Quantum Rare Earth Developments Initiates Metallurgical Testing of the Elk Creek Niobium Deposit

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/24/11 -- Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OTCQX: QREDF)(FRANKFURT: BR3) ('Quantum', the 'Company') is pleased to announce the start of metallurgical testing on samples from the Elk Creek, Nebraska Niobium and Rare Earth Element Project.

The Company has contracted Hazen Research Inc. of Golden, Colorado, to conduct a characterization and process development study for material from the Elk Creek Niobium Deposit. In addition, with recent assays indicating significant concentrations of Rare Earth Elements within the Niobium Zone, including a high proportion of middle and heavy rare earths oxides, recovery rates of specific rare earth elements will also be investigated.

Material used for testing will come from the recent drill program at Elk Creek, which included the following results:

(Results previously released July 27, 2011)

--  NEC11-001: 235.22 m of 0.73% Nb(2)O(5) and 0.43% TREO(i),
    --  including 54.13 m of 1.17% Nb(2)O(5) and 0.46% TREO(i)

(Results previously released August 16, 2011)

--  NEC11-002: 179.18 m of 0.87% Nb(2)O(5) and 0.43% TREO(i)
    --  Including 131.03 m of 1.02% Nb(2)O(5) and 0.48% TREO(i)
    --  Including 34.16 m of 1.23% Nb(2)O(5) and 0.38% TREO(i)

--  NEC11-003: 130.37 m of 0.58% Nb(2)O(5) and 0.48% TREO(i)
    --  Including 34.16 m of 0.94% Nb(2)O(5) and 0.42% TREO(i)

Recent drill results confirm the high-grade and size potential of the Niobium Mineralization at Elk Creek, as indicated by previous drilling by Molycorp. This work resulted in a NI43-101 compliant inferred resource estimate in excess of 80 million tonnes grading 0.62% Nb(2)O(5), containing approximately 490,000,000 kg's of Nb(2)O(5) (see NR April 28, 2011).

Management of Quantum believe that confirmation of metallurgical recovery rates achieved historically by Molycorp (on a small number of samples), will allow the company to aggressively work towards the completion of a Preliminary Economic Assessment (PEA) for the Elk Creek Niobium Deposit.

With the first phase of the 2011 Drill Program now complete, assay results will be forwarded to Wardrop, a Tetra Tech Company, the authors of the latest NI43-101 report on the Elk Creek Niobium Deposit. Wardrop will review and incorporate these results into the current geologic model for Elk Creek; and once available, will be commented on within the context of ongoing activities at the project.

Qualified Persons: Mr. Neil McCallum, P.Geol. is the qualified persons responsible for the Elk Creek Carbonatite Project and has read and approved the technical disclosure contained in this news release.

Quantum Rare Earth Developments Corp., based in Vancouver, British Columbia, is an exploration company with a focus on seeking out potentially economic deposits of niobium and rare earth elements in North America and elsewhere in the world.

About Hazen: Hazen Research, Inc. is an employee-owned industrial research and development firm located in Golden, Colorado. The company was founded in 1961 by a small group of metallurgists with experience in innovation and commercial process development for the mining and metallurgical industries. Over the past 50 years, Hazen has grown to its present size of approximately 180 employees and 17 buildings containing an extensive inventory of laboratory and pilot plant equipment. Hazen serves clients from all over the world in the mining, energy, environmental, chemical, biorefining, and specialty materials industries on projects ranging from bench-scale experiments and analyses to multimillion-dollar continuous pilot plants.

(i)Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.

On Behalf of the Board,

Peter Dickie, President

Cautionary note: This report may contain 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, on the Elk Creek Carbonatite property, and intends to file additional NI 43-101 reports on additional properties as soon as the information is available. 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 the 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

(604) 568-7365

(604) 568-7506 (FAX)
www.QuantumRareEarth.com