Quantum Closes Financing

December 23, 2011 – Vancouver, B.C.   Quantum Rare Earth Developments Corp. (the “Company” or “Quantum”) (TSX.V – QRE, FSE – BR3, OTCQX – QREDF) is pleased to announce that further to its news release of October 14, 2011, it has closed its private placement of  5,185,667 units at $0.15 per unit for total gross proceeds of $777,850.  Each unit consists of one common share and one-half of one transferable share purchase warrant, each whole warrant entitling the holder to purchase one common share for a period of two years at a price of $0.25 per share. 

The Company paid a total of $32,940 in cash and issued 219,600 share purchase warrants to finders for their efforts in finding certain placees.  Each finder’s warrant is exercisable into one common share of the Company for two years at a price of $0.25 per share.

All securities issued under the placement are subject to hold periods expiring on April 7, 2012 (as to 5,055,667 units) and April 15, 2012 (as to 180,000 units).

Proceeds of the placement will be used to advance the Elk Creek Carbonatite project and for general working capital.

The Company also wishes to announce a correction to the news release issued December 20, 2011.  In the release, under “2011 Highlights”, specific reference was made to the NI 43-101 resource report on the Elk Creek Niobium deposit, correctly identifying it as an inferred resource of 80.1 million tonnes grading 0.62% Nb2O5 (containing an estimated 493 million kilograms of Nb2O5).  A typographic error in a previous paragraph incorrectly identified the resource as indicated.  The Company regrets any confusion caused by this error.

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.