Mr. Pierre Lortie reports

QUEST ANNOUNCES THE CONCLUSION OF A CONTRIBUTION AGREEMENT WITH SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA (SDTC)

Quest Rare Minerals Ltd. has concluded a contribution agreement with Sustainable Development Technology Canada (SDTC). Under the terms of the agreement, SDTC will commence disbursement of the $4.9-million grant in accordance with the milestones agreed with the company. The SDTC grant was awarded to support Quest's operation of a large pilot plant to produce mixed rare earth metal oxides. The objective of the pilot plant project is to establish and confirm the process parameters and, in particular, Quest's selective thermal sulphation (STS) 1 process at scaled-up commercial product levels.

Quest has developed an industrial process that efficiently and cost-effectively produces high-purity mixed rare earth metal oxides from both mined ore from its Strange Lake complex property and phosphor powder recovered from fluorescent light bulbs, helping solve a major environmental problem for landfills.

SDTC announced the funding award in March, 2016, following an extensive and rigorous evaluation of the company's eco-friendly STS process. Compared with alternative technologies, the superior efficiency of the STS process stems from the facts that it is: (i) much simpler; (ii) it required fewer reagent and lower reagent dosages; (iii) rare earth elements are separated from major contaminants (iron, aluminum, uranium); (iv) it minimizes process effluent and produces smaller quantities of inert residue; and (v) it entails low capital and operating costs.

The Quest pilot plant project team is being supported by technical and engineering experts from SGS Canada Inc. and COREM, both world-leading organizations devoted to mineral processing; Outotec (Germany), as the world-leading technology company with the strongest expertise in mineral sulphation processes; Helmholtz Institute Freiburg for Resource Technology of Germany; and RediMet. Rare earth metals are a key component of many clean technology technologies, including energy-efficient electric motors, light-emitting diode (LED) lights and wind turbines. Rare earth metal oxides produced by Quest will be used in large part to meet the growing demand for more efficient permanent magnets. Meeting the greenhouse gas emission targets set out in the Paris Accord will require electrification of the transportation sector. Rare earth permanent magnets in electric motors are a key enabler of this transformation.

Pierre Lortie, Quest's executive chairman, stated, "The establishment of Quest's industrial STS processing plant in Becancour, Que., will facilitate the creation of a new industry for Canada, as well as open the opportunity to attract additional downstream businesses such as alloy and permanent magnet producers, as well as spark the development of research and development in rare earth processing and new applications at Canadian universities and research institutes."

We seek Safe Harbor.