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Quantum Files updated NI 43-101 Report

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on Elk Creek Niobium Deposit

May 03, 2011 – Vancouver, B.C.: Quantum Rare Earth Developments Corp. (TSX.V – QRE, FSE – BR3, OTCQX - QREDF) (“Quantum”, the “Company”) is pleased to announce the filing of an updated NI 43-101 resource report on the Elk Creek Carbonatite project.  The report specifically deals with the core Niobium zone, and does not reflect results of any of the Rare Earth Element zones also located on the property.  The report, prepared by Tetra Tech Wardrop (Tetra Tech) will be available on SEDAR and the Company’s website shortly.

The updated resource estimate for the Elk Creek Niobium Deposit has resulted in an overall increase in tonnage with an Indicated Mineral Resource of 19.3 million tonnes grading 0.67% Nb2O5 (using a 0.40% Nb2O5 cut-off grade), and an increase in Inferred Mineral Resources to 83.3 million tonnes grading 0.63% Nb2O5 (using a 0.40% Nb2O5 cut-off grade).  The resource update is the result of an additional three holes completed by the Company at the Elk Creek Niobium Deposit in 2011.  A summary of the resources, with sensitivity to cut-off grade is presented in Table 1.

Table 1. Mineral Resource Estimate, Elk Creek Niobium Deposit

Effective March 21, 2012

Classification

Nb2O5 %

cutoff

Tonnage

(Mt)

Nb2O5 %

Grade

Contained Oxide

t Nb2O5

Indicated

0.70%

7.226

0.86

61,940

Indicated

0.60%

11.373

0.78

88,770

Indicated

0.50%

15.844

0.71

113,271

Indicated

0.40%

19.319

0.67

129,182

Indicated

0.35%

19.632

0.66

130,376

Inferred

0.70%

20.984

0.80

167,447

Inferred

0.60%

44.596

0.72

320,521

Inferred

0.50%

71.333

0.66

468,026

Inferred

0.40%

83.288

0.63

523,844

Inferred

0.35%

83.744

0.63

525,591

1. Effective date of the resource estimate is March 21, 2012

2. Resource estimate based on historic and recent Nb2O5% assay values.

3. Tetra Tech considers a base case cut-off grade of 0.40 Nb2O5% to be reasonable in the absence of metallurgical data and economic parameters (i.e. operating costs).

4. Average specific gravity of 2.96 g/cc.

5. The resource estimate has been classified as having both Indicated and Inferred Mineral Resources. The Indicated resources are based on an interpolation with a minimum of three drill holes within an average distance of less than 80 m. All other blocks within the IK wireframe are classified as Inferred resources.

6. Resource Estimate is based on:

- An Indicator Kriged (IK) wireframe, defining a 45% probability of achieving or exceeding a cut-off of 0.4 Nb2O5%, was generated on block size of 20 m x 20 m x 10 m.

- Geological model bounded by the IK wireframe. The IK wireframe was generated based on the 27 drill holes totalling 16,595 m of diamond drilling.

- Block model estimated by OK interpolation method on block size 20m x 20m x 10m. The OK estimation was generated based on 17 drill holes that intersect the mineralized IK wireframe.

- Resource Estimate assumes 100% recovery as metallurgical results are not available.

The Elk Creek Niobium Deposit is an elongate, approximately east-west orientated mineral occurrence, in excess of 800 meters along strike.  The deposit remains open to the east, west and at depth.  It is hosted by the Elk Creek Carbonatite, which is an intrusive complex of carbonatite and related rocks. The property was held under an option agreement during the 1970s and 1980s by Molycorp Inc., at which time considerable exploration 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.

Qualified Persons:

Paul Daigle, BSc, P.Geo., from Tetra Tech, is an independent qualified person as defined by NI 43-101, and is responsible for the mineral resource estimate for the Elk Creek Niobium Deposit and has verified the data disclosed in this release.

Mr. Neil McCallum, P.Geo., from Dahrouge Geological Consulting Ltd., is the qualified person as defined by NI 43-101, responsible for the Elk Creek Carbonatite Project and has read and approved the technical disclosure contained in this news release.

About Quantum:  Quantum is developing the Elk Creek Carbonatite, the only primary niobium deposit known to be under development in the U.S., and the highest grade undeveloped niobium deposit in North America.  Niobium is mainly used in the form of Ferro-Niobium to produce HSLA (High Strength, Low Alloy) steel, to produce lighter, stronger steel for use in automotive, structural and pipeline industries.  The U.S. imports 100% of its niobium needs.  Niobium is listed as a strategic metal, and is being considered for national stockpiling in the U.S., China, and several European countries.

About Tetra Tech:  Tetra Tech is a leading provider of consulting, engineering, program management, construction and technical services.  The company supports government and commercial clients by providing innovative solutions to complex problems focused on water, environment, energy, infrastructure, and natural resources.  With more than 13,000 employees worldwide, Tetra Tech’s capabilities span the entire project life cycle.

On Behalf of the Board,

“Peter Dickie”

Peter Dickie, President

For further information, contact the Company at (604) 568-7365 or visit www.QuantumRareEarth.com

“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."

Cautionary note:  This news release contains forward looking statements.  These statements include, but are not limited to, statements with respect to the completion of an updated resource estimate, the commencement of a preliminary economic assessment study and management’s expectation that the results of these studies will confirm the potential of the Elk Creek Project.  Specifically, any statements regarding the potential increase of the Company’s inferred resource at the Elk Creek Project and the goals and objectives of the Company are by their nature forward looking information.  Resource estimates, unless specifically noted, are considered speculative.  The Company has filed a National Instrument 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 known and unknown risks 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. Other factors may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements

Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company’s properties, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; tax consequences; and other risks and uncertainties.

The business of exploring for minerals involves a high degree of risk.

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.