Mr. Scott Monteith reports

AVALON UNVEILS THIRD-PARTY ECONOMIC AND LABOUR STUDY FOR ITS THUNDER BAY, ONTARIO LITHIUM PROCESSING FACILITY

Avalon Advanced Materials Inc. has released the results of a third party study conducted by RIAS Inc., an Ottawa-based consulting firm. This report, based on the recent preliminary economic assessment (PEA) and customized input-output multipliers from Statistics Canada, details the significant economic and labour impacts from Avalon's proposed lithium processing facility in Thunder Bay, Ont.

The full report is available on the company's website.

Scott Monteith, chief executive officer of Avalon, stated: "The report illustrates the substantial benefits to the city of Thunder Bay and aligns well with the Sustainable Jobs Act, helping create the net-zero workforce of the future. The positive impacts will ripple through the community, supporting local businesses and enhancing the region's overall economic vitality. This initiative promises long-term prosperity, enriching the city and creating lasting value for its residents."

Local to national benefits over the project life span (2027 to 2058)

The project will have a significant economic multiplier effect across the Thunder Bay community, to the Northwestern Ontario region, to the province and to the country through GDP, labour income and employment. The study assessed the economic impacts of the two principal phases of the project: construction beginning in 2027 and operations starting in 2028.

The report also underscores the project's transformative role in developing human capital, furthering the aims of the Sustainable Jobs Act, creating a stronger synergy between economic growth and work force development. With 128 workers projected to be permanently employed full-time during operations (100 in non-administrative roles and 28 in administrative positions), the project will offer opportunities in trades such as millwrights, mechanics, electricians, metallurgical engineers and process operators.

Ken Boshcoff, mayor of Thunder Bay, remarked: "Avalon's project is poised to play a crucial role in revitalizing Canada's economy, particularly in Northwestern Ontario. It aligns perfectly with Premier Ford's strategy to unite northern resources with southern industrial strength, boosting the region's presence in technologies like electric vehicles and battery storage. With the numerous advantages of Avalon's site, its very encouraging to see how the project will create jobs and ensure long-term prosperity."

This study builds upon preliminary analysis conducted by the Northern Policy Institute (NPI), a report commissioned by the Thunder Bay Community Economic Development Commission (CEDC), which assessed Thunder Bay's operational readiness for a lithium processing facility.

The NPI report provided an initial assessment of the region's capacity to support a lithium processing facility. This new report delves deeper into defining and outlining the needs and benefits of a skilled work force. The CEDC is committed to helping develop the work force capable of meeting the demands of this emerging lithium processing sector.

Doug Blair, president of Rias, noted: "Avalon's lithium project is meticulously planned, with a strategic focus on long-term economic growth, community impact and sustainability. Through firsthand experience and comprehensive impact assessments, we've seen how projects like this one can transform communities, boost local economies and create lasting employment opportunities. Avalon is well positioned to deliver these real-world benefits."

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-caesium projects. Avalon is also working to develop its Nechalacho rare earths and zirconium project located in Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defence industries among other sectors.

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