CORPORATE PRESENTATION

Transcription

1 Enabling green technologies through rare earth metal exploration and development CORPORATE PRESENTATION May 1, 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 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 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 and which has not been verified by the Company.

3 ABOUT QUEST RARE MINERALS 3 Publicly traded company focused on Rare Earth Elements Experienced Board and Management Team - Over 250 years of management experience within the mining and exploration industries Property located 220 km northeast of Schefferville and 125 km west of the Voiseys Bay Nickel-Copper-Cobalt Mine Quebec and Labrador, two of the best mining jurisdictions in the world with potential for REE s and other minerals Developing the Strange Lake deposit, the world s largest HREE resource capable of meeting industry s long-term needs

4 RARE EARTH ELEMENT APPLICATIONS 4

5 REE IN CONVENTIONAL AUTOMOBILES 5

6 ANTICIPATED DEMAND FOR HREE Shaw and Chegwidden,

7 PEER GROUP COMPARISON 7 Note: In-situ value based on QRM March 2012 PEA pricing for individual elements. Alkane in-situ value based on Dubbo s September 2011 DFS REE pricing.

8 SIMPLE OPEN PIT MINING OPERATION 8

9 ADVANCED PROCESS ENGINEERING 9

10 PROJECT LOGISTICS ADVANCING 10

11 PORT ENGINEERING IN ADVANCED PLANNING 11

12 CAPITAL STRUCTURE QRM Share Price Chart As of April Stock Exchange Symbol QRM (TSX ; NYSE MKT) Shares Outstanding Basic Shares Outstanding FD 62.2 million 67.2 million 52-Week Trading Range $.41 - $2.20 Last Close $ Average Daily Trading Volume (3M) Market Capitalization Basic Working Capital (as of March 31, 2013) 116,790 shares $25.2 million $22.6 million

13 18 MONTH SECTOR TRENDS $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 QRM AVL ALK TAS $1.50 $1.00 $0.50 $0.00 MAT HRE UCU LYC 13

14 18 MONTH REE STOCK PRICE CHANGE % % % % % % % % % Average: % % * Percentage change based on closing price of October 3, 2011 and April 17,

15 FORECAST DEMAND FOR REE (TREO) 15

16 REO PRICING TRENDS 16

17 PRE-FEASIBILITY STUDY UPDATE To be delivered by calendar July-August 2013 Bulk of engineering work has been completed Quest is examining potential refinements to the Strange Lake Project to: further reduce project risk lower capital costs lower operating costs allow for an earlier mine commissioning date 17

18 PROJECT OPTIMIZATION MEASURES Restructure of budget framework to align better with work packages Rigorous implementation of contractor reporting of cost against budget and cost to complete Review of cost reporting system software with a view to improving reporting by cost centre, contract and vendor Seeking project options that would mitigate infrastructure and construction risks 18

19 TECHNICAL TEAM AND R&D INPUT Hatch Associates Ltd: Provided the engineering design for the REE-Nb-Zr solvent extraction plant AECOM: Involved in the site engineering work and completion of environmental base line data collection Preparation of terms of reference for Quest s environmental impact assessment Micon International Limited and AMEC Earth & Environmental: Designed the mine plan and production schedule and the geotechnical study of the deposit, respectively SLR International (formerly SES): Tailings disposal facility site design and engineering Hazen Research: Involved in bench scale testing of thermal Sulphation process Research and Productivity Council (RPC): Floatation and Magnetic Separation Beneficiation evaluation of SL ores Process Research Ortech: Involved in bench scale testing of the solvent extraction process to develop a separation process Current location of Quest s mini pilot plant McGill University, Department of Earth and Environmental Sciences: Geological research of the Strange Lake deposit 19 Development of exploration tools for the discovery of additional REE and rare metal resources

20 2012 MILESTONES October 2012: Revised resource doubled tonnage estimate for Strange Lake, B-Zone REE deposit 20

21 2012 METALLURGICAL MILESTONES December 2012: Start-up of Mini Pilot Mill Plant 21

22 LOM PRODUCTION LEVELS ESTIMATED METAL PRODCUTION (TPA) MIN MAX LOM 30 YEARS Zr0 2 21,000 26,000 24,000 Nb ,400 4,800 3,197 Dy Y ,261 6,017 3,871 Nd ,394 1,158 Tb Pr Eu Lu

23 PROJECT MILESTONES PROJECT MILESTONE DELIVERY TIMELINE COMMENCE FULL PILOT PLANT Q DELIVERY OF PRE-FEASIBILITY STUDY H DELIVERY OF FEASIBILITY STUDY Q SOCIAL LICENCE CONSULTATIONS, MOU, IBA ESTABLISHMENT OF SUPPLY AND STRATEGIC DEVELOPMENT AGREEMENTS

24 ENVIORNMENTAL BEST PRACTICES Environmental stewardship begins in the early stages of exploration Strange Lake Project Cleanup Program = Voluntary Stewardship A complete program of environmental baseline studies were realized between 2011 and 2013 CEAA Project Description will be prepared in Q3; terms of reference for Environmental Impact Assessments will follow 24

25 STRANGE LAKE CLEANUP PROGRAM Metal and lumber waste left in the old IOC camp Rotting steel drums and plywood debris from the old IOC dock 25

26 STRANGE LAKE CLEANUP PROGRAM Metal waste confined to crates for shipment to an authorized disposal site IOC stockpile of 350 empty and contaminated fuel drums. All drums were emptied and shipped to an authorized disposal site in Baie Comeau, QC 26

27 ABORIGINAL COMMUNITY RELATIONS First Nations and Aboriginal stakeholders identified; official public consultations began in March 2012 Business development partnerships and opportunities for community stakeholders have been recognized Social license consultations in progress; anticipate First Nations support to the concept of a mining operation sometime in

28 STRATEGIC INITIATIVES TO IMPROVE PROSPECTS Quest is working on several strategic initiatives to enhance shareholder value: Off Take Partnerships Strategic and JV Partnerships Quebec and Aboriginal Government Partnership 28

29 STRATEGIC INITIATIVES Matamec Exploration Inc. Strategic Catalysts Announces JV Discussion with Toyota Tsusho Corp Receives $1.6m from Toyota Tsusho Corp Receives $1.04m from Toyota Tsusho Corp Frontier Rare Earth Ltd. Strategic Catalysts Strategic Partnership with KORES Announced 29

30 REASONS TO OWN QUEST 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 Strong technical and development team with in excess of 250 years experience 30

31 CONTACT INFORMATION Peter J. Cashin, President & CEO Quest Rare Minerals Ltd. General Follow us: Scan the barcode for a 3D animation of the Strange Lake, B-Zone Resource Head Office Exploration Office Regional Office 1155 University Street 1 Adelaide Street East 189 Water Street Suite 906 Suite 2500 St. John s, NFL, A1C 1B4 Montreal, Quebec HB3 3A7 Toronto, Ontario, M5C 2V9 Tel: (709) Tel: (514) Tel: (416) Tel: (709) Toll Free: 1 (888) Toll Free: 1 (877) Fax: (709) Fax: (514) Fax: (416)