Corporate Presentation October 2006 Questerre Energy Corporation

Forward Looking Statement Presentation Outline Company Overview Asset Overview Management Capitalization 2005/2006 Highlights Area Overview St. Lawrence Lowlands, Quebec Beaver River Field, British Columbia 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 Looking for “big gas in big markets” Talisman and Transeuro have farmed in on Questerre generated natural gas prospects Based on Questerre ideas, our shareholders are exposed to a portfolio of opportunities to discover world-scale natural gas fields with access to markets Company is underpinned by a growing base of value with exit production for 2006 expected to be at least 1,600 boe/d

Asset Overview Diversified portfolio of assets St. Lawrence Lowlands – large scale exploration with four discreet prospective plays Beaver River Field – tight gas resource play plus deep exploitation play Alberta – conventional E&P targets Management of downside risks High-impact projects funded by partners Conventional projects in Alberta provide growing cash flow base Central Alberta St. Lawrence Lowlands Beaver River Southern Alberta

Management 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 C$12 million and own 21% of the Company

Capitalization Terrenex Acquisition Corporation 10,698,785 8% Directors & Management 18,622,639 13% Terrenex Acquisition Corporation 10,698,785 8% Norwegian float 70,175,890 50% Canadian float 41,625,270 29% Total 141,122,584 Options (Avg. exercise price C$0.49) 11,013,752 Q2 net positive working capital balance of $13,000,000 Positive cash flow for Q2 of $ 1,083,000

2005 Highlights Company recapitalized in 2004 to address working capital deficiency resulting from an unsuccessful drilling project Significant progress made with both high-impact projects and development of a conventional asset base in 2005 Secured farm-in partners to fund both high-impact projects Established a reserve base through drilling of 17 wells with an 88% success rate including a significant new pool discovery in Southern Alberta Increase in NPV-10 of 2P reserves (proved + probable) from C$3.9 million to C$22.1 million (900,000 boe) Exit rate of 170 boe/d on-stream plus over 630 boe/d behind pipe

2006 Highlights & New Developments Talisman commits to spud test well on Quebec acreage Seismic acquired by Talisman confirms work to date and advanced two additional zones of interest First well to spud before the end of 2006 to test four prospective zones Gas discovery at Beaver River in the Mattson Besa River tight gas resource play Discovery well produced at 4.4 mmcf/d (over 700 boe/d) with compression First well of a five well program spud this fall Successful delineation drilling program in Vulcan and new core area in Westlock Seven wells drilled to expand new Mannville oil and gas discovery in Vulcan Established Westlock as a new core area – multiple horizon, low cost drilling targets Completed acquisition of Stride Energy Ltd., adding 227 boe/d and 26 sections (16,640 gross acres) in Westlock Concluded 33 section (21,210 gross acres) farm-in with Apache Canada in Westlock Currently producing over 1,000 boe/d with significant shut-in gas

St. Lawrence Lowlands Eastern Canada

St. Lawrence Lowlands Talisman to operate 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 Quebec St. Lawrence Lowlands New York Numerous Talisman discoveries with initial test rates of 3.5 - 45 mmcf/d

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 Questerre – Gastem Farm-in Talisman – Questerre Farm-in Quebec Montreal

Prospect Potential Primary target is Trenton-Black River dolomite – 300 Bcf potential Secondary target is Utica shale –tight gas play – 300,000 acres Third target is Potsdam sandstone - 200 Bcf potential Fourth target is fractured basement play

Illustrative Value of 300 Bcf Discovery Alberta Quebec Revenue ($4/mcf AECO - $4.5/mcf NYMEX) $1,200,000,000 $1,648,000,000 Less Royalties (27% AB/12.5% PQ) (324,000,000) (206,000,000) 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) $ 471,000,000 $ 1,037,000,000

Beaver River Field Western Canada

Beaver River Field Two primary zones of interest Tight gas resource play in the Besa River/Mattson - naturally fractured siltstones and shales 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 C$30 million

Besa River/Mattson Potential Discovery well capable of over 4.4 mmcf/d with compression 800 meters of interbedded sandstone, siltstone and shale Orange outlines prospective area of 7,500 acres (12 sections); yellow outlines area where highest natural fracturing believed to occur; 48 locations based on ¼ section spacing Independent study completed on Beaver River core indicates OGIP ranges between 200 Bcf – 495 Bcf per section – modern completion techniques key to maximizing recovery

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 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)

Recent Developments A-2 discovery well exceeds expectations Tested at 1.64 mmcf/d against no back pressure Currently producing over 3 mmcf/d against high Duke mainline pressure (1,000 psi) Continuing to cleanup with no measurable decline 5 well program commenced with spud of A-7 well in mid September/appraised Partner to pay 100% of two wells after which QEC and TSU are 50/50

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 In fill development locations in the oil pool Upper Mannville potential plus CBM

Westlock, Central Alberta Land position of over 50 sections with multi zone potential Land includes 35 section farm-in on Apache on 100 for 70 basis Relatively shallow wells with lower drilling, completion and tie-in costs Seven wells drilled to date; six cased as potential producers 2 to 4 additional locations for remainder of 2006

Alberta Operating Statistics Quarter ended Year ended June 30, 2006 June 30, 2006 Average daily production 635 boe/d 464 boe/d Prices realized per BOE $37.35 $39.48 Royalties per BOE $ 7.28 $ 9.84 Production expenses per BOE $ 9.05 $11.72 Operating net back $21.02 $17.92 G&A per BOE $ 4.26 $ 5.46 DD&A per BOE $14.12 $16.62 * Includes some production from Beaver River in Q2

Outlook 2006 Talisman operated exploration well in Quebec to test four zones will commence before year-end First of five well program is currently drilling for the Mattson/Besa River to assess gas discovery made last winter Work has commenced for a Nahanni well at Beaver River to be spud in Q1 of 2007 In fill wells to be drilled in the Vulcan oil pool in Q4 2 to 4 multi-horizon exploration wells to be drilled in Q4 at Westlock 2006 exit target of over 1,600 boe/d does not include any production from Beaver River well being drilled now Running rate cash flow at Dec 31, 2006 based on $5 and $6/mcf natural gas is $6 million and $8.5 million respectively

Two Year Charts TSX OSE Average volumes of over 100,000/day on TSX and over 1 million/day on OSE

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