Suite 1510 – 1050 West Pender St. Vancouver, B.C., Canada V6E 3S7

Tel: 604-568-7365 Fax: 604-688-4215 www.QuantumRareEarth.com

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Quantum Cites 2011 Niobium Drill Results in Nebraska as Key Milestone

and Announces Preliminary Niobium Economic Assessment Planned for

2012

December 20, 2011 – Vancouver, B.C. Quantum Rare Earth Developments Corp. (the

“Company” or “Quantum”) (TSX.V – QRE, FSE – BR3, OTCQX – QREDF) President and Chief

Executive Officer, Peter Dickie, recapped the Company’s 2011 activities at its Annual General

Meeting held on Monday, December 12, 2011.

This news release provides a summary of Mr. Dickie’s overview of the Company’s activities

during the 2011 year.

Key Milestone

During the 2011 year, the Company released data showing a large, indicated resource at its 14-

square mile site at Elk Creek, Nebraska (the “Elk Creek Project”) of 80.1 million tonnes of

niobium grading 0.62% Nb2O5 (see news release dated April 28, 2011 for more information).

Quantum aims to be the solution for America’s strategic and critical niobium needs for the

domestic steel and aviation industry by developing one of the richest niobium deposits in the

world and the only significant deposit in America. Niobium is crucial in jet thrusters, steel for

bridges, buildings, oil and gas pipelines, stainless steel, and MRI machines.

2011 Highlights

March 2011

Release of a National Instrument 43-101 Standards of Disclosure for Mineral Projects

(“NI 43-101”) resource report on the Elk Creek Project, showing an inferred resource of

80.1 million tonnes grading 0.62% Nb2O5 (containing an estimated 493 million kilograms

of Nb2O5. (See news release dated April 28, 2011 for more information)

April 2011

Commencement of first drill program at Elk Creek Project in over 25 years

July 2011

Announcement of Niobium zone drill results, with NEC11-01 targeting an infill zone

where the NI 43-101 report on the Elk Creek Project previously did not have any credits

toward the total resource. Grades reported were 235 meters of 0.73% Nb2O5, including

54 meters grading 1.17% Nb2O5 (see news release of July 27, 2011 for more

information)

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August 2011

Announcement of additional niobium zone drill results, including NEC 11-002 which

graded 179 meters of 0.87% Nb2O5, including 131 meters grading 1.02% Nb2O5 (See

news release dated August 16, 2011 for more information); and

Signing of metallurgical testing agreement with Hazen Research Inc. (“Hazen”) to test

niobium recoveries from recently drilled core

September 2011

Announcement of drill results from Rare Earth zone (located 2.5 kilometers east of

niobium zone at Elk Creek Project), including NEC 11-004 returning 236 meters grading

2.1% TREO*, including 68 meters grading 3.32% *TREO (See news release dated

September 20, 2011 for more information)

November 2011

Completion of option agreements divesting Australian and Ontario properties, furthering

the Company’s ability to concentrate on Elk Creek Project

December 2011

Successful completion of $750,000 financing for advancement of the Elk Creek Project

Also in June 2011, Quantum made significant additions to its board of directors and advisory

board, through the additions of David Beling, P.E., Jim Reynolds, Chemical Engineer and David

Shoemaker, Mining Engineer.

Looking forward to 2012, Mr. Dickie advised shareholders of several key milestones the

Company is aiming to complete, including:

receipt of metallurgical testing results from Hazen; engagement of an outside engineering firm to complete an updated resource calculation

and preliminary economic assessment work on the niobium deposit;

additional infill drilling to elevate the deposit towards the indicated and measured

category;

further discussions with potential off-take or strategic partners to accelerate development

of the Elk Creek Project; and

enhancement of the technical management team overseeing the Elk Creek Project.

In closing, Mr. Dickie added, “We are particularly proud of the accomplishments made by our

development team this year on the Elk Creek deposit. We are well-positioned to reach the next

level of development of our large niobium resource, and our dedicated development team

continues to work hard towards achieving these goals.”

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Tel: 604-568-7365 Fax: 604-688-4215 www.QuantumRareEarth.com

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*Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3,

Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.

Qualified Persons: Mr. Neil McCallum, P.Geol. is the qualified person responsible for the Elk

Creek Project and has read and approved the technical disclosure contained in this news

release.

On Behalf of the Board,

“Peter Dickie” Peter Dickie, President, CEO For further information, contact the Company at (604) 568-7365. “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."

Cautionary note: This report contains forward looking statement. 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 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.