Quantum Rare Earth Developments receives infill drill results

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

• NEC11-003: 130.37 m of 0.58% Nb₂O₅ and 0.48% TREO*
  • Including 34.16 m of 0.94% Nb₂O₅ and 0.42% TREO*

(Results previously released July 27, 2011)

• NEC11-001: 235.22 m of 0.73% Nb₂O₅ and 0.43% TREO*,
  • including 54.13 m of 1.17% Nb₂O₅ and 0.46% TREO*

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° inclination at a direction of 035° 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*) 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° 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.