Questfire Energy Corp. Announces 2012 Second Quarter Financial Results

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Questfire Energy Corp. (the "Corporation" or "Questfire") (TSX VENTURE:Q.A) (TSX
VENTURE:Q.B) is pleased to announce that it has filed on SEDAR its unaudited
financial statements and related management's discussion and analysis ("MD&A")
for the three month and six month periods ended June 30, 2012. 


Second Quarter 2012 Corporate Highlights



--  Averaged 69 boepd (93 percent natural gas) with low operating and
    transportation costs of $9.07/boe and an average royalty rate of 13%. 
--  Added 6 sections (3,840 acres) of land bringing the Corporation's land
    base to 29 sections (18,535 acres) all at 100 percent working interest. 
--  Raised $1,510,000 in unsecured senior convertible debentures.



President's Message

The second quarter of 2012 continued to be a challenging time in a variety of
ways for the oil and natural gas industry in Western Canada. Daily spot prices
for Alberta natural gas sank to 15-year lows. World oil prices also declined by
approximately 20 percent. Along with volatility in commodity prices, equity
markets also remain volatile, with investors being averse to risk due in part to
continuing economic uncertainty around the world. Consequently, the access to
capital for junior oil and natural gas companies has become very limited. 


In light of these factors, Questfire continued to be very cautious with respect
to capital spending in the second quarter of 2012. The Corporation continued to
prospect for light oil drilling opportunities and spent approximately $600,000
in the quarter, with the majority ($383,000) spent on acquiring 6.0 sections
(3,840 acres) of Crown lands prospective for light oil drilling. This newly
acquired land is held at 100 percent working interest and brings the
Corporation's total land base to 29 sections (18,535 acres) all at 100 percent
working interest. An additional $94,000 was spent preparing a drilling location
at Thorsby for drilling in the third quarter of 2012. Subsequent to the quarter
end the well was drilled but unfortunately proved to be unsuccessful and was
abandoned.


With this conservative approach no new wells were drilled or production added in
the second quarter. Although the Corporation achieved operating and
transportation costs of $9.07/boe, which is low for a combined oil and natural
gas producer with a small scale of operations, as well as low royalty rate of
13%, production for the quarter averaged a modest 69 boepd (93 percent natural
gas). This resulted in modest cash flow from production (revenue less royalties,
production and transportation expenses) and a net loss for the quarter. 


Going forward, the third quarter should see higher average production and cash
flow, with the planned tie-in of the Corporation's liquids-rich gas well drilled
and completed in the Thorsby field in the first quarter of 2012. This tie-in is
expected to occur in the second half of August with first production in early
September. Based on flow test results the well is expected to produce at an
initial rate of approximately 0.5 mmscfd with 15 to 20 bbls/d of natural gas
liquids or approximately 100 boepd. The corporation will remain conservative in
its capital spending while investigating all potential sources of additional
capital and funding. The management team at Questfire continues to prospect for
oil-drilling opportunities while evaluating producing oil and natural gas assets
that are for sale.


We are currently seeing a slow resolution to the North American natural gas
oversupply issues, via sharply reduced natural gas drilling, particularly of
"dry" gas targets, and increased natural gas consumption for power generation.
This is leading to a slow improvement in natural gas pricing, with signs of some
stability and investor confidence returning to the equity markets. 


Questfire Energy Corp. is an Alberta-based company formed to participate in oil
and gas exploration, development and acquisitions focusing in the W4 and W5
regions of Alberta. The Corporation's shares trade on the TSX Venture exchange
under the symbols Q.A and Q.B. The Corporation currently has 12,813,001 Class A
shares and 555,840 Class B shares outstanding.


To view a full copy of the Corporation's unaudited financial results for the
three months and six months ended June 30, 2012, including the Corporation's
accompanying MD&A, please refer to the SEDAR website at www.sedar.com or contact
the Corporation at Questfire Energy Corp., 400, 703 - 6th Ave S.W., Calgary,
Alberta, T2P 0T9.


Reader Advisory

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations, and capital expenditures
and the timing thereof, that involve substantial known and unknown risks,
uncertainties, and assumptions certain of which are beyond Questfire's control.
Such risks, uncertainties, and assumptions include, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations (including
the adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory authorities. Questfire's actual results,
performance or achievements could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no assurances can
be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits, including the
amount of proceeds, that Questfire will derive therefrom. Readers are cautioned
that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to Questfire
or persons acting on its behalf are expressly qualified in their entirety by
these cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and
Questfire does not undertake any obligation to update publicly or to revise any
of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable
securities laws.


Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6
thousand cubic feet of natural gas equalling 1 barrel of oil. This is based on
an energy equivalency conversion method applicable at the burner tip and does
not necessarily represent a value equivalency at the wellhead which is
approximately 30 Mcf to 1 bbl. Readers are cautioned that boe figures may be
misleading, particularly if used in isolation.


To request a free copy of Questfire's financial report or if you would like to
be put on Questfire's mailing list please contact Ronald Williams, Vice
President, Finance and CFO at [e-mail].