Mr. Scott Monteith reports

AVALON ADVANCED MATERIALS AND LAKEHEAD UNIVERSITY SIGN MEMORANDUM OF UNDERSTANDING TO ADVANCE CRITICAL MINERALS PROCESSING INNOVATION AND REGIONAL WORKFORCE DEVELOPMENT IN NORTHERN ONTARIO

Avalon Advanced Materials Inc. and Lakehead University have signed a memorandum of understanding (MOU) to explore opportunities for collaboration in critical minerals research, processing innovation, regional work force 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 work force 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 work force 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 work force 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 work force 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 work force 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 and 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, Ont. 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.

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 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 mid-stream 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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