 Positive cash flow from operations in the first half of 2007 of $6.23 million up from $1.33 million in 2006 Increased proved plus probable reserves to 2.25 mmboe in 2006 from 0.9 mmboe in 2005 –Announced agreement to acquire Magnus Energy Inc.,a junior exploration and production company Primary asset is 50% of a large contiguous land base over a discovered resource of 70 million barrels of light oil

Magnus Energy Inc. Acquisition

Overview Exciting light oil play with over 70 million barrels of oil in place - Magnus' capital constraints did not allow them to fully capitalize on this opportunity Acquisition price of $18.5 million net of expected adjustments – paid through 9.09 million common $1.04/share and $9 million in debt Proved plus probable reserves of 851,000 boe with NPV 10% of $17.91 million Tax pools of over $25 million and current production of 210 boe/d 220 sq. km (86 sq. miles) of land and seismic independently valued at over $8 million Transaction scheduled to close in October 2007

Antler, Saskatchewan Large land position of 220 sq km (127 net) over Torquay oil pool in southeast Saskatchewan Torquay is one of the largest oil accumulations in Western Canada - production has grown to over 12,000 boe/d in last three years Antler could be extension of Sinclair pool in adjacent province of Manitoba with current production of over 8,000 boe/d Light sweet oil (40º API) receives premium pricing - on par with WTI Favorable fiscal terms - Crown royalty incentives of 2.5% on first 103,000 barrels of production from horizontal wells Magnus land holdings in SE Saskatchewan

Antler, Saskatchewan Horizontal wells and new completion techniques proven to work Independent reservoir engineer estimates recovery at 111,000 gross bbls per horizontal well on a proven plus probable basis 30 infill drilling locations identified Land base has over 400 drilling spacing units to be evaluated Magnus land holdings proximal to producing Torquay/Bakken pools

Beaver River Field Western Canada

Beaver River Field Multiple prospective horizons –Porous upper Mattson on flank of structure – exploration target –Tight gas resource play in the lower Mattson - naturally fractured sandstones, siltstones and shales - resource play –Prophet fractured carbonate, known natural gas accumulation – appraisal target –Devonian shales – unassessed resource play –Hydrothermally dolomitized Nahanni – New compartment drilling opportunities on a discovered field with only 15% recovery to date – infill drilling target Field already tied in and producing Infrastructure and gathering system with replacement cost over $30 million Land position recently doubled to over 23,000 acres

Mattson Gas Discovery Independent resource study estimates 495 Bcf – 750 Bcf of discovered resource per sq. mile - modern completion techniques and natural fracturing key to maximizing recovery Three different fracture stimulation techniques tested – slick-water, nitrogen energized gell and emulsified CO 2 – with range of results Work to date suggests a combination of open fractures with an emulsified CO 2 stimulation or a slick-water stimulation is most successful Evaluating a winter work program which may include a sidetrack of B-3 well with a slick-water stimulation Stimulation on A-7 and B-3 wells

Additional Prospective Horizons Mississippian Prophet –fractured carbonate lies above Nahanni at depth of approximately 2800m –High pressure natural gas in the Prophet responsible for blowout of Amoco A-1 well and Amoco produced 0.5 Bcf from one well –Horizontal drilling and fracture stimulation required to assess connectivity of fractures and productive capability Devonian shales –Organically rich black shales that have not been assessed to date Porous Mattson zone –10,000 boe/d deliverability prospect on flank of structure

Nahanni Potential Major well currently drilling Amoco abandoned the field after six initial wells in Nahanni produced on average 30 Bcf/well (185 Bcf or 15% recovery); additional wells were uneconomic at $0.25/mcf gas prices Independent resource report by McDaniel determined field has –120 Bcf in possible reserves –540 Bcf in resource potential –1,433 BCF OGIP 12 new locations identified on reprocessed 3-D seismic survey (10 to 45 Bcf potential per location) could add over 10,000 boe/d net to Questerre Nahanni Horizon

Outlook Nahanni well spud this month targeting multiple zones – Mattson, Nahanni, high-pressure Mississippian Prophet and organic-rich Devonian shales Continue to test A-7 and B-3 Mattson wells Planning multi-well winter drilling program Precision Rig #228 drilling A-8 well

St. Lawrence Lowlands Eastern Canada

St. Lawrence Lowlands Recent discovery by Questerre and its partner Talisman opens up Trenton- Black River play in Quebec Talisman is North America’s leading expert in the Trenton-Black River play and is currently producing approx. 20,000 boe/d from this play across the border in New York Forest Oil participated in two Utica shale gas wells on Questerre acreage A million gross acres with multiple prospective horizons has multi-tcf potential Talisman/Questerre St. Lawrence Lowlands Basin Talisman Appalachian Basin Talisman Michigan Basin

Fiscal Terms Talisman has the right to drill up to four wells to earn a 75% interest in 700,000 acres - Questerre will retain a 21¼% working interest in the land and receive a 4¼% royalty - equating to a 30% economic take Forest Oil and Gastem committed to spend $3 million with option to spend a further $10 million - Questerre retains a 20% working interest in the Yamaska permits covering 100,000 acres Questerre operates and is a 50% partner in the St. Jean permits covering 200,000 acres Pipeline infrastructure in Lowlands

Prospect Potential Primary target Trenton-Black River Dolomite Secondary target Utica Shale –tight gas play 300,000 acres

AlbertaQuebec Revenue ($7/mcf AECO - $7.50/mcf NYMEX) $2,100,000,000$2,557,500,000 Less Royalties (30% AB/12.5% PQ)(630,000,000)(319,687,500) Transportation ($0.10 AB/$0.10 PQ)(30,000,000)(30,000,000) Operating & Processing ($0.65/mcf) (195,000,000) (195,000,000) $ 1,245,000,000$ 2,012,812,500 Per Mcf$4.15$6.71 Per Boe$24.90$40.26 Based on 300 Bcf potential of Trenton-Black River in Gentilly area Comparative Illustration of Fiscal Terms

Outlook Gentilly #1 discovery well on long term production test – will likely require additional successful horizontal wells to be commercial Talisman will shoot new seismic this fall and is expected to drill another two wells to earn a 75% interest in eight additional permits on Questerre land in 2008 Questerre acquiring high resolution aeromag and purchasing seismic data over nearby St. Jean permits Results expected from shale gas wells on Yamaska permits this fall Testing of Gentilly #1 Discovery well

Alberta Western Canada

Vulcan, Southern Alberta 50% interest in significant discovery in one gas and one oil pool in Vulcan Gas pool commenced production in early 2007 at approximately 1,000 boe/d Infill development of oil pool delayed until waterflood developed and GPP approval received – potential to add 500,000 to 750,000 barrels Aggressively pursuing farm-in opportunities and sales to further expand acreage

Outlook Beaver River Field, Western Canada –Nahanni well to be completed prior to year end, testing in early 2008 –Planning for multi-well winter work program targeting multiple horizons St. Lawrence Lowlands, Eastern Canada –Talisman to complete seismic acquisition this fall, expect new well to spud in early 2008 –Yamaska wells to be completed with results expected in fourth quarter 2007 –Interpret high-resolution aeromag over St. Jean in advance of 2008 new drill Antler, Central Canada –Conclude corporate acquisition in fourth quarter of 2007 –Commence horizontal drilling program prior to year-end Vulcan, Western Canada –Participate in additional exploration in Vulcan through farm-ins and acquisitions –Drill infill wells in the Vulcan oil pool in early 2008 Corporate –Base exit production target for 2007 of 2,200 boe/d under review due to B-3 results less than expected – boe/d difference –Production with new Nahanni well still expected to be over 3,000 boe/d in 1Q 2008 –Relationship with secured debtors of Magnus leading to further acquisition opportunities

Investment Case One million acres in Quebec prospective for prolific Trenton-Black River play Beaver River deep gas project with over 120 Bcf of potential plus exploration prospect on flank of structure Antler play adds new high-impact project with exposure to oil prices Base of conventional production in Alberta Strong well balanced portfolio Fundamentals of long term gas market in North America are strong Oslo Stock Exchange broadens investor base interested in high impact gas exploration and exploitation throughout the world Canadian frontier provides better risk reward ratios relative to developing nations and off shore opportunities on big impact plays Excellent market conditions Past experience founding, financing, and managing successful international and domestic exploration and production companies Proven determination and commitment to overcome obstacles to success Specific expertise with non conventional reservoirs Ideas have been validated by partners’ due diligence Experienced management Exposure to multiple opportunities to find big gas in big markets - high impact wells in Quebec and Beaver River underway High leverage through partner risk capital and expertise Plans to continue growth in lower risk conventional asset base in Alberta Large growth potential with mitigated risk

1580 Guinness House 727 Seventh Avenue SW Calgary, Alberta T2P 0Z5 Canada Tel : (403) Fax : (403) Web: