May 13, 2008 Oilsands Quest and the northern village of La Loche, Saskatchewan, Canada, announce the signing of a Memorandum of Understanding regarding the establishment of an economic relationship between the two parties. La Loche is the largest community in close proximity to Oilsands Quests' permit lands in northwestern Saskatchewan. The MOU confirms the agreement between the parties to work together to identify and address the economic benefits, as well as environmental, social and other potential impacts on La Loche of Oilsands Quest's exploration activities on its permit lands. By way of the MOU, the parties agree to make reasonable commercial efforts to negotiate a formal exploration agreement that will deal with these matters.