American Vanadium Closes Financing

AMERICAN VANADIUM CORP. ('American Vanadium? or the 'Company?)
(TSX.V: AVC) (OTCQX: AVCVF) is pleased to report that it has completed
its previously announced non-brokered private placement (the 'Private
Placement?) and has issued a total of 3,225,854 units at the price of
CDN$0.62 per unit (a 'Unit?) for total gross proceeds to the Company of
approximately CDN$2,000,030.

Each Unit consists of one common share ('Common Share?) in the capital
of the Company and one-half of a non-transferable common share purchase
warrant (each whole warrant, a 'Warrant?). Each whole Warrant will
entitle the holder thereof to purchase one Common Share at the price of
CDN$1.00 each until March 12, 2014. All securities issued in connection
with the Private Placement are subject to a four month hold period,
expiring January 13, 2013.

A 7% cash finder′s fee was paid on a portion of the Private Placement.
The net proceeds of the Private Placement will be used for mine design,
environmental permitting and general working capital.

The Private Placement is subject to final regulatory approval.

The securities have not been registered under the United States Securities
Act of 1933, as amended, or any state securities laws and may not be
offered or sold in the United States absent registration thereunder or
an applicable exemption from such registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy any of the securities in the United States.

About American Vanadium Corp.

American Vanadium is developing the only primary vanadium mine in the
United States. The Company′s Gibellini Project, located in Nevada, is
being designed to economically produce vanadium products for the
chemical and titanium 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, mass energy storage.
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.

A positive Feasibility Study and updated National Instrument 43-101 on
the Gibellini Project were completed by AMEC E&C Services in 2011.

American Vanadium trades on the TSX Venture Exchange as a tier-one
company under the symbol 'AVC?, the OTCQX Market under the symbol
'AVCVF? and the Frankfurt Stock Exchange under the symbol '0UA?.

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 estimates; and 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 CORP.

Bill Radvak, President & CEO

Phone:
(604) 488-5417

Email: bradvak@americanvanadium.com

or

Mike
Hyslop, Director, Corporate Development

Phone: (604) 488-8795

Email:
mhyslop@americanvanadium.com

Web
site: www.americanvanadium.com