Mr. Benoit Desormeaux reports

QUEBEC RARE EARTH ELEMENTS ANNOUNCES CHANGE IN MANAGEMENT AND REE OPPORTUNITY

Quebec Rare Earth Elements Corp. has made a change in management and focus that positions the company to capitalize on the significant opportunity in the rare earth element (REE) market.

Management change: Martin Milette, chief financial officer

Mr. Milette has been appointed chief financial officer, replacing Arvin Ramos. The company thanks Mr. Ramos for his service and wishes him well in his future endeavours. Mr. Milette has over 25 years of financial experience, with the last 15 years as chief financial officer at SEMAFO, a West African gold producer. Mr. Milette is based in Montreal.

Benoit Desormeaux, chief executive officer, states: "I have worked with Martin for over 15 years and look forward to working with him again. His financial acumen is complemented well by his knowledge of the mining industry and general management skills. Together, with a small but focused team, we look forward to capitalizing on the REE opportunity for the benefit of all stakeholders."

New leadership, new name, new focus

Quebec Rare Earth's founders are Mr. Desormeaux, John Jentz, Mr. Milette and Richard Roy, who are all substantial shareholders of Quebec Rare Earth. All four have worked together at SEMAFO for many years and, together, have almost 100 years of mining experience throughout all stages of exploration, development, financing, construction and operations.

Quebec Rare Earth was formed to develop REE projects, primarily in Quebec. The need for REE supply chains outside of China is clear and, when combined with fundamental REE demand, presents a significant opportunity. The province of Quebec is a premier, stable mining jurisdiction with vast REE exploration potential and has the required infrastructure for all stages of REE development.

REE overview

Rare earth elements are a group of 17 elements composed of scandium, yttrium and the 15 lanthanides. REEs impart special properties of magnetism, luminescence and strength. Although substitutes for REEs are available, they are generally less effective.

REE opportunity -- permanent magnets

Permanent magnets are the single largest and most important end use for REEs. Permanent magnets are an essential component of modern electronics used in automobiles, cell phones, televisions, computers, wind turbines, jet aircrafts and many other products. The strongest known magnet is an alloy of neodymium with iron and boron. Adding other REEs such as dysprosium and praseodymium can improve the performance and properties of magnets.

Although the amount of REE used in a product may not be a significant part by weight, value or volume, the REE can be necessary for the device to function. Magnets made of REE often represent only a small fraction of the total weight, but without them, the spindle motors and voice coils of desktops and laptops would not be possible.

REE opportunity -- mitigating China's control

Although REEs have a wide variety of commercial applications, they also have advanced military applications. REEs role in technology and defence makes their mining and refinement a point of concern for many nations. Depending on the reporting source, China accounts for 60-plus per cent of the mining of REEs, 85-plus per cent of REE processing and 92-plus per cent of magnet production.

Although China is expected to continue to be a significant player in the global market for REE compounds and metal alloys in the short/medium term, businesses and governments have no choice but to seek alternate supply.

Quebec Rare Earth is well positioned to capitalize on REE opportunity

Quebec Rare Earth is well positioned to capitalize on the REE opportunity, given Quebec's rich mineral endowment and favourable mining jurisdiction. Further, the Quebec-based team has the full complement of skills to add value to any stage REE project.

Qualified person (QP)

The technical information in this news release has been reviewed and approved by Richard Roy, PGeo, consulting geologist to Quebec Rare Earth, who is a qualified person (as defined in National Instrument 43-101).

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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