From (m)

To (m)

Interval (m)

Cu %

Mineralisation area

248

248.45

0.45

1.92

Eastern

294.45

298

3.55

0.86

Eastern

318

357.55

39.55

0.81

Main Lode

including

318

326.6

8.6

1.27

Main Lode

320

324.5

4.5

2.00

Main Lode

334.35

357.55

23.2

0.88

Main Lode

including

347.8

357.55

9.75

1.48

Main Lode

353.3

357.55

4.25

2.40

Main Lode

376

382.8

6.8

0.95

Main Lode

Drillhole No.

Easting (mE)

Northing (mN)

RL

(m)

Dip (degrees)

Azimuth (degrees)

EOH (m)

comments

VDD 193W

1,680,816

7,537,131

209

-63

313

400m; Wedge off 193 at 220.3m

downhole

VDD 194

1,681,051

7,537,111

539

-65

311

632.3

VDD 195

1,680,952

7,536,983

530

-65

311

Estimated 780m

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

• The results announced here are from diamond drill core samples. The sampling program is in progress and will be carried out using half core, generally at one meter intervals except where adjusted to geological boundaries. Some spot handheld XRF analyses are reported in the text of the announcement.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Core recovery was good and core has been aligned prior to splitting.

• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

• Diamond drilling was used to obtain ~1m samples (see first point above) from which 3-5 kg will be sent to the laboratory to be pulverised to produce a 250g sample. Then a 50g portion of this sample will be used for multi-element analysis.

Drilling techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• The diamond core was HQ (63.5mm) and NQ (47.6 mm) in size (diameter).

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Diamond core recovery data for this drilling was measured for each drill run and captured in a digital logging software package. The data has been reviewed and core recovery was approximately 100% throughout.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Ground conditions at D Zone are good based on previous drilling, no extra measures were taken to maximise sample recovery.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• No relationship between sample recovery and grade has been established.

Criteria

JORC Code explanation

Commentary

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Drill samples are being logged for lithology, weathering, structure (diamond core), mineralogy, mineralisation, colour and other features. Logging and sampling is carried out according to Avalon's internal protocols and QAQC procedures which comply with industry standards.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

• Drill samples are logged for lithology, weathering, structure (diamond core), mineralogy, mineralisation, colour and other features. Core is photographed both wet and dry.

• The total length and percentage of the relevant intersections logged.

• All drill holes are logged in full from start to finish of the hole.

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• Half core is used to provide the samples that are sent for assay. Half core is left in the core trays.

• If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

• Core samples to be collected.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Avalon samples are sent to the ALS Sample Preparation Facility in Pitea, Sweden for sample preparation. The standard ALS sample preparation for drilling samples is: drying the sample, crushing to size fraction 75% >2mm and split the sample to 250g portion by riffle or Boyd rotary splitter. The 250g sample is then pulverised to 85% passing 75 microns and then split into two 50g pulp samples. Then one of the pulp samples is sent to the Vancouver ALS laboratory for base metal analysis.

• The sample preparation is carried out according to industry standard practices.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Avalon uses an industry standard QAQC programme involving Certified Reference Materials 'standards' (with Cu grades ranging from near cut-off, average resource grades and very high grades) and blank samples, which are introduced in the assay batches.

• Standards, blanks and duplicates are submitted at a rate of 1 in 20 samples or one standard, blank and duplicate per hole if the hole has less than 20 samples.

• The check assay results are reported along with the sample assay values in the preliminary and final analysis reports.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• For diamond core, the routine sample procedure is to always take the half/quarter core to the right of the orientation line (looking down hole) or the cut line (in cases where the orientation line was not reliable).

• Once assay results are received the results from duplicate samples are compared with the corresponding routine sample to ascertain whether the sampling is representative.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Sample sizes are considered to be appropriate and correctly represent the style and type of mineralisation.

Criteria

JORC Code explanation

Commentary

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• Avalon uses assay method ME-ICP81, which involves sample decomposition by sodium peroxide fusion. They are then analysed by ICP-AES. The lower detection limit for copper using ME-ICP81 is 0.005% and the upper detection limit is 50%.

• This analysis technique is considered suitable for this style of mineralisation.

• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• No handheld XRF measurements were taken on this hole.

• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• The values of the standards range from low to high grade and are considered appropriate to monitor performance of values near cut-off and near the mean grade of the deposit.

• The check sampling results are monitored and performance issues are communicated to the laboratory if necessary.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• Photographs of sampled intervals are taken and the Competent Person for exploration results for this announcement has viewed photographs of the core.

• The use of twinned holes.

• Twin holes have not been drilled in this area.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Avalon sampling data were imported and validated using an Access database package.

• Discuss any adjustment to assay data.

• Assay data were not adjusted.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Surface collar co-ordinates are surveyed by Differential GPS in Swedish co- ordinate system RT90 gon vast (west) 2.5 by qualified local contract surveyors to a high level of accuracy (1-3cm).

• It has been standard procedure to use the same contract surveyors to survey collar points since Avalon's involvement, so there is high confidence that all the surface drill holes at D Zone are supported by accurate location data.

• High quality down-hole dip and azimuth survey data are recorded.

• Specification of the grid system used.

• RT90 Map projection parameters:

Parameter

Value

Reference Ellipsoid

Bessel 1841

Semi Major Axis

6377397.155 m

Inverse Flattening (1/f)

299.1528128

Type of Projection

Gauss-Krüger (Transverse Mercator)

Criteria

JORC Code explanation

Commentary

Central Meridian:

E15°48'29.8'

(2.5 gon West of the Stockholm Observatory)

Latitude of Origin

0°

Scale on Central Meridian

1

False Northing

0 m

False Easting

1500000 m

• RT90 gon vast (west) 2.5 grid north is situated 4.01° to the east of True North.

• Quality and adequacy of topographic control.

• The topographic surface was taken from LIDAR data (airborne laser scanning) that was purchased from Lantmäteriet (the Swedish mapping, cadastral and land registration authority). Data point resolution is 0.5 per metre square and is specified as accurate to 20cm in elevation on distinct surfaces and 60cm in planimetry. The level of accuracy of the LIDAR topographic surface was considered adequate for the purposes of resource estimation. The LIDAR topographic surface has also been verified by the many Differential GPS collar survey co-ordinates.

Data spacing and distribution

• Data spacing for reporting of Exploration Results.

• The drilling was from a wedge hole from VDD 193 and intersected a zone approximately 45m from VDD 193. Data spacing is considered sufficient to establish interpreted continuity between drill holes.

• Diamond drill sampling was generally taken over 1 meter intervals except when adjusted to geological boundaries.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Sufficient continuity in both geology and mineralisation has been established to support the classification of the Company's existing Mineral Resources under JORC Code 2012.

• Whether sample compositing has been applied.

• No sample compositing was done.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• Drilling orientations were appropriate for the predominantly high angle of the mineralised intersections providing representative samples.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The company does not believe that any sample bias had been introduced which could have a material effect on the resource model, particularly given the good correlation of mineralisation between holes.

Criteria

JORC Code explanation

Commentary

Sample security

• The measures taken to ensure sample security.

• Avalon sampling procedures indicate individual samples were given due attention.

• ALS is an internationally accredited laboratory that has all its internal procedures heavily scrutinised in order to maintain their accreditation.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• Avalon's sampling techniques and data have been audited multiple times by independent mining consultants during the process of reporting a JORC Compliant Mineral Resource on the various mineral deposits that make up the Viscaria Copper Project (A Zone, B Zone, and D Zone). These audits have always resulted in the conclusion that Avalon's sampling techniques and data are industry standard and suitable for the purposes of reporting a JORC Compliant Mineral Resource.

• All historical data has been validated and migrated into an access database. Checking was carried out at the data entry stage for interval error and any significant data issues were resolved. Procedures exist to standardise data entry and senior geological staff from Avalon regularly vetted sampling procedures.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The D Zone Prospect is covered by Exploration Permit Viscaria nr 101. The D Zone Mineral Resource is also covered by Exploitation Concession Viscaria K nr 4.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Exploration Permit Viscaria nr 101 is valid until the 16/10/2015. Exploitation Concession Viscaria K nr 4 is valid until the 16/01/2037.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• The historic drilling at the D Zone Prospect was completed by Viscaria AB (owned by Outokumpu OY) during the period 1985 till 1997.