TMX group

Incentive Stock Options Granted

TORONTO, June 21 /CNW/ - Avalon Ventures Ltd., (TSX-V: AVL) (the
"Company") is pleased to announce that a Phase 2 diamond drilling program has
commenced on the Red Hill copper-zinc-silver-gold VMS project located near
Kamloops, B.C. The program will involve a minimum of 600 metres of drilling in
4-6 holes to test Time Domain EM ("TEM") geophysical conductors detected in
surface and down-hole surveys completed in May over the Red Hill sector, where
the most encouraging results were obtained during the Phase 1 program
completed last fall.
The top priority target is an off-hole TEM conductor detected in hole
No.23 from the Phase 1 program 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, 0.79g/t silver over 2.95 metres. The off-hole conductor
indicates an extension to the latter intersection which was detected near the
bottom of the hole at a depth of approximately 150 metres. The upper
intersection is interpreted to be a zone of stringer copper mineralization.
These intersections are situated near a hole drilled in 1984 that reportedly
intersected 2.58 metres averaging 0.59% Cu, 1.6% Zn, 1.91g/t Ag, and 0.39g/t
Au.
The drilling program is being supervised by Dr. J-P. Desrochers, P.Geo.
and Dr. D. L. Trueman, P.Geo. It is scheduled be completed by June 30, 2006.
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.

Incentive Stock Options

The Company also announces that it has granted an aggregate of 250,000
incentive stock options exerciseable at a price of $1.08 per share, of which
150,000 are granted to a senior officer and 100,000 are granted to a new
investor relations consultant. The consultant's options will vest at the rate
of 25% every three months following the date of grant of the options and 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.

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: $2.4 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
e-mail their questions and correspondence to AVL(at)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.

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