8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 23, 2008

Oilsands Quest Inc.

(Exact name of registrant as specified in its charter)

Colorado	001-32994	98-0461154
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

205, 707– 7th Avenue S.W. Calgary, Alberta, Canada	T2P 3H6
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (403) 263-1623

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

     On January 24, 2008 Oilsands Quest Inc. (the “Company”) issued a press release announcing that in the January 23, 2008 Alberta Public Offering of Oil Sands Rights it acquired two oil sands exploration permits contiguous to the Company’s Saskatchewan lands. The permits were acquired for an aggregate cost of $10,010,880 (Cdn), plus annual rent of $3.50 per acre. The press release announcing the acquisition is filed as Exhibit 99.1 to this report and is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release dated January 24, 2008.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Oilsands Quest Inc.               (Registrant)
Date: January 24, 2008	/s/ Karim Hirji
	Name:	Karim Hirji
	Title:	Chief Financial Officer

Exhibit Index

Exhibit No.	Exhibit Description
99.1	Press Release dated January 24, 2008

EX-99.1

Exhibit 99.1

CUSIP# 678046 10 3
Amex: BQI

NEWS RELEASE

DATE: January 24, 2008

Oilsands Quest expands land position in Alberta

Calgary, Alberta— Oilsands Quest Inc. (Amex: BQI) has expanded its land position in Alberta with the acquisition of two oil sands exploration permits contiguous to its Saskatchewan lands. Each permit covers a township of land for a total of approximately 18,432 hectares (46,080 acres). The permits are located north and west of the company’s Axe Lake Discovery area in Saskatchewan.

The acquisition complements Oilsands Quest’s existing land holdings in Alberta and Saskatchewan and is in keeping with the company’s strategy to selectively acquire exploration lands as they come available. Prior to the sale, Oilsands Quest evaluated the lands covered by the new permits by shooting 40 km of 2-dimensional seismic in January 2008.

The new exploration permits were acquired in the January 23, 2008, Alberta Public Offering of Crown Oil Sands Rights. Permit PO298 is for all 36 sections (9216 hectares) in Township 96, Range 1 West of the 4th Meridian. Permit PO299 is for all 36 sections (9216 hectares) in Township 96 Range 2 West of the 4th Meridian. Both permits are issued in accordance with the Alberta Mines and Minerals Act and its regulations. Oilsands Quest acquired the two permits for an aggregate cost of $10,010,880 Cdn, plus annual rental of $3.50 per hectare.

A map showing Oilsands Quest’s revised oil sands holdings in Alberta and Saskatchewan is posted with this news release on the company’s web site (www.oilsandsquest.com).

Oilsands Quest Inc. is aggressively exploring Canada’s largest contiguous oil sands land holding, which is located in Saskatchewan and Alberta, and developing Saskatchewan’s first global-scale discovery. It is leading the establishment of the province of Saskatchewan’s emerging oil sands industry.

For more information:

General inquiries and retail investors, contact Hedlin Lauder Investor Relations Ltd.
Toll Free 1-800-299-7823. Office 403-232-6251
Email irinfo@hedlinlauder.com

Institutional investors, contact BarnesMcInerney Inc.
Toll Free 1-866-794-7288. Office 416-371-0510
Email oilsands@barnesmcinerney.com