JUNE 15, 2010
Quest Rare Minerals Options Strange Lake Area REE Property,
Labrador
TORONTO, ONTARIO--(Marketwire - June 15, 2010) - Quest Rare Minerals Ltd.
(TSX VENTURE:QRM) is pleased to announce that it has entered into an
exploration and option agreement with Search Minerals Inc. (TSX VENTURE:SMY)
and Alterra Resources Inc., a wholly-owned subsidiary of Search, pursuant to
which Quest has an option to acquire up to a 65% undivided working interest
in 30 mining claims located on the southeastern contact of the REE-bearing
Strange Lake Alkali Complex in Western Labrador in the Province of
Newfoundland and Labrador, which agreement remains subject to the
satisfaction of certain conditions, including the approval of the TSX
Venture Exchange.
"We are very pleased with this new property acquisition, as it straddles the
southeastern part of mineralized Strange Lake Granite, host to all of the
known rare earths in the area, including our 100%-owned B-Zone and the
historical Main Zone deposits," stated Peter J. Cashin, President & CEO of
Quest. "The 30 claims will give Quest access to the remaining high-potential
geology on the Labrador side of Strange Lake Granite. The property lies
immediately south and adjacent to the Labrador Inuit Association (LIA)
Settlement Area. These restricted lands are closed to staking and straddle
the majority of the IOC historical Main Zone REE deposit. With the
Alterra/Search option in combination with Quest's 100% Quebec property
claims, we believe that we control over 75% of the REE-favourable geology in
the Strange Lake area. I look forward to working closely with our new
partners in realizing the full economic potential of their claims."
Jim Clucas, President and CEO of Search Minerals states, "We are delighted
to have entered into this exploration and option agreement with Quest, the
senior player in the district. We agree with Quest that this consolidation
will allow Search Minerals to realize the full economic potential of its
Strange Lake claims."
Pursuant to the exploration and option agreement, Quest may earn a 50%
undivided working interest in the 30 mining claims by issuing an aggregate
of 90,000 common shares of Quest to Alterra over a period of three years and
by incurring mining exploration expenditures of $500,000 in the aggregate
over a period of three years. Upon completing all of the payments mentioned
above, Quest will have an option to acquire an additional 15% undivided
working interest in the mining claims by making a payment of $75,000 before
the fourth anniversary of exploration and option agreement, by issuing an
additional 150,000 common shares of Quest to Alterra on or before the fifth
anniversary date of the exploration and option agreement, and by incurring
mining exploration expenditures of $1,250,000 in the aggregate on or before
the fifth anniversary date of the exploration and option agreement.
Pursuant to the exploration and option agreement, Quest will enter into an
assignment agreement with Search and Alterra pursuant to which Quest shall
transfer and assign to Search nine claims located in Western Labrador in the
Province of Newfoundland and Labrador in consideration for 10,000 common
shares in the capital of Search. Immediately following the transfer by Quest
to Search, Search will transfer these nine claims to Alterra. These nine
claims, together with 21 claims already owned by Alterra comprise the 30
claims that are the subject of the exploration and option agreement. The 30
mining claims are subject to a 1.5% net smelter return royalty in favor of
Alterra. Quest may, at any time, purchase two-thirds of the 1.5% net smelter
return royalty for $1,000,000.

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 and has approved the disclosure of the technical information
contained herein.