QRE Niocorp Developments Ltd.

Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OTCQX: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") is pleased to announce results for the first of five drill holes from the spring/summer 2011 exploration program at the Elk Creek Niobium - REE Project, located in southeastern Nebraska, USA.

Highlights from the current exploration include:

--  NEC11-01: 235.22 m of 0.73% Nb2O5 and 0.43% TREO(i),
--  including 54.13 m of 1.17% Nb2O5 and 0.46% TREO; and
--  the identification of a significant zone of Middle and Heavy Rare Earth
    (MHREO) mineralization of between 25% degrees  to 35% MHREO(i), with
    notable enrichment in Europium, Gadolinium, Terbium and Dysprosium,
    associated with the Elk Creek Niobium Deposit.

Drill hole NEC11-001 is one of five holes recently completed at the Elk Creek Project. Three holes were completed at the Elk Creek Niobium Deposit, one hole to the south of EC-93 (155.5 m of 2.7% TREO, see news release dated March 7, 2011), and one hole to test a unique aeromagnetic anomaly. For the remaining drill holes, results will be released upon their receipt. The company anticipates the resumption of drilling during early September.

Exploration at the Elk Creek Niobium Deposit was designed to accomplish several objectives:

1.  complete in-fill and step-out drilling, to potentially upgrade the
    current 43-101 Resource from Inferred to Indicated;
2.  expand the known niobium resource (News Release dated April 28, 2011: 80
    MT of 0.62% Nb2O5 at a 0.4% Nb2O5 cut-off); and
3.  collect sufficient sample material for the initiation of
    characterization and process development studies of niobium ore from Elk
    Creek.

Drill hole NEC11-001 was drilled at a -70 degrees inclination at a direction of 035 degrees to a depth of 900.38 metres (a drill plan and cross-section are available on the company's website at http://www.quantumrareearth.com). The hole was drilled within the southeastern portion of the deposit at depth; results of niobium and the rare earth elements and their ratios are as follows:

---------------------------------------------------------------------------
                                        Nb2O5   TREO   LREO    MREO    HREO
NEC11-001     FROM      TO   INTERVAL      (%)    (%)    (%)     (%)     (%)
---------------------------------------------------------------------------
            534.75  769.97     235.22    0.73   0.43   0.33   0.056   0.053
including   565.13  619.26      54.13    1.17   0.46    0.3    0.07   0.091
---------------------------------------------------------------------------

-------------------------------------------------------------
                                 MHREO  LREO/TREO  MHREO/TREO
NEC11-001     FROM        TO        (%)     ratio       ratio
-------------------------------------------------------------
            534.75    769.97     0.109         77          25
including   565.13    619.26     0.161         65          35
-------------------------------------------------------------

                                    LREO                        MREO
---------------------------------------------------------------------------
                            La2O3  Ce2O3  Pr2O3  Nd2O3  Sm2O3  Eu2O3  Gd2O3
NEC11-001     FROM      TO   (ppm)  (ppm)  (ppm)  (ppm)  (ppm)  (ppm)  (ppm)
---------------------------------------------------------------------------
            534.75  769.97    945   1586    162    584    174    174    210
including   565.13  619.26    795   1425    154    608    237    119    342
---------------------------------------------------------------------------

                                           HREO
---------------------------------------------------------------------------
NEC11                Tb2O3  Dy2O3  Ho2O3  Er2O3  Tm2O3  Yb2O3  Lu2O3   Y2O3
 -001   FROM     TO   (ppm)  (ppm)  (ppm)  (ppm)  (ppm)  (ppm)  (ppm)  (ppm)
---------------------------------------------------------------------------
      534.75 769.97     25   93.3   12.1   22.9   2.36   12.9   1.71    357
inclu
-ding 565.13 619.26   42.5  159.4   20.5   37.7   3.79   20.5   2.64    620
---------------------------------------------------------------------------

Based on the deposits geometry, the drilled thickness is currently estimated at 60 per cent of the true thickness.

The identification of a new zone of Middle and Heavy Rare Earth Oxide (MHREO) enrichment associated with the higher grade portions of the niobium interval was identified within drill Hole NEC11-001. This zone will be further investigated via a review of mineralogy and historic results to determine its significance.

- A rigorous quality assurance and quality control protocol was established for the sampling program; and included the routine insertion of field duplicates, laboratory pulp duplicates, blanks and certified reference standards. All samples were shipped to, and analyzed by Activation Laboratories of Ancaster, ON using its method eight - major oxide, rare earths and trace element package by fusion ICP and ICP/MS in addition to niobium by XRF, and fluorine by method 4F-F.

- Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.

Light Rare Earth Oxides (LREO) include: La2O3, Ce2O3, Pr2O3 and Nd2O3.

Middle Rare Earth Oxides (MREO) include: Sm2O3, Eu2O3 and Gd2O3.

Heavy Rare Earth Oxides (HREO) include: Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.

Middle to Heavy Rare Earth Oxides (MHREO) is the sum of MHREO and HREO.

Qualified Persons: Mr. Neil McCallum, P.Geol. is the qualified persons responsible for the Elk Creek Carbonatite Project and has read and approved the technical disclosure contained in this news release.

On Behalf of the Board,

Peter Dickie, President, CEO

Cautionary note: This report may contain forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Archie Lake property, on the Elk Creek Carbonatite property, and intends to file additional NI 43-101 reports on additional properties as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Quantum Rare Earth Developments Corp. Peter Dickie President and CEO (604) 568-7365 604-568-7506 (FAX) www.QuantumRareEarth.com