Quest Rare Minerals Ltd.

Quest Rare Minerals Ltd.

September 16, 2010 08:30 ET

Quest Rare Minerals' B-Zone Definition Drilling Extends REE Deposit to Over 309.0 Vertical Metres, Strange Lake, Quebec

Highlights: - B-Zone drilling continues to expand the mineralized granite and has shown important expansion of the high grade surface pegmatite zone for over 1.0 km in strike length, with widths varying from 225 to 550 m and vertical thickness from 10 to over 112 metre - Multiple, high grade intersections of between 1.21% and 5.31% TREO over widths of 1.43m and 112.65m characterize all holes drilled into the surface pegmatite zone, within a larger, 140.86 and 309.9 m-thick, mineralized envelope grading between 0.86%-1.02% TREO - Deepening of 2009 drillholes into the B-Zone deposit have extended the granite hosted mineralization from a maximum vertical thickness of 135.2 m to over 309 m vertical - Drilling will focus on further refinement of the high grade surface pegmatite mineralized zone

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Quest Rare Minerals Ltd. (TSX VENTURE:QRM) is pleased to report the first results from 2010 diamond drilling of their B-Zone rare earth element (REE) deposit. The drilling is intended to determine the vertical extent of the mineralized system defined in 2009, to improve the confidence of the continuity of the system, and to better define the higher grade pegmatite resource observed to outcrop at surface as defined by previous Quest drilling. The B-Zone REE deposit has now been defined over a minimum of 1.1 km in strike length, over a width of up to 600 m and up to a vertical thickness of 309.9 m, more than double the previously reported vertical thickness (see Press Release: November 12, 2009). Lab results for holes BZ-10-20 to BZ-10-30A have returned multiple, high Total Rare Earth Oxide (TREO) grade intersections of between 1.21 % and 5.31% over thicknesses of 1.43 m to 112.65 m. Heavy REE (HREE) represents between 39% and 76.6% of the Total REE (TREO) content intersected in the new drilling. Mineralization continues to be open to resource expansion along strike length and across width of the zone.

"Drilling on the B-Zone continues to support management's view that the B-Zone represents a very large rare earth element resource," said Peter Cashin, Quest's President & CEO. "With a very positive Preliminary Economic Assessment for the B-Zone in hand and evidence that the deposit continues to expand in all directions, particularly for the higher grade surface pegmatite mineralization, we view that the project's prospects will only improve as our exploration progresses."

B-Zone Definition Drill Program

Assays have been received for the first 11 definition drillholes of the program representing 2244.0 m (see Table 1, 2). Currently three diamond drills are probing the B-Zone at drill centers of between 50-100 m. Drill results have confirmed strong REE mineralization over 1.1 km strike length and over widths of up to 600 m. Drilling continues to confirm mineralization to be relatively flat dipping. A north trending pegmatite zone at the core of the mineralized envelop (see Figure 1) which is observed to outcrop, has been defined along a minimum strike length of 1.0 km and vertical thicknesses of up to 112.65 m and constitute the highest grades observed in the B-Zone deposit. The surface footprint of the deposit is expressed as a two km-long, northeast trending airborne radiometric anomaly northwest of the Strange Lake Main Deposit. The radiometric anomaly abuts to the northwest against Brisson Lake and may extend further under the lake. Historical IOC drilling indicates that mineralization continues in this direction.

The best results returned from the first 11 holes of the program (see Table 2), are:

Borehole # From (m) To (m) Length (m) TREO (%) HREE (%)

BZ-10-021 3.40 227.75 224.35 0.99 41.8
including 6.00 66.73 60.73 1.24 49.9
and including 29.10 38.95 9.85 2.36 58.2

BZ-10-022 1.23 197.30 196.07 1.02 41.5
including 2.05 43.04 40.99 1.24 49.7
and including 16.20 18.31 2.11 2.97 76.6

BZ-10-023 3.50 215.40 211.90 1.02 44.2
including 20.84 88.65 67.81 1.28 51.3
and including 54.40 63.25 8.85 2.04 61.3

BZ-10-027 4.50 314.40 309.90 1.00 39.4
including 13.50 126.15 112.65 1.30 47.8
and including 68.33 96.71 28.38 1.48 50.4
and including 68.33 70.40 2.07 4.40 49.7
and including 121.87 123.30 1.43 5.31 17.8

BZ-10-028 2.00 226.20 224.20 1.00 38.3
including 16.00 57.80 41.80 1.33 46.3
and including 16.00 19.00 3.00 2.90 73.5

BZ-10-030A 4.89 65.20 60.31 1.15 44.6
including 7.40 15.04 7.64 2.16 56.1
and including 53.88 65.20 11.32 1.27 51.0

Note: Drill was lost in a fault zone and in mineralization at 65.2 m. Hole
will be re-drilled as BZ-10-30B

The better grades of mineralization are associated with what is termed the Pegmatite Zone which is composed of a high proportion of very coarse-grained pegmatite intercalated with extremely altered intrapegmatitic Strange Lake peralkaline granite at the uppermost parts of the B-Zone mineralized system (see Diamond Drill Sections in Figures 2, 3). The highly-altered granite hosting pegmatites continues to carry elevated grades of REE in excess of 0.7% TREO over core lengths of over 309 m. A 0.85% TREO cut-off, as specified in Quest's recent Preliminary Resource Estimate (see Press Release: April 7, 2010), was used in determining the average grades of diamond drill intersections.

In addition, we anticipate that the final Preliminary Economic Assessment (PEA) report by Wardrop Engineering Inc. will be filed on shortly. Clarification on the many economic parameters presented in the PEA (see Press Release: September 9, 2010), including the pricing assumptions used in the study, will be elaborated on.

Quality Control

Mr. Peter Cashin, P. Geo., is the qualified person on the Strange Lake Project under National Instrument 43-101 and was responsible for this news release. Material for analysis has been obtained from drill core which was cut in half using a diamond saw. Half of the core was sent to the lab for analysis, with the remaining half left on-site for future reference. 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.

About Quest Rare Minerals

Quest Rare Minerals Ltd. is a Canadian-based, exploration company focused on the identification and discovery of new and significant Rare Earth deposit opportunities. The Corporation is publicly listed on the TSX Venture Exchange as "QRM" 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 Strange Lake and Misery Lake areas of northeastern Quebec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest's 2009 exploration led to the discovery of a significant new Rare Earth metal deposit, the B-Zone, on its Strange Lake property in northeastern Quebec. The Corporation recently filed a 43-101 Inferred Resource Estimate on the B-Zone deposit and has completed a Preliminary Economic Assessment (PEA) for the deposit. In addition, Quest announced the discovery of an important new area of REE mineralization on its Misery Lake project, approximately 120 km south of Strange Lake project. Quest continues to pursue high-value project opportunities throughout North America.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. More particularly, this news release may contain forward-looking information concerning the Strange Lake B-Zone Rare Earth Element (REE) deposit held by Quest Rare Minerals Ltd. ("Quest"). This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Quest. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward- looking information will transpire or occur, or if any of them do so, what benefits that Quest will derive. In particular, no assurance can be given with respect to the development by Quest of the Strange Lake B-Zone Rare Earth REE deposit. Forward-looking information is based on the estimates and opinions of Quest's management at the time the information is released and Quest does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

To view the figures included with this release, please visit the following link:

Table 1 - B-Zone Definition Diamond Drilling Assay Results, Strange Lake Project, Quebec

To view the table, please visit the following link:

Where: Be=beryllium, Zr=zirconium, Y=yttrium, Nb=niobium, La=lanthanum, Ce=cerium, Nd=neodymium, Sm=samarium, Pr=praseodymium, Eu=europium, Gd=gadolinium, Tb=terbium, Dy=dysprosium, Lu=lutetium, Tm=thulium, LREE=light rare earth elements, HREE=heavy rare earth elements, TREE= Total Rare Earth metals, TREO= Total Rare Earth Oxides.

Table 2 - Diamond Drillhole Location Table, B-Zone Deposit, Strange Lake
Project, Quebec

DDH Easting Northing Elevation Depth Dip Azimuth
BZ10021 427783 6242625 486 215.00 -90 0
BZ10020 427734 6242713 465 227.75 -90 0
BZ10022 427851 6242714 483 197.30 -90 0
BZ10023 427912 6242616 505 215.50 -90 0
BZ10024 427707 6242572 495 218.66 -90 0
BZ10025 427840 6242537 509 218.00 -90 0
BZ10026 427964 6242721 487 202.50 -90 0
BZ10027 427980 6242897 465 314.40 -90 0
BZ10028 427647 6242670 467 226.20 -90 0
BZ10029 427945 6242554 507 143.60 -90 0
BZ10030A 427917 6243001 445 65.20 -90 0

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