Mr. Peter Cashin reports

QUEST RARE MINERALS ISSUES $2.25 MILLION SECURED CONVERTIBLE DEBENTURE

Quest Rare Minerals Ltd. has completed a first tranche of its previously announced private placement by issuing a 7-per-cent secured convertible debenture in a principal amount of $2.25-million to 2455440 Ontario Inc., a corporation affiliated with Ekagrata Inc., a Canadian private investor. Quest also issued 2.25 million warrants to 2455440 Ontario, each of which entitles the holder to acquire one common share of Quest at a price of 15 cents for four years.

The proceeds from the private placement will be used by Quest primarily toward completion of a feasibility study on its Strange Lake rare-earths project in northeastern Quebec, and for working capital.

As previously announced, the debenture matures at the earlier of Dec. 31, 2016, and the date on which Quest receives payment from the government of Quebec of resource tax credits and mining duty credits for Quest's 2013 and 2014 fiscal years. The debenture bears interest at a rate of 7 per cent per annum, payable semi-annually in cash and, at the holder's option, can be converted into Quest common shares at a price of 13 cents per share. The debenture is secured by a first-priority security interest in, and lien upon, Quest's rights in, and to, Quebec resource tax credits and mining duty credits for Quest's fiscal years 2013 and thereafter.

In connection with the private placement, Ekagrata has the right to nominate two directors to the board of directors of Quest, subject to prior approval by the board. Accordingly, Quest is pleased to announce that Prashant Pathak, chief executive officer of Ekagrata, will join the board of directors of quest; however, Mr. Pathak's continued service on the board is subject to approval by the Toronto Stock Exchange.

Under the applicable policies of the TSX, the issuance by Quest of an additional $250,000 principal amount debenture and 250,000 warrants to acquire up to 250,000 shares of Quest is subject to shareholder approval, which Quest intends to seek at its annual meeting of shareholders to be held on April 20, 2015. Closing of this additional amount of $250,000, if approved, is expected to take place immediately after the annual meeting.

We seek Safe Harbor.