Quest Uranium Corporation
TSX VENTURE : QUC

Quest Uranium Corporation

August 19, 2009 08:30 ET

Quest Discovers New Rare Earth Zone Close to the Strange Lake Deposit, Quebec

Highlights: - Surface prospecting of a two km-long airborne radiometric geophysical anomaly, less than three km northwest of the Strange Lake REE deposit, has led to the identification of an important new rare earth (REE) mineralized zone - Mineralization has been characterized by surface grab sampling of outcrop, trench sub-crop and boulders over a minimum 1.7 km strike length and over widths in excess of 350 m - Sampling returned up to 14.43% Total Rare Earth Oxides (TREO), with Heavy Rare Earth Elements (HREE) representing between 7% and 67% of the total REE component - Exploration and definition diamond drilling of the new zone of mineralization, called the B-Zone, is currently underway

TORONTO, ONTARIO--(Marketwire - Aug. 19, 2009) - Quest Uranium Corporation (TSX VENTURE:QUC) announces that it has identified an new rare earth (REE) mineralized zone, less than three km northwest of the Strange Lake REE deposit, Quebec and Labrador. The new zone, called the B-Zone, is associated with a two km-long geophysical anomaly and has been traced at surface by grab sampling over a minimum strike length of 1.7 km and over widths of at least 350 m. Values of up to 14.43% total rare earth oxides (TREO) as well as 3.63% yttrium oxide (Y2O3), 7.37% zirconium oxide (ZrO2), 3.95% niobium oxide (Nb2O5) and 2.00% beryllium oxide (BeO) were returned by the rock sampling program. Heavy rare earth elements (HREE) represent up to 67% of the TREO component observed in the new B-Zone. Because of the potential significance of this new discovery, Quest has commenced definition diamond drilling of the B-Zone with the view of including it in Quest's preliminary resource estimate for the property in 2010. The Strange Lake project is located 175 km north-east of Schefferville, Quebec and 125 km west of the Voiseys Bay nickel-copper-cobalt deposit, currently being mined by Vale in eastern Labrador.

"Early results of surface exploration work by Quest field crews indicate that a significant new area of REE mineralization, the B-Zone, has been identified approximately three km from the Strange Lake Main zone," said Peter Cashin, Quest's President & CEO. "The B-Zone area rocks show intense alteration and REE mineralization of the same style observed for the Main Zone but appear to represent a better-preserved, less glacially-eroded example of the Strange Lake mineralizing system. I wish to thank our exploration crew for the perseverance and dedication they displayed in making this discovery happen."

B-Zone Exploration Program

Reconnaissance mapping and rock geochemical sampling over a strong, two km-long airborne radiometric anomaly northwest of the Strange Lake Deposit (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) had identified an new REE mineralized zone. The new B-Zone (see Figure 2) has been defined as an extensive area of outcrop, sub-crop and locally-derived boulders of Strange Lake granite. The Zone has been traced at surface over a minimum strike-length of 1.7 km and over widths of at least 350 m. More than 40% of the samples collected thus far have returned values in excess of 0.8% TREO as well significant quantities of Zr, Y, Nb and Be (see Table 1 for a listing of the best values returned by the sampling program).

The best values returned by Quest sampling of the B-Zone were:

- 14.43% TREO, 2.23% yttrium oxide (Y2O3), 2.09% zirconium oxide (ZrO2), 3.95% niobium oxide (Nb2O5) and 0.6% beryllium oxide (BeO) (sample 203851)

- 10.27% TREO, 1.80% Y2O3, 3.23% ZrO2, 0.91% Nb2O5 and 1.54% BeO (sample 203853)

- 8.03% TREO, 0.87% Y2O3, 1.18% ZrO2, 2.20% Nb2O5 and 0.66% BeO (sample 203513)

The mineralization is associated with a highly-altered and iron-stained, fluorite-bearing Strange Lake alkali granite. The better grades of mineralization appear to be related to the equigranular aplitic and pegmatitic phases of the host granite. Given the complexity of the silicate, phosphate and oxide mineralogy of the REE zone and the host granite, samples have been sent out for mineralogical investigation. Bulk sampling and metallurgical work of this new mineralization will be undertaken towards the end of the current exploration program.

Quest's compilation of historical Strange Lake property data indicated that six Iron Ore Company of Canada (IOC) drillholes completed in the early 1980's intersected the western extremity of the B-Zone. All holes returned wide intercepts of Zr, Y, Nb and cerium (Ce) - mineralized Strange Lake granite over widths ranging from 47 m to 60 m. The significance of these intersections was not recognized by IOC at the time and their REE sample analysis suite was incomplete. Preliminary observations from early Quest drilling of the new B-Zone have confirmed the wide nature of the mineralized intercepts observed by IOC.

Definition Drill Program

In addition to the definition drilling currently underway over the Main Strange Lake REE zone (see Press Release : August 13, 2009), a program of exploration and definition drilling over the B-Zone is in progress. A minimum of 20 drillholes for 2,000 m is planned for this portion of the program (see Figure 3). The drilling is expected to be completed sometimes in September.

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 undertaken 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.

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 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.

About Quest Uranium

Quest Uranium Corporation is a Canadian-based, exploration company focused on the identification and discovery of new world-class Rare Earth deposit opportunities. The Company is publicly-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 Strange Lake area of northeastern Quebec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest continues to pursue high-value 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 Table 1, please visit the following link: http://media3.marketwire.com/docs/quc819tab1.pdf

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/quc819fig1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/quc819fig2.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/quc819fig3.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 this release

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