Avalon Files Final Base Shelf Prospectus and US Registration Statement

Avalon Files Final Base Shelf Prospectus and US Registration Statement

13:10 EDT Thursday, September 12, 2013

TORONTO, ONTARIO--(Marketwired - Sept. 12, 2013) - Avalon Rare Metals Inc . (TSX:AVL)(NYSE MKT:AVL) ("Avalon" or the "Company") is pleased to announce that, further to the Company's news release dated August 22, 2013, it has now filed a final base shelf prospectus (the "Prospectus") with the securities commissions in each of the provinces and territories of Canada, except Quebec, and a registration statement with the United States Securities and Exchange Commission which has become effective.

Under the Prospectus, the Company may issue shares or warrants, or any combination of such securities as units, in amounts, at prices and on terms to be determined based on market conditions at the time of sale and set forth in an accompanying prospectus supplement, for an aggregate offering amount of up to USD $500,000,000 during the 25 month period that the final short form base shelf prospectus remains effective.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About Avalon Rare Metals Inc.

Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce 'heavy' rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. With a positive feasibility study and environmental assessment completed, Nechalacho remains the most advanced potential large new source of heavy rare earths in the world outside of China, currently the source of most of the world's supply. Avalon is well funded, has no debt and its work programs are progressing. Social responsibility and environmental stewardship are corporate cornerstones.

To find out more about Avalon Rare Metals Inc., please visit our website at www.avalonraremetals.com.

Shares Outstanding: 103,796,986. Cash resources: approximately $9 million.