Mr. Scott Monteith reports

AVALON ADVANCES SUSTAINABILITY EFFORTS WITH PROPOSED SOLAR FARM AT ITS THUNDER BAY INDUSTRIAL SIT

Avalon Advanced Materials Inc. plans to develop a zero-emission solar farm at its 100-per-cent-owned Thunder Bay industrial site, the future home of Avalon's planned lithium processing facility. This initiative underscores Avalon's commitment to sustainability and positions the province as a leader in advanced manufacturing and clean energy.

The proposed solar farm will repurpose a portion of the site land, which is unused and non-productive and will use additional rooftop area once the facility is built. The renewable energy generated, with the potential for expansion through battery storage technology, could fully support the energy requirements of the lithium processing facility. This clean energy will help offset the facility's carbon footprint, contributing significantly to Avalon's goal of achieving net-zero emissions.

Strategically located near the 115-kilovolt P1T and P1P electrical grid distribution lines and close to the H1 Port Arthur transfer station, the solar farm will benefit from reduced transmission and distribution losses, thereby enhancing energy efficiency. By harnessing local solar energy production, Avalon will reduce its carbon impact and contribute to the region's broader sustainability footprint.

Scott Monteith, chief executive officer of Avalon, commented: "Our commitment to sustainability and ensuring innovative design components at our lithium processing facility is about ensuring we build with the future in mind. While there is work ahead to be done, Avalon is keen to integrate this solar capacity into the energy load of our project, helping us minimize our footprint."

The energy generated by the solar farm can also be fed into the grid, providing clean energy to local communities, including first nations, and reinforcing Avalon's role as a leader in sustainable development.

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 project and the Lilypad lithium-cesium project. 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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