Quest Rare Minerals Receive PEA of REE under Company Profile

Quest Rare Minerals Ltd. (TSX-V:QRM - News) is pleased to announce that it has received the Final report of a positive Preliminary Economic Assessment (PEA) of Quest's Strange Lake B-Zone Rare Earth Element (REE) and has filed it for public consultation on www.SEDAR.com under Quest's company profile. The report, prepared by Quest's independent consultants, Wardrop Engineering Inc., A Tetra Tech Company (Wardrop), shows positive cash-flow, a strong Internal Rate of Return and strong Net Present Value metrics at discount rates of up to 20% for a potential mining operation at Strange Lake. The Strange Lake property is in northeastern Quebec, approximately 175 km northeast of Schefferville, Quebec and 125 km west of the Voisey's Bay Ni-Cu-Co mine in Labrador. The Wardrop PEA Report has also been posted on Quest's website home page at www.questrareminerals.com.

The Wardrop study utilizes an open-pit mining operation model and a Total Rare Earth Oxide (TREO) price deemed conservative, as it is similar to the 2007 trailing three-year average price. Accepted consensus is that REE prices have increased since 2007. For this study, the total tonnes of concentrate produced of TREO, Nb2O5 and ZrO2 were considered marketable and contribute to revenues in the financial model.

Wardrop applied a conventional Truck and Shovel open-pit mining operation model to the Strange Lake B-Zone deposit at a production rate of 4,000 tonnes per day (tpd), using the 1.0% Total Rare Earth Oxide (TREO) cut-off presented in the Preliminary Resource Estimate previously reported by Quest (see Press Release : April 7, 2010: 40.4 million tonnes grading 1.161% TREO, 2.07% zirconium oxide (ZrO2), 0.25% niobium oxide (Nb2O5) and 0.053% hafnium oxide (HfO2), see cautionary statements below). Total operating costs per tonne of ore milled are estimated to be C$102/t. Under these project parameters, detailed in Table 3 below, the B-Zone operation would pay back capital expenditure (CAPEX) and have a positive accumulated cash flow in the fourth year of operation, show positive pre-tax cash-flows of up to C$368.2 million per year, an Internal Rate of Return (IRR) of 36.4% and a Pre-Tax Net Present Value (NPV) of C$1.41 billion at a 12% discount rate. The project remains strongly positive when applying up to a 20% discount rate (see Table 1). Life-of-Mine Total Pre-Tax cash-flows of more than C$7.97 billion have been calculated.