Mr. Anil Singh reports

QUEST RARE MINERALS ISSUES $250,000 SECURED CONVERTIBLE DEBENTURE

Quest Rare Minerals Ltd. has completed the second tranche of its previously announced private placement by issuing a 7-per-cent secured convertible debenture in a principal amount of $250,000 to 2455440 Ontario Inc., a corporation affiliated with Ekagrata Inc., a Canadian private investor. Quest also issued 250,000 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.

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.

The proceeds from the private placement will be used by Quest for working capital.