Strange Lake Project

QUEBEC/LABRADOR

Strange Lake Project, Quebec/Labrador

The Strange Lake project is situated within the George River belt of northeastern Quebec and northwestern Labrador. It is located 175 km north-east of Schefferville, Quebec and 125 km west of the Voiseys Bay nickel-copper-cobalt deposit, currently being mined by Vale in eastern Labrador.

The property straddles the REE-Zr-Y-Nb-Beryllium (Be) deposit discovered by the Iron Ore Company of Canada in the late 1970’s (historical resource estimate, pre-National Instrument 43- 101; Venkatswaran, 1983 – 52 million tonnes @ 3.25% ZrO2, 0.56% Nb2O5, 0.66% Y2O3, 0.12% BeO and 1.30% TREO).

Quest undertook detailed compilation of all exploration work ever completed in the belt with the intention of identifying new uranium and REE targets. We have identified a new rare earth (REE) mineralized zone, less than three km northwest of the Strange Lake REE deposit, Quebec and Labrador. The new zone, called the B-Zone, is associated with a two km-long geophysical anomaly and has been traced at surface by grab sampling over a minimum strike length of 1.7 km and over widths of at least 350 m.

Multiple, high-grade intersections of between 1.05% and 2.52% REE+Y over widths of 6.0 and 66.0 m characterize all holes drilled into the zone, within a larger, 92.0-135.2 m-thick, mineralized envelope grading between 0.9%-1.03% REE+Y. Strong values of zirconium (Zr), niobium (Nb), hafnium (Hf) and beryllium (Be) continue to characterize the REE intercepts and have the potential to contribute important resource value to the mineralized zone.

These new drillholes confirm the resource expansion potential to open-pit mining of the B-Zone in all directions, particularly at depth and down-plunge to the northeast. Quest currently awaits further diamond drilling results of the B-Zone with the view of including it in Quest's preliminary resource estimate for the property in 2010.

Mineralized Footprints: B Zone and Main Zone, Strange Lake