Corporate Presentation Enabling green technologies Tokyo...

Enabling green technologies...

Through rare earth metal exploration and development

Corporate Presentation Tokyo Presentation

November 2012

www.questrareminerals.com TSX, NYSE MKT: QRM 2

DISCLAIMER Forward-Looking Statements

Forward Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This presentation uses the terms “Measured, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

National Instrument 43-101

This presentation may include historical reserve and resource information in respect of the project areas that do not conform to the requirements of National Instrument 43-101 and which has not been verified by the Company.


Located in Quebec, one of the best mining jurisdictions in the world

Strange Lake is the largest HREE resource capable of meeting the industry’s long-term needs

Highest level of critical/heavy rare earths in peer group

Simple open-pit operation

Metallurgy advancing steadily and results beating previous expectations and peer reports, pilot mill has began operation

Strong technical and development team with in excess of 250 years experience

INVESTMENT HIGHLIGHTS


RARE EARTH CRITICALITY MATRIX (DOE 2011) QRM Will Supply Critical Rare Earth Elements

Medium Term (5-15 Years)

Source: U.S. Department of Energy, Critical Materials Strategy, December 2011 (1) Based on medium-term criticality. Assumes PEA pricing.

85% of QRM In-Situ REE Value Comes from Critical or Near Critical Range

* Elements included in QRM Strange Lake deposit

* *

* * *

% of QRM In-Situ REE Value (1)

Critical 66.5%

Near Critical 19.6%

Not Critical 13.0%


PRICE UPDATE Ce, Nd and Dy Prices since January 2011

Sources: Metal Pages, Bloomberg, Dundee Capital Markets

FOB PRICES ($US/kg)

CHINA PRICES ($US/kg)

Quest Long-Term Price Assumption

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www.questrareminerals.com TSX, NYSE MKT: QRM

GLOBAL HREE DEMAND OUTLOOK TO 2020 Shaw & Chegwidden, 2012

98% NdFeB growth driven by consumer electronics, standard automotive, air conditioning, electric bicycles

Electronics: REE demand expected to grow by 6-8% py over next 8 years with accelerated growth after 2016

LCD screens: REE demand expected to grow by 6-8% py over next 5 years

Wind turbines: Global growth in wind turbine capacity of 27% py between 2000 and 2011

Hybrid electric vehicles: Production of HEVs expected to reach 3.2 to 9.2M by 2020 from the current 1.1M

Phosphors: Demand for REEs in phosphors forecast to grow at 6-8% to 2017; 13.5% increase between 2010 and 2011 (Metal-Pages, August 2012)

6


ASIA DEMAND OUTLOOK Shaw & Chegwidden, 2012

7

Asian countries accounted for 23% of global demand of REE’s in 2010

Japan accounted for 18% of global production of NdFeB magnets in 2010

Japan, Taiwan, and South Korea produced over 95% of the world’s CCFLs in 2009

2017 forecasted consumption of REE’s in Asia continue to be in the metallurgy, magnets and catalysts sectors

End-use sectors of TREO consumption in 2010 compared to 2017


ANTICIPATED DEMAND FOR HREE Shaw, S., Chegwidden, J. (2012)

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450GW by 2020 compared

to 250GW currently

Increase in Yttrium

consumption between 2010 and

2011 was 13.5%

Value of REE input in auto

manufacturing has increased

from 0.1% in 2007, to 2% in

2011 to 25% by 2020e (BMW,

2012)


PREMIER MINING JURISDICTION

Quebec is one of the most

politically favourable mine

development jurisdictions in the

world

Ranks 5th most favourable

jurisdiction in the Fraser

Institutes Policy Potential

Index

Newfoundland and Labrador

encourages mine development

and ranked 16th most favourable

jurisdiction in the Policy Potential

Index

QRM may benefit from support

under Quebec’s revised “Plan du

Nord”


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Light Rare Earth Elements Heavy Rare Earth Elements

Heavy rare earths are more scarce and generally command premium prices

China has significant light rare earth assets and is expected to be a net importer of heavy rare earths by 2015

DOMINANT IN HEAVY RARE EARTHS

QRM has the highest ratio of HREO relative to TREO of all the expected near term producers


HEAVY RARE EARTH PROJECT COMPARISON TABLE The B-Zone Contains the Largest Known TREO/HREO Resource

Quest Rare Minerals

Ltd.

Avalon Rare Metals Inc.

Alkane Resources

Ltd.

Tasman Metals Ltd.

Matamec Explorations

Inc.

Stans Energy Corp.

Ucore Rare Metals Inc.

Project Name Strange Lake

(B-Zone) Nechalacho (Basal Zone)

Dubbo Norra Kärr Kipawa Kutessay II Bokan Mountain

Location Québec, Canada

NWT, Canada

New South Wales

Gränna, Sweden

Québec, Canada

Chui, Kyrgyzstan

Alaska, USA

Total Resource Size (mt)

492 million 165 million 73 million 61 million 16 million 18 million 4 million

TREO Grade (%) 0.90% 1.43% 0.89% 0.54% 0.50% 0.26% 0.75%

HREO Grade (%) 0.32% 0.28% 0.23% 0.29% 0.19% 0.13% 0.32%

HREO/TREO 37.0% 19.6% 25.8% 53.7% 38.0% 50.0% 42.7%

TREO Resource (t) 4.4 million 2.36 million 0.65 million 0.33 million 0.08 million 0.05 million 0.03 million

HREO Resource (t) 1.58 million 462,280 167,960 177,210 30,400 25,000 8,805

Resource Category Indicated/

Inferred

Indicated/ Inferred

Indicated/ Inferred

Inferred Indicated/ Inferred

Measured/ Indicated/ Inferred

Inferred


OCTOBER 31ST PRESS ANNOUNCEMENT

12

Domain Tonnes

(x1000t) LREO

HREO + Y

TREO + Y

H:T Ratio

%

ZrO2 %

HfO2 %

Nb2O5 %

INDICATED

Enriched Zone 20,020 0.72 0.72 1.44 50% 2.59 0.06 0.34

Granite 258,108 0.55 0.33 0.89 38% 1.87 0.05 0.16

Total 278,128 0.57 0.36 0.93 39% 1.92 0.05 0.18

INFERRED

Granite 214,351 0.55 0.30 0.85 35% 1.71 0.04 0.14

Table 1a – B-Zone Revised Mineral Resource Estimate


STRANGE LAKE PROJECT B-Zone Discovery

LIA Lands

Airborne survey identified a 2.2-km by 500-m radiometric anomaly

Drilling on the B-Zone deposit confirmed very strong grades and vertical thickness of REE and high proportions of heavy REE

Zone traced over 1.7 km strike length and 400 m in width returning grab samples up to 14.4% TREO

Definition drilling between 2009 and 2011 has defined a large, surface outcropping deposit that could be mined by open-pit


STRANGE LAKE PROJECT Strange Lake B Zone – Large Surface Resource

SLAC-Country RX contact;

fluorite-hematite breccia

Mixed gneiss-quartz

monzonite roof/cap Orthogneiss

B East, 500 m

over hilltop

Resource open to expansion in all directions

Preliminary Economic Assessment based only on near-surface mineralization

2011 drilling more than

doubled the high-grade

surface resource


3-D OBLIQUE VIEW OF THE 25-YEAR PIT SHELL SHOWING THE “ENRICHED ZONE”


SIMPLE MINING OPERATION

Simple open-pit operation

Low strip ratio (0.23 to 1)

Proposed air strips and potential access road provide strategic access to plant sites

Metallurgically simple flow sheet

Plant Site

Open Pit

Tailings

Pond

Airstrip

Access Road


MINING SEQUENCE

1 – 14 years 15 – 25 years

26 years +


CONCEPTUAL MINE-MILL COMPLEX LAYOUT


PEA Current

Leach Extraction

Zr 80 % 85 – 93 %

Nb 80 % 93 – 96 %

REE & Y 80 % 90 – 96 %

Solid/Liquid Separation Incl. 98 – 99%

SX recoveries

Zr 96 % 95 – 97%

Nb 96 % 85 – 95 %

REE & Y Conc. Recoveries 96 % >96 %

Overall Recoveries

Zr 77 % 80 – 89 %

Nb 77 % 77 – 90 %

REE & Y Conc. 77 % 85 – 91 %

1) Leach dissolution fully evaluated ; 2) Solid-Liquid separation is currently being finalized ; 3) Bench-scale tests on SX recoveries to be finalized by mini-Pilot Plant work

SUMMARY OF LEACH AND SX RECOVERIES May 14, 2012 Press Release


PARAMETER CONCLUSION

Minimum Mine Life 25 years

Production Rate 4,000 tpd

Strip Ratio (Waste to Ore) 0.23: 1

Rare Earth Oxides (tpa) 12-15,000 t

% of Global REO Supply2016 8-10%

Principal REO (t) (1,2) Nd (1,250-1,525), Dy (475-615),

Y (3,200-4,135), Tb (60-85),

Eu (15-20), Lu (45-60)

Co-Products (t) (1,2) Nb (2,400-3,150), Zr (21,500 – 27,925)

PEA PARAMETERS (SEPT. 2010) Recoverable Tonnes of Products and Co-products*

The parameters presented by the PEA will be firmed up in our upcoming PFS

1) Based on 25-year, Whittle Pit Optimized resource grades as reported in Quest’s revised NI 43-101 Resource

Estimate (October 2012)


La2O3

CeO2 Pr6O11

Ho2O3

Er2O3 Tm2O3

Yb2O3

Sm2O3

Eu2O3

Lu2O3

Gd2O3

VALUE DISTRIBUTION BY ELEMENT 8 elements comprise majority of revenue model

B Zone In-Situ Metal Distribution by Value within Design Pit

ZrO2

Dy2O3

Tb4O7 Nb2O5

Y2O3

Nd2O3


STRANGE LAKE PROJECT 2012-2013 TIMELINES Potential Leader in the Heavy Rare Earths Market

Strange Lake deposit is a “Single-Source” solution to the projected heavy rare earth element supply deficit out to at least 2025

PROJECT MILESTONE DELIVERY TIMELINE

Start-up of Mini Pilot Mill Plant * Q4 2012

Commence Full Pilot Plant Q1 2013

Delivery of Pre-Feasibility Study end 2012

Delivery of Feasibility Study end 2013

Social License Consultations, MOU, IBA 2013

Establishment of Supply and Strategic Development Agreements

2013

* - will not include separated, high-purity rare earth oxides, Separation Plant PEA


STRANGE LAKE PROJECT PILOT PLANT Confirming Quest’s Role as the Heavy Rare Earth Leader


Social License Negotiations With First Nations “Duty to Consult” – Supreme Court of Canada, 2003

Require Social License approval to the concept of a mine for final federal and provincial government permit approvals

Have been communicating with the Quebec FN since 2009

Have identified principal FN groups with which to discuss Impacts & Benefits from the project

Commenced official public consultations with Quebec and Labrador FN in March 2012

Anticipate FN support to the concept of a mining operation sometimes in 2013


STRONG MANAGEMENT AND TECHNICAL TEAM Over 250 years of Combined Operations Experience


STRANGE LAKE MINE DEVELOPMENT

Simple open-pit mine operation with ore treatment facility on-site

25 year minimum mine life development model for the B-Zone deposit

– estimated to generate at least $1 billion in project infrastructure-related economic activity

Construction start-up goal for 2015

165 km proposed access road linking the mine site to a future port facility on the Labrador coast

Proposed port site at Anaktalak Bay adjacent to the Voisey’s Bay Ni-Cu-Co mine

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Contact Information:

Peter J. Cashin, President & CEO Quest Rare Minerals Ltd.

1 Adelaide Street East, Suite 2500 Toronto, Ontario, Canada M5C 2V9 Tel: (416) 916-0777 Fax: (416) 916-0779

E-mail:

[email protected]

REASONS TO OWN QRM A Leading Rare Earth Exploration and Development Story

THANK YOU ARIGATOU GOZAIMASU

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