Oilsands Quest Inc BQI

PP just announced for BQI

[canada7]

Oilsands Quest Announces Private Placement of Flow-Through Common Stock February 20, 2007 CALGARY, ALBERTA -- Oilsands Quest Inc. (AMEX:BQI), formerly CanWest Petroleum Corporation, announced today that it has entered into a private placement flow-through share agreement with a syndicate of underwriters on a bought deal basis. Oilsands Quest will issue 5,320,000 shares of common stock (the "Flow-Through Shares") at a price of CDN$5.64 (US$4.82) per share for aggregate gross proceeds of CDN$30 million (US$25.6 million). The Flow-Through Shares will be issued to investors in Canada pursuant to certain exemptions from prospectus requirements. The proceeds will be used to incur Canadian Exploration Expenses on resource delineation and other exploration work relating to Oilsands Quest Sask Inc.'s permit lands following the 2006-2007 winter exploration program. Oilsands Quest Sask Inc. is a subsidiary of Oilsands Quest. Closing of the private placement is expected to occur on March 6, 2007 and is subject to regulatory approval and the completion of definitive documentation. The Flow-Through Shares have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States or to U.S. persons (as such term is defined in Regulation S under the Securities Act) absent a registration statement or an applicable exemption from registration. 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. Oilsands Quest Inc., through its subsidiary Oilsands Quest Sask Inc., is conducting the Province of Saskatchewan's first major oil sands exploration program and is currently conducting its second season of core hole drilling on its oil sands permits, which are located in northwest Saskatchewan, directly across the border from the Athabasca oil sands in Alberta. Oilsands Quest is focused on proving the extension of commercially viable deposits of oil sands into Saskatchewan. 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 is frequently 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, drilling program, geophysical programs, testing and analysis programs and timing of such programs 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 or the programs will be completed on time, on budget 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 and details regarding the location and extent of the Oilsands Quest permit lands. For more information: General inquiries and retail investors, contact Hedlin Lauder Investor Relations Ltd. 800-299-7823 toll free 403-232-6251 office [e-mail] Institutional investors, contact The Buick Group 877-748-0914 toll free 416-915-0915 office [e-mail]