QEC: Government of Quebec approves carbon storage pilot application

Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company")
(OSE: QGAS) reported today that the Ministry of Economy, Innovation and Energy
of Quebec ("MEIE") has approved the Company's application for a pilot project
for carbon storage in the province of Quebec. The approval was published in the
Official Gazette of Quebec on August 19, 2026.
 
Leveraging the Company's extensive geotechnical expertise, including proprietary
seismic data, the proposed pilot will evaluate subsurface formations for long
term carbon dioxide storage potential. It provides for among other things, the
drilling of injection and observation wells and includes the use of one of
Questerre's existing wells. The pilot project application has been authorized
for a term of five years and may be extended by two additional years.
 
Michael Binnion, President and Chief Executive Officer of Questerre, commented,
"The approval of our pilot application is the first step towards demonstrating
Quebec's carbon storage potential. We are optimistic that the combination of
carbon storage to reduce emissions and local gas provides a made in Quebec
solution to its goals of reducing greenhouse gas emissions and strengthening its
energy security."

He added, "Much like natural gas, the Government of Quebec's Integrated Energy
Resource Management Plan released last month notes that long term carbon storage
is a strategic imperative to decarbonize hard to abate sectors and achieve the
province's emission reduction targets. Our pilot is situated less than ten
kilometres away from the Becancour industrial park and proximate to other large
emitters in the province."

He further added, "Our next steps are to work with the provincial and federal
Government on funding this pilot project. We are also working with the
Government of Quebec on validating our pre-existing rights to explore for carbon
storage that we held prior to the enactment of Bill 21." Bill 21, An Act mainly
to end petroleum exploration and production and the public financing of those
activities, was enacted in April 2022.

The Company also reported it has received a notice from MEIE regarding the
contested regulatory requirements under Bill 21 to decommission its twelve
suspended wells in the province within 36 months of July 30, 2026. Under Bill
17, An Act to amend the Act respecting natural gas storage and natural gas and
oil pipelines in order to authorize the implementation of a pilot project
relating to the exploration for underground reservoirs or certain fluids, or
their operation or exploitation, these existing wells can be utilized in carbon
storage pilots. The Company will be reviewing with the Government of Quebec the
issue of decommissioning wells in the context of the pilot and other relevant
issues. The Company further notes that under Bill 21, the Government will fund
up to 75% of qualified expenditures.

Questerre is an energy technology and innovation company focused on responsibly
developing oil and gas resources. The Company holds a significant natural gas
discovery in the Quebec Utica shale, widely recognized as one of the most
important undeveloped natural gas resources in Eastern Canada. The Company
believes society can successfully transition its energy portfolio. With new
clean technologies and innovation to responsibly produce and use energy, society
can sustain both human progress and the natural environment. 

Questerre is a believer that the future success of the energy industry depends
on a balance of economics, environment, and society. We are committed to being
transparent and are respectful that the public must be part of making the
important choices for our energy future.

For further information, please contact:

Questerre Energy Corporation
Bjorn Inge Tonnessen, Chairman +47.902.01.289 | Email: btonnessen@questerre.com 
Hans Jacob Holden, Director +47.909.42.667
Jason D'Silva, Chief Financial Officer (403) 777-1185 | (403) 777-1578 (FAX)
|Email: info@questerre.com

Advisory Regarding Forward-Looking Statements This news release contains certain
statements which constitute forward-looking statements or information
("forward-looking statements") within the meaning of applicable securities laws
in Canada. Any statements about Questerre's expectations, beliefs, plans, goals,
targets, predictions, forecasts, objectives, assumptions, information and
statements about possible future events, conditions and results of operations or
performance are not historical facts and may be forward-looking. Forward-looking
information is often, but not always, made through the use of words or phrases
such as "anticipates", "aims", "strives", "seeks", "believes", "can", "could",
"may", "predicts", "potential", "should", "will", "estimates", "plans",
"mileposts", "projects", "continuing", "ongoing", "expects", "intends" and
similar words or phrases suggesting future outcomes. Forward-looking information
in this news release includes but is not limited to the Company's views on the
pilot demonstrating the province's carbon storage potential, providing a
solution to their emissions reduction goals, its plans to work with the
provincial and Federal government on funding and its discussions with the
Government of Quebec on its decommissioning obligations and its pre-existing
rights to explore for carbon storage.

Although Questerre believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them because Questerre can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties. Current
conditions, economic and otherwise, render assumptions, although reasonable when
made, subject to greater uncertainty. Undue reliance should not be placed on
forward-looking information as actual results may differ materially from those
expressed or implied by forward-looking information. 

Events or circumstances may cause actual results to differ materially from those
predicted as a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company, including,
without limitation: the following risk factors: additional funding requirements;
exploration, development, and production risks; volatility in the oil and gas
industry; prices, markets, and marketing of crude oil and natural gas; liquidity
and the Company's substantial capital requirements; prices, markets, and
marketing of crude oil and natural gas; political uncertainty; non-government
organizations; changing investor sentiment; global financial market volatility;
adverse economic conditions; alternatives to and changing demand for petroleum
products; environmental risks; regulatory risks; inability of management to
execute its business plan; competition from other issuers; expiration of
licenses and leases; Indigenous claims; possible failure to realize anticipated
benefits of acquisitions; and reputational risks. 

Additional information regarding some of these risks, expectations or
assumptions and other risk factors may be found in the Company's Annual
Information Form for the year ended December 31, 2025, and other documents
available on the Company's profile at www.sedarplus.ca. Readers are cautioned
not to place undue reliance on these forward looking statements. The
forward-looking statements contained in this news release are made as of the
date hereof and Questerre undertakes no obligations to update publicly or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.
nd Questerre undertakes no obligations to update publicly or revise\
any forward-looking statements\, whether as a result of new information\, future\
events or otherwise\, unless so required by applicable securities laws.\