Corporate Presentation December 2006 Questerre Energy Corporation

Forward Looking Statement Presentation Outline Company Overview Asset Overview Management & Board Capitalization Third Quarter Update 2006 Year To Date Progress Financial Highlights Area Overview St. Lawrence Lowlands, Quebec Beaver River Field, British Columbia Southern and Central Alberta Outlook 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.

Company Overview Objective Strategy Success to date Looking for “big gas in big markets” Strategy Leverage technical expertise to acquire significant land positions in overlooked or underdeveloped areas Mitigate risk through 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 Talisman and Transeuro have farmed in on Questerre generated natural gas prospects Company is underpinned by a growing base of value with exit production for 2006 expected to be approximately 1,600 boe/d

Asset Overview Diversified portfolio of assets Risk mitigation St. Lawrence Lowlands, Quebec large scale exploration with four discreet prospective plays Beaver River Field, British Columbia tight gas resource play plus deep exploitation play Southern and Central Alberta conventional E&P targets Risk mitigation High-impact projects funded by partners Conventional projects in Alberta provide growing cash flow base Beaver River Field British Columbia Westlock Central Alberta BRITISH COLUMBIA ALBERTA QUEBEC Vulcan Southern Alberta St. Lawrence Lowlands Quebec

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 21% 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)

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 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 Hi-Arctic Well Control, Red Deer, Alberta

Capitalization Free Float 111,801,160 79% Total 141,122,584 Directors, Management & Other Insiders 29,321,424 21% Free Float 111,801,160 79% Total 141,122,584 Options (Avg. exercise price C$0.50) 11,463,752 Net working capital (Sept. 30, 2006) $8.84 million Cash flow from operations (Third quarter) $1.67 million Corporate Debt (Sept. 30, 2006) $0.09 million

Third Quarter Update

2006 Year To Date Progress St. Lawrence Lowlands, Quebec Talisman completes seismic program and commits to first well Third Quarter Equipment mobilization begins to spud Gentilly #1 well Beaver River Field, British Columbia 750 boe/d gas discovery in the shallow Mattson horizon Appraisal well for Mattson horizon spud Southern & Central Alberta Successful delineation drilling programs in Vulcan and developing new core area in Westlock Installation of central battery and gas compressor station completed at Vulcan Participated in the drilling of 5 (2.7 net) wells with 4 cased as potential producers

2006 Year To Date Progress Corporate Established production base and positive cash flow One of top oil and gas performers on TSX and OSE for 2006 YTD – Share price increase of 138% Third Quarter Daily production averaged 1,037 boe, up 63% from 635 boe in the second quarter Positive cash flow from operations of $1.68 million, up 55% from $1.08 million in the second quarter

Third Quarter Financial Highlights Quarter ended Nine months ended Sept. 30, 2006 Sept. 30, 2006 Average daily production (boe/d) 1,037 655 Production revenue $41.66 $40.79 Royalties $12.52 $11.30 Production expenses $8.52 $10.05 Operating netback $20.62 $19.44 Net cash G&A expense $3.08 $4.20 All amounts in C$/boe

St. Lawrence Lowlands Quebec

St. Lawrence Lowlands Talisman operating drilling of one of the highest potential exploration wells to be drilled in North America in the recent past Four prospects to be tested with a single well with primary target the Trenton Black-River Talisman is North America’s 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 Large acreage position with multiple prospective horizons has multi-tcf potential Talisman Michigan Basin Talisman/Questerre St. Lawrence Lowlands Basin Talisman Appalachian Basin

Talisman Farm-in Terms Talisman has the right to drill up to four wells to earn 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 Questerre farmed-in on additional 300,000 acres held by Gastem Inc. for a 50% interest Total land position of over 1 million acres

Prospect Potential Primary target Trenton-Black River Dolomite 300 Bcf potential Secondary target Utica Shale –tight gas play 300,000 acres Third target Potsdam Sandstone 200 Bcf potential Fourth target Fractured Basement play

Comparative Illustration of Fiscal Terms Alberta Quebec 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) Capital (50 wells plus facilities) (180,000,000) (180,000,000) $ 1,065,000,000 $ 1,832,812,500 Per Mcf $3.55 $6.11 Per Boe $21.30 $36.66 Based on 300 Bcf potential of Trenton Black-River in Talisman Gentilly #1

Talisman Gentilly #1 Ron Eckhardt, EVP North America Operations for Talisman updates Gentilly #1 well at investor conference in Montreal on December 5 & 6, 2006: “Small indications of gas in the Trenton Black-River that are encouraging” “Well had very large gas shows in the shallower fractured shales” “Even in Appalachia with good control, it is possible to drill wells with no dolomite, so the two wells (Talisman has drilled in Quebec) does not make or break the play” “With success, Talisman would proceed with horizontal wells across the graben which increases chances of finding (Trenton Black-River) dolomite” Entire presentation can be viewed at http://events.onlinebroadcasting.com/desjardins/120406/index.php

Outlook Minimum of two zones to be tested in first quarter 2007 Subject to results, Talisman expected to proceed with a 3-D seismic survey in summer 2007 Talisman could spud an appraisal well for this prospect and/or drill another well to earn a 75% interest in four additional permits on Questerre land Questerre to acquire high resolution aeromag survey and purchase seismic data over Gastem acreage to high grade nearby permits

Beaver River Field British Columbia

Beaver River Field Two primary zones of interest Tight gas resource play in the Mattson - naturally fractured sandstones, siltstones and shares Hydrothermally dolomitized Nahanni –Infill/ new compartment drilling opportunities on a discovered field with only 15% recovery to date Field already tied in and producing Infrastructure and gathering system with replacement cost over $30 million

Mattson Potential Discovery well currently producing over 4 mmcf/d with compression 800 meters of interbedded sandstone, siltstone and shale Estimated 200 Bcf – 495 Bcf of OGIP per section – modern completion techniques key to maximizing recovery Potential for over 50 locations based on ¼ section spacing could add 5,000 to 10,000 boe/d net to Questerre

Nahanni Potential 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 McDaniels 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

A-7 well Two gas kicks encountered requiring higher mud weights to control Multiple gas shows while drilling Drilling has taken longer than planned due to harder than expected rock formation and fishing operations Well is currently drilling through deeper Mattson sands at 1800+m

Outlook A-7 well to be completed and tested in first quarter 2007 with construction of ice bridge (weather dependent) Questerre expects A-7 well to be tied-in to gathering system and on production by second quarter 2007 Transeuro expected to begin operations on Nahanni well shortly thereafter Full field development for the Mattson to commence after evaluation of A-7 results

Alberta, Western Canada Central Alberta Westlock Southern Alberta Vulcan

Vulcan, Southern Alberta 50% interest in significant discovery in one gas and one oil pool in Vulcan Oil is 40 degree API and receives premium pricing; natural gas is rich in liquids Upper Mannville potential plus CBM

Vulcan, Southern Alberta Field gas production to commence with GPP application approval expected shortly Infill development of oil pool delayed by operator until mid 2007 Vulcan ALBERTA

Westlock, Central Alberta New core area of over 50 sections developed in 2006 Land includes 33 section farm-in on Apache on 100 for 70 basis Westlock ALBERTA

Westlock, Central Alberta Relatively shallow wells with lower drilling, completion and tie-in costs Reduced risk through multi-zone potential Westlock

Recent Developments Vulcan, Southern Alberta Westlock, Central Alberta Completed delineation drilling program for oil and gas pools in third quarter Completed construction of central battery and compressor station with capacity of 1,000 bopd and 15 mmcf per day Full field gas production awaiting approval of GPP application Westlock, Central Alberta 3-D seismic program underway to firm up drilling locations Completing regional geology study to further evaluate potential in area Participating in Crown land sales and evaluating farm-in agreements to further expand holdings in area

Stock Performance

Outlook 2007 St. Lawrence Lowlands, Quebec Test results from Gentilly #1 well expected in Q1 2007 Evaluate results with potential follow-on drilling and 3-D seismic Beaver River Field, British Columbia Completion and testing of A-7 well for Mattson production at Beaver River in Q1 2007 Next well to spud in Q2 2007 for Nahanni Full field development to commence for Mattson after evaluation of A-7 results Southern & Central Alberta Infill wells to be drilled in the Vulcan oil pool in 2007 2 to 4 multi-horizon exploration wells to be drilled in Q1 2007 at Westlock Corporate Target to add one new core area in 2007 Base exit production for 2007 estimated at approximately 2,200 boe/d, excluding success at Quebec

Investment Case Strong well balanced portfolio One million acres in Quebec prospective for prolific Trenton-Black River play Beaver River deep gas project with over 120 Bcf of potential Two large tight gas resource plays at Beaver River and Quebec Base of conventional production in Alberta Large growth potential with mitigated risk 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 Excellent market conditions 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 reserves valuations provide better risk reward ratios relative to international and off shore opportunities on big impact plays Experienced management 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 vetted and endorsed by partners

Calgary, Alberta T2P 0Z5 Canada 1580 Guinness House 727 Seventh Avenue SW Calgary, Alberta T2P 0Z5 Canada Tel : (403) 777-1185 Fax : (403) 777-1578 Web: www.questerre.com Email : info@questerre.com