Mr. Don Bubar reports

AVALON REPORTS RESOURCE ESTIMATE FOR EAST KEMPTVILLE TIN-ZINC-COPPER-INDIUM DEPOSIT, NOVA SCOTIA, CANADA

Avalon Rare Metals Inc. has released the results of its first National Instrument 43-101 resource estimate for the East Kemptville tin-zinc-copper-indium deposit in Yarmouth county, Nova Scotia. The resource was prepared following a seven-hole confirmation drilling program completed at the site this summer to validate historical resource estimates and verify the estimates as current NI 43-101 mineral resource estimates.

The estimated indicated mineral resources are 18.47 million tonnes averaging 0.176 per cent tin, 0.173 per cent zinc and 0.064 per cent copper, and the estimated inferred mineral resources are 16.95 million tonnes averaging 0.148 per cent tin, 0.122 per cent zinc and 0.062 per cent copper at a 0.10-per-cent-tin-cut-off grade, as more fully detailed in the attached mineral resources table.

This resource estimate will be used to complete a preliminary economic assessment to confirm the business case for proceeding with a comprehensive feasibility study to evaluate the potential for restarting tin-zinc-copper and potentially indium production at East Kemptville. The PEA will be prepared by Hains Engineering Company Ltd. of Toronto and is targeted for completion by the end of this calendar year.

Note that the tonnages reported do not include any of the ore previously mined and processed or stockpiled on surface at East Kemptville, and are purely an estimation of the mineral resources that remained in the ground after mining activities at site ceased in 1992. The resources include material from both of the zones mined historically (the Main and Baby zones), but do not include resources from any of the other undeveloped mineral occurrences known in the immediate area.

The mineral resource estimate was prepared by Hains Engineering with its principal, Donald Hains (PGeo), serving as the independent qualified person for the purpose of NI 43-101. The overall direction for the technical work program was provided by the company's vice-president, exploration, William Mercer, PhD, PGeo (Nova Scotia). Drilling operations were performed by a Nova Scotia-based drilling company under the field supervision of a consulting geologist based in Yarmouth, N.S., and an independent environmental consulting firm was retained to ensure safe work practice was adhered to at all times while drilling operations were active on the site. The program was completed without incident.

Drilling program 2014

Seven drill holes totalling 984 metres were completed by the company at East Kemptville between July and September, 2014. These holes were designed to twin or intersect the resource near a number of historical drill holes to validate historical analytical data. The drilling included holes in the Baby zone and the southern end of the Main zone.

Highlights include 0.41 per cent Sn over 67.85 metres in hole EKAV-14-003 in the Baby zone and 0.26 per cent Sn over 80.3 metres in drill hole EKAV-14-006 in the southwestern extension of the Main zone. A complete summary of drilling results is provided in the attached drilling results table.

Expenditures on the 2014 drilling program and other related work totalled approximately $575,000. This was mainly financed from the proceeds of the $2,166,000 private placement financing completed by the company on July 2, 2014. Additional financing of $40,000 was obtained from a grant secured from the government of Nova Scotia under its 2014 mineral incentive program.

Analyses were performed using modern quality assurance and control procedures. The results confirmed the validity of the historical data for inclusion in an NI 43-101 resource estimate as verified by independent qualified person, Donald Hains, PGeo.

Note that indium analyses were not performed historically, and therefore indium cannot currently be included as a potentially recoverable metal in the resource estimate. However, indium content was determined in the recent drill core analyses and could contribute added value to the resource if it is ultimately proven to be a recoverable byproduct.

Project background

During its six years of operations from 1985 to 1992, East Kemptville was North America's only primary tin producer. It was closed due to a sudden collapse in tin prices after the international cartel, which controlled the global tin market up to that time, was disbanded. Tin prices were reported at the time to have fallen to between $2.47 (U.S.) and $2.60 (U.S.) per pound compared with close to $6 per pound when operations commenced in 1985.

However, the tin market has been much stronger over the past four years with the London Metal Exchange cash buyer tin price averaging $9.57 (U.S.) per pound for the month of September, 2014 ($21,105 (U.S.) per tonne), creating an incentive to evaluate the potential for renewed tin mining at the site. The recent price strength reflects growing global tin demand due to its increased application in electronics, where it is used in solders as a non-toxic alternative to lead. China, Indonesia and Peru, the world's largest producers of tin, have reduced production of tin concentrates in recent years, increasing the demand for new primary supply sources such as East Kemptville.

Avalon holds mineral tenure for the East Kemptville resource under a special licence first granted to the company in 2005. The recently completed drilling program was carried out under an access agreement entered into with surface rights holders earlier this year. Discussions toward obtaining full title to the lands that would ultimately be required for site redevelopment are in progress.

       MINERAL RESOURCES, EAST KEMPTVILLE MAIN AND BABY ZONES
                                                        
Classification    Sn cut-off grade   Tonnes (mT)  Sn %    Zn %  Cu %

                              0.05        46.07  0.104   0.132 0.051
                              0.10        18.47  0.176   0.173 0.064
In situ                       0.15         6.83  0.239   0.204 0.077
indicated                     0.20         3.16  0.337   0.268 0.093
                              0.25         2.93  0.344   0.275 0.092

                              0.05        34.29  0.102   0.104 0.052
                              0.10        16.95  0.148   0.122 0.062
In situ                       0.15         2.66  0.203   0.130 0.075
inferred                      0.20         0.82  0.311   0.138 0.120
                              0.25         0.58  0.342   0.171 0.117

The independent qualified person for this mineral resource estimate is Mr. Hains, PGeo.

                         DRILLING RESULTS, SUMMER 2014
                                                                                 
Zone         Drill hole     From (m)   To (m)   Width (m)  Sn (%)   Cu (%)  Zn (%) In (ppm)

Main zone   EKAV-14-001       77.90   109.00       31.10    0.14     0.05    0.12     7.19
              including       77.90    98.50       20.60    0.18     0.07    0.11     7.18
Main zone   EKAV-14-006       29.70   110.00       80.30    0.26     0.11    0.23    14.92
              including       29.70    83.00       53.30    0.33     0.14    0.24    15.59
Main zone   EKAV-14-007       44.50    82.00       37.50    0.16     0.06    0.18    11.67
              including       55.00    64.00        9.00    0.42     0.08    0.30    15.03
Baby zone   EKAV-14-002       92.25   159.00       66.75    0.36     0.09    0.50    20.76
              including       92.25   133.50       41.25    0.47     0.12    0.39    21.00
Baby zone   EKAV-14-003       49.00    65.75       16.75    0.39     0.08    0.29    20.91
                    and       80.25   148.10       67.85    0.41     0.05    0.53    16.77
Baby zone   EKAV-14-004       63.65   161.20       97.55    0.10     0.03    0.45    14.20
                    and       80.50    94.00       13.50    0.17     0.05    0.52    16.26
                    and      128.50   134.50        6.00    0.14     0.01    0.20     7.11
                    and      147.00   161.20       14.20    0.17     0.06    1.15    30.19
Baby zone   EKAV-14-005      No significant intercepts; hole deviated from planned azimuth.

The quality assurance and control procedures and results have been audited by Avalon's independent qualified person for the project.