Ms. Julie Masse reports

QUEST PROVIDES DEFAULT STATUS REPORT

Quest Rare Minerals Ltd. is providing this biweekly default status report in accordance with National Policy 12-203, Cease Trade Orders for Continuous Disclosure Defaults. On Jan. 31, 2017, Quest announced by way of press release that Quest's management's discussion and analysis (MD&A) for the fiscal year ended Oct. 31, 2016, and annual information form for the fiscal year ended Oct. 31, 2016 (AIF), filed on SEDAR on Jan. 24 and Jan. 25, 2017, respectively, did 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, and that in order to rectify any deficiencies, Quest intended 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.

As a result, Quest's principal regulator, the Autorite des marches financiers, granted a management cease-trade order (MCTO) to Quest. The MCTO restricts all trading in securities of Quest, whether direct or indirect, by Quest's directors and senior officers until such time as amended MD&A and amended AIF are filed by Quest. The MCTO does not affect the ability of other Quest shareholders to trade their securities.

There is no material change regarding the information contained in Quest's press release of Jan. 31, 2017, except that Quest announced on Feb. 10, 2017, that the Toronto Stock Exchange has granted conditional approval for Quest's best-efforts private placement of special warrants to "accredited investors" in Ontario, Alberta and British Columbia in a maximum amount of $8-million and that Quest and Secutor Capital Management Corp., the agent for the private placement, have agreed to waive the minimum of 25 million special warrants ($5-million), such that there is no minimum amount for the private placement. The closing of the private placement is expected to take place on or about Feb. 17, 2017, subject to customary closing conditions and filing of standard documents with the Toronto Stock Exchange.

Quest is working diligently to obtain an updated independent technical report and to prepare an amended MD&A and amended AIF. 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 independent technical report.

There is no failure by Quest in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines, and there is no actual or anticipated default subsequent to the default announced in Quest's press release of Jan. 31. There is no other material information concerning the affairs of Quest that has not been generally disclosed.

About Quest Rare Minerals Ltd.

Quest is a Canadian-based company focused on becoming an integrated producer of rare earth metal oxides and a significant participant in the rare earth elements (REE) material supply chain. Quest's objective is the establishment of major hydrometallurgical and refining facilities in Becancour, Que., to separate and produce strategically critical rare earth metal oxides.

We seek Safe Harbor.