CORPORATE PROFILE Corporate Fact Sheet

Corporate Fact Sheet
As at May 25, 2015
TSX and NYSE MKT: AVL
CORPORATE PROFILE
Avalon Rare Metals Inc. is a mineral development company focused on
rare metals and minerals in Canada. Its 100% owned flagship Nechalacho
Rare Earth Elements (“REE”) Project at Thor Lake, NWT is the most
advanced large heavy rare earth elements (“HREE”) development project
in the world outside China. Initial production is scheduled for 2018,
subject to arranging off-take commitments and project financing for
construction to begin in 2015.
Avalon’s portfolio includes five other rare metals and minerals projects of which the Separation Rapids Lithium and East Kemptville Tin-Indium
Projects are also at an advanced stage. Avalon is adequately funded, has
no debt and its work programs are progressing. Social responsibility and
environmental stewardship are corporate cornerstones.
Capital Structure
As of May 11, 2015
Trading Symbol Canada
Trading Symbol US
NYSE MKT: AVL
Shares Issued & Outstanding*
141,943,258
Fully Diluted*
160,424,350
Market Cap
US$37 million (S/O @$0.26)
Year High/Low
US$0.73 - US$0.16
Cash Reserves
C$5 million (no debt)
Institutional Holdings:
UBS, Empery, CPP,
Global X, Carnegie, Hancock,
DFA, Chilton & others
(As at April 28, 2015)
Investment Highlights

Avalon offers diversified exposure to a broad range of rare metals and
minerals (including tin) that are critical raw materials for clean
technology

Nechalacho Project, with a completed feasibility study, an approved
Environmental Assessment and a rare earth oxide refining solution in
place, is uniquely positioned to bring a new supply of the scarce, yet
vital heavy rare earths to the market

East Kemptville Tin-Indium Project was re-activated in 2014 and is
advancing steadily with a new NI 43-101 resource estimate and a
conceptual redevelopment study completed in early 2015

Separation Rapids Lithium Minerals (Petalite) Project is advancing due
to new demand from the glass-ceramics industry for the petalite
product and for its potential to produce high purity lithium chemicals for
the growing rechargeable battery market
TSX: AVL
Critical Five: Neodymium, Dysprosium, Terbium, Europium and Yttrium
Sustainability Reporting
Critical Raw Materials

Demand for HREE is growing rapidly because of their application in high
strength permanent magnets, now vital in automotive technology, wind
turbines and many other consumer electronic products

Due to lead toxicity concerns, tin is now used to make lead-free solders,
found on all electronic circuit boards. This application now accounts for
over 50% of global tin demand.

China dominates the world’s production of many of the world’s critical
metals and minerals including HREE and tin; the need for new suppliers
of HREE to emerge outside of China continues to grow
In December 2014, Avalon
released its third
Sustainability Report which
includes a self-assessment of
sustainability performance in
accordance to the Global
Reporting Initiative G4 core
level and the Mining
Association of Canada’s
Towards Sustainable Mining
standards. The report can be
downloaded from Avalon’s
website.
PROJECT SUMMARY
Avalon’s mineral property assets are all 100%
owned and all located in Canada.
Avalon’s primary focus has been the
Nechalacho Rare Earth Elements Project.
Located at Thor Lake, NWT, it is a world class
resource of rare metals and minerals being
developed primarily for its potential to produce
significant quantities of heavy rare earth
elements. Avalon has invested over $100
million to date in taking the Project through
completion of a comprehensive Feasibility
Study. This study yielded a pre-tax IRR of
22.5% and NPV at a 10% discount rate of
$1.351 billion, based on a $1.575 billion
capital cost estimate.
The Nechalacho deposit is unique in its
enrichment in the critical HREE such as
terbium and dysprosium, which, along with
neodymium, are a needed for high strength
permanent magnets used in energy- efficient
motors and generators. The very large Basal
Zone of the Nechalacho deposit contains
Measured and Indicated Resources of 61.90
million tonnes grading 1.64% TREO (total rare
earth oxides) and 21.53% HREO/TREO (heavy
rare earth oxides as a percentage of TREO) at
the new Base Case US$345 Net Metal Return
(“NMR”) cut-off value. Within this deposit,
there are an estimated 21.27 million tonnes
of Measured and Indicated Resources at the
US$800/tonne NMR cut-off grading 2.20%
TREO and 25.19% HREO/TREO, illustrating the
presence of large, high grade sub-zones within
the deposit. The deposit is also enriched in
tantalum, niobium and zirconium, which all
represent potential valuable by-products.
Project engineering, permitting and product
marketing are well underway. The
Environmental Assessment was approved by
the Federal Government in November 2013.
Community consultation work is also
progressing well. An updated Feasibility Study
is being prepared and the permitting process
is expected to be completed in 2015.
In March 2014, Avalon entered into a 10-year
binding toll-refining and strategic partnership
agreement with Solvay. The agreement
removes CAPEX for a refinery from the
economic model and reduces Project risk in
meeting product quality and delivery
expectations of consumers.
At Separation Rapids, located near Kenora,
Ontario, Avalon is developing a world-class
lithium minerals (petalite) deposit. Petalite is
used directly in the glass industry to make
thermal shock resistant glass-ceramics and
new demand for petalite has emerged from
that industry. A high purity petalite concentrate
was produced from a bulk sample processed
in 2014 which received initial approval from
prospective customers in the glass industry.
Initial leach tests have successfully
demonstrated the potential to recover high
purity lithium chemicals for rechargeable
battery applications. The next steps include
extracting a larger bulk sample to produce
additional petalite concentrate samples for
industry evaluation and conduct further
testwork on recovering lithium chemicals.
At East Kemptville, located in Yarmouth
County, Nova Scotia, Avalon is evaluating the
potential for redeveloping a past producing tin
mining operation as a new producer of tin,
copper, zinc and indium. In 2014, a 1,000
metre confirmation drilling program was
completed. A new 43-101 compliant resource
estimate was completed in 2014 and
conceptual redevelopment plan completed in
February 2015. In 2015, Avalon will be
proceeding with metallurgical process
testwork and a diamond drilling
program to better define the
known tin resource and test the
potential to expand the
resource at depth.
Experienced Management Team
Donald S. Bubar, P. Geo., President and CEO
Jim Andersen, CA, CPA, CPA (Illinois), VP,
Finance, Corporate Secretary and CFO
David Marsh, FAusIMM (CP), SVP, Metallurgy
and Technology Development
William Mercer, PhD, P. Geo., VP, Exploration
Pierre Neatby, BA Econ, VP, Sales and
Marketing
Mark Wiseman, BSc, MBA, VP, Sustainability
Gerry Leipert, BSc, P. Eng, Sr. Project Manager
Cindy Hu, CA, CPA, CPA (Illinois), Controller
Melanie Smith, LL.B, Senior Legal Counsel
Investor Relations Contact
Ron Malashewski
Manager Investor Relations
[email protected]
The technical information contained in this document has been reviewed and approved by Bill Mercer, Ph.D., P.Geo. (ON), P.Geo. (NWT),
Vice President Exploration of Avalon and Donald Bubar, P.Geo. (ON), President and CEO of Avalon, the qualified persons for the purposes of
National Instrument 43-101. For additional information on the Nechalacho Rare Earth Elements Project, see the technical report entitled
“Technical Report Disclosing the Results of the Feasibility Study of the Nechalacho Rare Earth Elements Project, ” dated May 31, 2013 and
effective April 17, 2013.
This document contains or incorporates by reference “forward looking statements” within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities legislation, which may not be based on historical fact. Readers can identify
many of these statements by looking for words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues”
or similar words or the negative thereof. Statements that are not based on historical fact contained in this presentation, including through
documents incorporated by reference herein, are forward-looking statements that involve risks and uncertainties that could cause actual
events or results to differ materially from estimated or anticipated events or results reflected in the forward-looking statements . Such forwardlooking statements reflect the Company’s current views with respect to future events and include, among other things, statements regarding
targets, estimates and/or assumptions in respect of reserves and/or resources , and are based on estimates and/or assumptions related to
future economic, market and other conditions that, while considered reasonable by the Corporation, are inherently subject to risks and
uncertainties, including significant business, economic, competitive, political and social uncertainties and contingencies. These estimates and/
or assumptions include, but are not limited to: grade of ore; rare earth and by-product commodity prices; metallurgical recoveries; operating
costs; achievement of current timetables for development; strength of the global economy; availability of additional capital; and availability of
Avalon Rare Metals Inc.
130 Adelaide Street West, Suite 1901
Toronto, ON Canada M5H 3P5
T: (416) 364-4938
www.avalonraremetals.com
supplies, equipment and labour. Factors that could cause the Company’s actual results, performance, achievements, developments or events
to differ materially from those expressed or implied by forward-looking statements include, among others, but are not limited to, market
conditions, the possibility of cost overruns or unanticipated costs and expenses, the impact of proposed optimizations at the Company’s
projects, actual results of exploration activities , mineral reserves and mineral resources and metallurgical recoveries, discrepancies between
actual and estimated production rate, mining operational and development risks and delays, regulatory restrictions (including environmental),
activities by governmental authorities, financing delays, joint venture or strategic alliances risks, or other risks in the mining industry, as well
as those risk factors discussed or referred to in the Company’s annual Management’s Discussion and Analysis and Annual Report filed with
the securities regulatory authorities in all provinces and territories of Canada, other than Québec, and available at www.sedar.com. Most of
the foregoing factors are beyond Avalon’s ability to control or predict. Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the plans, intentions or
expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are
qualified in their entirety by this cautionary statement. Readers should not place undue reliance on the forward-looking statements, which
reflect management’s plans, estimates, projections and views only as of the date hereof. The forward looking statements contained herein is
presented for the purpose of assisting readers in understanding the Corporation’s expected financial and operating performance, and the
Company’s plans and objectives, and may not be appropriate for other purposes. Avalon does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable securities law.