15.	SUBSEQUENT EVENTS

a)	On February 16, 2012, the Company obtained an extension of the order from the Court providing creditor protection under the CCAA until May 18 2012.

On February 7, 2012, the Monitor, in its capacity as Oilsands Quest's Foreign Representative, commenced proceedings in the US Bankruptcy Code pursuant to Chapter 15 of the United States Bankruptcy Code. This order would allow the CCAA proceedings to be recognized as foreign main proceedings along with the automatic stay and certain other provisions of the US Bankruptcy Code to take effect within the United States. A final hearing on such recognition is scheduled for March 15, 2012.

On February 16, 2012, the Court granted the Company's motion to approve secured interim DIP financing with Century Services Inc. for a maximum of CDN$3.75 million to fund operating costs and other expenses while the Company proceeds with the Solicitation Process. The DIP financing is a twelve month term demand facility and will be available for draw down by mid-March 2012. The terms of DIP financing have yet to be finalized.

On February 22, 2012, the Court approved the sale of the Company's non-core Eagles Nest asset to FAMA, an unrelated third party, for CDN$7.0 million. The approval followed a short Court-directed limited bidding process, and the Company signed a Purchase and Sale Agreement with FAMA. FAMA paid deposits in the amount of CDN$50,000 and was required to pay an additional deposit of CDN$350,000 on February 24, 2012. However, FAMA did not make the deposit and the agreement was terminated. On March 7, 2012, the Court approved a new bidding process for the Eagles Nest asset. Bids for the asset are to be submitted to the Monitor by 4 PM MST, March 12, 2012. The bids must be accompanied by an unconditional executed Purchase and Sale Agreement and a deposit representing 10% of the purchase price with closing to occur on or before March 30, 2012.