Mr. Scott Monteith reports

AVALON ADVANCED MATERIALS INTERSECTS 1.67% LI2O OVER 105.6M AND 1.68% LI2O OVER 66.2M AT BIG WHOPPER DEPOSIT, SEPARATION RAPIDS

Avalon Advanced Materials Inc. has released the first batch of drill results for the 2024 winter drill campaign (total 10 holes) from the Separation Rapids project in Kenora, Ont. The 2024 winter drill campaign was conducted by the joint venture company Separation Rapids Ltd. Separation Rapids is a joint venture between SCR-Sibelco NV (Sibelco; 60-per-cent ownership) and Avalon Advanced Materials (40-per-cent ownership).

The results represent 512 assay results from five diamond drill holes completed as part of the 2024 expansion and infill drill campaign at the current 750-metre strike long Big Whopper deposit. The successful drill program focused on upgrading the 2023 mineral resource estimation classification as well as to expand the mineral resources.

Highlights include:

• SR24-114 intersected 1.67 per cent Li2O (lithium oxide) over 105.6 metres from 313.5 metres depth and 1.78 per cent Li2O over 21.5 metres from 143.5 metres depth;
• SR24-113 intersected 1.68 per cent Li2O over 66.2 metres from 292.2 metres depth and 1.95 per cent Li2O over 32.6 metres from 121.0 metres depth;
• SR24-115 intersected 1.81 per cent Li2O over 13.8 metres from 93.5 metres depth;
• SR24-116 intersected 1.69 per cent Li2O over 8.9 metres from 313 metres depth and 1.67 per cent Li2O over 12.7 metres from 325.3 metres depth.

All quoted intersections comprise a cutoff grade of 0.5 per cent Li2O. All significant assay intervals are reported in Table 1.

Scott Monteith, chief executive officer and director of Avalon Advanced Materials, commented: "We are very excited with these fantastic drill results, which are a true reflection of the exploration upside potential of the project. Our technical team is eager to follow up on some of the longer intercepts to better understand the depth potential for resource expansion. We continue to advance on our Thunder Bay lithium processing facility and expect more news in the coming weeks."

The results from the first batch of the 2024 drilling campaign identifies areas of added value for the main pegmatites with SR24-113 and SR24-114 both intersecting values greater than or equal to 0.5 per cent Li2O over 50-metre intervals, opening the main pegmatite. Eastern stepout drilling of the current conceptual pit shows continued mineralization filling in a gap with the potential to upgrade mineral resource classification.

Progress at Separation Rapids continues to advance with continuing geotechnical work and mineralogical studies to facilitate in the eventual mine plan and processing optimization.

Hydrogeological testing and evaluation will be starting in August with continued monitoring and a follow up phase 2 planned for review for the upcoming 2025 program.

Environmental fieldwork was completed in June, 2024, as part of the baseline and permitting processes and is in reporting and review stages. Continued engagement with local communities has been and will continue to be a priority.

A property wide mapping and sampling program will commence late July, 2024, with a focus on satellite targets and areas of limited geological data for further evaluation of the promising potential on the property. The outlined program will prioritize following an interpreted trend from the Big Whopper to the western extent of the property. This mapping program will cover approximately five kilometres along strike.

Qualified persons

Disclosure of a scientific or technical nature in this news release was prepared under the supervision of Jessica Borysenko, PGeo, Ontario. Member No. 2279, manager of Geology and Mines, Canada, for Separation Rapids. Ms. Borysenko is a qualified person for the purposes of National Instrument 43-101, who has reviewed and approved the technical information included in this news release.

Quality assurance/quality control (QA/QC)

QA/QC protocols followed at the Big Whooper include the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to ALS in Thunder Bay.

Prep and analytical methods used

PREP-33D -- log, crush -- fine crushing 90 per cent greater than two millimetres, split, pulverize one-kilogram split to 95 per cent less than 106 um.

1. ME-4ACD81 -- This is a multielement analysis using four-acid digestion, that includes lithium to 10,000 parts per million (1 per cent) Li (2.15 per cent Li2O)
2. ME-ICP06 -- A "whole rock" analysis that covers components such as silicon, sodium, potassium and iron so is useful as a check on rock type, feldspar content and type, and amphibolite content.
3. ME-MS81 -- A fusion multielement analysis that includes important pegmatite elements such as Rb (rubidium), Ta (tantalum), Nb (niobium) and Sn (tin).
4. F- IC881 --Aa fluorine specific analysis that clearly indicates whether lepidolite is present in the rock. Any value over 10,000 ppm (1 per cent) F is likely to be unit 6d -- the lepidolite-bearing unit.

Any sample that exceeds the lithium limits for ME-4ACD81 (1 per cent Li, or 2.15 per cent Li2O) is reanalyzed using method ME-ICP82b -- a lithium specific method with limit of 10 per cent Li (21 per cent Li2O). Pulps are to be returned to the project site.

Board update

The company is also pleased to announce that Alan Ferry has been reappointed as chair of the board. Mr. Jan Holland has resigned from the company's board of directors. The company thanks Mr. Holland for his service to the company over the last year.

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 earths 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 battery manufacturing base in the south.

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