Annual General Meeting

February 24, 2015

Safety Moment Evacuation Routes in Case of Fire

Safe Harbour Statement

Forward looking information This corporate presentation contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to the Company's anticipation that it would proceed with certain plans and activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not expect", "is expected", "scheduled", "targeted", "planned", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or result, "will occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to market conditions, and the possibility of cost overruns or unanticipated costs and expenses as well as those risk factors set out in the Company's current Annual Information Form, Management's Discussion and Analysis and other disclosure documents available under the Company's profile at www.SEDAR.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Company's plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

The technical information contained in this presentation has been reviewed and approved by Donald Bubar, P.Geo. (Ont), President and CEO of Avalon, qualified persons for the purposes of National Instrument 43-101. For additional information on the Nechalacho Rare Earth Elements Project, see the technical report entitled “Technical Report Disclosing the Results of the Feasibility Study of the Nechalacho Rare Earth Elements Project” dated May 31, 2013 and effective April 17, 2013

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Rare Metals Projects Avalon is not just about rare earths

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All projects 100% owned

Avalon offers diversified exposure to a broad range of rare metals

2014 Corporate Highlights

●  Activated East Kemptville Tin Project ●  Signed Access agreement, completed confirmation drilling program

and produced 43-101 resource estimate ●  Completed Conceptual Re-Development Study

●  Concluded most Nechalacho work ●  Signed Refining agreement with Solvay ●  Completed hydromet process development work ●  Collected 8 tonne bulk sample

●  Advanced Separation Rapids Project ●  Produced petalite product samples for customer approval ●  Initiated lithium chemicals testwork ●  Completed site clean-up work

●  Raised over $8 million in equity financing ●  Reduced program expenditures and overhead costs ●  Published third Sustainability Report

2014 Expenditure Summary

2013 2014

Nechalacho $18.6 $8.5

Separation Rapids 0.3 0.5

East Kemptville 0.2 0.5

General and Administration 6.5 5.3

$25.6 $14.8

Working Capital at December 31 $7.6 $5.5

(1) From September 1, 2013 to August 31, 2014

(CAD $ Millions)

Fiscal 2015 Budget Summary

In CAD$ Millions

Nechalacho $1.5

Separation Rapids 0.5

East Kemptville (1) 1.2

General and Administration 4.8

$8.0

Expenditures to Jan. 31, 2015 $3.5 (1) Approximately $700k of flow-through funds are planned to be spent from Sept 1- Dec 31, 2015

Capital Structure

Canada - TSX: AVL

United States – NYSE MKT: AVL Frankfurt- OU5

Shares Outstanding 140,751,535 (as at Jan. 31, 2015)

Fully Diluted 159,196,627

Market Capitalization C$45 million (S/O @ $0.32)

Recent Price Range C$0.45 - $0.20

52 Week High / Low C$0.89 - $0.20

Cash Reserves C$5.5 million

Insider Share Position Approx. 4 million shares

Institutional Investors UBS, Empery, CPP, Global X, Carnegie, Hancock, DFA, Chilton & others

Analyst Coverage HCW, Cowen, Citi, Edison, Secutor

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Management and Board of Directors

●  Donald S. Bubar, P.Geo. President, CEO & Director

●  Jim Andersen, CA, CPA V.P. Finance, CFO & Corporate Secretary

●  David Marsh, FAusIMM (CP) Senior V.P. Metallurgy

●  Bill Mercer, Ph.D., P.Geo. V.P. Exploration

●  Pierre Neatby, BA Econ V.P. Sales and Marketing

●  Mark Wiseman, B.Sc., MBA V.P. Sustainability

●  Cindy Hu, CA, CPA, CGA Controller

●  Gerry Liepert , P.Eng. Senior Project Manager

●  Melanie Smith , LL.B Senior Legal Counsel

●  Brian St. Louis, BA, Political Studies Manage, Government Affairs

●  Ron Malashewski, P.Eng (AB) Manager, Investor Relations

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BOARD OF DIRECTORS •  Brian D. MacEachen, C.A.

Chairman and Audit Committee Chair

•  Donald S. Bubar, P.Geo. CEO

•  Alan Ferry, CFA Past Chairman

•  Phil Fontaine, B.A., LL.D. Sustainability Advisory Committee Member

•  Peter McCarter, B.A., LL.B., M.B.A. Governance/Compensation Committee Chair

•  Kenneth Thomas, Ph.D., P. Eng.

AVL One Year Price Chart ($CAD)

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Dysprosium price

Selected Rare Earth Prices Jan 2014 to Feb 17, 2015 (FOB China US$/kg)

Source: Asian Metal

Cerium ($/tonne) Neodymium

Dysprosium Terbium

REE Markets Update

●  China has replaced export quotas with “tightly controlled export licenses” to try to comply with the WTO ruling

●  The impact is expected to be a less transparent market and more uncertainty and price volatility for end users outside China

●  At present, Nd, Dy, Tb oxide prices are rising while Ce prices remain relatively stable or lower due to adequate supply available outside China (Molycorp, Lynas)

●  Global demand in 2020 is forecasted at 180-200 ktpa REO, compared with 120 ktpa in 2014

●  Consumers have not yet felt the need to support supply chain development outside China for HREE (+Nd-Pr)

Nechalacho Current Work

●  Updated Feasibility Study in progress. ●  Investigating sites for Hydromet plant in western Canada

●  Preparing for full-scale pilot plant trial of new process flow sheet

●  Investigating alternatives for financing pilot plant

●  Advancing permitting process steadily with completion anticipated in mid-2015

●  Monitoring REE markets, maintaining dialogue with government, customers and Solvay

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East Kemptville, Nova Scotia: North America’s Only Primary Tin Producer

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Produced from 1985-92 when it closed due to low tin prices. Significant resources left unmined.

10,000 tpd mill subsequently removed and pit flooded. Operated as a closed mine site since 1992.

East Kemptville Location and Regional Infrastructure

East Kemptville location, 270 km west of Halifax

Power lines 69kV

138kV

●  On paved highway ●  Grid power on site ●  Yarmouth (55 km)

and other communities commuting distance

●  Ample water

●  Skilled labour available locally

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East Kemptville Area Mineral Tenure

Avalon claims (purple boundary)

Avalon Special Licence (red boundary)

Rio Algom/BHPB Closure (blue area)

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Special Licence Application 50462 Application Approved/Cabinet Pending

Closure area

(brown cross hatch

Pending Licence 50462

Pending Special Licence covering whole closure area

Avalon Claims

(light blue)

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Growing Tin Demand for Lead-free solders in electronics

Source: Hallgarten & Co 14 02

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Global Tin Demand: Approx. 335,000 mt

Tin supplies increasingly constrained Indonesian policy and exhaustion of resources

Source: Hallgarten & Co 14 02

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$21,000

$21,500

$22,000

$22,500

$23,000

$23,500

$24,000

$24,500

$25,000

$25,500

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Pric

e (U

S$/

mt)

Year

World Bank Forecast Tin Price $US/mt

LME tin price trends

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East Kemptville Project Evaluation

●  Initial Special Licence acquired in 2005 ●  Required access agreement with surface rights holder ●  Conducted other surface exploration in the area ●  Cumulative expenditures to date total $2.1 million

●  Avalon completed an unreleased Desktop Study in 2010 with an independent engineering company ●  Included resource estimation and preliminary metallurgical

test work utilizing archived core samples

●  Feb. 2015 Conceptual Redevelopment Study (Hains Engineering) completed on NI 43-101 Resources utilizing new development model (incl. tin refinery) ●  Access Agreement in 2014 with surface rights holder ●  Confirmation drilling completed and NI 43-101 Resource

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East Kemptville Conceptual Redevelopment Study Model

●  Purpose: to confirm business case for re-development of historic tin mine

●  Assumed open pit mine design and similar production rate (10,000 tpd) with truck and shovel operation

●  Similar process flowsheet combining selective flotation of tin, copper and zinc with gravity concentration of tin using new technology

●  Addition: Electric arc refinery would take cassiterite concentrate to 99.85% Sn ingots (LME grade)

●  Environmental aspects of model to be confirmed incl. development of new waste management plan

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Whittle Pit Mine Design Used for Economic Analysis

Ore   Waste         Strip         Grade         Grade         Grade  Tonnes Tonnes Ratio   SN               ZN               CU                (t) (t) (w:o) (%) (%) (%)

49,335,577         43,378,243         0.88 0.113 0.131 0.053

In pit tonnes and grade

Notes:

•  Mining rate:10,000 tpd; •  Conventional truck and

shovel open pit mining operation

•  Stripping ratio: 0.88:1

Lighter blue area is planned pit Dark blue is existing pit

Main Zone Baby Zone

Tailings Stockpiles

The Conceptual Economic Study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economics indicated in the Study will be realized.

Ore   Crushing  

Grinding  

Tin  Conc  

Sulphide  Flota7on  Ro  

Flash  Flota7on  

Tin  Spiral  Circuit  

Tin  Falcon  Circuit  

Tin  Wilfley  Table  Circuit  

Tails

Copper  Flota7on  

Zinc  Flota7on  

Tin  Flota7on  

Copper  Conc  

Zinc  Conc  

Conc

Conc

Sulphide  Flota7on  

Clnr  

Tailings  

Conc

Conc

Conc

Conc

Coarse

Fine

Proposed Mineral Processing Flowsheet (test work to confirm)

East Kemptville Initial Capex and Opex Estimates

CAPITAL  COST $C  millionsConstruction  Capital  Cost 157$                                                

Predevelopment 8$                                                        Sustaining  capital 28$                                                    

TOTAL 193$                                                

OPERATING  COST C$/tonne  oreMining 4.35$                                            Milling 9.40$                                            

Tin  refinery 1.25$                                            TOTAL 15.00$                                        

At 3.5 million tpy annual Opex = C$53 million

East Kemptville Potential Revenues

Product   Annual tonnes  

Annual Revenue  US$,000  

Percent  

Tin Concentrate   6,600   -   -  Zinc Concentrate*   7,300   $4,000   4%  Copper Concentrate**   5,900   $9,400   10%  Tin Ingot   3,400   $78,000   85%  TOTAL     =$91,400    * no credit for indium. **incl credits for Ag, Au   (@0.85) C$107,500  

Mining  rate 3.50                                                   million  tonnes/year Mine  life 14.00                                             years Metal  prices Sn 23.50 $  US                                       per  kg

Zn 1.00 $  US                                         per  lb Cu 3.00 $  US                                       per  lb

Opportunities to Enhance Value

●  By-product credits, particularly indium ●  Indium is predicted to be 0.25% (2.5 kgs per tonne) in

zinc concentrates from microprobe analysis of sphalerite. Indium price is in range $500-700 / kg.

●  Exploration potential ●  In Main and Baby Zones: potential on strike and to depth ●  Duck Pond Zone: mineralization in Meguma

metasediments intersected in drilling by Rio Algom

●  South Grid Zone: mineralization intersected in two drill holes by Rio Algom, south of Baby Zone

Next steps in 2015

●  Initiate work toward Pre-feasibility Study ●  Begin Definition Drilling and test depth potential of Main

and Baby Zone deposits ●  Exploration drilling on other targets ●  Initiate metallurgical process testwork ●  Environmental Baseline Studies

●  Secure full surface and mineral tenure and resolve long term environmental liability management

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Future Plans

●  Feasibility study ($20 million?) to evaluate re-starting Sn-Cu-Zn–In production at East Kemptville (2015-17) ●  Resource definition drilling, delineate new resources ●  Mine and Process plant engineering

●  Aboriginal Community Engagement, & Environmental Assessment (2015-17)

●  Capital Investment in the order of $200 million required to start-up operations (2018?) ●  Re-open mine, construct new mill, process low grade stockpiles ●  Re-process tailings to recover tin and re-mediate site?

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Redditt

GrassyNarrows

Whitedog

Minaki

Lac du Bonnet

C.P.R.

C.P.R.

C.N.R.

C.N.R.

TRANS-CANADA H IGHWAY

Kenora

BERNIC LAKETANCO MINE

SEPARATION RAPIDSPROPERTY

hydro linerailwayroad

0 20

kilom etres

LakeWinnipeg

Winnipeg

covergreenstonesedimentsgranite

71

658596

525

MANITOBA ONTARIO

Lake ofthe Woods

C.N.R.

Separation Rapids Location Plan

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Separation Rapids: New opportunities in petalite market

●  Growing demand for glass-ceramics (stovetops) ●  Manufacturers looking for new supply sources due to

apparent limits on future supply from traditional source in Zimbabwe

●  Separation Rapids pegmatite is the only known large undeveloped resource of petalite in the world

●  New process development work needed to prove efficiency of recovery process and provide high purity product test samples

●  Specialized test lab and pilot plant facility identified in Germany (Anzaplan)

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Separation Rapids Project 2014 Testwork Overview

●  Petalite and feldspar extraction testwork conducted by ANZAPLAN in Germany during Q1 & Q2, 2014

●  Excellent quality Petalite concentrate produced assaying >4% Li2O (up to 4.3%) & <0.01% Fe

●  High purity feldspar product also successfully produced for potential glass and ceramic markets

●  20 kg of petalite product recently shipped to various customers for detailed evaluation

●  Looking at other product alternatives including high purity lithium metal or chemicals for battery applications

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Separation Rapids Lithium Leaching

●  Leaching Li from petalite presents opportunity to produce higher value Li products

●  Various operations employing similar processes on Spodumene and other Li sources

●  Have the potential to produce high grade Li Carbonate, Hydroxide and/or metal

●  Initial tests at SRC have indicated 96.6% Li leach efficiency ●  Low impurity levels in SR leach solution could counter

higher Li grades in other feed sources elsewhere ●  Considering collaborative research initiatives

Separation Rapids Project Ongoing Work

●  New core racks were installed and core transferred from old racks to new in 2014

●  Planning underway for collecting and processing larger bulk samples

●  Consultations with local contractors and Aboriginal contractors on road construction and logistics

●  Work Permit Application for road repairs underway.

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Separation Rapids Market Development

●  Potential customers are driving test work ●  2 letters of interest that can be used to

support possible government funding ●  2 European customers have visited SR and

Kenora and one Asian planning to in 2015. ●  No formal agreement possible until batch

tests completed. (Goal for 2015) ●  Potential to attract an Industrial Minerals

business partner

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2014 Corporate Sustainability Report

●  Published December 1, 2014 ●  Avalon’s third annual report ●  MAC TSM Self Assessment

and GRI Level G4, core level ●  Aligns the Company’s operating

philosophy with its cleantech customers

2014 Performance ●  No recordable injuries ●  Published new Sustainability

Policy and continued to develop policies, procedures and mgt. plans in anticipation of Nechalacho development

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2015 Objectives for Avalon

●  East Kemptville ●  Secure land tenure, initiate drilling and metallurgical testwork

●  Proceed with environmental studies and Feasibility work

●  Nechalacho Rare Earth Elements Project ●  Continue working with Solvay to develop the market

●  Select site for hydromet plant in Western Canada. Complete pilot plant work and produce updated FS

●  Conclude permitting process with MVLWB

●  Separation Rapids ●  Collect 2000 tonne bulk sample and produce petalite product

samples for customers and lithium chemical production tests

●  Manage our cash reserves carefully!

130 Adelaide St. W., Suite 1901 Toronto, Ontario, Canada M5H 3P5 +1 (416) 364-4938 ir@avalonraremetals.com www.avalonraremetals.com