Overview

Quantum Rare Earth Developments Corp. is developing its premier niobium and rare-earth project in Elk Creek, Nebraska. Quantum aim to be the solution for America’s strategic and critical niobium needs for the domestic steel and aviation industry. Niobium is crucial in high strength steel for bridges and buildings, oil and gas pipelines, stainless steel, MRI machines, wind turbines, jet thrusters, automotives and more.

Elk Creek is an advanced project due to Molycorp, Inc. having drilled over 110 holes in the complex during the 1970s and 1980s. In addition to the vast niobium deposit, Quantum has also identified a high-grade rare-earth complex 2.5 km, or 1.5 miles, away from the niobium deposit.

The U.S. Geological Survey (USGS) has stated that the Elk Creek carbonatite “has the potential to be one of the largest global resources of niobium and rare-earth elements”. Quantum recently announced assays from its summer 2011 drill campaign which will be used to update and increase the NI 43-101 resource estimate below of 80.1 million tons of .62% Nb₂O₅ containing ~500 million kg, or ~1.1 billion pounds, of Nb₂O₅.

Quantum expects to have delivery of its metallurgical results, an Updated NI 43-101 Resource Calculation and a Preliminary Economic Assessment (Scoping Study) in the first half of 2012.

Investment Highlights

• 80.1 million tonnes of 0.62% Nb205 Inferred Resource at 0.40% cutoff
• ~500 million Kg’s of Niobium or 1.1 billion pounds contained
• ~$45/Kg Nb2O5  (Niobium)

• $22 Billion In-Situ value
• 131 meters of 1.02% Nb₂O₅ – a highlight from 2011 summer drill campaign
• Only known significant Niobium deposit in America
• America imported 100% of the Niobium that they have used over the past 52 years

Key Properties

Elk Creek Carbonatite (Niobium& REE), Nebraska USA

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Elk Creek is an advanced project due to Molycorp having drilled over 100 holes in the 1970’s and 1980’s.Quantum picked up the project in 2010.

The company re-assayed all of the historical core that was kept under lock and key at the University of Nebraska in Lincoln. These results used to calculate the 43-101 resource estimate below of 80.1 Million Tons of .62% Nb2O5 containing ~500 million Kg or ~1.1 billion pounds of Nb2O5.

5 holes were drilled in 2011 which will be used in the updated 43-101 in March 2012. The Company expect a NI 43-101 Resource Calculation and a Preliminary Economic Assessment (Scoping Study) in the first half of 2012.

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Archie Lake

In September, 2009 Quantum acquired the Archie Lake Property in Saskatchewan 50 km south of Great Western Minerals (TSXV: GWG) Hoidas Lake REE Deposit. Historic exploration at Archie Lake returned significant concentrations of Rare Earth Elements (REEs). The property consists of one mineral claim covering an area of 2,108 hectares.

Thirty six rock samples were collected from six historic trenches and one small blast pit at the property.  Mineralization was confirmed in all six trenches plus one small unnamed blast pit.  One chip sample, shown above, returned a high of 29.9% REE+Y.  A total of five samples exceeded detection limits for one to four of the lanthanides (Ce, La, Nd, and Pr).  Two of these samples exceeded 15% total rare earths plus yttrium (REE+Y).  Of all 36 samples analyzed, a total of 18 samples exceed 2% REE+Y, six exceed 5% REE+Y with three exceeding 10% REE+Y.  The peak value was comprised of nearly 60% monazite representing a highly mineralized pod within the overall zone.

Jungle Well and Laverton

Quantum has two tenement packages that are considered highly prospective for the occurrence of Rare Earth Elements (REE). The projects are located in the same mineral field where Lynas Corporations (ASX: LYC) Mt Weld rare earth deposit is being developed.

The Mt Weld project is a significant world class deposit with a resource of 7.7Mt at 12% for 917,000t rare earth oxides. Lynas has recently announced a $500m funding package with China Nonferrous Metal Mining Group (CNMC).

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The Jungle Well Rare Earth Project is located 80km west of Leonora and was recognised for its REE potential however no analysis was carried out during a late 1990’s diamond exploration program. During 2007 a trench sampling programme identified significant RE values from an exposed dyke of 6.9% and 8% REE.

Management

Peter Dickie – President, CEO and Director - Mr. Dickie brings over 20 years of business experience with both public and private companies holding numerous senior management positions. A graduate of both the University of British Columbia, and the University of Victoria (B.C.), his background includes 4 years in the Securities industry with Jones, Gable & Co. Currently, he sits on the board of several public companies in a fiscal and management advisory capacity.

David C. Beling, P.E. – Director -David C. Beling, P.E., has a unique combination of project and corporate expertise, with over 47 years of experience in the global precious metal, base metal and energy mineral sectors. Mr. Beling has significantly reviewed or was directly involved with 84 underground mines, 127 open pit mines and 163 mineral processing plants as a consultant or while employed with Phelps Dodge, Union Oil, Fluor, United Technologies, Westinghouse, and several Canadian and US junior mining companies. Since 1981 he served as a senior executive and member of the Board of Directors of eight public mining companies. In addition to developing and managing operations, he initiated or strongly contributed to the marketing and closing of several debt and equity financings, commodity and asset sales, mergers, acquisitions and joint ventures.

David R. Shoemaker, Mining Engineer – Technical Advisor - For over fifty years David R. Shoemaker has worked in the base metals, precious metals, and energy metals sectors experience in large open pit block caving and cut and fill operations sectors.Mr. Shoemaker has extensive pit, caving, operations. Mr. Shoemaker has held the positions of Mining Engineer, Chief Engineer, Operations Superintendent at caving and open pit mines, and Manager and Vice President of Molycorp Inc. Molybdenum Group. While working for Molycorp Inc., Hecla Mining Company, Phelps Dodge Corporation, Inspiration Consolidated Copper Co., Utica Mines Ltd., Homestake Mining Company, and as a Mining Consultant, Mr. Shoemaker has been involved in the evaluation, of over 100 mineral properties. In summary, Mr. Shoemaker has extensive experience in mine operations, mine planning, and mine evaluation.

James E. Reynolds, Chemical Engineer – Technical Advisor – Jim Reynolds has a broad background as a chemical engineer in metallurgical and chemical operations in research, hydrometallurgical process development and chemical plant management covering 50 years. Mr. Reynolds has 30 patents issued during his 28 years of consulting activities on over 80 world-wide projects. His experience includes employment with American Potash, Kerr McGee Corporation and Hazen Research, specializing in light and heavy metals processing, recycle of secondary metals, and industrial electro-chemicals. As a project manager at Hazen Research, Mr. Reynolds managed base metals and uranium laboratory and pilot programs for project pre-feasibility evaluations.

James Allan, M.Sc. P.Eng – Director - Mr. Allan holds a BASc (Geological Engineering), from the University of British Columbia and a MSc (Geology, Engineering) from Queen’s University. He is a Registered Professional Engineer, belonging to the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). As a geological engineer, Mr. Allan has over 45 years of experience with several major mining and petroleum companies and as an independent consultant in mining exploration and exploration management, mineral property evaluation and mining geology. He has conducted and managed exploration and evaluation programs for a wide variety of mineral commodities in Canada, the United States, Latin America, the Philippines, Malaysia, Australia and the former Soviet Union including Russia. Mr. Allan also has extensive experience in the exploration for, and evaluation of, rare earth deposits both as manager of exploration in Canada for a large rare earth company (Molycorp Canada) from 1982 to 1990 and as an independent consultant.

Mr. Claude Dufresne – Technical Advisor - Mr. Dufresne, Ing., graduated with a Bachelors degree in Mining Engineering from Laval University in 1991. Following his graduation, Mr. Dufresne started working with Cambior as a metallurgist. In 1996, he was transferred to Cambior’s largest operation, Omai Gold Mines Ltd., located in Guyana, S.A before been promoted to Marketing Manager. After Cambior’s acquisition by Iamgold Corp, Mr. Dufresne collaborated with Iamgold’s Corporate Development group while continuing with its Sales & Marketing activities, which included niobium and bauxite. In January 2008, Mr. Dufresne started Camet Metallurgy Inc, a joint venture company with Iamgold, which is responsible for the worldwide Sales and Marketing of Iamgold’s niobium from the Niobec mine. Mr Dufresne is a member of the Ordre des Ingenieurs du Quebec, and of the Tantalum & Niobium International Study Center (TIC).

James McCrea – Director - Mr. McCrea has more than 20 years experience in exploration and mining geology, and 15 years experience in mineral resource estimation. Jim’s experience was gained through working for junior mining/exploration companies and engineering companies SRK and Snowden. His geological expertise ranges from technical review and due diligence to resource estimation and feasibility studies. Jim has experience in a range of commodities, but primarily gold, silver and copper, in a variety of geographic settings around the world with particular focus on Central and S. America. Having performed ore body modeling and resource estimation for the successfully targeted take over company Cumberland Resources Ltd. by Agnico-Eagle Mines Ltd. and more recently Mr. McCrea has completed mineral resource estimations underpinning ongoing or future feasibility studies for companies such as Silver Standard Resources Inc. and Candente Resource Corp. to mention but a few.

Casey Forward – CFO - Mr. Forward is an independent CGA with over 20 years of experience in both private and public companies involved in mining and business development. Mr. Forward currently serves as a director or officer of several public companies involved in the mineral resource sector.

Erin Chutter – Director - Mrs. Chutter is the President and Founder of Puget Ventures Inc., a TSXV listed mineral exploration company advancing the Werner Lake Cobalt Mine in Ontario, Canada. She is also a founder and director of two private companies. Active in politics since the late 1980s.