In our ongoing efforts to provide you with broader communications and industry information, we are pleased to issue another Industry Bulletin discussing recent trends in the markets of various rare and strategic metals. In this edition, we focus on the aerospace industry where the trend toward reduced aircraft weight and energy efficiency is creating new demand for rare metals.

In April, Avalon attended the Metals for the Aerospace Industry 2008 Conference held in Barcelona, Spain, and consulting geologist, Dr. David L. Trueman, P.Geo, was one of the invited speakers. His presentation, entitled From the Ground Up… a Miner’s View of the Rare Metals highlighted the growing applications for rare metals such as the Rare Earths, Lithium, Indium, Yttrium, Gallium, Beryllium, Tantalum and Zirconium in the context of supply sources of these materials, current production volumes and price trends. Dr. Trueman’s presentation can be found on Avalon Ventures website by accessing the following link:

http://www.avalonventures.com/_resou...

Bill Bihlman of AeroStrategy Ltd., a US- based management consultancy firm, commented that "We are still bullish that there will be more aircraft deliveries in the next five years, but in the next 20 years we expect demand to double and exceed 20,000 units. This demand is going to see a significant increase in overall metal consumption in aircraft”. As noted by Dr. Trueman, modern aircraft use rare metals in many applications including electronics, batteries, engine components and the airframe.

The trend toward larger aircraft such as the Airbus A380 is creating increased demand for lightweight construction materials such as aluminum-lithium (Al-Li) alloy. “While there is glass fibre and composites used in airframes, most of it is still metal,” Bihlman noted. Al-Li alloys, which are continuously being improved upon, are targeted as advanced materials for aerospace technology primarily because of their low density, high specific modulus, excellent fatigue and cryogenic toughness properties. This trend will create additional demand for lithium, which is already in increasing demand for re-chargeable battery applications.

http://www.reade.com/Products/Alloys...

https://www.alcoa.com/global/en/inno...

The increased demand for lithium is translating into higher prices which have risen from less than US$1/lb three years ago to approaching US$4/lb today for the chemical form lithium carbonate. Avalon has large lithium resources at its Separation Rapids project near Kenora, Ontario and large resources of other rare metals at its Thor Lake deposit in the NWT.

For further information please visit Avalon's website at www.avalonventures.com.

If you have any comments or questions, please do not hesitate to post them on Avalon's official investor relations hub at http://www.agoracom.com/IR/Avalon.

Regards,