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, inferred 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)

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.” 

*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.