Building a world-class supplier of critical rare earth metals

June 2015

Enabling green technologies through a reliable supply of rare earth metals

TSX: QRM

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.

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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.

DisclaimerForward-Looking Statements

A Profound Transformation is Occuring inOur Modern Economy

3

Modern economies are evolving from a vegetal basis to a mineral basis.

Permanent Magnets

4

…recognition that responsibility towards the environment cannot be eschewed is spurring green technological innovations

Wind Turbines Automotive

Consumer Electronics Industrial

What are rare earth?

First uses in:

• Lantern mantle

• Flint stone

• Today:

• Magnets for motors and generators

• Fluorescent lamps and LED

• Gasoline refining

• Phones and screens5

Rare earth uses: magnets

6

Lighting and catalysis

7

Permanent Magnets

8

And more Permanent magnets applications are being developed

Siemens' lightweight 260kW motor

“Researchers at Siemens have developed an electric motor that weighs just 50 kilograms, yet delivers a continuous output of about 260kW –about five times more than conventional drive systems of a similar weight.”

Aircraft Engines

Flight testing scheduled before the end of 2015

Source: Siemens AG

Permanent Magnets

9Source: Deutsche Bank

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014 2015 2016 2017 2018

REE

to

nn

es

Rare Earths in Permanent Magnets

Wind Turbines Automotive Consumer electronics Industrial

11% CAGR

…are essential for the efficiency of a wide array of green technology applications

REO (MT) 2014 2020 2030

Dysprosium 1,200 2,000 3,250

Neodymium 21,000 36,500 57,000

Praseodymium 7,000 12,000 19,000

Terbium 60 160 250

Gadolinium 600 1,000 1,600

Samarium 1,200 1,600 2,500

Market Value* (US$) $2.6 bil $4.6 bil $7.1 bil

Rare Earth Demand

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Demand growth for permanent magnets will drive growth for critical rare earth metal oxides

* Based on March 2015 prices

27%

15%

33%

4%

17%

4%

HREE ~27%

1%

34%

49%

4%

12% 1%

HREE ~1%

7%

24%

43%

5%

18%

3%

HREE ~7%

A Strong Competitive Position

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Heavy Rare Earths Lanthanum Cerium Praseodymium Neodymium Samarium

Molycorp(Mountain Pass)

Lynas(Mount Weld)

Quest Rare Minerals(Strange Lake)

Avalon(Nechalacho)

44%

12%

28%

3%

11% 3%

HREE ~44%

• Quest’s HREE+Y content in head grade is substantially larger than current producers and peers, with ~44% HREE+Y

• Industry is facing a scarce supply of HREE+Y

• Demand for HREE+Y is growing faster than LREE

• LREE: Over-supply when Molycorp and Lynas are at full production

Source: Quest PEA March 2014, Molycorp 2012 Annual Report, Avalon FS April 2013, www.lynascorp.com

A Strong Competitive Position

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Financial difficulties

* Weighted average price based on target output and March 2015 prices

Quest’s business is measurably different from that of Molycorpand Lynas

$47.96

$19.46

$33.04

$0

$10

$20

$30

$40

$50

$60

Quest Molycorp Lynas

Basket Price*

146%

45%

Both Molycorp and Lynas

• High production costs

• Product mix weighted to low value light rare earths

Can

$/k

g

Solid Economics

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Quest is profitable even at cyclical low prices

Quest Basket Price = weighted average price of Quest REO output, C$1.10 exchange rate

$96

$61

$46 $48

$70

$61 $62

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Aug-12 Aug-13 Aug-14 Mar-15 PEA StormCrow

Adamas

Cn

$ /

kg

Quest Basket Price

ACTUAL PROJECTED

LOM Avg Income Statement (C$) with 2014 Prices

Revenues $507 mil

COGS $356

Gross Margin $151

Overheads $17

EBIT $134

EBITDA $200

Quest’s ProjectQuest has more than 60 years of supply

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DomainTonnes LREO

(Recoverable)

HREO+Y(Recoverable)

TREO+Y(Recoverable)

HREO+Y:TREO+Y

(x1000T) (x1000T) (x1000T) (x1000T) Ratio

Indicated

Enriched Zone 20,020 92 69 161 43%

Granite 258,108 909 407 1,315 31%

Total 278,128 1,001 475 1,477 32%

Inferred

Granite 214,351 755 307 1,062 29%

Strange Lake B Zone Mineral Resource Estimate (Recoverable REE)

>100 yrs

Quest 43-101 April 9, 2014– B-Zone Resources estimated by Micon at Aug 31, 2012, assumes production of 11,000 Mt of REO per yr

0

20

40

60

80

100

La Pr Sm Gd Dy Y Tm Lu U Nb Si FeM

etal

Ext

ract

ion

(%

)0

20

40

60

80

100

La Pr Sm Gd Dy Y Tm Lu U Nb Si Fe

Me

tal E

xtr

ac

tio

n (

%)

Quest’s Extraction ProcessSimple, Low Technical Risk and Environmentally Sound

Selective Thermal Sulphation (STS)

• STS reduces recovery of Zr, Nb, Fe, and Ti into the leach solution (PLS)

• Low free acid PLS (pH = ~2)

• High quality PLS - Low impurity

• Negligible Si in PLS

• Dramatically simplified hydrometallurgical flow sheet without solvent extraction (SX) to produce mixed REE oxide

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Unselective process

low quality leach

solution

Metal Extraction Plot for STS Process and Water Leach

Quest STS process high

quality leach solution

Unselective Process Metal

Extraction

Quest STS Process Metal

Extraction

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Quest’s Mixed Rare Earth Oxide Product

• 98.4% TREO mixed rare earth oxide produced at bench scale at SGS

• Like Strange Lake ore, product is ~40% Heavy REO

• Product greatly exceeds Chinese refinery impurity specifications (92% TREO, 6,350 ppm Al)

• With addition of heavy metal precipitation and better control of oxalic acid dosage, product expected to meet extremely stringent non-Chinese specification

Analyte UnitBench scale testing result

(SGS COX2 Calcine)Mass balance projection

Non-China Spec Maximum Allowable

Th ppm 5.4 2.4 11.0

U0 ppm 140.2 3.6 3.8

Al ppm 53.8 1.0 500.0

Fe ppm 71.0 0.3 1,000.0

Mg % 0.006% 0.000% 0.6%

Ca % 0.145% 0.011% 1.0%

Na % 0.008% 0.002% 1.0%

F ppm 101.58 367.28 1,000.0

Zn ppm 711.06 0.00 50.0

TREO % 98.4% 99.7% NA

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Quest’s Key Process Steps

PURE METAL OXIDES

LAC BRISSON BÉCANCOUR, QUEBEC

TransportAcid bake (600C) & leach

Precipitation Separation/ Refining

BeneficiationMine Recycled

Mine output varies to achieve

constant flotation concentrate

volume and grade

20% Mass pull

Transport of flotation

concentrate

Input of recycled material

Simplified process to produce a relatively pure REE concentrate

Separation into individual pure metal oxides

Material Flow

(MT/Yr)

3,550,000 Mined

material

1,850,000Mill feed

300,000Flotation

concentrate

~10,000 recycled

phosphor material

11,270Mixed REE concentrate

11,050 Pure REO

Lac Brisson Mine Site - Quest

Open pit

Mid-grade pile

Waste rock pile

TailingsDry stack

Mill and Concentrator

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Flotation REE slurry concentrate

Water / agent

Reject slurry

Add cement

De-water

Dry stack tailing

De-water

Ship con to VB

Mining rock

Crushing-wet milling

No dust

Separation of REE minerals from granite gangue

20% REE concentrate80% gangue

Negative water balance = no water discharge into environment

Tailings management at Lac Brisson

DRY STACK PROCESS

• Flotation reject de-watered

Water back into process

• Damp reject material mixed with cement

• Concrete stacked in contained site

Rain water on tailing site contained and monitored

If required can be treated

• This is not a tailings pond

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Quest’s ProjectA limited Environmental Footprint

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• Wind power at the mine site

• 80% of mined material kept in the North, only 20% transported to the South

• Recycling / recovery of sulphuric acid in the processing

• Processing located at a designated industrial park in Becancour• Simple process with minimal residue (dry stacked, no tailings pond)

• Recycled florescent lamp material mixed with the mined material at Becancour• First such recycling facility in North America

Quest’s Execution Plan

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PROJECT DESCRIPTION

Updated PFS Bankable

Feasibility Study

Production

2015 2016 2017 2018 2019

Environmental Impact Assessment (EIA)

Full Piloting

FEL3 / Basic Engineering –North & South

Impact and Benefit Agreements

Construction

Commission

Government & Community Support

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Quest’s Project involves the following government authorities:

Federal

Quebec

Newfoundland and Labrador

Nunatsiavut

Kativik

• Numerous consultations with Federal, Quebec and NFLD governments

• Early engagement with Aboriginal stakeholders

• Joint Quest – Becancour Committee including community leaders and representatives

All levels of government have been receptive and supportive of Quest’s Project and have provided constructive comments on the draft Project Descriptions

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Quest’s Current Development Work

Reduced operating costs

• Mining, beneficiation, transport

Lower capital cost at Bécancour

Beneficiation

Further evaluation of ore sorting at pilot scale

• Reduce grinding cost

Flotation – reconfirm REE recoveries at scale

• Target 80% TREO recovery at 20% Mass Pull

Selective Thermal Sulphation

Reduction of acid dosage and consumption

Evaluate higher leaching pulp density

Hydromet

Confirm heavy metal sulphide precipitation

Recovery and recycle of oxalate

Cerium separation

Reduced operating costs

• Acid bake water leach (ABWL)

Reduced operating costs

• Hydromet

Lower separation capital & operating costs

Summary / Corporate Strategy Objectives

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• Become a world-class producer of rare earth oxides for the permanent magnet industry

• Provide key permanent magnet customers with a secure and growing supply of rare earth oxides from a stable political and legal jurisdiction

• Be a structurally low cost producer of rare earth oxides

• Execute all operations to the highest environmental standards and in a socially responsible manner

• Be a catalyst to the establishment of an alternative rare earth supply chain – from mine to end use – in Canada, ideally centered in Quebec

Contact Information

Dirk Naumann

Quest Rare Minerals Ltd.

Email: info@questrareminerals.com

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Corporate Office

1155 University StreetSuite 906Montreal, Québec HB3 3A7

Tel: (514) 878-3551

Toll Free: 1 (888)878-3551

Fax: (514) 878-4427