CORPORATE PRESENTATION
May 1, 2013
Enabling green technologies through rare
earth metal exploration and development
TSX; NYSE MKT: QRM www.questrareminerals.com
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
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
REE IN CONVENTIONAL AUTOMOBILES
ANTICIPATED DEMAND FOR HREE
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
ADVANCED PROCESS ENGINEERING
PORT ENGINEERING IN ADVANCED
PLANNING
CAPITAL STRUCTURE
QRM Share Price Chart
Stock Exchange Symbol
As of April 17 - 13
QRM (TSX ; NYSE
MKT)
Shares Outstanding –
Basic
62.2 million
Shares Outstanding – FD
67.2 million
52-Week Trading Range
$.41 - $2.20
Last Close
$0.415
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 QRM AVL ALK TAS MAT HRE UCU LYC
18 MONTH SECTOR TRENDS
18 MONTH REE STOCK PRICE CHANGE
-54.95% -31.82% -54.35% -48.98% -52.88%FORECAST DEMAND FOR REE (TREO)
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
17PROJECT 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
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
Development of exploration tools for the discovery of additional REE and rare metal resources
2012 MILESTONES
•
October 2012: Revised resource doubled tonnage estimate
2012 METALLURGICAL MILESTONES
•
December 2012: Start-up of Mini Pilot Mill Plant
LOM PRODUCTION LEVELS
ESTIMATED METAL
PRODCUTION (TPA)
MIN
MAX
LOM 30 YEARS
Zr0
221,000
26,000
24,000
Nb
20
52,400
4,800
3,197
Dy
20
3326
858
558
Y
20
32,261
6,017
3,871
Nd
20
3659
1,394
1,158
Tb
20
346
121
79
PROJECT MILESTONES
PROJECT MILESTONE
DELIVERY TIMELINE
COMMENCE FULL PILOT PLANT
Q2 2013
DELIVERY OF PRE-FEASIBILITY STUDY
H2 2013
DELIVERY OF FEASIBILITY STUDY
Q2 2015
SOCIAL LICENCE CONSULTATIONS, MOU,
IBA
2013
ESTABLISHMENT OF SUPPLY AND
STRATEGIC DEVELOPMENT AGREEMENTS
2014
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
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
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 2013
STRATEGIC INITIATIVES TO IMPROVE
PROSPECTS
•
Quest is working on several strategic initiatives to enhance
shareholder value:
• Off Take Partnerships
• Strategic and JV Partnerships
STRATEGIC INITIATIVES
Matamec Exploration Inc. Strategic Catalysts
Frontier Rare Earth Ltd. Strategic Catalysts
Announces JV Discussion with Toyota Tsusho Corp Receives $1.6m from Toyota Tsusho Corp Receives $1.04m from Toyota Tsusho Corp Strategic Partnership with KORES Announced 29
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
CONTACT INFORMATION
Peter J. Cashin, President & CEO
Quest Rare Minerals Ltd.
Email:
[email protected]
General Email:
[email protected]
Follow us:
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) 724-4646
Tel: (514) 878-3551
Tel: (416) 916-0777
Tel: (709) 724-4645
Toll Free: 1 (888)878-3551
Toll Free: 1 (877) 916-0777
Fax: (709) 724-4643
Fax: (514) 878-4427
Fax: (416) 916-0779
Scan the barcode for a 3D animation of the Strange Lake, B-Zone Resource