8. Property, Plant and Equipment

		Nechalacho					Computer
		REE Project					and Office			Land and		Exploration		Leasehold
		(a)			Airstrip		Equipment			Building		Equipment		Improvements		Total
Cost
	As at September 1, 2017	$	103,618,668		$	646,860	$	218,090		$	74,455	$	683,859	$	94,594	$	105,336,526

	Additions		259,681			-		1,958			16,450		11,673		-		289,762
	Disposals		-			-		-			-		-		-		-

	As at August 31, 2018		103,878,349			646,860		220,048			90,905		695,532		94,594		105,626,288

	Additions		201,097			-		-			-		-		7,020		208,117
	Transfer to asset held for sale		(2,605,147	)		-		-			-		-		-		(2,605,147	)
	Disposals		-			-		(18,911	)		-		-		-		(18,911	)

	As at August 31, 2019	$	101,474,299		$	646,860	$	201,137		$	90,905	$	695,532	$	101,614	$	103,210,347

Accumulated Depreciation
	As at September 1, 2017	$	-		$	243,029	$	161,448		$	6,983	$	622,606	$	94,594	$	1,128,660

	Depreciation expense		-			22,417		18,538			3,384		20,579		-		64,918
	Disposals		-			-		-			-		-		-		-

	As at August 31, 2018		-			265,446		179,986			10,367		643,185		94,594		1,193,578

	Depreciation expense		-			20,624		12,714			4,191		15,705		108		53,342
	Disposals		-			-		(18,411	)		-		-		-		(18,411	)

	As at August 31, 2019	$	-		$	286,070	$	174,289		$	14,558	$	658,890	$	94,702	$	1,228,509

Net Book Value
	As at August 31, 2018	$	103,878,349		$	381,414	$	40,062		$	80,538	$	52,347	$	-	$	104,432,710
	As at August 31, 2019	$	101,474,299		$	360,790	$	26,848		$	76,347	$	36,642	$	6,912	$	101,981,838

a) Nechalacho REE Project, Northwest Territories

The Company owns a 100% interest in eight mining leases covering the Nechalacho rare earth elements deposit ("Nechalacho Deposit") located at Thor Lake in the Mackenzie Mining District of the Northwest Territories.

The property is subject to an underlying 2.5% net smelter returns ("NSR") royalty agreement which can be bought back at the principal amount of $150,000 compounded annually at the average Canadian prime rate from May 2, 1982 to the buyback date, and which currently approximates $1.6 million (the "2.5% NSR Royalty").

During the year ended August 31, 2012, the Company entered into an accommodation agreement (the "Accommodation Agreement") with the Deninu K'ue First Nation ("DKFN"). The DKFN is one of three Akaitcho bands who have used, occupied and have constitutionally protected aboriginal rights with respect to the lands on which the Nechalacho Deposit in the Northwest Territories is located.

The Accommodation Agreement provides for business and employment opportunities for the DKFN related to the Nechalacho Deposit and associated facilities in the Northwest Territories and contains measures to mitigate environmental and cultural impacts that may result from the project development. The Accommodation Agreement also commits the DKFN to supporting timely completion of the environmental assessment, permitting and development processes of the Nechalacho REE Project, and provides for the DKFN to participate in the project economics.

During the year ended August 31, 2019, the Company and an unrelated third party entered into an agreement under which this third party will acquire ownership of the near-surface resources principally in the T-Zone and Tardiff Zones of the property for a total cash consideration of $5.0 million while the Company will retain ownership of the mineral resources below a depth of 150 meters above sea level, a 3.0% NSR royalty (the "3.0% NSR Royalty") and will continue to have access to the property for exploration, development and mining purposes. Avalon has also agreed to waive the 3.0% NSR Royalty for the first five years of commercial production and to grant the third party the option to pay the Company $2 million within eight years of the transaction closing to extend the waiver of this royalty in perpetuity.

This agreement also grants the third party an option to purchase the Company's option in the 2.5% NSR Royalty for an inflation adjusted fixed amount estimated at $1.5 million as at the agreement date, provided that, upon exercising the option, it extinguishes this royalty.

The sale is expected to be completed subsequent to the year ended August 31, 2019. Accordingly, the Company has transferred the carrying cost relating to the near-surface mineral resources of $2,605,147 from the total carrying cost of the Nechalacho REE Project included in Property, Plant and Equipment to Asset Held for Sale. Advance payments totaling $3.2 million had been received by August 31, 2019 and was recorded as Deferred Asset Sale Proceed on the Statements of Financial Position. The balance of $1.8 million was received subsequent to August 31, 2019.

During the year ended August 31, 2019, the Company generated net management fees of $10,204 for services provided to the third party to manage its exploration activities on the property.