Ms. Julie Masse reports

QUEST HOLDS FIRST CLOSING OF PRIVATE PLACEMENT OF SPECIAL WARRANTS

Quest Rare Minerals Ltd. has held a first closing of its previously announced private placement by issuing an aggregate of 8.1 million special warrants to accredited investors in Ontario, British Columbia and outside of Canada at a price of 20 cents per special warrant, for gross proceeds to Quest of $1.62-million.

Quest will use the net proceeds from the private placement for its full-scale pilot plant project and process optimization (part of Quest's Strange Lake project), and for working capital and general corporate purposes.

Each of the special warrants may be exchanged for no additional consideration for one Quest common share and one Quest common share purchase warrant. Each of the warrants will entitle its holder to purchase one share at a price of 27.5 cents for a period of three years from the closing date of the private placement.

Quest will file a prospectus in those provinces in which special warrants were sold in order to qualify for distribution the shares and warrants issuable upon the exchange of the special warrants. The special warrants will be deemed to be exercised without payment of additional consideration or further action on the third business day following the day upon which Quest obtains a receipt for the final prospectus. In the event that Quest does not obtain a receipt for the final prospectus from the applicable Canadian securities authorities by March 24, 2017, each special warrant will be exchanged, at no additional cost, for 1.25 shares and 0.75 of a warrant (instead of one share and one warrant). In that event, each warrant will entitle its holder to purchase one share at a price of 27.5 cents for a period of four years.

Secutor Capital Management Corp. of Toronto acted as lead agent for the private placement. As partial consideration for its services in connection with the private placement, Quest granted broker warrants to Secutor Capital Management (on behalf of the selling syndicate) to purchase up to 405,000 shares, representing 5 per cent of the aggregate number of special warrants issued and sold at the first closing of the private placement, at an exercise price of 27.5 cents per share for a period of three years. It is possible that additional closings of the private placement will be held.

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 material supply chain.

We seek Safe Harbor.