Avalon Announces Update on Nechalacho Rare Earth Element Project

Avalon Rare Metals

is pleased to provide an update on progress towards completion of the Feasibility Study ("FS") on the Nechalacho Rare Earth Element Project (the "Project"), Thor Lake NWT, Canada. Key recent developments include completion of successful pilot plant campaigns, the summer definition drilling program and technical sessions for the environmental assessment process. The FS is being prepared by SNC-Lavalin Inc. and remains on schedule for completion in the second quarter of calendar 2013. The target date for production start up remains late 2016 with initial product sales anticipated for 2017.PILOT PLANT CAMPAIGNSTwo pilot plant campaigns were successfully conducted in September/October as Avalon continued to up-date and optimise the metallurgical flowsheets designed for the Flotation and Hydrometallurgical Plants, planned for the Northwest Territories.The first pilot campaign was conducted at Xstrata Process Support Laboratories, Sudbury, ON with the objective of confirming improved flotation parameters developed earlier on a bench scale. As predicted, the pilot plant was able to operate successfully at total reagent consumptions of approximately 33% of those used in the Prefeasibility Study ("PFS"), representing a significant reduction in estimated operating costs-reagent costs were