Avalon Rare Metals (TSE:AVL) Reduces Warrant Excercise Price for 30 day period

Toronto, Aug 18, 2010 AEST (ABN Newswire) - Avalon Rare Metals Inc. (the "Company" or "Avalon") (TSE:AVL) (OTCQX:AVARF) announced today that it will reduce the exercise price of its outstanding common share purchase warrants (the "Warrants") from CA$3.00 to CA$2.51 per share for a 30-day period beginning on September 1, 2010 and extending until 5:00 pm Eastern Daylight Time ("EDT") on September 30, 2010. The Company will also send a notice to warrantholders advising them of this reduced exercise price period.

The Warrants, which expire on September 17, 2011, are currently governed by a common share purchase warrant indenture agreement entered into by the Company with Computershare Trust Company of Canada ("Computershare"), in effect since September 17, 2009. The Company plans to enter into a supplemental indenture agreement with Computershare to provide for the 30-day reduced exercise price period, after which, any outstanding unexercised warrants shall revert back to the exercise price of CA$3.00 per share. All other material terms of the warrant indenture will remain unchanged.

The Company has received the conditional approval of the Toronto Stock Exchange for the proposed amendment to its warrants. Pursuant to the rules of the Toronto Stock Exchange, warrants owned by insiders of the Company will not be subject to the reduced price but will remain at the original exercise price.

Registered holders of the warrants are encouraged to exercise their warrants in accordance with the procedures set forth in the current warrant indenture as soon as possible during the reduced exercise period and, in any event, prior to 5:00 pm EDT on September 30, 2010 to take advantage of the reduced exercise price of CA$2.51 per share upon exercise of each warrant.

Non-registered holders of warrants, whose warrants are registered in the name of a brokerage firm, bank or trust company or other intermediary through which they purchased the warrants should contact their intermediary holding those warrants for instructions on how to exercise their warrants.

About Avalon Advanced Materials Inc

Avalon Advanced Materials Inc. (TSE:AVL) (OTCMKTS:AVLNF) (formerly Avalon Rare Metals) is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.