Question: When does Avalon expect it will secure a JV agreement or adequate financing to build a pilot plant for the Big Whopper development?

Answer: Management is optimistic that project financing for the Big Whopper development can be secured during the first quarter of 2004. Discussions with potential investors are on-going and renewed interest in the resource sector in general is beginning to trickle down to other mineral commodities such as rare metals and industrial minerals.

In addition, rising natural gas prices are increasing glass manufacturers` costs creating new interest in lithium-enriched raw materials such as Avalon`s High-lithium feldspar product, as an inexpensive way to reduce these costs. Avalon`s Marketing Agent, Amalgamet Canada, reports new interest from some of their clients in the glass industry and is convinced that Avalon now has the right product at the right time to serve a receptive market. This fact helps support current financing initiatives.

Question: Also, when does management expect to start drilling its new project in Nova Scotia?

Answer: The Company plans to drill its new Mount Thom prospect in Nova Scotia as soon as possible in the new year. There is some geophysical survey work to complete first, which may take a few weeks, but at this point, a start sometime in mid to late February looks realistic.

We trust the above to be satisfactory but please do not hesitate to provide any further questions or comments.

Regards,

AGORA Investor Relations Corp.