Aeroquest International Limited (TSX-V:AQL) Announces Financial Results for the Three Months Ended March 31, 2008

Attention business/financial editors and reporters:

Aeroquest International Limited (TSX VENTURE:AQL) today reported financial
results for the three month period ended March 31, 2008.


On October 23, 2007 the Company announced its intention to change the financial
year end to September 30th. As a result of this change in financial year end,
comparative periods do not line up precisely. The comparative period used in
this report is for the three month period ending April 30, 2007.


"This was a very full quarter for our Company," said Roy Graydon, President &
CEO of Aeroquest; "In addition to posting strong operating results in our core
Mining Services business, we made substantial progress in developing traction in
Petroleum Services, bringing several large contracts to the signature stage, and
continue to be optimistic about the opportunities in Environmental Services. We
completed a very important common equity financing in the quarter, raising $18.5
million; which allowed us to de-lever our balance sheet, increase our capital
expenditure plans and enhance our liquidity to take advantage of future
opportunities."


Consolidated revenue for the three months ended March 31, 2008 was $13.3
million, an increase of $7.4 million or 124% over the most comparable period
last year and up $2.2 million or 20% over consolidated revenue for the first
quarter of 2008. Revenue from helicopter operations contributed $7.4 million in
the quarter, while revenue from fixed wing operations totaled $5.6 million in
the quarter.


Gross profit in the period was $6.1 million, or 46% of revenue, driven by a
normalization of costs in our helicopter operations and an exceptionally
productive quarter in our fixed wing operations. Gross profit margins have
recovered to historical levels, increasing 3% in the current quarter over the
comparable period last year and increasing 30% over the first quarter of 2008.


EBITDA in the quarter was $3.4 million, or 26% of revenue, an increase of $2.4
million or 225% over the comparable period last year. The EBITDA improvement was
the result of higher revenue, a healthy gross margin offset by an increase in
cash operating costs driven by the increased size and scope of the business.


Net income in the quarter was $0.8 million, an increase of $0.5 million or 154%
over the comparable period last year. Earnings per share for the quarter are
$0.03 compared to $0.02 per share for the comparable period last year.


Operating cash flow before changes in working capital was $2.8 million, or $0.09
per share for the period, as compared to $0.8 million, or $0.05 per share in the
most comparable period last year, and reflects the underlying health of the
Company's operations.


Capital expenditures totaled $1.7 million for the quarter, representing 13% of
revenue, which was in line with the Company's expectations.


Contract backlog showed a modest decrease over the last quarter and sits at $18
million at period end. Backlog is composed of $6 million in helicopter backlog
and $12 million in fixed wing backlog.


About Aeroquest International

Aeroquest International is a global information and technology services company
and a leader in the development and operation of innovative and proprietary
geophysical surveying platforms for the mineral and petroleum exploration, and
environmental services industries. Directly, and through its sister companies
UTS Geophysics and Geophex, Aeroquest fields a fleet of approximately two dozen
helicopter and fixed wing systems and is active around the world. More
information about Aeroquest can be found at www.aeroquest.ca. More information
on UTS Geophysics can be found at www.uts.com.au. More information on Geophex
can be found at www.geophex.com.


For Investors

This news release may include statements about expected future events and/or
financial results that are forward-looking in nature and subject to risks and
uncertainties. The Company cautions that actual performance will be affected by
a number of factors, many of which are beyond its control. Future events and
results may vary substantially from what the Company currently foresees.
Discussion of the various factors that may affect future results is contained in
the Company's recent filings, available on SEDAR.


Aeroquest International Limited

Unaudited Consolidated Financial Statements

For the three and six months ended March 31, 2008

In accordance with National Instrument 51-102 released by the Canadian
Securities Administrators, the Company discloses that its auditors have not
reviewed these unaudited financial statements for the period ended March 31,
2008.




Aeroquest International Limited

Consolidated Balance Sheets
Unaudited - Prepared by Management


----------------------------------------------------------------------------
                                           As at  Mar. 31, 08   Sep. 30, 07
Assets                                             (Unaudited)     (Audited)
 Current
  Cash and cash equivalents                      $ 16,225,372  $  5,398,777
  Accounts receivable                               9,425,932     8,014,717
  Unbilled contracts in progress                    1,190,195     2,312,098
  Inventory                                           119,074             -
  Prepaid expenses and deposits                       554,868       462,109
                                                 ---------------------------
Total current assets                               27,515,441    16,187,701
 Long term
  Long term investments (Note 1)                       65,001        90,001
  Capital assets (Note 2)                           9,697,968     7,618,873
  Intangible assets (Note 3)                       22,760,971    20,431,860
  Goodwill (Note 4)                                11,863,976     9,199,108
  Future income taxes                                 149,578       143,747
                                                 ---------------------------
Total long term assets                             44,537,494    37,483,589
                                                 ---------------------------
Total Assets                                     $ 72,052,935  $ 53,671,290
                                                 ---------------------------
                                                 ---------------------------

Liabilities and Shareholders' Equity
 Current
  Accounts payable and accrued liabilities       $  5,644,547  $  5,325,928
  Income taxes payable                              1,036,917     2,238,543
  Deferred revenue                                  3,554,044     3,838,463
  Promissory notes (Note 5)                                 -       536,449
  Capital lease obligations (Note 6)                  293,343       292,466
                                                 ---------------------------
Total current liabilities                          10,528,851    12,231,849
 Long term
  Promissory notes (Note 5)                                 -     2,597,339
  Capital lease obligations (Note 6)                  562,305       720,230
  Future income taxes                               7,287,187     6,566,056
                                                 ---------------------------
Total liabilities                                  18,378,343    22,115,474
                                                 ---------------------------

 Shareholders' equity
  Share capital (Note 8)                           48,354,284    27,403,594
  Contributed surplus (Note 8)                      1,800,821     1,320,461
  Accumulated other comprehensive income              238,493        72,794
  Retained earnings                                 3,280,994     2,758,967
                                                 ---------------------------
Total shareholders' equity                         53,674,592    31,555,816
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity       $ 72,052,935  $ 53,671,290
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying summary of significant accounting policies and notes are an
integral part of these financial statements.



Aeroquest International Limited

Consolidated Statement of Operations and Comprehensive Income
Unaudited - Prepared by Management


----------------------------------------------------------------------------
                     Three months  Three months    Six months    Six months
                            ended         ended         ended         ended
     For the period   Mar. 31, 08   Apr. 30, 07   Mar. 31, 08   Apr. 30, 07

Sales                $ 13,294,277   $ 5,936,703  $ 24,490,818  $ 10,034,587
 Cost of sales          7,221,337     3,305,062    14,500,556     5,818,147
                     -------------------------------------------------------
Gross profit            6,072,940     2,631,641     9,990,262     4,216,440
                     -------------------------------------------------------

Expenses and other
 items
 General and
  administrative        2,330,573     1,209,228     4,211,136     2,043,370
 Development expense       98,453       117,589       209,620       216,172
 Foreign exchange
  (gain)/loss              24,313       154,272       (32,151)      124,883
 Stock based
  compensation expense    173,208        91,476       555,963        91,476
 Amortization of
  intangible assets     1,178,301             -     2,070,888             -
 Depreciation of
  capital assets          654,838       277,444     1,166,471       547,079
                     -------------------------------------------------------
Total operating
 expenses               4,459,686     1,850,009     8,181,927     3,022,980

Operating profit        1,613,254       781,632     1,808,335     1,193,460
 Other costs (income)
  (Note 12)               (23,115)     (188,254)      (11,526)     (219,501)
 Contract
  cancellations costs           -       202,500             -       270,000
                     -------------------------------------------------------
Income before income
 taxes                  1,636,369       767,386     1,819,861     1,142,961
Income taxes
 (Note 10)
 Current                1,161,718       408,147     1,598,918       573,293
 Future                  (340,930)       38,433      (715,300)       38,433
                     -------------------------------------------------------
 Total income tax         820,788       446,580       883,618       611,726
                     -------------------------------------------------------
Net income for the
 period                 $ 815,581     $ 320,806     $ 936,243     $ 531,235
                     -------------------------------------------------------

Revaluation of long
 term investments
 to fair market value     (23,000)            -       (25,000)            -
Unrealized gain
 (loss) on
 translation of
 self-sustaining
 foreign operations       206,265             -       190,699             -
----------------------------------------------------------------------------
Total comprehensive
 income, for the
 period                 $ 998,846     $ 320,806   $ 1,101,942     $ 531,235
----------------------------------------------------------------------------

The accompanying summary of significant accounting policies and notes are an
integral part of these financial statements.



Aeroquest International Limited

Consolidated Statements of Retained Earnings
Unaudited - Prepared by Management


----------------------------------------------------------------------------
                       Three months  Three months   Six months   Six months
                              ended         ended        ended        ended
     For the period     Mar. 31, 08   Apr. 30, 07  Mar. 31, 08  Apr. 30, 07

Retained earnings,
 beginning of
 period, as previously
 reported               $ 2,674,783     $ 625,455  $ 2,758,967    $ 260,054
 Cumulative effect of
  change in
  accounting policy
  (Note 9)                        -        54,995            -      209,967
                        ----------------------------------------------------
Retained earnings,
 beginning of
 period, as restated    $ 2,674,783     $ 680,450  $ 2,758,967    $ 470,021
                        ----------------------------------------------------
Excess of purchase
 price over
 cost on redemption
 of shares                 (209,370)     (225,666)    (414,216)    (225,666)

Net income                  815,581       320,806      936,243      531,235
                        ----------------------------------------------------
Retained earnings, end
 of period              $ 3,280,994     $ 775,590  $ 3,280,994    $ 775,590
                        ----------------------------------------------------

Earnings per share
 (Note 11)
 Basic                       $ 0.03        $ 0.02       $ 0.03       $ 0.03
 Fully diluted               $ 0.02        $ 0.02       $ 0.03       $ 0.03
----------------------------------------------------------------------------

The accompanying summary of significant accounting policies and notes are an
integral part of these financial statements.



Aeroquest International Limited

Consolidated Statements of Cash Flow
Unaudited - Prepared by Management


----------------------------------------------------------------------------
                      Three months  Three months    Six months   Six months
                             ended         ended         ended        ended
     For the period    Mar. 31, 08   Apr. 30, 07   Mar. 31, 08  Apr. 30, 07

Cash provided by
 (used in)
Operating activities
 Net income for the
  period                 $ 815,581     $ 320,806     $ 936,243    $ 531,235
 Operating items not
  requiring cash
 Amortization of
  intangible assets      1,178,301             -     2,070,888            -
 Depreciation of
  capital assets           654,838       277,444     1,166,471      547,079
 Translation of self
  sustaining foreign
  operations               206,265             -       190,699            -
 Future income taxes      (340,930)       38,433      (715,300)      38,433
 Interest accretion on
  promissory notes         142,868             -       221,213            -
 Stock based
  compensation             173,208        91,476       555,963       91,476
 Write down of long
  term investment                -       110,000             -      110,000
Loss (Gain) on
 disposal of capital
 assets                    (45,739)        7,377       (49,476)       7,377
                        ----------------------------------------------------
Operating cash flow
 before changes in
 non-cash working
 capital                 2,784,392       845,536     4,376,701    1,325,600
 Accounts receivable    (3,626,098)     (265,503)   (1,391,557)    (432,147)
 Prepaid expenses          139,132      (398,440)      (92,758)    (546,077)
 Unbilled contracts in
  progress                 954,319       129,874     1,121,903      (24,742)
 Inventory                 142,134             -       142,134            -
 Accts. Payable and
  accrued liabilities   (2,059,911)      347,710       281,990      724,263
 Income taxes           (1,151,404)      416,185    (1,201,626)     581,330
 Deferred revenue          583,611       867,717      (284,419)   1,012,908
                        ----------------------------------------------------
Total cash flow from
 operating activities   (2,233,825)    1,943,079     2,952,368    2,641,135
                        ----------------------------------------------------
                        ----------------------------------------------------
Investing activities
 Capital asset
  purchases             (1,708,993)     (951,720)   (2,940,662)  (1,208,685)
 Loan receivable                 -        41,850             -       44,250
 Cash cost of
  acquisition (Note 4b)    (95,170)            -    (2,116,616)           -
                        ----------------------------------------------------
Total cash flow from
 investing activities   (1,804,163)     (909,870)   (5,057,278)  (1,164,435)
                        ----------------------------------------------------
                        ----------------------------------------------------
Financing activities
 Promissory note
  payments              (5,337,600)            -    (5,337,600)           -
 Capital lease
  payments                 (70,604)            -      (229,059)           -
 Aeroquest shares
  redeemed                (440,031)     (327,132)     (815,368)    (327,477)
 Proceeds: issuance of
  common shares         18,677,574       138,750    19,313,532      138,750
                        ----------------------------------------------------
Total cash flow from
 financing activities   12,829,339      (188,382)   12,931,505     (188,727)
                        ----------------------------------------------------
                        ----------------------------------------------------

Net change in cash
 and cash equivalents
 for the period        $ 8,791,351     $ 844,827  $ 10,826,595  $ 1,287,973
Cash and cash
 equivalents,
 beginning
 of period               7,434,021     3,861,208     5,398,777    3,418,062
----------------------------------------------------------------------------
Cash and cash
 equivalents, end of
 period               $ 16,225,372   $ 4,706,035  $ 16,225,372  $ 4,706,035
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying summary of significant accounting policies and notes are an
integral part of these financial statements.



Aeroquest International Limited

Consolidated Statements of Shareholders' Equity
Unaudited - Prepared by Management
For the six months ending March 31, 2008


----------------------------------------------------------------------------
                                                     Accumu-
                                                       lated
                                                       Other          Total
                    Share Contributed     Retained     Comp.   Shareholders'
                  Capital     Surplus     Earnings    Income         Equity

Balance Sep.
 30, '07     $ 27,403,594 $ 1,320,461  $ 2,758,967   $72,794   $ 31,555,816

Aeroquest
 shares
 purchased
 for
 cancellation    (385,288)    (15,864)    (414,216)                (815,368)

Issuance of
 common
 shares for
 cash, net
 of expenses   18,532,367                                        18,532,367

Issuance of
 common
 shares on
 acquisition    1,962,708                                         1,962,708

Share
 issuances
 pursuant to
 restricted
 stock unit
 vesting           22,500     (22,500)                                    -

Share
 issuances
 pursuant to
 stock
 options
 exercised        149,195     (37,239)                              111,956

Warrants
 exercised        669,208                                           669,208

Net income
 for the
 period                                    936,243                  936,243

Stock based
 compensation
 expense                      555,963                               555,963

Unrealized
 gain on
 translation
 of self
 sustaining
 foreign
 operations                                          190,699        190,699

Revaluation
 of long
 term
 investments
 to fair
 market
 value                                               (25,000)       (25,000)
----------------------------------------------------------------------------

Balance Mar.
 31 08       $ 48,354,284 $ 1,800,821  $ 3,280,994 $ 238,493   $ 53,674,592
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying summary of significant accounting policies and notes are an
integral part of these financial statements.