Avalon Rare Metals Inc. Files Preliminary Base Shelf Prospectus and US Registration Statement

Toronto, Canada (ABN Newswire) - Avalon Rare Metals Inc. (TSE:AVL) (NYSE MKT:AVL) ("Avalon" or the "Company") is pleased to announce that it has filed a preliminary base shelf prospectus (the "Prospectus") with the securities commissions in each of the provinces and territories of Canada, except Quebec, and a registration statement with the United States Securities and Exchange Commission which has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

Under the Prospectus, the Company may issue common shares or warrants or any combination of such securities as units, in amounts, at prices, and on terms to be determined based on market conditions at the time of sale and set forth in an accompanying prospectus supplement, for an aggregate offering amount of up to US$500,000,000 during the 25 month period that the final short form base shelf prospectus remains effective.

Don Bubar, President and CEO, commented, "This now puts Avalon into a position to access new financing opportunities as work progresses on the Nechalacho Rare Earth Elements Project. The expiry of our existing base shelf prospectus in June 2013 gave us this opportunity to update our filings to be ready to rapidly execute on new transactions when opportunities arise."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.


About Avalon Rare Metals Inc.:

Avalon Rare Metals Inc. (TSE:AVL) (NYSE-MKT:AVL) is a mineral development company focused on rare metal deposits in Canada. Its flagship project, the 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 completed, Nechalacho is now the most advanced potential large new source of heavy rare earths in the world outside of China, currently the source of over 95% of the world supply.Avalon is well funded, has no debt and its work programs are progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones.



Contact:

Avalon Rare Metals Inc.
Communications and Investor Relations
Ron Malashewski, Manager
T: +1-416-364-4938
F: +1-416-364-5162
E: malashewski@avalonraremetals.com
WWW: www.avalonraremetals.com