News

Quest Rare Minerals Mobilizes Crews to Commence Strange Lake REE Project Exploration, Quebec

Highlights:

-Quest expects to commence diamond drilling on the project within the next several days

-A 15,000-m definition and exploration diamond drilling program is planned for the project to bring the B-Zone Inferred Resource into the Indicated and Measured category

-Metallurgical testing of a one-tonne bulk sample of B-Zone mineralization is currently being processed by Hazen Research and final results are expected soon

-A Preliminary Economic Assessment (PEA) of B-Zone REE deposit is currently being undertaken by Wardrop Engineering Inc. and is expected to be delivered in August and will form the basis of a model for the economics of the deposit

-Drilling will also be completed to assess the B-East, A-Zone, SLG and Apurna Lake target areas

TORONTO, ONTARIO--(Marketwire - July 6, 2010) - Quest Rare Minerals Ltd. (TSX VENTURE:QRM) is pleased to announce that that it has mobilized exploration crews to the Strange Lake project area to commence the Corporation's most ambitious exploration program in its young history. Support crews have been working in the area since late March to transport material and supplies in preparation for this year's exploration effort and to construct a 50-man, winterized exploration camp on the property. A four-rig, 15,000-m definition diamond drilling program on the B-Zone REE deposit constitutes the principal focus of Quest's exploration efforts. Reconnaissance mapping, prospecting, geochemical sampling and test drilling will also be undertaken to better define the resource potential of four new targets identified on the property during the 2009 exploration program. A 20-50 tonne bulk sample will be collected at the end of the summer so as to undertake pilot mill studies on the B-Zone mineralization.

"Our Strange Lake exploration plans are by far the most ambitious that Quest has ever undertaken and exploration personnel have been working diligently throughout the winter months to ensure success of the program," stated Peter J. Cashin, President & CEO of Quest. "The objective of this year's exploration program is to have the data in hand to improve the quality of the B-Zone Resource outlined by our recent Preliminary Resource Estimate. In addition, our intentions are to expand the B-Zone deposit at depth and of the east, to collect a larger bulk sample for advanced metallurgical study, to assess exciting new exploration targets elsewhere on the property and to be in a position, ultimately, to decide whether the program should proceed to pre-feasibility."

B-Zone Resource Estimate (April 2010)

The results of a 43-101 Preliminary Resource Estimate for the B-Zone deposit were submitted by Wardrop Engineering (see Press Release: April 16, 2010 and Table 1) which indicated that, at a 0.85% total rare earth oxides (TREO) cut-off grade, the B Zone contains an inferred resource of close to 115 Mt at 1.0% TREO. Furthermore, this resource calculation demonstrated the extremely Heavy Rare Earth oxide (HREO) rich nature of the B Zone , determined to be between 43-51% HREO and that the percentage of HREO content increases with increasing percent TREO.

To view Table 1, please visit the following link: http://media3.marketwire.com/docs/qrm0706tab1.pdf.

Metallurgical Studies and Preliminary Economic Assessment

Wardrop Engineering is currently undertaking a Scoping-level Preliminary Economic Assessment (PEA) of the B-Zone resource to establish economic models for the deposit. In addition, Hazen Research is currently completing final metallurgical testing studies of a one-tonne bulk sample collected from the Zone in 2009. Quest's metallurgical engineers report that the results from this work should be delivered soon and will be incorporated into the PEA study. Results from both of these studies are expected to be reported on by early August 2010 and will be used as a guide to future developments on the project.

2010 Strange Lake Rare Earth Exploration Program

The Strange Lake property is located 220 km northeast of Schefferville and 125 km west of the Voiseys Bay Nickel-Copper-Cobalt Mine (see Figure 1). The property comprises a total of 1,333 claims, covering an area of 540 km2 in Quebec and Labrador (see Figure 2).

The 2010 Strange Lake program will significantly expand the level of activity of the 2009 program. An extensive diamond drilling program, utilizing four drill rigs and comprising up to 15,000 m, is envisioned. Of the total amount of drilling, a full 13,000 m will focus on definition drilling, at 75 m spacing, of the existing B-Zone resource and is intended to improve the quality of the current resource to the Indicated and Measured category. As well, deepening of existing drilling below last season's 75-150 m limits, is intended to probe the vertical extension to the B- Zone. More widely-spaced drilling, at 150 m centres, will focus on definition of the eastward extension of the airborne geophysical anomaly that defines the Zone and where exploration crews had identified surface mineralization a further 1.1 km to the east (see Press Release: August 19, 2009).

A total of 2,000 m of exploratory drilling will be directed to assessing the economic potential of new mineralized targets defined from 2009 reconnaissance exploration at the Apurna Lake, SLG, B-East and A-Zone areas (see Figure 3). Significant rare earth mineralization up to 16.7% TREO (B-East), 3.9% TREO (SLG), 4.7% TREO (A-Zone) and 0.95% TREO (Apurna Lake) was returned from grab sampling of bedrock and locally-derived boulders in these areas in 2009 (assay results are illustrated in Table 2). Follow-up reconnaissance work will be completed in the early part of the 2010 program and a determination of the best targets requiring diamond drill testing will be made.

A supplementary resource calculation by Wardrop will also be undertaken in late 2010 for completion by mid-2011. Planned exploration also includes the collection of a larger bulk sample (20-50 tonnes), additional Pilot-scale metallurgical testing and mineralogical assessment of the B- Zone deposit. A determination to proceed to a pre-feasibility or feasibility will be made upon completion of this phase of the Strange Lake work, likely in the latter part of 2011.

Quality Control

Mr. Peter Cashin, P. Geo., is the qualified person on the Strange Lake Project under National Instrument 43-101 and was responsible for this news release and has approved the disclosure of the technical information contained herein.

Tim Maunula, P. Geo., Chief Geologist with Wardrop Engineering Inc., is the Qualified Person responsible for the mineral resource estimate summarized in this document. The effective date of the resource estimate is April 5, 2010.

About Quest Rare Minerals

Quest Rare Minerals Ltd. is a Canadian-based, exploration company focused on the identification and discovery of new world-class Rare Earth deposit opportunities. The Corporation is publicly-listed on the TSX Venture Exchange as "QRM" and is led by a highly-respected management and technical team with a proven mine-finding track record. Quest is currently advancing several high-potential projects in Canada's premier exploration areas: the Strange Lake and Misery Lake areas of northeastern Quebec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest's 2009 exploration led to the discovery of a significant new Rare Earth metal deposit, the B-Zone, on its Strange Lake property in northeastern Quebec. The Corporation recently filed a 43-101 Inferred Resource Estimate on the B-Zone deposit and currently awaits a Metallurgical study as part of an ongoing economic evaluation of the deposit. In addition, Quest announced the discovery of an important new area of REE mineralization on its Misery Lake project, approximately 120 km south of Strange Lake project. Quest continues to pursue high-value project opportunities throughout North America.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/qrm0706fig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/qrm0706fig2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/qrm0706fig3.pdf.

To view Table 2, please visit the following link: http://media3.marketwire.com/docs/qrm0706tab2.pdf.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Peter J. Cashin
President & CEO
(416) 916-0777 or 1-887-916-0777
(416) 916-0779 (FAX)
info@questrareminerals.com
www.questrareminerals.com