INFORMATION BULLETIN: Forest Fires in the Northwest Territories and Avalon's Nechalacho Project

August 6, 2014

The forest fire situation in the Northwest Territories has been headline news in the national media recently, and investors may be wondering if Avalon Rare Metals’ Nechalacho Rare Earth Elements Project work programs and camp facilities are threatened by these fires. 

The camp is occupied at present with company personnel and contractors mobilized for a short drilling program now underway. The camp facilities and airstrip were recently utilized by the NWT government (“GNWT”) fire-fighting crews to fight a fire located just 10 km east of the camp. This fire was successfully brought under control and the crew has been de-mobilized to fight other fires in the region. Avalon is grateful for the assistance as recently reported on CBC North here:   http://www.cbc.ca/player/News/Canada/North/ID/2481183487/ (starts at 31:00). Blachford Lake Lodge, a wilderness resort located 7.3 km north of the Nechalacho camp, has been sharing information with Avalon and was also assisted by GNWT fire crews responding to a separate fire threat.

Although there are no immediate risks to the camp, the threat of new fires remains ever present as dry conditions persist and wind patterns change. Dr. Bill Mercer, Vice-President, Exploration visited the site last week and provides a summary of the present conditions and actions being taken by Avalon to mitigate risk to company personnel and property.

Dr Mercer reports: “The Nechalacho camp, located 100 km east of Yellowknife, is experiencing smoky conditions that vary daily from barely noticeable to oppressive, as the wind and weather conditions constantly change. Avalon’s management and personnel on site are closely monitoring the situation by following various weather and fire information websites that provide regularly updated data on where fires are burning, wind directions and locations of strong lightning activity.

At present, there are three areas of forest fire activity that are being monitored closely. The first two are small fires that have occurred 9 km west and northwest of camp. The 50-person GNWT fire crew that was based at Avalon’s camp for about one week has controlled one fire to the immediate west, and the other small fire to the northwest is currently being addressed. One larger fire, 30 km north of the project, is also being monitored.

A GNWT fire-fighting official who visited the site last week recommended construction of a fire-break as a precaution to protect the entire site, as well as the installation of a water sprinkler system to protect the core storage facility from fire, should it occur. This work is presently being undertaken by company personnel at the camp using heavy equipment currently on site.

The safety of all personnel working at the site remains top priority and personnel will be evacuated if safety is at risk. In the meantime, everyone in the North is praying for rain and an end to this extraordinary weather situation.”

If you have any comments or questions on this Information Bulletin, please do not hesitate to contact Avalon directly at ir@avalonraremetals.com.  Follow us on Twitter at http://twitter.com/avalonraremetal, join our FaceBook page at http://www.facebook.com/pages/Avalon-Rare-Metals-Inc/224623996080?ref=ts or subscribe to our YouTube video feeds at http://www.youtube.com/user/AvalonRareMetals.

Avalon Rare Metals Inc. (TSX & NYSE MKT: AVL) 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 company cornerstones.