Mr. Benoit Desormeaux reports

QUEBEC RARE EARTH ELEMENTS ENTERS INTO OPTION AGREEMENT TO ACQUIRE LYNX REE PROJECT IN QUEBEC, CANADA

Quebec Rare Earth Elements Corp. has entered into an arm's-length option agreement dated Nov. 21, 2023, with Les Ressources Tectonic Inc., pursuant to which the company has been granted an option to acquire a 100-per-cent beneficial and legal interest in the Lynx REE (rare earth element) project located in Quebec, Canada. The property is located 15 kilometres north of Dolbeau-Mistassini and 90 km northwest of Saguenay, Que., and covers 2,034 hectares (20.3 square km).

The Saguenay area is located within the Grenville Gneiss province of the Canadian Shield. The property has direct access via well-maintained forestry roads from the nearby town of Dolbeau-Mistassini.

Option agreement summary

Under the terms of the option agreement, the company may exercise the option to acquire a 100-per-cent interest in the property upon completion of the following option payments:

• On or about Nov. 28, 2023 (the effective date), the company shall make a cash payment in the amount of $10,000 to the optionor and issue the optionor 100,000 common shares in the capital of the company, at a deemed issue price of 15.5 cents per common share;
• On or before the first anniversary of the effective date, the company shall make a cash payment in the amount of $20,000 to the optionor and issue the optionor 100,000 common shares;
• On or before the second anniversary of the effective date, the company shall make a cash payment in the amount of $40,000 to the optionor and issue the optionor 150,000 common shares; and
• On or before the third anniversary of the effective date, the company shall make a cash payment in the amount of $60,000 to the optionor and issue the optionor 200,000 common shares.

In addition, in the event that the company obtains a preliminary economic assessment, study, prefeasibility study or feasibility study prepared by an independent qualified person in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, the company shall make a cash payment in the amount of $200,000 to the optionor.

Pursuant to the policies of the Canadian Securities Exchange (CSE), the option agreement and the issuance of the common shares remain subject to receipt of all necessary corporate and regulatory approvals, including the approval of the CSE. All common shares issued will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

About Quebec Rare Earth Elements Corp.

Quebec Rare Earth Elements is a mining exploration and development company focused on rare earth elements, primarily in the favourable mining jurisdiction of Quebec. The company is lead by a Quebec-based team that has decades of mining experience across all stages of development, from grass roots discoveries, resource development, economic studies, financing, construction, production and continuing operations. Local community engagement is a core principle on which the company seeks to build a sustainable, high-quality, high-integrity business for the benefit of all stakeholders.

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