avalon ventures releases drill results

AVALON VENTURES LTD ("AVL-V")
- Assays From Thor Lake Phase 1 Drilling Confirm Presence
- of High Grade Rare Earth Element Mineralized Zones in
- Lake Zone Deposit

Avalon Ventures Ltd. (the "Company") is pleased to announce initial
assay results from the Phase 1 drilling program carried out from August 1
to October 15, 2007 in the Lake Zone deposit on its 100% owned Thor Lake
Rare Metals project located near Yellowknife, NWT. The results from 7 of 13
completed holes received to date confirm the presence of several 4 to 23
metre wide intervals of relatively high grade Rare Earth Element ("REE")
mineralization, within a broad mineralized envelope averaging over 100
metres in thickness.

Highlights include sub-intervals of 9.4m of 2.16% TREO in hole L07-58,
15.6m of 2.25% TREO and 23.4m of 1.90% TREO in hole L07-60 and 21.8m of
2.32% TREO in hole L07-61A, where TREO is defined as the sum of all 14 REE
plus Yttrium, expressed in oxide form. Individual intercepts averaged as
high as 3.59% TREO over 4.0 metres in hole L07-52 and 5.06% TREO over 5.5m
in hole L07-58. The mineralized envelope typically averages around 1.0%
TREO (Tables 1 and 2).

Of greater significance is the confirmation of a relatively high
proportion of the heavy rare earth elements Europium through Lutetium
("HREE") in all of these intercepts. The content of HREO (Heavy Rare Earth
Oxides) as a percentage of TREO ranges from 7.9% to 17.2% over the entire
mineralized envelope and selected sub-intervals average as high as 30.9%
HREO over 4.0 metres such as the interval reported above in hole L07-52. By
comparison, most known rare earth deposits are dominated by the light rare
earths and typically contain less than 3% HREO. The Lake Zone is a very
unusual REE deposit for its relatively high content of some of the more
scarce and valuable heavy rare earth elements such as Terbium, Europium and
Dysprosium compared to other known magmatic REE deposits.

Individual HREE values were as high as 1100 ppm terbium oxide, 210 ppm
europium oxide and 1691 ppm dysprosium oxide over widths of 2.0 metres
(Table 3). Bid prices for these oxides as reported for January 3, 2008 by
Metal-Pages.com on an FOB China basis are: US$600/kg Tb, US$340/kg Eu and
US$92/kg Dy compared to just US$3.60/kg for the more abundant Light REE
cerium. These elements are in short supply yet are critical to many new
applications in electronics (colour phosphors) and hybrid cars (high
intensity magnets). In addition to the HREE, these zones contain high
levels of neodymium oxide (Nd2O3), a light rare earth element also in high
demand for high intensity magnet applications, that is currently quoted at
US$29/kg on an FOB China basis. The high grade sub-zones typically contain
in excess of 2,000ppm Nd2O3. Two 2.0 metre sub-zones produced assays of
6,083ppm Nd2O3 and 8,526 ppm Nd2O3, respectively (Table 3).

The main objectives of the Phase 1 drill program were to begin to
delineate higher grade sub-zones of REE mineralization within the Lake Zone
deposit and increase confidence in the HREE content of this mineralization
through the systematic use of modern analytical methods with appropriate
quality control and assurance (QA/QC). These objectives have been achieved,
although large areas of the known resource underlying Thor Lake remain to
be tested. These areas will be drilled in a minimum 5,000 metre Phase 2
program set to begin within the next 2-3 weeks.

The assay results received to date confirm visual observations that the
high grade REE mineralization occurs within a series of alteration zones
which form 10-35 metre thick dark-coloured, horizontal to gently-dipping
layers within the tabular Lake Zone deposit. The layers with the highest
HREE content typically occur near the base of the deposit between vertical
depths of 100 and 175 metres. Preliminary petrographic work indicates that
the zones containing a high proportion of HREO are characterized by the
presence of fergusonite, an yttrium-niobium, tantalum oxide mineral that
preferentially concentrates the HREE along with neodymium.These layers are
magnetic and also characterized by high contents of visible zircon
mineralization. They appear to be laterally extensive over distances of
500-1000 metres but further in-fill drilling will be required to correlate
individual intercepts and establish indicated resources.

In addition to the REE mineralization, these zones exhibit strong
enrichment in other rare metals notably zirconium, hafnium, gallium,
tantalum and niobium as well as minor thorium (Table 4). For example, the
4.0 metre interval in hole L0-52 averages 17,620 ppm zirconium oxide,
388ppm hafnium oxide, 142ppm gallium oxide, 781ppm tantalum oxide 7,128ppm
niobium oxide and 864ppm thorium oxide. Hafnium is a rare metal often found
with zirconium that is now in increasing demand for new electronics
applications in semi-conductors, but with few defined supply sources.

The locations of all the Phase 1 drill holes are listed in Table 1.
Complete assay data are now available for drill holes L07-52, 57, 58, 59,
60, 61A and 62. Hole L07-62 was drilled on the southwestern edge of the
deposit and produced no REE values of economic interest. Assays are pending
for holes L07-53, 54, 55, 56, 63 and 64. These will be reported once all
remaining results have been received. Full analytical details of all
intervals for all REE and other rare metals received to date are posted on
the Company's website along with a drill hole location plan and sections at
http://www.avalonventures.com/projects/rare/thor_lake.

The 2007 drilling program was the first such program on the Lake Zone
deposit to use modern analytical methods to systematically determine the
full suite of rare earth elements. Accordingly, a rigorous QA/QC program
was implemented for all of the program samples to ensure high quality data.
Analytical standards were prepared from crushed rejects of historical Lake
Zone samples, then analysed at five separate laboratories to determine
reproducible values. These standards were then routinely inserted into the
sample batches to monitor core analyses. All drill core was split on site,
bagged on 2m intervals and shipped to Acme Laboratories facility in
Yellowknife for sample preparation. Acme then shipped pulverized splits
from all the samples its laboratory in Vancouver, BC and also to Activation
Laboratories ("Actlabs") in Ancaster, ON.

The results reported to date were produced by Acme and achieved
acceptable standard values. Additional assays from Actlabs are not yet
available. All samples are being analysed in both laboratories by lithium
metaborate/tetraborate fusion and dilute nitric acid digestion, followed by
whole rock and 45 element multielement ICP analysis. Details of the factors
used to calculate rare earth oxides are posted on the Company website along
with complete analytical data.

Drilling operations were performed by Peak Drilling Ltd. of Courtenay
B.C. under the supervision of J.C. Pedersen, P.Geo. and D.L. Trueman,
Ph.D., P.Geo. The Company's Vice-President, Exploration, William Mercer,
Ph.D., P.Geo. provided overall direction on the project.

About Avalon Ventures Ltd.

Avalon Ventures Ltd. (TSX VENTURE:AVL) is a Canadian junior mineral
exploration and development company, with a primary focus on the rare
metals and minerals that are in increasing demand for numerous emerging
"green" technologies in alternative energy and fuel efficient cars as well
as many new electronics and aerospace applications. Avalon currently holds
a portfolio of five such projects, including three that are at, or close
to, the feasibility stage. Shares Outstanding: 63,856,748. Cash resources:
$16.4 million.

To find out more about Avalon Ventures Ltd. (TSX VENTURE: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
[email protected] or phone Don Bubar, P.Geo. President, at 416-364-4938. Mr.
Bubar and Dr. Mercer are the Qualified Persons responsible for the
technical content of this news release.

The language used in this News Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
forward-looking statements and expectations.