On June 15, 2010, SEARCH announced that it had entered into an exploration and option agreement (the “Option Agreement”) with Alterra Resources Inc. (“Alterra”), its wholly-owned subsidiary, and Quest Rare Minerals Ltd. (QRM: TSX-V) pursuant to which Alterra has granted (the “Acquisition”) to Quest an option (the “Option”) to acquire up to a 65% undivided working interest in and to 30 mining claims (the “Claims”) located on 750 hectares on the south-eastern contact of the REE-bearing Strange Lake Peralkaline Complex (the “Property”) in Western Labrador in the Province of Newfoundland and Labrador.

Pursuant to the Option Agreement, Quest may earn a 50% undivided working interest (the “First Option”) in and to the Claims by issuing an aggregate of 90,000 common shares of Quest to Alterra over a period of three years, with 10,000 common shares issuable on TSX Venture Exchange approval, 15,000 common shares issuable on the first anniversary of the closing date of the Acquisition (the “Closing Date”), 25,000 common shares issuable on the second anniversary of the Closing Date and 40,000 issuable on the third anniversary of the Closing Date. In addition, to earn the First Option, Quest must incur mining exploration expenditures of $500,000 in the aggregate over a period of three years, $100,000 payable on or before the first anniversary of the Closing Date, $150,000 payable on or before the second anniversary of the Closing Date and $250,000 payable on or before the third anniversary of the Closing Date. Upon completing all of the share issuances and payments mentioned above, Quest will have an option to acquire an additional 15% undivided working interest (the “Second Option”) in and to the Claims by issuing an aggregate of 150,000 common shares of Quest to Alterra over a period of two years, 50,000 common shares issuable on the fourth anniversary of the Closing Date and 100,000 common shares issuable on the fifth anniversary of the Closing Date. In addition, to earn the Second Option, Quest must incur mining exploration expenditures of $1,250,000 in the aggregate over a period of two years, $500,000 payable on or before the fourth anniversary and $750,000 payable on or before the fifth anniversary and pay $75,000 in cash to Alterra on or before the fourth anniversary of the Closing Date.

Pursuant to the Option Agreement, Quest entered into an assignment agreement with SEARCH and Alterra pursuant to which Quest transferred and assigned to SEARCH nine of the Claims in consideration for 10,000 common shares in the capital of SEARCH. Immediately following the transfer by Quest to SEARCH of the nine mining claims, SEARCH will transfer these mining claims to Alterra. These nine claims, together with 21 mining claims already owned by Alterra comprise the Claims that are the subject of the Option Agreement. The 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. Quest is become the operator on the 30 claims. In consideration for acting as the operator, Quest shall be entitled to an annual management fee payable in cash by Alterra in an amount equal to 10% of the expenditures incurred by Quest for each year of the option period.

Jim Clucas, President and CEO of SEARCH states, “We are delighted to have entered into this Option Agreement with Quest, the senior player in the district. We agree with Quest that this consolidation will allow SEARCH to realize the full economic potential of its Strange Lake claims.”

“We are very pleased with this new property acquisition, as it straddles the south-eastern 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 Quest Strange Lake property comprises a total of 1,333 claims, of which 330 claims are located in Labrador. The property, located 220 km northeast of Schefferville and 125 km west of the Voisey Bay Nickel-Copper-Cobalt Mine, covers an area of 54,000 hectares. Exploration work over Quest’s Strange Lake Project was focused around the historical Strange Lake rare earth element (REE) deposit discovered by the Iron Ore Company of Canada (IOC) and around additional anomalous REE showings identified by Quest crews on the property. All exploration targets were selected on the basis of airborne radiometric anomalies, historical showings and proximity to known mineralization.