Agoracom

Avalon Ventures Ltd., (TSX-V: AVL) (the “Company”) is pleased to announce that, further to the Company’s news release dated July 6, 2006, initial assay results have confirmed the discovery of high-grade copper-zinc mineralization in hole RH-06-25 drilled recently on the Red Hill copper-zinc-silver-gold VMS project located near Kamloops, B.C. A 1.74 metre interval in this hole (believed to approximate a true width) assayed 10.15% copper, 5.45% zinc, 1.41 g/t gold and >30ppm silver (subject to re-assay). Hole RH-06-24 intersected 19.47m of pyrite and pyrrhotite-rich massive sulphides in a separate zone assaying 0.26% copper over 17.47m and 1.16% Zn over a 1.0 metre sub-interval. Assay results for the two remaining drill holes (RH-06-26 and 27) are expected within 2-3 weeks. Assay results received previously from hole RH-05-23 are reported for comparative purposes.

Management is very encouraged by these initial results which confirm that a significant copper-zinc-gold-silver volcanogenic massive sulphide (“VMS”) system exists in the Red Hill project area. The high-grade copper – zinc intersection in RH-06-25 appears fault bounded and is believed to represent a faulted slice from a larger massive sulphide body. Down-hole pulse EM surveys are planned for the summer to locate extensions to the known zones and follow-up drilling is planned for the fall.

Further work is required to define the extent of the volcanogenic massive sulphide (“VMS”) mineralization on the Red Hill the property, which covers a 16km strikelength of favourable geology that, for the most part, is little-explored. Accordingly, a deep-penetrating and high resolution airborne EM survey is being planned for later this summer to cover the entire property and look for additional VMS targets. Overall project supervision is being provided by by Dr. J-P. Desrochers, P.Geo., while the drilling program was supervised Dr. D. L. Trueman, P.Geo.

The Red Hill property is held under option from Teck Cominco Limited, with the Company having the right to earn a 100% interest, subject to a 2% NSR royalty, by spending $1.2 million on exploration work over four years. Under the option agreement, Teck Cominco retains certain back-in rights to re-acquire a 65% interest in the property first by funding 2.5 times Avalon’s expenditures to earn an initial 51% interest, then by completing a feasibility study on the property at its sole cost to earn an additional 14% interest. Ultimately, upon delivery of a positive feasibility study, Teck Cominco can increase its interest to 70% by arranging the project financing required to bring a mine into production.

To view the Red Hill Diamond Drilling Data Tables, please follow the link provided below:

http://www.agoracom.com/images/AVL080106DataTables.pdf

Rare Metals Exploration Update

On the Separation Rapids project, the 300 tonne bulk sample has been crushed and bagged but delivery has been delayed at the request of the customer. The material was to have been delivered to a pilot plant but this facility is not yet ready to accept it. It is now anticipated that the material will be delivered in late August. In the meantime, the Company has completed additional work on the site to upgrade the access road to all-weather status so that additional bulk sample material can be prepared and shipped as the customer requires.

On Thor Lake, work on the scoping study being prepared by Wardrop Engineering is progressing and is expected to be completed sometime in September. A field crew has been mobilized to the site to do some additional sampling of historical drill cores from the Lake Zone which are archived on the site. This involves analysis of the core for the rare earth elements and collection of a suite of samples for petrographic study that will provide data for designing a beneficiation process for the rare earth mineralization. These data will supplement the existing database being used by Wardrop to prepare the scoping study and will assist in planning the definition drilling program planned for later this year.

On Warren Township, preparations are being made to produce a 250 tonne bulk sample of the calcium feldspar product for a new potential customer in the glass industry. A process facility capable of efficiently handling this size of sample, and meeting strict quality control requirements, has been identified in western Canada. An initial plant trial is planned for this facility in August and if successful, the 250 tonne sample would be processed subsequently for delivery to the customer later in the fall.

All three rare metals projects are 100% owned by the Company.

About Avalon Ventures Ltd.

Avalon Ventures Ltd. (TSX-V: AVL) is a Canadian junior mineral exploration and development company, with a primary focus on industrial minerals and rare metals with high technology applications. Avalon currently holds a valuable portfolio of advanced stage projects, including three projects at the feasibility stage, that have received considerable interest from around the world. To find out more about Avalon Ventures Ltd. (TSX-V: AVL), please visit our website at www.avalonventures.com.

Shares Outstanding as at the date of this release: 47,502,598.

Working Capital: $2.0 million.

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 email their questions and correspondence to AVL@agoracom.com or phone Don Bubar, P.Geo. President, at 416-364-4938. Mr. Bubar is the Qualified Person 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.