Toronto, Ontario--(Newsfile Corp. - September 29, 2026) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") and Lakehead University ("Lakehead") are pleased to announce the signing of a Memorandum of Understanding ("MOU") to explore opportunities for collaboration in critical minerals research, processing innovation, regional workforce training, development and education.

With Ontario's critical minerals processing industry expanding, the MOU establishes a framework for Avalon and Lakehead to identify and pursue areas of mutual interest in support of Avalon's proposed Lake Superior Lithium refinery development in Thunder Bay and the continued growth of the sector in Northwestern Ontario. Recognizing the significant research, innovation and workforce opportunities associated with the region's expanding critical minerals processing industry, Avalon and Lakehead will explore opportunities to strengthen regional talent development and build the skilled workforce needed to support the sector's growth.

"Both Avalon and Lakehead University recognize the significant opportunity that the growth of the critical minerals and processing industry presents for Northwestern Ontario. As this industry continues to expand, it is more important than ever that projects are advancing, innovation is being supported and the skilled workforce needed to sustain that growth is being developed," said Scott Monteith, President and Chief Executive Officer, Avalon Advanced Materials

"Avalon has long believed that Northern Ontario has the potential to become a leading hub for critical minerals processing, particularly lithium, given its proximity to mineral resources and established transportation and distribution networks. We are thrilled to be partnering with Lakehead University to help advance this vision and ensure the region is well positioned to capture the economic, innovation and workforce opportunities that come with this growing industry."

Potential areas of collaboration will focus on advancing critical minerals research and innovation, with particular relevance to lithium processing and the development of associated technologies. Avalon and Lakehead will also explore how the University's analytical, laboratory, testing and technical capabilities could support research, process development and commercialization activities at Avalon's proposed on-site Technology Innovation Centre.

A key focus of the collaboration will be workforce development. Avalon and Lakehead intend to continue engagement on current and future talent requirements and explore opportunities to inform academic programs, training initiatives, experiential learning and professional development aligned with the needs of the critical minerals sector. This includes exploring the potential development of a new mineral processing engineering stream within Lakehead University's degree programs.

The MOU also provides a framework for the parties to explore collaborative funding opportunities through provincial, federal and industry-supported research and innovation programs, as well as opportunities for knowledge exchange among Avalon personnel, Lakehead researchers, faculty, staff and students through workshops, internships, graduate research projects and other mutually beneficial activities.

"Lakehead University is committed to working with industry and partners to advance research, innovation and talent development in areas that are important to the economic future of Northern Ontario and Canada," said Dr. Langis Roy, Vice-President, Research & Innovation at Lakehead University. "We are pleased to enter into this MOU with Avalon to leverage their project development and explore opportunities to strengthen our research and educational supports in the evolving critical minerals sector."

About Lakehead University

Lakehead University is a comprehensive university with campuses in Thunder Bay and Orillia, Ontario. Through its commitment to research, innovation and student success, Lakehead University works with communities, industry and partners to address important regional, national and global challenges.

For more information, please visit Lakehead University

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. 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 build-out 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 zirconium, tantalum, and niobium-critical minerals used in advanced technologies across the communications, defense, 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.

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "add" or "additional", "advancing", "anticipates" or "does not anticipate", "appears", "believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion", "deliver", "demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion", "expect" or "expectations", "forecasts", "forward", "goal", "improves", "increase", "intends", "justification", "plans", "potential" or "potentially", "promise", "prospective", "prioritize", "reflects", "robust", "scheduled", "suggesting", "support", "top-tier", "updating", "upside", "will be" or "will consider", "work towards", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors discussed or referred to in the annual information form of the Company dated November 26, 2025 (the "AIF") under the heading "Description of the Business - Risk Factors". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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