Summary of OILSANDS QUEST INC

Item 8.01 Other Events.

On September 23, 2008 Oilsands Quest Inc. (the "Company") issued a press release announcing that it has entered into a private placement financing agreement with a syndicate of underwriters on a bought deal basis, to issue 3,266,000 common shares on a flow-through basis ("Flow-Through Shares"). The Flow-Through shares will be issued to investors at a price of CDN$3.675 (US$ 3.50) per share, for aggregate consideration of approximately CDN$12 million. The press release announcing the private placement is filed as Exhibit 99.1 to this report and is incorporated by reference herein.

Additionally, on September 23, 2008, the company issued a press release announcing that due to an oversubscription in its underwritten flow-through private placement announced earlier on September 23, 2008 (the "Offering") with a syndicate of underwriters on a bought deal basis, the Company agreed to issue a further 1,534,000 common shares in the Offering on a flow-through basis (the "Additional Flow-Through Shares"). The Additional Flow-Through Shares will be issued to investors at a price of CDN$3.675 (US$3.50) per share, for additional consideration of approximately CDN$5.6 million. In aggregate, the placement of a total of 4,800,000 flow-through shares in the Offering will generate gross proceeds of CDN$17.6 million. Closing for the Offering is expected to occur on or about October 3, 2008, and is contingent on receiving approval from the American Stock Exchange. The press release announcing the oversubscription in the Offering is filed as Exhibit 99.2 to this report and is incorporated by reference herein.

This financing is in addition to the non-brokered private placement announced in a press release dated September 22, 2008 and filed with the Securities and Exchange Commission on Form 8-K on September 23, 2008 of up to 6,642,857 flow-through shares, priced at US$3.50 (CDN$3.675) per share, for aggregate consideration of up to US$23.3 million (CDN$24.4 million).