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 two additional holes of 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. Drill holes NEC11-002 and NEC11-003 are the remaining two of three holes which were completed to test the Elk Creek Niobium Deposit.

Highlights from the current exploration include:

--  NEC11-002: 179.18 m of 0.87% Nb2O5 and 0.43% TREO(i)
    --  Including 131.03 m of 1.02% Nb2O5 and 0.48% TREO(i)
    --  Including 34.16 m of 1.23% Nb2O5 and 0.38% TREO(i)

--  NEC11-003: 130.37 m of 0.58% Nb2O5 and 0.48% TREO(i)
    --  Including 34.16 m of 0.94% Nb2O5 and 0.42% TREO(i)

(Results previously released July 27, 2011)

--  NEC11-001: 235.22 m of 0.73% Nb2O5 and 0.43% TREO(i),
    --  including 54.13 m of 1.17% Nb2O5 and 0.46% TREO(i)

Management of Quantum are very pleased with the results as they provide additional information on areas of the deposit at depth where limited information was previously available, but also confirm the strong grade and size potential of the Niobium structure indicated by previous drilling by Molycorp.

Drill hole NEC11-002 was drilled at a -55 degrees inclination at a direction of 035 degrees to a depth of 908.61 metres (a drill plan and cross-section are available on the company's website at http://www.quantumrareearth.com). The hole was drilled in the northwestern portion of the deposit at depth. A significant zone of Middle and Heavy Rare Earth (MHREO(i)) mineralization of between 28% to 43% MHREO, with notable enrichment in Europium, Gadolinium, Terbium and Dysprosium was encountered in this hole, similar to the MHREO enrichment found in hole NEC11-001.

Drill hole NEC11-003 was drilled at a -65 inclination at a direction of 035 degrees to a depth of 508.71 metres. The hole was drilled in the southeastern portion of the deposit.

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.

Results of niobium and the rare earth elements and their ratios for these two holes are as follows:

---------------------------------------------------------
                FROM       TO  INTERVAL    Nb2O5     TREO
                  (m)      (m)       (m)      (%)      (%)
---------------------------------------------------------
NEC11-002     713.81   892.99    179.18     0.87     0.43
including     757.71   888.74    131.03     1.02     0.48
including     780.12   805.67     25.55     1.23     0.38

NEC11-003     296.35   426.72    130.37     0.58     0.48
including     330.61   364.77     34.16     0.94     0.42
---------------------------------------------------------

--------------------------------------------------------------------------
                                                              LREO/  MHREO/
             FROM      TO INTERVAL  LREO  MREO  HREO MHREO    TREO    TREO
               (m)     (m)      (m)   (%)   (%)   (%)   (%)  ratio   ratio
--------------------------------------------------------------------------
NEC11-002  713.81  892.99   179.18  0.31 0.054 0.059 0.113      72      28
including  757.71  888.74   131.03  0.34 0.063 0.060 0.123      71      29
including  780.12  805.67    25.55  0.21 0.069 0.097 0.167      57      43

NEC11-003  296.35  426.72   130.37  0.42 0.033 0.024 0.057      87      13
including  330.61  364.77    34.16  0.36 0.037 0.024 0.061      84      16
--------------------------------------------------------------------------

--------------------------------------------------------------------------
                                          LREO                 MREO
                                 ----------------------- -----------------
            FROM     TO INTERVAL La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3
              (m)    (m)      (m) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm)
--------------------------------------------------------------------------
NEC11-002 713.81 892.99   179.18   830  1496   166   641   225    90   224
including 757.71 888.74   131.03   907  1632   179   698   265   107   257
including 780.12 805.67    25.55   535  1015   117   466   242   122   327

NEC11-003 296.35 426.72   130.37  1277  2082   201   689   164    53   115
including 330.61 364.77    34.16  1045  1761   174   602   185    63   125
--------------------------------------------------------------------------

--------------------------------------------------------------------------
                                                        HREO
                                             -----------------------------
                  FROM       TO   INTERVAL   Tb2O3   Dy2O3   Ho2O3   Er2O3
                    (m)      (m)        (m)   (ppm)   (ppm)   (ppm)   (ppm)
--------------------------------------------------------------------------
NEC11-002       713.81   892.99     179.18    25.6    97.4    13.6    27.0
including       757.71   888.74     131.03    27.8   101.8    13.7    26.7
including       780.12   805.67      25.55    39.1   156.1    22.7    44.9

NEC11-003       296.35   426.72     130.37    10.3    37.4     5.5    12.6
including       330.61   364.77      34.16    10.3    36.4     5.3    12.4
--------------------------------------------------------------------------

--------------------------------------------------------------------------
                                                        HREO
                                             -----------------------------
                  FROM       TO   INTERVAL   Tm2O3   Yb2O3   Lu2O3    Y2O3
                    (m)      (m)        (m)   (ppm)   (ppm)   (ppm)   (ppm)
--------------------------------------------------------------------------
NEC11-002       713.81   892.99     179.18    2.85    15.1    1.98     403
including       757.71   888.74     131.03    2.73    14.5    1.87     409
including       780.12   805.67      25.55    4.56    24.4    3.14     680

NEC11-003       296.35   426.72     130.37    1.52     8.9    1.27     163
including       330.61   364.77      34.16    1.53     9.3    1.29     160
--------------------------------------------------------------------------

Results of drill hole NEC11-001 were announced in a July 27th 2011 News Release; and include 235.22 m of 0.73% Nb2O5 including 54.13 m of 1.17% Nb2O5. For the remaining two drill holes, results will be released upon their receipt.

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

(i) 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.

(i) 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

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 (604) 568-7365 (604) 568-7506 (FAX) www.QuantumRareEarth.com