October 30, 2008 Questerre Energy Corporation

Initiating Coverage: Positioned to Unlock

Quebec’s Emerging Shale Ga • Initiating coverage with a $5.00 target and Speculative Buy

rating

• Questerre has a large land position in the Lowlands of Quebec

The lands are prospective for the emerging Utica and Lorraine

shales. The Company has approximately 340,000 net acres of

lands in what we consider to be the most prospective part of the

play.

• Questerre’s farm-in partners Talisman Energy Inc (TLM-TSX,

NYSE) and Forest Oil Corporation (FST-NYSE) are currently

working on parallel programs to test the Utica and Lorraine

shales using vertical and horizontal well bores and multi-zone

fractures. Talisman and Forest have the financial wherewithal and

technical ability to fully test and if successful, bring the project to

commercial development, providing Questerre investors with a

unique opportunity to gain exposure to this emerging resource play.

• Proving that mechanical fractures work on a wide aerial extent

will de-risk the play Results from Talisman and Forest’s test wells

are expected prior to year-end, which will provide additional

information as to potential flow rates and therefore the economic

viability of the play.

• Questerre is funded up to the commercial development stage

The Company has greater than $65 million in cash and an unused

$11 million bank line plus non-core assets which it could sell.

More, more.... http://supplytracking.com/questerree...

Clint008.