American Vanadium Designs Higher Value Vanadium Product Line

AMERICAN VANADIUM CORP. ('American Vanadium? or the 'Company?) (TSX.V:
AVC) (OTCQX: AVCVF) announces that the Company is engineering its
process to include the production of higher valued vanadium products for
the premium chemical and titanium alloying industries without increasing
capital or operating costs. This decision is based on recent laboratory
testing demonstrating the ability to produce high purity vanadium at its
Gibellini Project located in Nevada.

As the Company continues to make progress with the permitting process
and detailed engineering design of the Gibellini Project, the Company
will focus on producing vanadium electrolyte, powders, crystals and
oxide pellets for premium markets such as grid scale flow battery
systems, chemical and pollution control applications as well as for the
aerospace and defense industry.

'As we develop the only domestic vanadium mine, our overriding
corporate objective remains to build the vanadium flow battery business
in the US through partnerships with global technology leaders,? said
Bill Radvak, President and CEO of American Vanadium.'As the
energy storage industry grows over time, it will consume an ever
increasing percentage of our product mix as vanadium electrolyte.In
the meantime, we can now increase project profitability by directing our
product line towards other higher margin products rather than simply
selling 'purple flake' to the steel industry.?

The US currently imports 100% of its raw vanadium products for use in
the critical aerospace and chemical industries. The products come from
countries such as Venezuela, Mexico, China and South Africa. Fifteen
percent of the total vanadium consumption in the US (31 million pounds
vanadium pentoxide equivalent per year) is consumed by the aerospace
industry in the way of titanium vanadium aluminum alloys, while a
further six percent is used in the chemical industry for critical
products such as catalytic converters, sulphuric acid catalyst, etc. The
Gibellini Mine is being designed to produce over 11 million pounds of
vanadium pentoxide equivalent per year.

About American Vanadium Corp.

American Vanadium is developing the only vanadium mine in the United
States. The Company′s Gibellini Project, located in Nevada, is being
designed to economically produce vanadium products for the steel and
alloying industries, as well as vanadium electrolyte for the energy
storage industry. This strategic asset gives American Vanadium the
opportunity to vertically integrate into the highest value market, Micro
Grid Energy Storage. A positive Feasibility Study and updated National
Instrument 43-101 on the Gibellini Project were completed by AMEC E&C
Services in 2011.

ON BEHALF OF THE BOARD

Bill Radvak, President and CEO

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward-Looking Statements: This press release contains
'forward-looking information? within the meaning of applicable Canadian
securities laws, including statements regarding the expected use of
proceeds from the Private Placement, and future plans and objectives for
the Gibellini Project. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of American Vanadium to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking information.
Forward-looking information includes estimates of mine production rates
and mine life, revenues from future mining operations, capital and
operating costs, and pay-back period.Factors that may cause
actual results to vary include, but are not limited to, actual results
of current exploration activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future
prices of vanadium; possible variations in reserves, grade or recovery
rates; changes to capital and operating cost estimate, delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities. Although American Vanadium has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. American Vanadium does not undertake to update any
forward-looking statements, except in accordance with applicable
securities laws.

American Vanadium

Bill Radvak, 604-488-5417

President & CEO

bradvak@americanvanadium.com

or

Mike
Hyslop, 604-488-8795

Director, Corporate Development

mhyslop@americanvanadium.com

or

Web
site: www.americanvanadium.com