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Avalon Ventures, Ltd.

Avalon has selected a market sector that has enjoyed long-term growth and may well be poised for explosive expansion.  The Company’s focus is to become a major player in the supply of esoteric rare minerals and metals that are used to make every-day products work better.  A key example is the evolution of cars – moving away from simple internal combustion engines to hybrids, plug-in hybrids, battery- or hydrogen fuel cell-powered cars, all of which require rare metals and minerals that Avalon plans to supply

The drive towards more efficient use of the world’s raw materials is being driven by the confluence of the rapid industrialization in China and India, continued economic growth in the advanced economies, and shortages of raw materials with resultant secular increases in the prices of those raw materials.  The most obvious manifestation of these changes is the energy sector, but other raw materials such as copper and zinc are experiencing similar adjustments.

Avalon has assembled an impressive portfolio of advanced-stage rare metals properties, located in the politically and economically stable environment of Canada, that have the potential to propel the company to become a major supplier of rare earths and other minerals.  The Company is hardly known outside a small group of early investors.

Ø      Avalon has accumulated a large portfolio of potentially world-class rare metals deposits, including:

o        Separation Rapids – lithium, feldspar, tantalum

o        Thor Lake – beryllium, rare earths, yttrium, zirconium

o        Warren Township – calcium feldspar (anorthosite)

Ø      We believe that both Separation Rapids and Thor Lake could independently justify a market valuation that is a multiple of the current market capitalization of the Company.  That ignores the potential value of Warren Township, Lilypad Lakes, or the extensive portfolio of earlier-stage exploration projects.

Ø      Notwithstanding the stock price appreciation during the last six months, we believe the underlying value to be significantly greater than the current market value.  

Ø      Excellent track record of property identification and acquisition.

Ø      Extensive portfolio of other projects could either be farmed out or sold to other companies or spun out into a separate entity in order to generate shareholder value.

As the natural resource markets evolve, we expect that there will increasing attention paid to specialist companies such as Avalon.  Through its spread of potentially world-class rare metals assets and ability to develop unique products, we believe that Avalon is well positioned to benefit from the second phase of the extended resource cycle.

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For further information, contact:

Douglas J. Newby


Proteus Capital Corp.

120 Broadway, Suite 1010

New York, NY 10271

Tel:                  (646) 879-5970

Fax:                 (646) 365-3230





Last modified: January 3, 2007