Questfire Energy Corp. Announces Signing of A Purchase and Sale Agreement to Acquire 5,900 boepd

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES.


Questfire Energy Corp. ("Questfire" or the "Company") (TSX VENTURE:Q.A) (TSX
VENTURE:Q.B) is pleased to announce that it has signed a Purchase and Sale
Agreement to acquire approximately 5,900 boe/d of conventional producing assets
from Advantage Oil & Gas Ltd. for total consideration consisting of $55 million
of cash, a $27 million Convertible Senior Secured Debenture (the "Debenture")
and 1.5 million Class B shares. All customary closing adjustments between the
effective date of November 1, 2012 and the closing date will be applied to the
Debenture. Questfire intends to fund the cash portion of the purchase price
through bank financing. Closing is expected to occur near the end of Q1 2013. 


The assets to be acquired are located in Alberta, have a relatively low
production decline and are comprised of approximately 80% natural gas and 20%
light oil and natural gas liquids. The majority of the production is operated
with high working interest. The assets include a total net land base of
approximately 300,000 acres (469 sections), a significant 2D and 3D seismic
database and significant oil and gas gathering and processing infrastructure.
Forecast cash-flow from operations for the producing assets for calendar 2013 is
approximately $23 million. 


This acquisition will transform Questfire from a micro-cap start-up public oil
and gas company to a mid-size producer with a stable cash flow base and a
significant inventory of light oil and natural gas drilling and recompletion
opportunities many of which are 100% working interest. In the near term
Questfire's experienced technical team intends to pursue light oil and
liquids-rich natural gas drilling and recompletion opportunities on the acquired
assets as well as on Questfire's existing 100% working interest lands. Further
information will be provided in the near future.


Completion of the proposed transaction is subject to a number of conditions
including, without limitation, approval of the TSX Venture Exchange. 


Questfire was formed to participate in oil and natural gas exploration,
development and production in Canada. In particular, Questfire intends to
generate and develop its own prospects, acquire oil and natural gas properties
and participate with joint venturers and other industry partners in oil and gas
exploration and development in the Western Canada Sedimentary Basin.


The Class A Shares and Class B Shares are listed on the TSX Venture Exchange
under the trading symbols Q.A and Q.B respectively. The Corporation currently
has 12,813,001 Class A shares and 555,840 Class B shares outstanding. 


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 including banking arrangements, 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 under
current commodity prices is approximately 30 mcf to 1 bbl. Readers are cautioned
that boe figures may be misleading, particularly if used in isolation.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Questfire Energy Corp.
Mr. Richard Dahl
President & Chief Executive Officer
403-263-6691
403-263-6683 (FAX)


Questfire Energy Corp.
Mr. Ronald Williams
Vice President, Finance & Chief Financial Officer
403-263-6658
403-263-6683 (FAX)