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Corporate Presentation - Avalon Rare Metals

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<strong>Rare</strong> Earth Economics:<br />

A Question of Balance<br />

Only occur altogether as a group and recovered as a group<br />

and must be sequentially separated at additional cost<br />

In most deposits, the balance is tipped toward the light rare<br />

earths (“LREE”) which comprise 97-99% of resource<br />

Deposits having an unusual balance with a high proportion of<br />

heavy rare earths (“HREE”) are very rare<br />

Consequently, HREE are much more valuable<br />

US$450.00/kg for europium vs. US$4.50/kg for cerium<br />

Basal Zone of Nechalacho deposit is exceptional among hard<br />

rock REE deposits for its high proportion of HREE ( >20%)<br />

TSX:AVL<br />

OTCQX:AVARF www.avalonraremetals.com 6

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