Mr. Scott Monteith reports

AVALON ADVANCED MATERIALS ANNOUNCES THE OPENING OF THREE STRATEGIC OFFICE LOCATIONS ACROSS CANADA AND THE UNITED STATES

Avalon Advanced Materials Inc. has officially opened three office locations, marking an important milestone in strengthening its regional presence and market connectivity to support the continued advancement of its projects and growth strategy.

"The opening of these offices represents much more than a physical presence. It reflects Avalon's commitment to being where our projects, partners, communities and customers are," said Scott Monteith, president and chief executive officer. "From the Northwest Territories and Northwestern Ontario to key industrial markets in the United States, these locations position us to strengthen relationships, accelerate project advancement and connect Canadian critical mineral resources with the industries that will power the future."

Thunder Bay, Ont., office

To support the development of Lake Superior Lithium Inc.'s proposed lithium hydroxide processing facility, Avalon has established office space in Thunder Bay, Ont., creating a dedicated local presence to support project advancement and stakeholder engagement.

The project is led by project director Glen Smith, who is working closely with engineering partners Nordmin, Primero and other key consultants to advance the feasibility study, which is expected to be completed in Q1 2027.

As the project progresses toward development, establishing a local presence is an important step in building relationships, fostering partnerships and engaging with the regional community. Avalon is committed to understanding how the project can contribute to workforce development, economic growth and the continued evolution of Northwestern Ontario's industrial sector. The company believes Thunder Bay is uniquely positioned with all the resources to play a leading role in strengthening Ontario's and Canada's critical minerals value chain.

To support continuing communication and transparency, Avalon is developing a dedicated Lake Superior lithium project website that will provide project updates, news, milestones, and information as the feasibility study advances and the project moves toward development.

Avalon is also actively engaging with regional educational institutions, including Lakehead University, Confederation College and local community stakeholders to explore opportunities for future work force training, skills development, and industry innovation and partnerships. In addition, the company is committed to meaningful collaboration with first nations communities, local businesses, vendors and suppliers throughout the project life cycle.

The company believes Thunder Bay has the infrastructure, talent, expertise and strategic location necessary to become a cornerstone of Canada's emerging lithium refining industry. Avalon looks forward to becoming an active member of the Thunder Bay community and contributing to the long-term prosperity of a region that will play an important role in Canada's critical minerals future.

Yellowknife, NWT, office

The impacts of the Nechalacho rare-earth element (REE) project extend far beyond the Northwest Territories and across the globe. As the West looks to onshore reliable rare-earth supply chains, Nechalacho's Basal zone contains the materials to position the Northwest Territories as a leading producer of light and heavy rare-earth elements essential for economic competitiveness, advanced manufacturing, clean technologies and national security. To advance this vision, Avalon created a subsidiary company Magmic Rare Earths Inc. to own the Nechalacho Basal zone resource. Magmic has established an office in Yellowknife, creating a dedicated on-the-ground presence to support project development and strengthen engagement across the region.

Led by project director Burl Joseph, Magmic has the potential to play an important role in reducing reliance on foreign supply chains while contributing to the development of a domestic critical minerals industry. Establishing a local office reflects Avalon's commitment to being present in the communities where the company operates and to building lasting relationships that support responsible project development.

As technical studies and project planning continue, Magmic will work closely with indigenous governments and communities, territorial and federal partners, local businesses, educational institutions, and regional stakeholders to identify opportunities for collaboration, work force development and economic growth. The company recognizes that meaningful engagement and strong partnerships are fundamental to the long-term success of the project.

Avalon and Magmic are committed to ensuring the benefits of development extend beyond the project itself by supporting local employment, skills training, business opportunities and regional economic diversification. Through continued collaboration with northern communities and partners, the company aims to help build a sustainable critical minerals industry that creates lasting value for the Northwest Territories.

The company is proud to establish a permanent presence in Yellowknife and look forward to becoming an active participant in the community as it advances the Nechalacho project. By investing in local relationships today, the company is laying the foundation for a project that can support both the future of the Northwest Territories and the growing need for secure North American rare-earth supply chains.

Chicago, Ill., U.S. office

Avalon's critical minerals projects may be in Canada, but the markets they are intended to serve are global. To strengthen its presence within the North American critical minerals ecosystem, Avalon has established an office in Chicago, Ill., creating a strategic hub for engagement with customers, manufacturers, technology companies, defence contractors, battery supply chain participants, and other end users of lithium and rare-earth products.

Led by Avalon's vice-president, corporate development, Chris Senyk, Chicago's central location and proximity to major industrial, automotive, energy storage, advanced manufacturing and defence markets make it an ideal base from which to support Avalon's commercial growth strategy. The office will serve as a focal point for building relationships with potential offtake partners, customers, investors, strategic collaborators and industry stakeholders, who are helping shape the future of North America's critical minerals supply chains.

As Avalon advances both its lithium and rare-earth development initiatives, establishing a presence in the United States reflects the company's commitment to understanding the evolving needs of the market and working directly with the organizations that will ultimately utilize these materials. From data centres, electric vehicles and energy storage systems to advanced electronics, robotics, aerospace technologies and defence applications, the products enabled by critical minerals are becoming increasingly important to economic growth and national security.

The Chicago office will also support Avalon's efforts to build long-term partnerships across the broader manufacturing and industrial ecosystem, helping connect Canadian critical mineral resources with the companies and industries that depend on them. By strengthening relationships throughout the supply chain, Avalon aims to contribute to a more secure, resilient and integrated North American critical minerals industry.

Together with the company's offices in Thunder Bay and Yellowknife, the Chicago office represents another important step in connecting Canadian resources with global markets. The company believes the future of critical minerals will be built through collaboration across borders, and it is proud to establish a presence at the heart of one of North America's most important commodity material centres as it works to support the next generation of manufacturing, technology, energy and defence innovation.

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 yttrium, 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 midstream 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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