Questfire Energy Corp. Announces 2012 Third 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 nine month periods ended September 30, 2012. 


Third Quarter 2012 Corporate Highlights



--  Averaged 74 boepd (89 percent natural gas) with low operating and
    transportation costs of $8.31/boe and an average royalty rate of 5
    percent. 
--  Had production revenue, before royalties, of $138,123 for the quarter
    and $296,167 for the nine months. 
--  Completed the planned tie-in of the Corporation's liquids-rich gas well
    drilled in the Thorsby field in the first quarter of 2012.



President's Message

The third quarter of 2012 continued to be a challenging time in a variety of
ways for the oil and natural gas industry in Western Canada. 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 is
still very limited. 


In light of these factors, Questfire continued to be very cautious with respect
to capital spending in the third quarter of 2012. The Corporation continued to
prospect for light oil drilling opportunities and spent approximately $777,000
in the quarter, with the majority ($482,000) spent drilling a well at Thorsby
which unfortunately, proved to be unsuccessful and was abandoned. An additional
$219,000 was spent on the tie-in of the Corporation's previous Thorsby well that
was drilled in the first quarter of 2012 and was successfully tested for
liquids-rich natural gas. The current production rate, as of the date of this
MD&A, is approximately 60 boe per day.


The Corporation achieved operating and transportation costs of $8.31/boe, which
is low for a combined oil and natural gas producer with a small scale of
operation, and incurred low royalty rate of 5 percent. Production for the
quarter averaged a modest 74 boepd (89 percent natural gas). This resulted in
modest but still positive cash flow from production (revenue less royalties,
production and transportation expenses) and a net loss for the quarter. 


Going forward, 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 led to a fairly sudden rebound in natural gas prices in late summer and
early fall, with signs of some stability and investor confidence returning to
the equity markets. Although the price rebound remains modest in dollars, to
approximately $3.30 per mmbtu at AECO in early November, it amounted to an
almost 50 percent gain from the year-to-date average price and was essentially
back to year-ago levels. This is highly positive for lower-cost operators such
as Questfire and, if sustained, will have a material impact on revenues. 


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 nine months ended September 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] 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Questfire Energy Corp.
Mr. Richard Dahl
President and CEO
[phone]
[phone] (FAX)


Questfire Energy Corp.
Mr. Ronald Williams
Vice President, Finance and CFO
[phone]
[phone] (FAX)