Mr. Zeeshan Syed reports

AVALON ANNOUNCES RESULTS OF INDEPENDENT VALUATION REPORT FOR THE SITE OF ITS PLANNED THUNDER BAY LITHIUM PROCESSING FACILITY

Avalon Advanced Materials Inc. has released the results of an order of magnitude site infrastructure valuation report prepared by AFRY Canada for the site of Avalon's proposed lithium processing facility in Thunder Bay, Ont.

The report highlights that the replacement cost of the infrastructure at Avalon's Thunder Bay site, factoring in its current condition, is estimated to be $46-million. In addition, the land value is estimated at between $11-million and $16-million, which brings the total estimate of the site value to be between $57-million and $62-million.

The findings highlight the value proposition inherent in Avalon's Thunder Bay site, including existing buildings, underground services, electrical services, rail spurs and a deepwater port.

The site encompasses 154 acres of land and 223 acres of water and shoreline, totalling 377 acres. It includes several buildings: an office building covering 3,545 square metres over three floors, a warehouse spanning 4,599 square metres and as well as other structures. Underground services consist of potable water pipes, sanitary sewer systems, natural gas lines and fire protection piping, among others. The existing electrical infrastructure will be sufficient to service the planned processing facility. The rail spurs span 3,659 metres to the site and 919 metres on site, with a mainline switch and five on-site switches for optimizing freight movement. The deepwater port, which measures 214 metres long by 47 metres wide, is expected to be sufficient to receive feedstock and other material on standard commercial ships.

Avalon chief executive officer Scott Monteith noted, "This valuation report reinforces Avalon's conviction that our perfectly located property in Thunder Bay accelerates the timeline for the construction of Ontario's first lithium hydroxide conversion facility, with major infrastructure already in place."

About Avalon Advanced Materials Inc.

Avalon Advanced Materials is a Canadian advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. The company, through its joint venture with SCR-Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, Ont., while also continuing to advance the Snowbank lithium and Lilypad lithium-cesium projects. Avalon is also working to develop its Nechalacho rare earth and zirconium project located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defence industries among other sectors. In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontario's first mid-stream lithium hydroxide processing facility in Thunder Bay, Ont., a vital link bridging the lithium resources of the north with the downstream EV (electric vehicle) battery manufacturing base in the south.

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