Mr. Peter Cashin reports

FEDNAV TO PROVIDE MARINE SHIPPING SOLUTIONS FOR QUEST'S STRANGE LAKE DEVELOPMENT

Quest Rare Minerals Ltd. has signed a non-binding memorandum of understanding with Fednav Ltd. to develop and deliver shipping solutions for Quest's Strange Lake project, subject to certain conditions. Fednav and Quest intend to execute a final binding agreement in the future.

In accordance with the memorandum of understanding between the companies, Fednav will provide exclusive marine transportation and engineering services to Quest on all matters related to delivering rare earth ore concentrates from Quest's Strange Lake mine development to its proposed processing plant in Becancour, Que. Under this agreement, Fednav will supervise the development of detailed ship specifications required to transport concentrate and mine provisions, as well as assistance in berth design, ship-loading equipment and port operational procedures. Fednav will also liaise with regulatory authorities and the concerned aboriginal communities on behalf of the project. Fednav will support Quest in assessing operational costs for the ships being considered, including full technical management and crewing.

"We are extremely pleased to announce the partnership with Fednav on our Strange Lake project. Their expertise in Canadian and international shipping, particularly in the north Labrador sea, will strengthen our development plans and assist our project team in building a truly world-class mining operation," said Peter Cashin, president and chief executive officer of Quest. He went on to add, "This partnership brings Quest one step closer towards project realization by mitigating some of the infrastructure risk associated with the project and, ultimately, bringing Strange Lake a step closer to production, and will assist Quest in reinforcing its other strategic relationships."

"We are proud to be partnering with Quest on this very special project," said Paul Pathy, president and co-chief executive officer of Fednav. "The development of Strange Lake as a major provider of rare earths is a unique opportunity with the potential for worldwide economic impact. It is good for Quebec, good for Canada, and we are pleased to devote Fednav's shipping experience to contribute to its success."

About Fednav

Fednav, a privately owned Canadian company based in Montreal, is a leading international dry-bulk shipping company with a highly diversified and modern ice-strengthened fleet of ships. Fednav has participated in every major bulk shipping project in the Canadian Arctic and has provided innovative and practical solutions that have helped to develop shipping in the Canadian Arctic for over 50 years. Fednav currently provides bulk shipping solutions for Vale's Voisey's Bay nickel operations, Xstrata's Raglan mine and Teck Cominco's Red Dog mine in Alaska. While in operation, Fednav provided bulk shipping services to Breakwater's Nanisivik mine and Teck Cominco's Polaris mine and was a major provider of ice-class tug and barge shipping services to the petrochemical companies drilling in the Beaufort Sea in the 1970s and 1980s.

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