Avalon Ventures Ltd.
TSX : AVL

Avalon Ventures Ltd.

November 27, 2008 09:49 ET

Avalon Announces $1.5 Million Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2008) -

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Avalon Ventures Ltd. (TSX:AVL) ("Avalon") is pleased to announce that it has arranged a non-brokered private placement of up to 3,000,000 "flow-through" common shares (the "Flow-Through Shares") at a price of C$0.50 per Flow-Through Share for gross proceeds of C$1,500,000.

Proceeds from this financing will be used by Avalon in 2009 to fund additional diamond drilling and other eligible exploration work on the Lake Zone Rare Earth Elements deposit on its 100% owned Thor Lake rare metals project, located near Yellowknife, NWT.

Avalon has agreed to pay a cash finder's fee of 7.0% on that portion of the gross proceeds sold by the finder as well as compensation options to acquire an amount of common shares in Avalon equal to 7.0% of the Flow-Through Shares sold by the finder.

The completion of this private placement is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

About Avalon Ventures Ltd.

Avalon Ventures Ltd. (TSX:AVL) is a Canadian junior mineral exploration and development company, with a primary focus on rare metals and minerals with high technology applications or offering environmental benefits. Avalon currently holds a portfolio of five such projects, including three that are at, or close to, the feasibility stage. Shares Outstanding: 64,649,748. Cash resources: approximately 9.0 million.

To find out more about Avalon Ventures Ltd. (TSX:AVL), please visit our website at www.avalonventures.com. This news release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are invited to visit the "Avalon Ventures" IR Hub at http://www.agoracom.com/ir/avalon. In addition, investors are invited to e-mail their questions and correspondence to AVL@agoracom.com.

This news release contains forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the size and quality of the Company's mineral resources, progress in development of mineral properties, demand and market outlook for metals and future metal prices. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of mineral properties, uncertainties with respect to the receipt or timing of required permits and regulatory approvals, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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