Mr. Peter Dickie reports

QUANTUM ANNOUNCES ADDITIONAL RARE EARTH ELEMENT RESULTS

Quantum Rare Earth Developments Corp. has provided additional results of its 2010 resampling program of historic core from the Elk Creek project, located in southeastern Nebraska, United States. As previously reported in Stockwatch on Dec. 17, 2010, the company performed an extensive resampling program of existing sample pulps and rejects associated with the historic drill programs, which were completed during the 1970s and 1980s by Molycorp Inc.

The company is in receipt of results for the remainder of nine drill holes known to contain significant rare earth element (REE) mineralization at the Elk Creek project. These results are in addition to the results of the March 8, 2010, news release in Stockwatch, which reported:

• Drill hole EC-93 -- 155.5 metres of 2.7 per cent total rare earth oxides (TREO), including 54.9 m of 3.3 per cent TREO;
• Drill hole EC-55 -- 211.8 metres of 1.12 per cent TREO, including 36.6 m of 1.76 per cent TREO.

The additional results of the recent resampling program to date are as follows (western REE anomaly):

• Drill hole EC-4 -- 15.2 metres of 1.14 per cent TREO;
• Drill hole EC-41 -- 112.8 metres of 1.13 per cent TREO, including 18.3 m of 2.61 per cent TREO.

The western anomaly is located approximately 1,000 metres northwest of the central niobium deposit. EC-55, along with EC-4 and EC-41, encountered significant REE mineralization during the wide-spaced regional drilling campaign conducted by Molycorp. Drill hole EC-41 was collared approximately 400 metres to the northeast of EC-4, and EC-55 was collared approximately 470 metres to the southeast of EC-4.

EC-4 is a vertical drill hole that was drilled to a depth of 809 metres. EC-41 was drilled at a minus-70-degree inclination at a direction of 58 degrees southwest to a depth of 614 metres.

Central REE anomaly:

• Drill hole EC-17 -- 64 metres of 1.19 per cent TREO, including 24.4 m of 1.97 per cent TREO;
• Drill hole EC-19 -- 50.3 metres of 1.09 per cent TREO;
• Drill hole EC-21 -- 21 metres of 1.6 per cent TREO;
• Drill hole EC-48 -- 67.1 metres of 1.26 per cent TREO including 15.2 m of 2.18 per cent TREO.

The central REE anomaly is located directly adjacent to, and up to 1,600 metres northeast of, the central niobium deposit. Drill holes EC-19 and EC-21 are directly adjacent to the recently announced niobium resource. The nearest drill hole to the east is EC-48, collared approximately 660 m away. The next nearest drill hole to the east-northeast is EC-17 which was collared approximately 1,600 m away.

EC-17 is a vertical drill hole that was drilled to a depth of 613 metres. EC-19 is a vertical drill hole that was drilled to a depth of 664 metres. EC-21 was drilled at a minus-60-degree inclination at a direction of 50 degrees northwest to a depth of 644 metres. EC-48 was drilled at a minus-60-degree inclination at a direction of 60 degrees northwest to a depth of 744 metres.

Eastern REE anomaly:

• Drill hole EC-43 -- 134.1 metres of 1.22 per cent TREO;
• Including 22.9 m of 2.35 per cent TREO, including 6.1 m of 5.07 per cent TREO.

The eastern REE anomaly is located approximately 2,800 metres to the southeast of the central niobium deposit. EC-43 is located approximately 800 metres to the southeast of drill hole EC-93 (155.5 m of 2.7 per cent TREO, including 54.9 m of 3.3 per cent TREO).

EC-43 is a vertical drill hole that was drilled to a depth of 458 metres.

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. Samples were shipped to the ALS Chemex facility in Reno, Nev., and prepared for analysis at the ALS Chemex testing facility in North Vancouver. The rare earth elements were analyzed by the lithium borate fusion and ICP-MS package.

Total rare earth oxides (TREO) include La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3. The result of the sampling to date has identified mostly light rare earth oxides (LREO) mineralization, in order of abundance La2O3, Ce2O3, Nd2O3, Pr2O3 and Sm2O3.

Historic drill holes were analyzed for only three of the rare earth elements: La2O3, C32O3 and Nd2O3.

Peter Dickie, president and chief executive officer of Quantum Rare Earth Developments, comments: "These additional rare earth element results are an example of the wide-spread nature of the mineralization within the carbonatite complex. It also substantiates the need to follow up these anomalous zones with additional drilling with the intent of defining a resource of rare earth elements."

The Elk Creek carbonatite is an intrusive complex of carbonatite and related rocks, and is host to significant niobium and rare earth element (REE) mineralization. The company has recently announced the estimate of an inferred resource of 83.4 million tonnes at 0.62 Nb2O5 per cent, at a 0.4-per-cent Nb2O5 cut-off grade for the central niobium deposit based on historic drilling and the recent resampling of pulverized material (see news release in Stockwatch on March 15, 2011).

Qualified persons

Neil McCallum, PGeol, is the qualified persons responsible for the Elk Creek carbonatite project, and has read and approved the technical disclosure contained in this news release.

We seek Safe Harbor.