Mr. Scott Monteith reports

AVALON ADVANCED MATERIALS INCLUDED IN SPROTT RARE EARTHS EX-CHINA ETF (REXC)

Avalon Advanced Materials Inc. has been added to the holdings of the newly launched Sprott Rare Earths Ex-China ETF (REXC), managed by Sprott Asset Management.

The Sprott Rare Earths Ex-China ETF is designed to provide investors with exposure to companies operating across the rare-earths supply chain outside of China, by investing at least 80 per cent of its total assets in securities of the Nasdaq Sprott Rare Earths Ex-China Index (NSREXC). The index is designed to track the performance of global companies engaged in the mining, separation, refining and processing of rare-earth elements, while excluding companies domiciled in or primarily operating in China.

Inclusion in the ETF is subject to continuing eligibility criteria, periodic rebalancing and other changes determined by the applicable methodology, and there can be no assurance that the company will remain a constituent.

The launch of Sprott Rare Earths Ex-China ETF reflects growing investor interest in companies positioned to support the development of rare-earth supply chains outside China, as governments increasingly prioritize supply chain resilience and national security.

Rare-earth elements are essential inputs for a wide range of strategic applications, including electric vehicles, wind turbines, advanced electronics and defence systems, while much of the world's processing capacity remains concentrated in China. Within the sector, economic value is highly concentrated in a few select magnet rare-earth elements -- particularly neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb) -- which are used in high performance permanent magnets. Avalon's Nechalacho rare-earth elements project, located in the Northwest Territories, has significant exposure to these magnet rare-earth elements, positioning the company toward the most economically important segment of the rare-earth market while supporting the development of a more secure North American supply chain.

"We are pleased to be included in REXC at a time when investors and policymakers are increasingly focused on building resilient rare-earth supply chains outside China," said Scott Monteith. "We believe Avalon's Nechalacho project offers long-term exposure to strategically important rare-earth elements directly aligned with the materials that underpin electrification, advanced manufacturing and long-term supply chain security."

About Avalon Advanced Materials Inc.

Avalon Advanced Materials is a Canadian critical minerals company focused on advancing lithium and rare-earth elements -- two of the fastest-growing segments of the global energy transition. The company is developing strategic assets to participate in high-growth markets and support the buildout of secure North American supply chains. Avalon is advancing the Nechalacho rare-earth elements and zirconium project in the Northwest Territories, which contains all light and heavy rare-earth elements, as well as yttrium, zirconium, tantalum and niobium -- critical minerals used in advanced technologies across the communications, defence, advanced technologies and energy sectors. The company is also focused on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium Inc., Ontario's first midstream lithium hydroxide processing facility, located in Thunder Bay. This facility is expected to serve as a cornerstone of North America's integrated battery materials supply chain, transforming Northern Ontario lithium into essential inputs for transportation, grid storage and advanced manufacturing.

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