Quantum Grants Options

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/12/12 -- Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OTCQX: QREDF)(FRANKFURT: BR3) ('Quantum', the 'Company') wishes to announce the granting of incentive stock options to its directors, officers, consultants and employees, under its 2012 Stock Option Plan, for the purchase of up to 1,250,000 common shares of the Company for a period of 3 years at a price of $0.20 per share.

On Behalf of the Board,

Peter Dickie, President, CEO

Cautionary note: This report contains forward looking statements. 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.

'Neither 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 and CEO

(604) 568-7365

(604) 688-4215 (FAX)
www.quantumrareearth.com