Ms. Anela Dido reports

QUESTERRE ANNOUNCES TOTAL AND RED LEAF JOINT VENTURE TERMS

Questerre Energy Corp. investee Red Leaf Resources Inc. has joint ventured with a United States affiliate of Total SA, one of the largest international integrated oil companies, to develop oil shale in Utah.

Red Leaf announced that, together with Total, the joint venture will launch an early production system to demonstrate the commercial scalability of Red Leaf's EcoShale In-Capsule process on its oil shale acreage in the Uinta basin of Utah. Total will fund an 80-per-cent share of the EPS expenses estimated at $200-million (U.S.). The EPS follows a successful field pilot. It is intended to prove the economic and environmental attributes of the process at a larger scale. Red Leaf and Total subsequently plan to launch an advanced commercial project on approximately 11,000 acres of jointly held acreage for oil shale. Total will also fund an 80-per-cent share of the first $200-million (U.S.) of the commercial production phase of operations.

As part of its agreement with Red Leaf, Total has the right to license the EcoShale technology for use on other future oil shale projects worldwide, and has become a shareholder of Red Leaf. Questerre recently invested $40-million (U.S.) in Red Leaf to acquire just under 6 per cent of the equity of Red Leaf. Questerre also entered into a joint venture agreement with Red Leaf to develop its oil shale acreage in Wyoming and an agreement to obtain licences to utilize the Red Leaf process. Red Leaf also reported that it has completed its $100-million (U.S.) equity offering in connection with the closing of the Total joint venture.

As announced in the news release issued by Red Leaf on April 18, 2012: "The partnership with Red Leaf furthers our commitment to developing unconventional resources," explained John Bannerman, chief executive officer of Total E&P USA Inc. "Given the magnitude of oil shale resources, in particular in the United States, we believe that this project has an important long-term potential for global energy markets. Red Leaf has a strong technical and scientific team generating interesting original ideas. We look forward to working with them to develop leading-edge sustainable and environmentally responsible oil shale extraction technologies."

Referencing the joint venture, Utah governor Gary Herbert stated: "As Utah is focused on our long-range, strategic plan to keep energy prices low and supplies stable, I'm pleased to see more investment and energy development happening. We're committed to ensuring that Utah remains a leader in energy production and exports."

"From our very beginning, Red Leaf set out to solve the environmental produced oil quality and economic challenges surrounding oil shale development," explained Jim Patten, Red Leaf's CEO. "The EcoShale process resolves critical issues, including emissions, use of water, the amount of energy required to emancipate oil from the rock and surface remediation and reclamation. The Red Leaf technology also produces a high-quality oil at a very economical cost. We believe that Total's due diligence in reaching this joint venture validates the science and technology behind the Red Leaf EcoShale process."

We seek Safe Harbor.