Avalon Rare Metals Inc. As an exploration and development company, it focuses on rare earth deposits in Canada. The main 100% owned Nechalacho Deposit project, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth element resources in the world. What is exceptional about Avalon's project is the content of the more valuable "heavy rare earths", which are a key factor for advances in green energy technologies and other growing high-tech applications. This enrichment is one of the few potential sources of these critical elements outside of China, which is currently the source of 95% of the world's supply of these elements. Avalon is well funded, has no debt and is committed to meeting its development milestones.

Avalon's growth strategy is to bring its rare earth projects to production and profit, to expand the rare earth minerals markets, and to be environmentally and socially responsible. Avalon received the "PDAC Environmental and Social Responsibility Award" for the year 2010 due to its charitable commitment in the North.

1. Focus on rare earths and minerals, which are the key to green technology
2. World's rare earth resource on Thor Lake, NWT, Canada, exceptional in its enrichment of the more valuable "heavy rare earths"
3. Good financing and work programs unimpaired by current market volatility
4. Key milestones in development reached in the year 2010
5. Social responsibility and environmental awareness are cornerstones of the company

Avalon's primary asset is its 100% owned rare metals and mineral projects Nechalacho - (Thor Lake), Separation Rapids, East Kemptville and Warren Township.

The highest priority is the Nechalacho rare earth occurrence, located on Thor Lake near Yellowknife, NWT. The Nechalacho deposit is a world-class resource for rare metals and minerals, which is currently being investigated primarily with regard to its potential for the production of "heavy" rare earths. The demand for heavy rare earths is increasing rapidly due to their critical application in high-performance permanent magnets, which are essential for hybrid technology in cars and many popular consumer electronics products. However, there is almost no primary production of heavy rarer animals
Earths outside of China.

The Nechalacho occurrence is unusual in its accumulation of more valuable heavy rare earths such as europium, terbium and dysprosium along with neodymium. Currently, Avalon is focused on defining high value resources that are rich in heavy rare earths in the very large Basal Zone of the occurrence, which is now an indicated resource of 14,48 million tons at a grade of 1,82% TREO (" total rare earth oxides ") with 22% HREO / TREO (" heavy rare earth oxides as a percentage of TREO ") and 76,977 million tons of inferred resources with a Contains a content of 1,60% TREO (20% HREO / TREO).

The sum of the inferred resources for the Basal Zone and the upper zones of the Nechalacho Deposit currently stands at 175,93 million tonnes grading 1,43% TREO (14,7% HREO / TREO). Nechalacho is also rich in tantalum, niobium, zirconium, hafnium and gallium, all of which are potentially valuable byproducts.

Since 2005, Avalon has spent over $ 20 million on the property's exploration and development work, in which 42.783 Meter diamond drilling in 198 holes for description of indicated and inferred resources, metallurgical and mineralogical studies defining a process pattern for rare earth mining, community consultation and environmental studies were included. The positive results of the feasibility studies were published in June 2010. Work is already underway on a final feasibility study, with the launch of an overall test trial starting July 2010, the initiation of an Environmental Impact Assessment, along with additional definition drilling and product / market development work. The start of production is targeted for the end of the year 2014 or the year 2015.

On Separation Rapids  Avalon is developing world-class lithium-mineral deposits near Kenora, Ontario. Lithium mineralization is valued for both direct use in the glass and ceramics industry as well as for use as a chemical source for lithium ion rechargeable batteries. The demand for such batteries is growing rapidly. Due to the high flow properties of lithium, it is an inexpensive way to reduce energy consumption and greenhouse gas emissions from glass melting furnaces.

On East Kemptville In Yarmouth Country, Nova Scotia, Avalon assesses the potential to redevelop a former producing tin mine operation as a new producer of tin and copper, zinc and the rare metal indium. In 2010, a new 43-101 compliant resource estimate and preliminary economic assessment will be completed, along with drilling of additional grass-roots targets in the region.

On Warren Townshipnear Timmins, Ontario, Avalon assesses a large resource of high purity calcium feldspar that, like lithium, has potential cost-reducing effects for glassmaking and environmental benefits from reduced greenhouse gas emissions. The project is currently on hold due to late approvals and reduced demand from the economic recession.

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WKN: A0RF6R ISIN: CA0534701002

Toronto, Xetra, Frankfurt, Berlin, Munich, Stuttgart, Tradegate

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