Dear Shareholder:

In our ongoing efforts to provide you with broader communications and industry information, we are pleased to alert you to the availability of an interesting new commentary by respected Rare Metals industry analyst Jack Lifton, on the growing demand for the rare earth elements in hybrid and electric cars.

Followers of the Avalon Ventures Ltd. story are well aware of the need for rare earths in high intensity permanent magnets for the electric motor and regenerative braking systems in hybrids. In this new commentary, Mr. Lifton explains how Toyota and Honda will continue to use metal hydride technology for the rechargeable batteries in their hybrid cars for the foreseeable future and how they are investing heavily in new battery production capacity in Japan. Metal Hydride batteries contain significant amounts of the light rare earth elements lanthanum and neodymium and the expanded production of these batteries is expected to apply increased pressure on Rare Earth Element supplies going forward.

http://www.resourceinvestor.com/pebb...

Winner of Apple IPOD ® draw.

The winner of the draw held following the April, 2008, Calgary and Chicago Resource Investment conferences was Mr. Edward Morys of Calgary, Alberta. Thanks to everyone who stopped by the Avalon booth and participated in the draw.

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,