August 19, 2011 Dear Investor, We would like to thank you for your continued interest in Canadian Quantum Energy Corp.

Canadian Quantum Energy Corp.

recently acquired a 50-per-cent interest in an Indian Oil and Gas Canada permit, with Sundance Energy Corp.

acquiring the other 50 per cent.

A discovery well from a zone adjacent to the Alexander First Nations Project was recently announced.

The well of significant interest is 102/10-7-56-26W4, in the Alexander sand zone.

In 6.7 hours of swabbing operations (after recovering 100% of the load fluid) the well produced at an average rate of 294 barrels per day of 32 degrees API sweet oil and 213 mcf per day of natural gas or approximately 329 barrels of oil equivalent per day.

Here is a link to the maps showing the new project, Alexander Project Maps.

There is major production surrounding our entire project which you will see.

The Alexander First Nation lands have the potential for multi-zone light oil and natural gas production at relatively shallow depths with existing infrastructure in the area.

Sundance, as operator, is in the process of configuring an extensive 3-D seismic program that will be shot as soon as possible. At the Turin Project, in southern Alberta, a proprietary seismic will be acquired in 2011 with drilling to follow shortly thereafter. We are currently undervalued in the market place in comparison to our peers mainly due to the perceived uncertainty in Quebec.

Current land values in Quebec are at a fraction of comparable land values in other shale plays elsewhere in North America & should increase dramatically once gas companies are confident that there is a comprehensive equitable regulatory regime in place. Please visit our updated website at www.canadianquantum.ca Please review and respond by email or telephone with any questions you may have.

I would also be happy to send you any additional information. Kind regards, Mark Prosser Investor Relations Canadian Quantum Energy Corp T: 604 889 8676
You have previously expressed interest or are someone who may be interested in our company.

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