Canadian Quantum Energy Closes $1,000,000 Convertible Debenture Financing

Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Corporation")
(TSX VENTURE:CQM) announced today that the Corporation has closed a $1 million
private placement of a secured convertible debenture ("Debenture"), subject to
TSX Venture Exchange final approval. The Debenture will bear interest at the
rate of ten percent (10%) per annum, payable monthly and will have a term of 2
years with a maturity date of May 30, 2014. The Debenture will be convertible at
the holder's option into common shares of the Corporation at any time prior to
the maturity date at a conversion price of $0.20 per common share. The
Corporation can force conversion of the Debenture into common shares if the
Corporation's common shares trade, on a 20 day volume weighted average basis, at
or above $0.50. The security interest granted by CQM under the Debenture is an
undivided 25% interest in the Alexander Project.


No finder's fees were paid on this transaction. All securities issued in
connection with the offering, including any common shares issued upon conversion
of the Debenture, will be subject to a four month hold period expiring on
October 1, 2012. The net proceeds of the Debenture will be used for the
exploration program on the Corporation's 50% interest in the Alexander Project
and for general working capital.


In conjunction with the closing of the Debenture, the Corporation has cancelled
the previously announced Flow-Through Unit offering announced on May 7, 2012. 


Douglas Brett, President and CEO of Canadian Quantum, states: "We are pleased to
have completed the $1 million Debenture. Canadian Quantum continues to work
closely with our partner, Sundance Energy Corporation, to finalize future
drilling locations. We are excited to bring the 16-11-56-27 W4 oil well on
production in the near future and will update the market as to production
results when available."


About Canadian Quantum 

Canadian Quantum holds 800 gross acres (360 net acres) at Turin, Alberta and
17,280 gross acres / 27 sections (8,640 net acres) on the Alexander First
Nations Permit in Central Alberta along with various interests in approximately
174,000 gross acres covered by four permits in the St. Lawrence Lowlands, Quebec
Utica Shale Play.


This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, is
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the Company's disclosure documents on the SEDAR website at
www.sedar.com. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.