QRE Niocorp Developments Ltd.

Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(PINK SHEETS: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") announces that it has closed a private placement with MGI Securities Inc. (the "Agent") for gross proceeds of $6,419,023.

In addition, the Company completed a non-brokered private placement for gross proceeds of $82,538.

The combined total sales of $6,501,561 consisted of 8,337,000 flow-through units at $0.30 per unit ("FT Units"), 8,000,000 non flow-through units at $0.25 per unit ($0.25 NFT Units"), and 6,453,100 non flow-through units at $0.31 per unit ("$0.31 NFT Units").

"The financing, primarily from well known institutional investors, is substantially larger than we originally contemplated which gives us the ability to accelerate our projects both in Saskatchewan and Elk Creek, Nebraska. We are very pleased with the overwhelming support provided by our new investors and wish to thank MGI Securities and John McMahon for their efforts, and also would like to extend our thanks to Lockwood Financial Ltd. for its assistance in securing this financing package. The closing of this placement satisfies one of the final conditions of the TSX Venture Exchange to grant final acceptance to the Company's proposed three cornered amalgamation under which the Company will acquire all of the issued and outstanding shares of 0859404 B.C. Ltd. and its Nebraskan subsidiary Elk Creek Resources Corp. The Company intends to seek final TSX Venture Exchange acceptance and complete the amalgamation promptly," said Company President and CEO, Peter Dickie.

The terms of each unit offering are as follows:

Each FT Unit consists of one flow-through share which qualifies as a "flow-through share" pursuant to the Income Tax Act (Canada), and one-half of one common share purchase warrant (the "$0.40 FT Warrant"). Each full $0.40 FT Warrant will entitle the holder thereof to purchase one additional non flow-through common share in the capital of the Company at an exercise price of $0.40 per common share for a period of 36 months from the closing date of the offering.

Each $0.25 NFT Unit consists of one non flow-through common share and one-half of one common share purchase warrant (a "$0.35 NFT Warrant"). Each full $0.35 NFT Warrant shall be exercisable into one common share at an exercise price of $0.35 per common share for a period of 36 months from the closing date.

Each $0.31 NFT Unit will consist of one non-flow-through common share and one-half of one common share purchase warrant (a "$0.41 NFT Warrant"). Each full $0.41 NFT Warrant shall be exercisable into one common share at an exercise price of $0.41 per common share for a period of 36 months from the closing date.

The proceeds from the sale of the FT Units will be for exploration and development of the Company's Archie Lake, Saskatchewan rare earth project. The net proceeds from the sale of the $0.25 NFT Units and $0.31 NFT Units will be used for further exploration and development of the Elk Creek carbonatite project located in southeastern Nebraska and for general working capital purposes.

In consideration of its services, the Agent received a fee equal to 8% of the gross proceeds of the offering for a total of $513,521.84 and Agent's warrants to purchase 823,700 units at $0.30 per unit for 36 months from the closing date, consisting of one common share and one half of one share purchase warrant, with each full warrant exercisable into one common share at an exercise price of $0.40 per common share for 36 months from the closing date, Agent's warrants to purchase 789,500 units at $0.25 per unit for 36 months from the closing date, consisting of one common share and one half of one share purchase warrant, with each full warrant exercisable into one common share at an exercise price of $0.35 per common share for 36 months from the closing date, and Agent's Warrants to purchase 636,829 units at $0.31 per unit for 36 months from the closing date, consisting of one common share and one half of one share purchase warrant, with each full warrant exercisable into one common share at an exercise price of $0.41 per common share for 36 months from the closing date.

In addition, a finder's fee equal to 2% of $3,000,000 of the gross proceeds of the offering for a total of $60,000 is payable to Lockwood Financial Ltd.

All securities issued under the private placement are subject to a four month hold period expiring March 6, 2011.

About MGI Securities Inc.

MGI is an integrated Canadian investment dealer offering professional wealth management solutions for individual investors, a comprehensive range of specialized services for institutional investors, and corporate finance advisory services for issuers, including mergers and acquisitions, equity underwritings, corporate restructuring, structured financings, market research, and business valuation services. MGI is based in Toronto, with additional offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is a member of IIROC and is a subsidiary of Jovian Capital Corporation (TSX: JOV.TO). MGI has approximately $1.2 billion in client assets under administration.

On Behalf of the Board,

Peter Dickie, President

"Neither 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) 669-9330 (604) 669-9335 (FAX) www.quantumrareearth.com MGI Securities Inc. John McMahon Investment Banker (416) 777-5178 jmcmahon@mgisecurities.com