Mr. Michael Binnion reports

QUESTERRE UPDATES PX ENERGY TRANSACTION

Questerre Energy Corp. has provided the status of its proposed acquisition of Parana Xisto SA, a privately held oil shale production and refining company based in southern Brazil, by way of acquisition of the shares of its indirect parent companies, Forbes & Manhattan Resources Inc. and Forbes Participacoes Ltda.

Michael Binnion, president and chief executive officer of Questerre, commented: "Our top priority has been completing due diligence on the acquisition to ensure we have an accretive transaction for our shareholders. Site visits have confirmed that operationally the existing facilities are well maintained and in full compliance from a HSE perspective. We have also reviewed their proposed growth projects that are designed to increase throughput."

He added: "Our financial due diligence has identified a larger requirement for both short-term and long-term liquidity since we announced the transaction. We believe meeting this urgent need through a comprehensive agreement with financial partners is vital. It will mitigate the risks of a corporate reorganization process that could have other impacts on their business.

"In addition, we have been working with our financial advisers on an arrangement with the bondholders to ensure they have a path towards realizing a full recovery of their principal. Although we have not yet reached an agreement, we are continuing discussions. We have also been in discussions with the holders of convertible notes issued by F&M Resources as well the parties related to its agreement with Papaya Growth Opportunity Corp. I, a Nasdaq-listed special purpose acquisition company. We remain focused on a sustainable capital structure for the company given the liquidity requirements and existing cash flow capacity of the base business," he further added.

He concluded: "We still see the strategic value in this acquisition to advance our oil shale strategy. Additionally, the company's refining licence provide opportunities to further expand their distribution business. We remain committed to collaborating with all stakeholders on a transaction that restores the company's financial flexibility and establishes a viable path to realize its potential."

Completion of the acquisition is subject to a number of conditions, including satisfactory due diligence review, board approval, standard regulatory approvals (including acceptance from the Toronto Stock Exchange and Oslo Stock Exchange) and third party approvals. Where applicable, the proposed acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the acquisition will be completed as proposed or at all.

About Questerre Energy Corp.

Questerre is a Calgary-based energy technology company focused on the responsible development of oil and gas resources across the Americas. Questerre integrates leading-edge technologies with a disciplined capital strategy to unlock long-term value while maintaining strong environmental and social governance standards.

All information contained in this news release with respect to PX Energy was supplied by F&M Resources, for inclusion herein, without independent review by Questerre, and Questerre and its directors and officers have relied on F&M Resources for any information concerning PX Energy.

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