Mr. Alain Wilson reports

QUEST TO FILE INDEPENDENT TECHNICAL REPORT ON STRANGE LAKE PROJECT, AND AMENDED MANAGEMENT'S DISCUSSION AND ANALYSIS AND ANNUAL INFORMATION FORM

Quest Rare Minerals Ltd. has been advised by the Autorite des marches financiers that Quest's management's discussion and analysis for the fiscal year ended Oct. 31, 2016, and its annual information form for the fiscal year ended Oct. 31, 2016, filed on SEDAR on Jan. 24 and Jan. 25, 2017, respectively, do not comply in certain respects with National Instrument 51-102 -- continuous disclosure obligations -- and National Instrument 43-101 -- standards of disclosure for mineral projects, particularly as they relate to the corporation's Strange Lake project. In order to rectify any deficiencies, Quest intends to file an amended MD&A and amended AIF on SEDAR, as well as an updated independent technical report on the Strange Lake project in early March, 2017. The updated technical report will validate and support the technical information relating to the Strange Lake project contained in the amended MD&A and amended AIF.

Pending such filing, Quest has obtained a management cease trade order from the Autorite des marches financiers under National Policy 12-203 -- cease trade orders for continuous disclosure defaults, under which Quest's directors and senior officers cannot trade in Quest securities.

On Jan. 27, 2017, Quest announced a proposed private placement of special warrants at a price of 20 cents per special warrant for a minimum amount of $5-million and a maximum amount of $7.5-million, with an agent's option to increase the maximum offering to $8-million, which private placement is expected to close on Feb. 9, 2017. Quest will use the proceeds from the private placement in part to obtain the updated independent technical report on its Strange Lake project, which report will be summarized and incorporated by reference in Quest's amended AIF.

The Autorite des marches financiers noted, among other things, that Quest's report dated June 26, 2014, entitled "NI 43-101 technical report on the preliminary economic assessment (PEA) for the Strange Lake property, Quebec, Canada," is in certain respects outdated and does not reflect changes proposed by Quest for the Strange Lake project as indicated in the MD&A. The PEA is incorporated by reference, and certain extracts of the PEA are reproduced in the AIF. As well, certain technical information contained in the MD&A is not supported by an independent technical report. Investors are cautioned that they should not rely on the technical information contained in the MD&A or AIF until such technical information is validated and supported by an updated PEA.

Should Quest fail to file the appropriate default status report as prescribed by National Policy 12-203 -- cease trade orders for continuous disclosure defaults, the securities commissions or regulators may as a result impose an issuer cease trade order against all shareholders of Quest. Quest confirms that it intends to provide default status reports for so long as it is in default of its requirement to file an updated technical report on its Strange Lake project and an amended MD&A and amended AIF in compliance with National Instrument 51-102 -- continuous disclosure obligations -- and National Instrument 43-101 -- standards of disclosure for mineral projects.

Quest confirms that, at the date hereof, there are no insolvency proceedings against it and no other material information concerning the affairs of Quest that has not been generally disclosed.

We seek Safe Harbor.