Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company")
(TSX,OSE:QEC) reported today on its financial and operating results for the
second quarter ended June 30, 2025.

Michael Binnion, President, and Chief Executive Officer of Questerre, commented,
"Our production averaged over 3,000 boe per day in the quarter after the tie-in
of the three (1.5 net) Kakwa North wells. We are assessing both owned and
third-party processing capacity for these existing volumes and future growth. A
follow-up drilling program is now scheduled for the second half of next year."

Commenting on developments in Quebec, he added, "Interest is growing in our
natural gas discovery as a secure and reliable supply in Quebec, particularly
among industrial gas users. It is also being considered as the supply for the
550 MW Becancour thermal power plant as it may be converted to produce power for
peak demand periods. As we work towards a business solution, we are also
following the legal process to protect our shareholders' rights. We recently
filed an application for leave to appeal a decision by the Quebec Court of
Appeal to reinstate certain provisions of Bill 21 prior to our hearing on the
merits of the case."

Highlights
o	Kakwa North wells tied-in and on production 
o	Questerre filed leave to appeal to Supreme Court of Canada following Quebec
Court of Appeal ruling on Bill 21
o	Average daily production of 3,091 boe per day for the quarter, almost doubling
production from the same period last year
o	Net cash from operating activities of $6.3 million and adjusted funds flow
from operations of $5 million despite significantly lower realized prices

Following the tie-in of the Kakwa North wells, production volumes this year
increased materially compared to last year. Production averaged 3,091 boe/d for
the quarter (2024: 1,559 boe/d) and 2,414 boe/d for the first half of the year
(2024: 1,612 boe/d). 

Higher production volumes were partly offset by the lower realized liquids
prices resulting in higher revenue for the quarter and six months ended June 30
compared to last year. For the quarter, petroleum and natural gas sales totaled
$13.7 million (2024: $8.8 million) and $22.8 million year to date (2024: $17.8
million). The higher revenue contributed to adjusted funds flow from operations
of $5 million (2024: $4.5 million) in the quarter and $8.5 million for the first
six months of the year (2024: $7.4 million) and cash flow from operations of
$6.3 million for the quarter (2024: $3.1 million).

The revenue was offset by higher expenses and contributed to a net loss of $0.7
million for the quarter and year to date (2024: $1.3 million income for the
quarter and $1.1 million year to date). Capital expenditures in the quarter were
$1 million (2024: $7 million) and $18.9 million year to date (2024: $9.7
million).

As at June 30, 2025, effectively no amounts were drawn on the facility and the
Company held unrestricted cash and term deposits of $18.3 million. As of June
30, 2025, the Company had a net working capital surplus of $13.2 million (2024:
$27.6 million surplus).

The term "adjusted funds flow from operations" and "working capital surplus" are
non-IFRS measures. Please see the reconciliation elsewhere in this press
release.

Questerre is an energy technology and innovation company. It is leveraging its
expertise gained through early exposure to low permeability reservoirs to
acquire significant high-quality resources. We believe we can successfully
transition our energy portfolio. With new clean technologies and innovation to
responsibly produce and use energy, we can sustain both human progress and our
natural environment. 

Questerre is a believer that the future success of the oil and gas 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
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") including its
assessment of processing capacity for existing volumes and future growth, the
operator's plans for follow-up drilling, and the Company's views on interest in
its natural gas discovery growing among industrial gas users.  Forward-looking
statements are based on several material factors, expectations, or assumptions
of Questerre which have been used to develop such statements and information,
but which may prove to be incorrect. 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. Further, 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 implementation of Bill 21 by the
Government of Quebec and certain other risks detailed from time-to-time in
Questerre's public disclosure documents. Additional information regarding some
of these risks, expectations or assumptions and other factors may be found under
in the Company's Annual Information Form for the year ended December 31, 2024,
and other documents available on the Company's profile at www.sedar.com. The
reader is 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.

Certain information set out herein may be considered as "financial outlook"
within the meaning of applicable securities laws. The purpose of this financial
outlook is to provide readers with disclosure regarding Questerre's reasonable
expectations as to the anticipated results of its proposed business activities
for the periods indicated. Readers are cautioned that the financial outlook may
not be appropriate for other purposes.

(1) For the three-month period ended June 30, 2025, liquids production including
light crude and natural gas liquids accounted for 1,690 bbls/d (2024: 931
bbls/d) and natural gas including conventional and shale gas accounted for 8,409
Mcf/d (2023: 3,767 Mcf/d). For the six-month period ended June 30, 2025, liquids
production including light crude and natural gas liquids accounted for 1,346
bbls/d (2024: 955 bbls/d) and natural gas including conventional and shale gas
accounted for 6,412 Mcf/d (2024: 3,942 Mcf/d).

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used
in isolation. A boe conversion ratio has been calculated using a conversion rate
of six thousand cubic feet of natural gas to one barrel of oil and the
conversion ratio of one barrel to six thousand cubic feet is based on an energy
equivalent conversion method application at the burner tip and does not
necessarily represent an economic value equivalent at the wellhead. Given that
the value ratio based on the current price of crude oil as compared to natural
gas is significantly different from the energy equivalent of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.

This press release contains the terms "adjusted funds flow from operations" and
"working capital surplus" which are non-GAAP terms. Questerre uses these
measures to help evaluate its performance. 

As an indicator of Questerre's performance, adjusted funds flow from operations
should not be considered as an alternative to, or more meaningful than, cash
flows from operating activities as determined in accordance with GAAP.
Questerre's determination of adjusted funds flow from operations may not be
comparable to that reported by other companies. Questerre considers adjusted
funds flow from operations to be a key measure as it demonstrates the Company's
ability to generate the cash necessary to fund operations and support activities
related to its major assets.

	                             Three months ended June 30,	Six months ended June
30,
($ thousands) 	                                            2025         2024	   
 2025    2024
Net cash from operating activities	                  $ 6,288  $ 3,141	 $ 9,646  
$ 5,769
Change in non-cash operating working capital	   (1,283)   1,314	  (1,099)   
1,659
Adjusted Funds Flow from Operations	               $ 5,005	$ 4,455	  $ 8,547 $
7,428

Working capital surplus is a non-GAAP measure calculated as current assets less
current liabilities excluding risk management contracts and lease liabilities.