Avalon Rare Metals Inc. Announces Proposed Public Offering of 7M Common Shares

Avalon Rare Metals (NYSE: AVL) announced today that it has filed a preliminary prospectus supplement under its final base shelf prospectus dated May 4, 2011 with the securities regulators in each of the provinces and territories of Canada, other than Quebec, and with the U.S. Securities and Exchange Commission, pursuant to which the Company proposes to complete an offering of 7.0 million common shares of the Company upon terms to be determined in the context of the market. Citigroup Global Markets Inc. and Dahlman Rose & Company, LLC are acting as joint book-running managers for the offering and as the representatives of the several underwriters. The common shares are being offered in the United States by the Company pursuant to a registration statement filed with the SEC, which became effective on May 5, 2011.