corporate presentation

Enabling green technologies through rare
earth metal exploration and development
CORPORATE PRESENTATION
June 2013
1
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
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.
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ABOUT QUEST RARE MINERALS
• 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
3
RARE EARTH ELEMENT APPLICATIONS
4
REE IN CONVENTIONAL AUTOMOBILES
5
ANTICIPATED DEMAND FOR HREE
Shaw and Chegwidden, 2012
6
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.
PREMIER MINING JURISDICTIONS QC & NL
8
STRANGE LAKE PROJECT
B ZONE DISCOVERY
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•
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 1.8 km strike
length and 500 m in width
returning surface 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
SIMPLE OPEN PIT MINING OPERATION
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ADVANCED PROCESS ENGINEERING
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PROJECT LOGISTICS ADVANCING
12
PORT ENGINEERING IN ADVANCED
PLANNING
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CAPITAL STRUCTURE
QRM Share Price Chart
14
As of June 12 - 13
Stock Exchange Symbol
QRM (TSX ; NYSE
MKT)
Shares Outstanding –
Basic
62.2 million
Shares Outstanding – FD
67.2 million
52-Week Trading Range
$.40 - $1.90
Last Close
$0.485
Average Daily Trading
Volume (3M)
56,739 shares
Market Capitalization –
Basic
$30.1 million
Working Capital (as of
April 30, 2013)
$18 million
18 MONTH SECTOR TRENDS
$4.00
$3.50
QRM
$3.00
AVL
$2.50
ALK
$2.00
TAS
$1.50
MAT
$1.00
HRE
$0.50
UCU
$0.00
LYC
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18 MONTH REE STOCK PRICE CHANGE
-39.02%
-46.88%
-62.86%
-75.59%
-82.25%
-50.57%
-63.24%
-64.82%
Average: - 65.55%
-74.24%
* Percentage change based on closing price of December 12, 2011 and June 12, 2013
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-81.01%
FORECAST DEMAND FOR REE (TREO)
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REO PRICING TRENDS
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PRE-FEASIBILITY STUDY UPDATE
•
•
•
To be delivered by the second half of 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
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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
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TECHNICAL TEAM AND R&D INPUT
•
Hatch Associates Ltd:

•
AECOM:


•
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:


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Floatation and Magnetic Separation Beneficiation evaluation of SL ores
Process Research Ortech:


•
Involved in bench scale testing of thermal Sulphation process
Research and Productivity Council (RPC):

•
Tailings disposal facility site design and engineering
Hazen Research:

•
Designed the mine plan and production schedule and the geotechnical study of the deposit , respectively
SLR International (formerly SES):

•
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:

•
Provided the engineering design for the REE-Nb-Zr solvent extraction plant
Geological research of the Strange Lake deposit
Development of exploration tools for the discovery of additional REE and rare metal resources
2012 MILESTONES
•
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October 2012: Revised resource doubled tonnage estimate
for Strange Lake, B-Zone REE deposit
2012 METALLURGICAL MILESTONES
•
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December 2012: Start-up of Mini Pilot Mill Plant
LOM PRODUCTION LEVELS
ESTIMATED METAL
PRODCUTION (TPA)
MIN
MAX
LOM 30 YEARS
Zr02
21,000
26,000
24,000
Nb205
2,400
4,800
3,197
Dy203
326
858
558
Y203
2,261
6,017
3,871
Nd203
659
1,394
1,158
Tb203
46
121
79
Pr203
175
369
303
Eu203
12
27
20
Lu203
36
78
56
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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
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ENVIRONMENTAL 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
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STRANGE LAKE CLEANUP PROGRAM
Metal and lumber waste left in the old
IOC camp
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Rotting steel drums and plywood debris
from the old IOC dock
STRANGE LAKE CLEANUP PROGRAM
Metal waste confined to crates for
shipment to an authorized disposal site
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IOC stockpile of 350 empty and
contaminated fuel drums. All drums
were emptied and shipped to an
authorized disposal site in Baie Comeau,
QC
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
•
•
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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
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STRONG BOARD
•
•
•
•
•
•
•
•
Peter J. Cashin, President & CEO
• Has over 30 years of experience in all facets of the mines and minerals industry, worked for major and junior mining
exploration companies in Quebec, Ontario, the Maritimes, the United States and overseas
Robert L. Leclerc, Chairman of the Board
• Business and legal advisor and from June 2004 to March 2012, he was the Chairman of Minefinders Corporations Ltd., was
formerly Chairman and Chief Executive Officer of Echo Bay Mines Ltd., and prior thereto was its Chairman
Mackenzie I. Watson, Honorary Chairman
• Has over 45 years of exploration experience and has been involved in the discovery of numerous deposits throughout
Canada, was awarded Canada’s Prospector of the Year Award in 1991 and 2009 and the Quebec Prospector of the Year
Award in 1992
Neil Wiener, B.C.L., Corporate Secretary and Director
• Has been practicing since 1981, is a partner in the Montreal office of Heenan Blaikie LLP., involved in private placements,
take-over bids, going-private transactions, stock exchange listings and a broad range of other securities matters
Ronald Kay, B. Eng (Geo), M.B.A., Director
• Is a metallurgical engineer with 40 years of experience in the financial industry, positions include senior mining analyst and
consultant to several major brokerage companies
Michael Pesner, BCA, BA, Director
• Was a senior partner in financial advisory services at KPMG LLP, in Montreal, currently a director of Richmont Mines Inc.,
Mint Technology Corp, Sand Technology, and Bitumen Capital Inc.
John Panneton, Director
• Spent 30 years with CIBC Wood Gundy as the Executive Vice President, was the CEO of CIBC Investment Management Corp.,
the Chairman of CIBC (Suisse) S.A., Executive Vice President of Dundee Wealth, Vice Chairman of Dundee Capital Markets.
George Potter, Director
• Senior mining executive with more than 36 years of international experience in project development and operations, served
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as a Senior Vice-President Capital Project of Barrick Gold Corp.
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
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Simple open-pit operation
Metallurgy advancing steadily and results beating previous expectations
Strong technical and development team with in excess of 250 years
experience
CONTACT INFORMATION
Peter J. Cashin, President & CEO
Quest Rare Minerals Ltd.
Email: [email protected]
General Email: [email protected]
Scan the barcode for a 3D
animation of the Strange Lake,
B-Zone Resource
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Head Office
1155 University Street
Suite 906
Montreal, Quebec HB3 3A7
Tel: (514) 878-3551
Toll Free: 1 (888)878-3551
Fax: (514) 878-4427
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Exploration Office
1 Adelaide Street East
Suite 2500
Toronto, Ontario, M5C 2V9
Tel: (416) 916-0777
Toll Free: 1 (877) 916-0777
Fax: (416) 916-0779
Regional Office
189 Water Street
St. John’s, NFL, A1C 1B4
Tel: (709) 724-4646
Tel: (709) 724-4645
Fax: (709) 724-4643