QRE Niocorp Developments Ltd.

Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(PINK SHEETS: QREDF)(FRANKFURT;BR3) ("Quantum", the "Company") is pleased to announce that it has retained the services of Fugro Airborne Surveys Corp. of Ottawa, Ontario for a high-resolution airborne gravity and magnetic survey of the Elk Creek Carbonatite, located in southeast Nebraska.

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 property was held under an option agreement during the 1970's and 1980's by Molycorp Inc., at which time considerable exploration of the project took place. At least 113 core holes were completed within the outline of the seven-kilometre-diameter geophysical anomaly, with 25 holes completed within a core zone, where high-grade niobium mineralization was identified. Based upon the exploration a historic resource estimate of "39.4 million tons of 0.82 per cent Nb2O5, and is open to the north, west and at depth", was prepared by Molycorp Inc. for this core zone (Molycorp internal memorandum, Feb. 5, 1986).

In addition to the historic core zone of niobium mineralization, anomalous niobium and REE mineralization was identified during the wide-spaced exploration drilling of the property by Molycorp Inc. Highlights include:

--  Hole EC-40, northeast of the Core Zone, intersected 24.4 metres of 0.65
    per cent Nb2O5, and 0.31 per cent rare earth oxides (REO);
--  Hole EC-55, within the Western Anomaly, intersected 192 m of 1.31 per
    cent REO's, including 33.5 m of 2.09 per cent REO's; and
--  Hole EC-93, within the Eastern Anomaly, intersected 140.2 m of 2.19 per
    cent REO's, including 18.3 m of 3.12 per cent REO's.

The Elk Creek Carbonatite is defined by an oval-shaped magnetic and gravity anomaly approximately 7 kilometres in diameter, making it one of the largest carbonatite complexes known worldwide. Associated with the carbonatite and carbonatite breccias are lesser amounts of basalt, lamprophyre, and syenite. These Late Proterozoic-age intrusive rocks are situated approximately 200 metres below an almost flat-lying cover of Pennsylvanian-aged marine carbonate and shale.

It is anticipated that the airborne survey will be initiated within the next few weeks and will take four to five days to complete. The survey represents the first modern geophysical methods applied to the Elk Creek Project since the late 1970's to early 1980's, and represent the first step in the exploration of the project by Quantum Rare Earth Developments Corp. Data from the survey will be used to assist with the planning of the ongoing exploration and development of the project. A total of 1,160 line kilometers will be completed, with 200-m spaced lines.

All niobium and rare earth element drill results, as well as estimates of historic resources predate, and are therefore non-compliant with, National Instrument 43-101 (NI 43-101) reporting standards. The company is not treating the historical estimates as current mineral resources or reserves. The company has not undertaken any independent investigation of the drill results or resource estimates, nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historic drill results and estimates should not be relied upon. The company believes that these historical drill results and estimates provide a conceptual indication of the potential of mineral occurrences within the project, and are relevant to the ongoing exploration.

About Carbonatites: Carbonatites are very rare and unique rock types, with approximately 500 complexes known worldwide. Often containing a variety of exotic minerals, carbonatites have been known to produce economic concentrations of rare earth elements, niobium, copper, iron, apatite, vermiculite and fluorite; with significant byproducts which may include barite, zircon, tantalum, gold, silver, uranium, nickel and platinum group elements.

Qualified Person: All field and office exploration is being conducted under the supervision of Mr. John Gorham, P. Geo., of Dahrouge Geological Consulting Ltd., a qualified person under National Instrument 43-101. He 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 contains 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, and an historic NI 43-101 report on the Elk Creek project. 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 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