Informational Report Shandong LuoxinBasic Pharmacy Materials (OTCQX: – Rare SLUXY Metals) VIRIATHUS | RESE Equity | Canada September 14, 2010 Avalon Rare Metals Inc. (OTCQX: AVARF, TSX: AVL) VIRIATHUS® Patrick Murphy, CFA +1 212 461 2230 Research Analyst
[email protected] Company Description: Avalon Rare Metals Inc. is exploring for and developing rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, located at Thor Lake in Canada’s Northwest Territories, ranks as the world’s largest undeveloped rare earth elements (REE) resource outside of China. The Nechalacho Deposit has Financial Data (USD): exceptional enrichment in valuable ‘heavy’ rare earth elements (“HREE”), increasingly in demand for solar thin films, high strength magnets, wind turbines, Share Price: .……………………………….........................3.52 LED lighting, rechargeable batteries and other green energy applications. Market Capitalization (mln): …….……...........................280.0 Nechalacho is one of the few significant REE sources outside of China, which Shares Outstanding (mln): ………......................................79.1 currently controls 95% of world REE supply but is steadily reducing amounts Float (mln): ………….……………..……..............................NA available for export – by 40% over the past seven years, according to the Journal of Average Volume (90 Day approx.): .……….................122,928 Energy Security. Avalon recently updated its resource estimates for the Basal and 52 Week Range: …………………..……....................$1.09-3.90 Upper Zones of the Nechalacho deposit by 100% to 2.5 million tonnes of contained Exchange: ...………………...……...…………OTCQX & TSX TREO (Total Rare Earth Oxides) and probable reserves of 12 million tonnes at 170% TREO. Avalon has completed a Prefeasibility Study confirming positive economics for the project and has also successfully developed flotation and metallurgical processes for producing an REE mineral concentrate then upgrading it into a chemical concentrate.