Avalon Ventures Ltd.

Address:	111 Richmond Street West, Suite 1005 Toronto, Ontario Canada M5H 2G4
Tel No.:	(416) 364-4938
Fax No.:	(416) 364-5162
Web Site:	www.avalonventures.com
Corporate Email:	dsbubar@avalonventures.com
Contact Person:	Don Bubar
Position:	President & CEO

COMPANY DATA

Traded Market:	TSX-V
Traded Symbol:	AVL
Outstanding Shares:	37,178,598
Public Float:	approx. 30 million
52 Week High:	$ 0.25
52 Week Low:	$ 0.10
Present Price:	Click Here

INTRODUCTION

Avalon Ventures Ltd. is a Canadian junior mineral exploration and development company, with a primary focus on industrial minerals and rare metals with high technology applications: "The Precious Metals of the Future".

Avalon currently holds a portfolio of six such projects, including three that are at an advanced stage of development, as well as six other early stage base metals and precious metals projects, all located in Canada. These include the world-class Thor Lake beryllium-rare earths-yttrium-zirconium-gallium deposit in the Northwest Territories and the Separation Rapids lithium-tantalum-rubidium deposit near Kenora, Ontario.

The rare metals are in growing demand because of their critical role in a global economy that is becoming increasingly reliant on high technology. Elements such as tantalum, yttrium, cobalt and beryllium offer unique properties that are vital in applications in electronics, rechargeable batteries and specialty metal alloys.

Avalon Ventures Ltd. is rapidly becoming a leader in the field of rare metals project development. Avalon offers investors exposure to more than a dozen different rare metals and industrial mineral commodities including lithium, tantalum, cesium, rubidium, beryllium, yttrium, zirconium, gallium and rare earths such as cerium, neodymium and europium. With its growing project portfolio, the Company is well positioned to deliver significant shareholder value in the long term, as the rare metals assume an even greater role in the global economy.

PROJECTS IN HAND

Avalon Ventures Ltd. has various projects in base metals, gold, silver, copper, cobalt and others (see below). The Company major focuses on its 100% owned Separation Rapids and Thor Lake rare metals projects.

Complete list of projects owned by Avalon Ventures Ltd.:

(1) Rare Metals / Industrial Minerals

- Separation Rapids Lithium Feldspar - Tantalum
- Thor Lake Beryllium-REE-Yttrium-Zirconium
- Warren Township Calcium Feldspar
- Lilypad Lakes Tantalum-Cesium
- Raleigh Lake Tantalum
- Shatford Lakes Tantalum

(2) Base Metals / Gold, Silver, Cobalt

- Mount Thom Copper-Gold-Silver-Cobalt
- Lower Mount Thom Copper-Gold-Silver-Cobalt
- Red Hill Copper-Zinc-Silver
- U6 Savant Gold
- Mazenod Lake Copper-Cobalt-Gold
- Mussy Lake Nickel-Copper-PGE

(3) Other Projects

- Wolf Mountain Platinum-Palladium-Copper-Nickel (royalty)
- East Cedartree Gold (royalty)

FOCUS PROJECTS

(1) The Separation Rapids Project, Kenora, Ontario

The Separation Rapids property is host to one of the largest rare metal pegmatite deposits in the world. This pegmatite was named the Big Whopper by its discoverer, Dr. Fred Breaks of the Ontario Geological Survey, because of the exceptional length and width of the surface exposure. Following public disclosure of the discovery in July 1996, the Separation Rapids property was staked by Kenora prospectors Robert Fairservice and James Willis, and later optioned by the Company.

The Big Whopper is one of the complex-type (petalite sub-type) class of rare metal pegmatites that are geochemically the most highly evolved in the spectrum of granitic pegmatites. Such deposits are economically important as resources for the rare metals lithium, tantalum, cesium, and rubidium. While complex-type pegmatites are found in many areas of the world, most are too small to be profitably mines, but with a total resource of 13.8 million tonnes (open), the Big Whopper is only the fourth example in the world with the size required to be of major economic importance and only the second to be enriched in the rare and valuable lithium mineral called petalite. The other three examples, which are currently in production, are the Tanco mine in Manitoba, the Bikita mine in Zimbabwe, and the Greenbushes mine in Western Australia.

Avalon originally planned to develop the property as a producer of high-purity petalite concentrates with by-product feldspars, micas and tantalum, but has recently developed an alternative approach to produce a combined petalite-feldspar product called "high-lithium feldspar" with by-product tantalum concentrates. Concentrates of tantalum, a rare metal used principally in the manufacture of electronic capacitors for computers and cell phones, will be an important by-product.

Successful development of the market and a positive full feasibility study would lead to full-scale plant construction and mine development in 2006 reaching full production by 2008-9.

(2) The Thor Lake Rare Metals Project, Northwest Territories

The Thor Lake Rare Metals Project is located in the Mackenzie Mining District of the Northwest Territories, about 5 km north of the Hearne Channel of Great Slave Lake and approximately 100 km southeast of the city of Yellowknife. The property is accessible by winter road from Yellowknife or by float-equipped aircraft during the summer.

The Thor Lake property is comprised of five contiguous mining leases totalling 10,449 acres (4,249 hectares). The mining leases have a 21-year life and each lease is renewable in 21-year increments. The property is subject to two underlying royalty agreements entitling the royalty holders to a cumulative 5.5% Net Smelter Returns Royalty.

Rare metal mineralization was first discovered in the Thor Lake area in 1976, by Highwood Resources Ltd., a predecessor company to Beta Minerals Inc. Since that time, over $12 million has been invested in exploration and development work on the property. This included geological mapping, sampling, geophysical surveys and nearly 200 drill holes totalling some 13,000 metres. This was followed by underground development work, bulk sampling, metallurgical testwork and market studies on the North 'T' deposit.

In March, 2005, Avalon entered into an agreement to acquire full title to the Thor Lake property from Beta Minerals Inc. Avalon will move forward with a new work program to determine which of the many rare metals enriched at Thor Lake will provide the best opportunities for near term development.

MANAGEMENT

Avalon Ventures Ltd. has a well management team with experience in different areas.

Donald S. Bubar, M.Sc., P.Geo., President and CEO
Consulting Geologist with over 25 years experience in mineral exploration in Canada. Former Vice-President Exploration for Aur Resources Inc. Involved in several important gold and base metal discoveries including the world-class Louvicourt Cu-Zn-Ag-Au VMS deposit, in Val d'Or, Quebec. President of the Company since 1995.

R.J. (Jim) Andersen, C.A., C.P.A., CFO and Vice-President, Finance
Partner of accounting firm Forbes Andersen LLP; in charge of the Company's external audit from 1996 to 2000.

Ralph D. Dalgarno, Corporate Secretary
Corporate/Securities Lawyer with over 30 years experience providing counsel to Canadian public companies including many junior resource companies.

Lawrence P. Page, Q.C., Chairman of the Board
Lawyer with over 30 years involvement as solicitor and director of mineral exploration companies. Director or officer of numerous other reporting companies including Western Silver Corp.

Alan Ferry, C.F.A., Director
Vice President, Dominick and Dominick Securities Inc.; Over 25 years experience as a mining analyst with various investment dealers. Director of several other reporting companies including Guyana Goldfields Ltd.

F. Dale Corman, P.Eng., Director
Over 30 years experience in mineral exploration, development and finance. Currently Chairman and CEO of Western Silver Corp. Director of several other reporting companies, including Radiant Resources Inc.

Brian D. MacEachen, C.A., Director
Over 10 years experience in mining finance and accounting. Currently CFO of Linear Gold Corp. Formerly CFO for Salter Street Films and prior to that, treasurer of Franco-Nevada Corporation Ltd. and Aur Resources Inc.

Joseph G. Monteith, Director
Chemical Engineering Technologist; President of Stormceptor Corporation and three other private industrial companies.

TORONTO STAR REPORT

NEWS UPDATE

On January 30, 2006, Avalon Ventures Ltd. provided the progress report on activities on its Red Hill copper-zinc-silver and U6 Savant gold projects.

Red Hill Copper-Zinc-Silver Project

Assay results from the six-hole, 1,279 m diamond drilling program completed in November, 2005 on the Red Hill copper-zinc-silver VMS prospect, Kamloops, B.C. have now been received and compiled. The most encouraging assays were obtained from one hole drilled on the Red Hill grid which intersected two narrow bands of massive sulphide mineralization assaying 2.08% copper, 7.5 g/t silver over 1.35 metres and 0.56% copper, 0.79 g/t silver over 2.95 metres.
U6 Savant Gold Project

A program of detailed geological mapping, channel sampling and compilation of historical data was carried out in 2005 on the U6 Savant gold project located in the Savant Lake area of northwestern Ontario. The work was performed by consulting geologist Jean-Philippe Desrochers, P.Geo. The results of the program confirmed the presence of an intrusion-related gold system and the structural controls on gold mineralization were determined.

On January 20, 2006, Avalon Ventures Ltd. announced that further to the Company's new release of December 14, 2005, the $1,575,000 non-brokered private placement of non-flow-through units at a price of $0.45 per unit closed on that day with the issuance of 3,500,000 units to the subscribers. The proceeds of the private placement will be used to fund work programs in 2006 on the Company's Thor Lake and Separation Rapids rare metals projects, the Red Hill copper-zinc-silver project, the U6 Savant Gold Project and for general corporate purposes.

On December 14, 2005, Avalon Ventures Ltd. announced that, subject to regulatory approval, it has arranged $1,575,000 in new financing through the non-brokered private placement of a total of 3,500,000 units at a price of $0.45 per unit. The proceeds of the private placement will be used to fund work program in 2006 on the Company's Thor Lake and Separation Rapids rare metal projects, the Red Hill copper-zinc-silver project and for general corporate purposes. The private placement is expected to close in early January, 2006.

On November 23, 2005, Avalon Ventures Ltd. provided the update on activities on its Separation Rapids, Thor Lake and Red Hill projects. The Company also announced that it has granted an aggregate of 225,000 incentive stock options exercisable at a price of $0.48 per share for a period of five years, to three directors of the Company to replace recently expired (unexercised) stock options. Any shares issuable on exercise of the options will be subject to a four month hold period beginning on the date of grant of the options.

On October 03, 2005, Avalon Ventures Ltd. announced that drilling has commenced on the Red Hill copper-zinc-silver-gold VMS project located near Kamloops, B.C. The program will involve a minimum of 1,000 metres of drilling in 6 holes to test for extensions to two separate zones of volcanogenic massive sulphide ("VMS") mineralization. The Company also announced that it has granted an aggregate of 350,000 incentive stock options exercisable at a price of $0.40 per share to six consultants.

On September 21, 2005, Avalon Ventures Ltd. announced that analytical results from a recent sampling program undertaken on its 100% owned Thor Lake rare metals project, located near Yellowknife, NWT. The purpose of the work was to confirm the presence of significant levels of rare earth elements ("REE's") in several of the previously identified zones of rare metal enrichment on the property.

Significant rare earth element and yttrium enrichment was confirmed in the three known mineralized zones sampled (the T, R and Lake zones). Results from the R-Zone (reported in oxide form) include values of 8.51% Y2O3 and 8.62% Total Rare Earth Oxides which is the sum of all 15 REE's in the lanthanide series. Concentrations of Neodymium and Europium in these two samples were as high as 1.13% Nd2O3 and 0.12% EuO.

On September 20, 2005, Avalon Ventures Ltd. announced that it has been informed by its lithium mineral marketing agent, Amalgamet Canada, that it has been approached by an anonymous potential customer looking for a source of petalite (lithium mineral) ore for a new application. The exact nature of this new application is a closely-guarded trade secret but it is understood to be a new material having unique physical properties.

On August 04, 2005, Avalon Ventures Ltd. announced that proceeds of $195,000 were received from the issuance of 975,000 common shares at a price of $0.20 per share, following the exercise of an equivalent number of share purchase warrants, prior to their expiry on August 1, 2005. The proceeds of the warrant exercise will be utilized for CEE and FTME Tax Credit eligible expenditures on the Company's Red Hill copper-zinc-silver-gold project located near Kamloops, B.C. This will include a 1,500 metre diamond drilling program scheduled to begin in September, 2005. The drilling program will involve 6-10 holes to test for extensions to a zone of volcanogenic massive sulphide mineralization that reportedly assayed 2.54% copper, 2.78% zinc, 77.0 g/t silver and 0.37 g/t gold over 7.75 metres in a hole drilled in 1983.

On July 18, 2005, Avalon Ventures Ltd. provided the following progress report on current exploration work on its Thor Lake, Red Hill and Mount Thom projects.

(1) Thor Lake Rare Metals Project

A brief site visit was conducted in June, 2005 to the Company's 100% owned Thor Lake rare metal project, located near Yellowknife, NWT, in order to collect samples from historical drill core stored on the property and re-assay these drill cores for Rare Earth Elements ("REE's"). These efforts were focused on several holes drilled in the Lake Zone in the 1980's which produced very high yttrium values ranging up to 0.66% Y2O3 (yttrium oxide) and averaging 0.12% Y2O3 (based on the head grade of a historic composite sample of 21 samples from 18 drill holes).

Rare earth elements tend to be concentrated in yttrium-bearing minerals, and therefore yttrium can be used to identify zones of REE enrichment in rare metals deposits such as Thor Lake. The recent work was carried out by Dr. David L. Trueman, P.Geo. who has more than 20 years experience with this deposit. Twenty-four samples were submitted to SGS Lakefield Research for analysis and results are expected within two weeks.

(2) Red Hill Copper-Zinc-Silver VMS Project

In conjunction with on-going data compilation work on the Red Hill copper-zinc-silver VMS project located near Kamloops, B.C., the Company recently carried out a detailed geological mapping program that was focused on re-interpreting the structural geology of the mineralized volcanic rocks. These rocks host a historical massive sulphide drill intersection that reportedly assayed 2.54% copper, 2.78% zinc, 77.0 g/t silver and 0.37 g/t gold over 7.75 metres. Previous workers have interpreted the host rocks as a steeply-dipping, northwest-striking homocline and planned drill holes assuming a simple tabular geometry for a contained massive sulphide deposit.

(3) Mount Thom Copper-Cobalt-Gold-Silver Project

The Phase 2 diamond drilling program on the Mount Thom project located near Truro, Nova Scotia, was completed in early July. Two holes totalling approximately 200 metres were drilled to test two separate electromagnetic conductors detected by a Crone Pulse EM survey completed last fall. No significant sulphide mineralization was intersected in either hole and no further work is planned for this project. The program was managed by Hudgtec Consulting Ltd. of Dartmouth, N.S.; Mr. A. Bruce Hudgins, P.Geo., being the qualified person responsible for supervising the field work.

On the nearby Lower Mount Thom Joint Venture, the Company and Wallbridge Mining Company Limited have elected to terminate their joint venture agreement with Cobequid Gold Corporation effective July 11, 2005.