Avalon Announces Receipt of Land Use Permit to Begin Pre-Construction at Nechalacho Project

Avalon Rare Metals Inc. ("Avalon" or the "Company") is pleased to announce that it has received its 'Class A' Land Use Permit from the Mackenzie Valley Land and Water Board ("MVLWB") to start pre-construction work at the Nechalacho Rare Earth Elements Project ("the Project") at Thor Lake, Northwest Territories, Canada.

This permit allows the Company to commence, in a phased approach, identified low impact activities including site preparation, early camp erection, portal development and associated infrastructure such as roads, power and water treatment. Avalon anticipates that a 'Class B' Water Licence will be issued in the near future, which will allow the taking of water and deposition of waste as part of later phases of the proposed work program.

Donald Bubar, Avalon's CEO and President, commented, "The receipt of this land use permit represents another milestone in the ongoing development of the Nechalacho Rare Earth Elements Project. This permit allows us to proceed with the work necessary in 2014 to keep the Project on schedule to achieve commercial operations by 2017/2018. Realizing this goal will ultimately depend on when all Project financing is in place. Certainly, timely receipt of all necessary permits and licences helps mitigate perceived investment risk."

The Company is continuing the application process for securing full construction and operations permits by early 2015. Mark Wiseman, Avalon's Vice-President, Sustainability, commented, "Based on the co-operative approach and responsiveness experienced to date with the MVLWB staff, we do not anticipate any significant delays in achieving this goal."

About Avalon Rare Metals Inc.

Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce 'heavy' rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. With a positive feasibility study and environmental assessment completed, the Nechalacho Project remains the most advanced potential large new source of heavy rare earths in the world outside of China, currently the source of most of the world's supply. Avalon is adequately funded, has no debt and its work programs are progressing. Social responsibility and environmental stewardship are corporate cornerstones.

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