Avalon Provides Update on Separation Rapids Lithium Project Kenora, Ontario, Canada

8 October 2015

Toronto, Ontario--(Newsfile Corp. - October 8, 2015) - Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) ("Avalon" or the "Company") is pleased to provide an update on its $750,000 pilot plant program on the Company's Separation Rapids Lithium Project ("Separation Rapids Project" or "the Project") located near Kenora, Ontario, first announced in its news release of August 17, 2015.

The 30 tonne bulk sample of crushed ore that was shipped this summer has arrived at its destination in Germany and process work is now underway. The sample will be processed using the Company's proven flow sheet to produce a high purity lithium mineral (petalite) concentrate for the following purposes: