Quest Uranium Corporation
TSX VENTURE : QUC

Quest Uranium Corporation

May 26, 2009 08:30 ET

Quest to Acquire Property Adjacent to the Strange Lake Rare Earth Deposit in the George River Area, Quebec

- The property covers the potential geological continuation to known rare earth element (REE) mineralization related to the Strange Lake zirconium-yttrium-beryllium-niobium-REE deposit in the George River area of Quebec - Quest to acquire a 100% interest in the property by issuing 50,000 shares - The property lies 10 km south of the Stewart West high-grade REE discovery

TORONTO, ONTARIO--(Marketwire - May 26, 2009) - Quest Uranium Corporation (TSX VENTURE:QUC) is pleased to announce that it has entered into a purchase and sale agreement with two prospectors for the acquisition by Quest of a 100% interest in single block of mining claims in the Strange Lake area of northeastern Quebec. The property is fully enveloped by Quest's Stewart Lake property (Figure 1) and lies immediately north of the Strange Lake REE-zirconium (Zr)-yttrium (Y)-niobium (Nb)-beryllium (Be) deposit.

Under the terms of the agreement, Quest will acquire a 100% undivided interest in the property by issuing an aggregate of 50,000 shares to the two vendors of the property. In addition, Quest will grant a 2.0% net smelter royalty (NSR) to the vendors, which Quest can repurchase in full for $1.5 million.

"Quest now has 100% control of all of the favourable REE geology in and adjacent to our Strange Lake deposit," said Peter Cashin, Quest's President and CEO. "This acquisition will provide Quest with a high-value resource opportunity as it moves forward with its summer exploration plans in the area and is in keeping with our strategy of concentrating on rare earth metals."

The acquisition by Quest is subject to regulatory approval, including that of the TSX Venture Exchange.

Quest currently holds the Quebec portion of the Strange Lake REE-Zr-Y-Nb-Be Deposit discovered by the Iron Ore Company of Canada in the late 1970's (historical resource estimate, pre-National Instrument 43-101; Venkatswaran, 1983 - 52 million tonnes @ 3.25% ZrO2, 0.56% Nb2O5, 0.66% Y2O3, 0.12% BeO and 1.30% TREO). In addition, Quest has previously announced (see Press Release: April 7, 2009) that it had made a new discovery of high-grade REE mineralization in granite approximately 10 km northeast of Strange Lake. The mineralized granite is associated with a large radiometric anomaly measuring 2.25 km by 1.5 km. Several grab samples from preliminary work over the target area returned combined Y oxide (Y2O3) and Total Rare Earth Element oxides (TREO) of up to 4.35%. Individual uranium (U3O8) and zirconium (ZrO2) analyses of up to 0.36% and 1.34%, respectively, were also returned from sampling of the granite.

A significant exploration program consisting of reconnaissance prospecting, geological mapping, airborne geophysical surveying, rock geochemistry and diamond drilling is currently being planned for the summer and fall.

Quality Control

Peter Cashin, P. Geo., is the qualified person on the George River Project under National Instrument 43-101 and was responsible for this news release. Material for analysis has been obtained from grab samples from outcrop and boulders. A strict QA/QC program is followed which includes the use of elemental standards, duplicates and blanks. Analyses were performed by Activation Laboratory Limited of Ancaster, Ontario.

The 1983 historical mineral resource estimate referred to in this press release was prepared before the introduction of National Instrument 43-101. No qualified person has done sufficient work to classify this historical resource estimate as current mineral resources or mineral reserves. Accordingly, Quest is not treating the historical resource estimate as current mineral resources or mineral reserves, as defined in National Instrument 43-101, and the historical resource estimate referred to in this press release should not be relied upon.

About Quest Uranium

Quest Uranium Corporation is a Canadian-based, exploration company focused on the identification and discovery of new world-class uranium and REE deposit opportunities. The company is publically-listed on the TSX Venture Exchange as "QUC" and is led by a highly-respected management and technical team with a proven mine-finding track record. Quest is currently advancing several high-potential projects in Canada's premier exploration areas: the George River Belt of northeastern Quebec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest also has a clear route to 50% ownership of a large uranium property in the James Bay area, Quebec under option from Midland Exploration Inc. Quest continues to identify new, high-potential project opportunities throughout North America.

This press release may contain "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward looking statements".

To view Figure 1 - Gauthier-O'Connor Property Location Map, please visit the following link: http://media3.marketwire.com/docs/quc525.pdf

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

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