Quantum Rare Earth Developments Corp. provided an update that the previously announced agreement to acquire Silver Mountain Mines Corp., a private Nevada corporation, is proceeding. On October 7, 2009, the Company announced the deferral of the proposed transaction to acquire Silver Mountain until such time as the Company had successfully graduated to Tier 2 of the TSX Venture Exchange. As stated in the original news release (see NR September 11, 2009), the Company announced the entering into of an agreement to acquire Silver Mountain. Since the time of the original announcement, Silver Mountain has closed a private placement and entered into two transactions to acquire additional property interests as described below.

On December 20, 2009, Silver Mountain entered into a Letter of Intent ("LOI") to acquire North East Minerals Pty. Ltd. ("North East"), a private Australian company, that owns a 100% interest in West Australian Tenement E29/679 (fully granted), known as the Jungle Well Project, and a 100% interest in West Australian Tenement E38/2374 (pending grant), known as the Laverton Project. Both the Jungle Well and Laverton projects are considered prospective for the occurrence of rare earth elements (REE).

The projects are located in the same mineral field where Lynas Corporation Limited's Mt. Weld rare earth deposit is being developed. The Mt. Weld project is a significant world class deposit with a reported resource of 7.7Mt at 12% for 917,000t rare earth oxides. Lynas Corporation Limited is solely focussed on the deposit with a current market capitalization of A$280 million. Lynas has recently announced a A$522m funding package with China Non-Ferrous Metal Mining Group. Development of the deposit has commenced with the first mining campaign at Mt. Weld and surface ore stockpiles are completed. Readers are cautioned that any similarities between the Mt. Weld deposit and the Jungle Well or Laverton projects is speculative and has not been proven until such time as additional work is performed on the property.

The Jungle Well Project is hosted within granted exploration licence EL 29/679 and located 150km west of the Mt. Weld deposit. The tenement covers over 7,500 hectares and recent rock chip samples from a historical trench that was excavated for the evaluation of diamonds in the late 1990's has returned REE results.