Avalon Rare Metals has started a C$1.3 million work program on the East Kemptville tin-indium project in southwest Nova Scotia. The program will involve 2,000 m of diamond drilling, metallurgical process test work and preliminary environmental studies. This work will generate the data required to complete a Preliminary Economic Assessment (PEA) by November, 2015. Drilling is scheduled to commence in early July and be completed in September with initial results expected in late August. The drilling program will increase confidence in mineral resources in both the Main and Baby Zones, collect fresh sample material for bench-scale metallurgical process testn work and test two exploration targets (Duck Pond and South Grid) where there are encouraging results from historical drilling.

Bench-scale metallurgical test work has been initiated at a laboratory in the UK with expertise in processing similar tin ores. This program is designed to evaluate the metallurgical process flowsheet from grinding through to copper and zinc sulphide flotation to tin recovery by both gravity and flotation methods. It is anticipated that advances in process technology achieved since the 1980s will result in improved recoveries to all three concentrates and also confirm the presence of significant indium in the zinc concentrate. This work is targeted for completion in September, 2015 and is required to better define expected metal recoveries and concentrate grades for the PEA.

Initial environmental field work will also begin this summer with the objective of determining the scope of environmental management work that will be required going forward for inclusion in the PEA, and to define the requirements for the environmental assessment and permitting process to be carried out in conjunction with a feasibility study. Feasibility study work is expected to begin in early 2016.

Don Bubar, President and CEO stated, “I am delighted with the significant progress we have made on the East Kemptville project over the past year. This summer’s work program will allow us to complete a preliminary economic assessment by the end of 2015 and move us one step closer to realizing our goal of re-establishing Nova Scotia as the Tin Capital of North America”.

The 2015 drilling program will involve some 17 holes with the following primary objectives:

Detailed drilling of the Baby Zone to bring Inferred Resources to the Indicated level of confidence, test potential depth extensions and map the detailed mineralogy of the zone with a focus on possible enrichment in other rare metals such as germanium and lithium. The Baby Zone is the highest grade known tin zone on the property. The 2014 drilling program yielded assays of up to 0.41% Sn, 0.53% Zn and 16.77 ppm In over 67.85 m in the Baby Zone.

Limited drilling on the Main Zone, largely to collect sample material for mineralogical and metallurgical purposes, but also to test the zone to depth and increase Indicated Resources. See Avalon’s news release dated October 31, 2014

• Exploratory drilling at the Duck Pond and South Grid zones. These two known tin zones were drilled at the time of original development of the mine in the 1980s, but saw no subsequent exploration. The Duck Pond zone was tested in the past by more than 20 drill holes, returning intersections assaying up to 0.17% Sn over 42.71 m. The results are sufficiently encouraging to suggest that there is potential to develop further mineral resources at Duck Pond. The South Grid zone is an area along trend southwest of the Baby Zone where limited widely spaced drilling has produced intersections of up to 0.31% Sn over 33.0 m.

Ultimately, better defining the known resources to at least the Indicated level of confidence will allow the inclusion of those resources in a feasibility study. Expanding these resources will extend the mine life and strengthen the overall business case for re-development.

In March 2015, Avalon was granted a new Special Licence by the Province of Nova Scotia covering the whole East Kemptville mine area and encompassing all the known tin deposits. The Special Licence has a three year term expiring January 31, 2018, renewable for two additional terms of one year each and requires the Company to spend C$5,250,000, over three years including C$750,000 in the first year.

Following receipt of the new Special Licence, the site access agreement with the surface rights holder was extended until September 30, 2015 to provide the necessary access for the 2015 work program. In the meantime, discussions continue towards reaching an agreement to transition full title to the property to Avalon. The parties expect to conclude an agreement later in 2015.