Questerre Closes Beaver River Transaction

CALGARY, ALBERTA--(Marketwire - June 1, 2011) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported today that it has successfully concluded its agreement with Transeuro Energy Corp. ("Transeuro") (TSX-V:TSU) for Transeuro to acquire the remaining 50% interest in the Beaver River Field in northeast British Columbia.

Pursuant to the agreement, Questerre Beaver River Inc., a wholly-owned subsidiary of Questerre that held a 50% interest in the Field, was acquired by Mattson Holdings Limited, a wholly-owned subsidiary of Transeuro. As a result of this transaction, Transeuro now holds a 100% interest in the Beaver River Field.

In consideration, Questerre received 40 million common shares of Transeuro representing 8.7% of the outstanding common shares of the company. Questerre has also advanced Transeuro a $2 million loan to fund its ongoing operations. The loan will be due and payable on the earlier of 12 months or the announcement of a future financing by Transeuro. Questerre has plans to maintain its share position through a $2 million commitment to this future financing by Transeuro subject to final terms.

Questerre Energy Corporation is an independent energy company focused on shale projects. The Company is leveraging its expertise to commercialize projects like its Utica shale gas discovery in the St. Lawrence Lowlands, Québec. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including participation in the future financing of Transeuro. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.