Oilsands Quest announces Equity Offering

NYSE Amex: BQI

CALGARY, April 29 /PRNewswire-FirstCall/ - Oilsands Quest Inc. (NYSE Amex:
BQI) (the "Company") announced today that it has commenced a marketed public
offering on a best efforts basis (the "Offering") of up to 25 million units
("Units") in the United States under an effective shelf registration statement
on file with the Securities and Exchange Commission ("SEC") and in all
provinces of Canada, except Quebec, by way of a shelf prospectus filed
pursuant to the Multi-jurisdictional Disclosure System.
Each Unit will be comprised of one common share ("Share") and one-half of a
common share purchase warrant of the Company ("Warrant") with each whole
Warrant entitling the purchaser to purchase one Share of the Company for a
period of 24 months following closing of the Offering.
The Offering will be made by a syndicate of agents (the "Agents") led by
Genuity Capital Markets USA Corp. and TD Securities (USA) LLC in the United
States and Genuity Capital Markets and TD Securities Inc. in Canada. The
Company has agreed to grant the Agents an over-allotment option to purchase up
to an additional 15% of the Units sold pursuant to the Offering, either
separately or as Units. The Agents may exercise the over-allotment option, in
whole or in part, at any time up to 30 days from the closing of the Offering.
The Offering is subject to certain conditions, including stock exchange
approval.
The Offering will be priced in the context of the market with final terms of
the Offering to be determined at the time of pricing. The Company anticipates
that the pricing of the Offering will be announced after the close of markets
today.
The Company will use the funds to continue its testing activities at Test
Sites 1 and 3, continue its exploration activities on its existing permits and
licenses and for general corporate purposes. Specific allocations of the
proceeds for such purposes have not been made at this time.
The Offering is expected to close on or about May 12, 2009.
A copy of the prospectus may be obtained from TD Securities (USA) LLC. in the
United States and Genuity Capital Markets in Canada at the following
addresses:

In the United States: In Canada:
TD Securities (USA) LLC Genuity Capital Markets
ATTN: Paula Kourian ATTN: Sandy Delaney
31 W. 52nd Street 40 King St W, Suite 4900
New York, NY 10019 PO Box 1007
Toronto, Ontario M5H 3Y2

The Company has filed a registration statement, including a prospectus, (SEC
File # 333-147200) with the SEC for the offering to which this communication
relates. Before you invest, you should read the prospectus in that
registration statement and other documents the Company has filed with the SEC
for more complete information about the Company and this offering. You may get
these documents for free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, the Company, any agent or any dealer participating in the
offering will arrange to send you the prospectus if you request by calling
toll-free 1-877-718-8941 or by emailing ir@oilsandsquest.com.
The Company invites the public to view a webcast with Company management to
discuss its updated Corporate Presentation. The webcast will take place on
Wednesday April 29, 2009 at Noon MDT (2:00pm EDT). To access the webcast,
please link to the following:

http://w.on24.com/r.htm?e=144328&s=1&k=C85C17FB5D743EBECA67355196B44DB6

If you do not have access to the internet, you may listen to the audio portion
of the webcast through the following telephone numbers: 1-800-731-5319 or 416
644-3427 for those in the Toronto area.
The Company will post the Corporate Presentation on its website concurrent
with the webcast. The updated Corporate Presentation can be viewed at
www.oilsandsquest.com.

About Oilsands Quest

Oilsands Quest Inc. is exploring Canada's largest holding of contiguous oil
sands permits and licences, located in Saskatchewan and Alberta, and
developing Saskatchewan's first global-scale oil sands discovery. It is
leading the establishment of the province of Saskatchewan's emerging oil sands
industry.

Forward-looking information:

Forward-Looking Statements: This news release contains certain
"forward-looking information" within the meaning of applicable securities law
including statements regarding the Company's expected use of proceeds of the
Offering and the expected date of closing of the Offering. Forward-looking
information is frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", "conceptual", "may",
"will", "would", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur. These
statements are only predictions. Forward-looking information is based on the
opinions and estimates of management at the date the information is provided,
and is subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those projected
in the forward-looking information. These factors include risks relating to
the ability of the Company to complete the proposed equity financing as
contemplated. For a description of the risks and uncertainties facing the
Company and its business and affairs, readers should refer to the Company's
Annual Report on Form 10K for the year ended April 30, 2008, as amended. The
Company undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change, unless
required by law. The reader is cautioned not to place undue reliance on
forward-looking statements.
SOURCE Oilsands Quest Inc.

Paul K. O'Donoghue, MBA, Vice President, Investor Relations and Corporate
Planning, Email: ir@oilsandsquest.com, Investor Line: 1-877-718-8941