OilVoice - Oilsands Quest Extends Deadline For Sale of Oil Shale Assets

Oilsands Quest Extends Deadline For Sale of Oil Shale Assets

Thursday, July 08, 2010

Oilsands Quest Inc. has extended the deadline for the sale of its oil shale assets located near Pasquia Hills in Saskatchewan to Canshale Corp. ("Canshale"). The sale of these assets was conditional upon Canshale raising a minimum of CDN$12.5 million by June 30, 2010. The OQI Board of Directors has granted an extension of 30 days to July 30, 2010 for Canshale to complete the minimum financing. As an incentive for granting this extension, OQI will receive an additional 2 million shares of Canshale. This will bring the total consideration for the sale to CDN $1 million in cash and 10 million shares of Canshale.

As announced at the 2009 Annual General Meeting, OQI was examining alternative structures to develop its oil shale assets and provide a separate vehicle for funding and operating these assets. OQI continues to believe that the sale of the oil shale assets is in the best interests of the Company as it allows OQI to focus its financial and management resources on developing its portfolio of oil sands projects and exploration lands.

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