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Avalon Rare Metals Inc

TICKER: TSX:AVL; OTCQX:AVARF

DESCRIPTION: Avalon Rare Metals Inc. is a mineral exploration and development company focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world. Its exceptional enrichment in the more valuable "heavy" rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications, is one of the few potential sources of these critical elements outside of China, currently the source of 95% of world supply. Avalon is well funded, has no debt and its work programs are progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones.

Avalon Rare Metals featured in The Business Insider (1/11/10).

WEBSITE: http://www.avalonventures.com

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"Avalon Rare Earth also fell—again for no company-specific reason but along with the market. I have taken the liberty to include Graeme Irvine's write-up on this company (today) just to show another valued opinion. Graeme considers Thor Lake (I visited last summer) a property of 'global importance.' I agree. Please see Graeme's excellent web site at: www.londonirvinereport.com.

The story of rare earths and metals is mostly one of China producing and exporting, Japan, America and everyone else importing. Vital to our new technologies, and lifestyle, and critical to hybrid and electric cars, Rare Earth Elements and Heavy Rare Earths, are a strategic choke point held in China's hands. Lately China has been squeezing that choke point. Avalon (AVL) at Thor Lake Canada, I think, has a property of global importance. A property with the ability to offer NAFTA access to REEs and HREs for the decades ahead. As America and the west move to reduce over dependence on oil from unstable regions, we will see demand for rare metals take off."
- Michael Berry, Morning Notes (02/01/10)

TGR: So who are you following, then, in the rare earths?

VG: Avalon is kind of a darling because I bought it so cheap. I've been following that from around the 40 cent range. It had a very impressive run to over $4. The more important impressive thing is not the tenfold run in price. It's also the increase in market valuation because $4 market cap on a company with 80 million shares outstanding is a company that's worth a lot of money and is representative of what they've got.

They've got one of the largest deposits, they're working on feasibility, they're working on all the things it's going to take to put it in production. Based on its size, I don't think the fact that it's in the north is going to be a major hurdle. If anything, due to the relationship with the native communities up there, I think that's actually going to be a benefit. So Avalon I personally believe is going to be probably the first or second company to attain that status, and they're very well funded, working towards their end goal. They're considering actually using wind power to power their project because they are located in one of the windiest places up in the Northwest Territories. So I think that really attests to a legitimately green company. This company is the type that's just going to keep moving up and up and up because they're going to keep hitting the milestones without anything hindering it.
- The Gold Report Interview with Victor Gonçalves (01/29/10)

TER: What are some of the companies that you are particularly focusing in on now?

MF: I'm a long-term committed shareholder of Avalon Rare Metals, which has heavy rare earths in the Northwest Territories. Read full article.
- The Energy Report Interview with Mickey Fulp (01/21/10)

"Avalon Rare Metals Inc. upgraded the Indicated mineral resources from its Nechalacho Basal Zone to 9.0 million tons at 1.86% TREO, 0.42% HREO and 23.1% HREO/TREO at a 1.60% cut-off grade. These indicated mineral resources will be used as a basis for a Prefeasibility Study (PFS) development model, and do not include the 2.2 million tons Indicated resource defined in the central part of the deposit, which may not for part of the PFS. The company's winter-drilling program began in January with one drill rig focused on areas adjacent to the main indicated mineral resource not accessible in summer, and drilling along Long Lake to extend the heavy rare earth mineralization indicated by hole L09-206. A second drill rig will be added in February to test exploration target immediately south of Long Lake."
- Junior Mining Weekly (01/21/10)

"Avalon Rare Metals reported a 102% increase in the Indicated Mineral Resource estimate at the Basal Zone of the Nechalacho deposit.

The updated estimate was based on an additional 9,101 meters of drilling (44 holes) completed during the company's summer drill campaign in 2009 which was designed to upgrade the inferred resource for the inclusion in a pre-feasibility study ('PFS'). Nechalacho is a rare earth elements (REE) deposit.

The indicated resource in the Basal Zone now stands at 9 million tons grading 1.86 TREO (total rare earth oxides) and 23.1% HREO/TREO using a 1.6% TREO cut-off. (HREO/TREO refers to the proportion of heavy rare earth oxides as a percentage of the total rare earth oxide content of the rock.)

The drill results also made several other interesting points, including confirmation that the Basal Zone extends further south-west and down dip than previously known. Avalon's winter drill program, which is due to commence in the next few days, will include follow-up drilling to test this area."
- Proactive Investors (01/15/10)

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