Avalon and Engina Successfully Recovered 15 Rare Earth Elements with Breakthrough Processing Technology for Nechalacho Project, NWT Canada Engina's proprietary Hybrid Supercritical Refining process delivers >90% recoveries with a largely closed-loop
Avalon and Engina Successfully Recovered 15
Rare Earth Elements with Breakthrough
Processing Technology for Nechalacho
Project, NWT Canada
Engina's proprietary Hybrid Supercritical Refining process
delivers >90% recoveries with a largely closed-loop
environmentally friendly system, low-impact design and low
costs.
Toronto, Ontario--(Newsfile Corp. - November 24, 2025) -
Avalon Advanced Materials Inc.
(TSX: AVL)
(OTCQB: AVLNF) ("Avalon" or the "Company") and Engina Corporation ("Engina") have completed a
joint assessment confirming that Engina's proprietary Hybrid Supercritical Refining (HSR) process, a
next-generation rare earth extraction technology that can deliver breakthrough performance for Avalon's
Nechalacho in the Northwest Territories, Canada.
The assessment confirms that Engina's next-generation hydrometallurgical process, which integrates a
unique caustic pretreatment together with supercritical fluid extraction, demonstrated overall rare earth
recoveries exceeding 90% in preliminary bench-scale testing across the full rare-earth element inventory
present in the Nechalacho concentrate under moderate operating conditions, while also significantly
reducing chemical consumption and environmental impact compared with the conventional acid bake-
water leach (ABWL) and
molten caustic-cracking routes previously assessed by Avalon.
The assessment was led by internationally recognized Dr. Gisele Azimi of Engina Corporation. Azimi,
P.Eng., is a leading expert in hydrometallurgical process innovation and advanced materials
engineering.
Figure 1: Uses of Light and Heavy Rare Earth Elements (REEs)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3386/275564_34748974c4056926_001full.jpg
Transformative Results and Environmental Benefits
The HSR process represents a step-change in rare earth extraction technology. It is designed as a
largely closed-loop, water-lean system. Based on modelling and design targets the process is designed
to eliminate the need for sulphuric acid-plant operations, associated emissions and sulphate tailings,
and produce near-neutral, non-hazardous solids. Based on the modelling results the process significantly
reduces neutralization waste compared with existing hydrometallurgical circuits and operates with
minimal combustion and no sulphuric acid handling, minimizing greenhouse-gas emissions and
improving worker safety. This innovative method, leveraging well understood and proven separation
technology from other process intensive industries uses recycled CO
as the principal extraction solvent.
The initial design and simulations developed by Engina show that the hybrid circuit is expected to offer a
lower specific energy intensity than the ABWL or traditional caustic-cracking processes and may be
evaluated for integration in Avalon's Pine Point envisioned plant pending successful pilot-scale validation
and subsequent engineering studies.
While the current HSR flowsheet delivered in the Technology Assessment focuses on rare earth
extraction, the process modelling indicates that the caustic pretreatment step converts zirconium- and
niobium-bearing minerals into reactive forms. Optional downstream unit operations - which are not part
of the current HSR configuration and have not yet been experimentally validated - could be developed to
selectively recover these accessory critical minerals. These pathways may be evaluated in future
engineering phases based on technical feasibility and economic merit.
Strategic Collaboration with Avalon
The Nechalacho Project, one of Canada's major rare earth projects, provides Avalon with an opportunity
to establish a sustainable, low-carbon supply chain for critical materials essential to clean-energy,
medical, and defence technologies. Engina's work supports Avalon's commitment to next-generation,
low-impact processing that enhances Canada's position in the global rare earth market and exemplifies
Canadian-led innovation in critical mineral processing.
Scott Monteith, President and CEO commented, "We are very thrilled for this breakthrough in the
extraction of some of the most crucial rare earth elements (REE). We live in a world today that clearly
indicates the urgent need for REE and to avoid the dominance of a single producer nation. With a
feasibility study that was completed in 2013 and approximately $100 million spent on the Nechalacho
REE project, we believe this is the most advanced REE project that could be in production shortly. This
collaboration demonstrates how Canadian innovation can redefine critical mineral processing. Engina's
HSR process combines chemical efficiency, environmental responsibility, and scalability—addressing
the industry's urgent need for cleaner rare earth refining solutions."
Dr. Gisele Azimi of Engina Corporation commented, "The Hybrid Supercritical Refining platform offers
Avalon a genuinely new pathway for responsible rare earth extraction. Achieving high recoveries while
reducing reagent use and environmental load is a rare combination in our industry. We are pleased with
the initial results and are committed to working with Avalon to advance the systematic testing required to
determine the technology's full commercial potential."
Next Steps Toward Commercialization
The Technology Assessment Report, delivered to Avalon in November 2025, outlines a multi-phase
development roadmap:
i
.
Bench-scale variability testing using multiple Nechalacho concentrate samples to confirm
performance across ore types.
ii
.
Integrated continuous mini-loop operation to validate mass and energy balances and solvent
recyclability.
iii
.
Techno-economic and environmental assessment, leading to pilot design.
iv
.
Continuous pilot plant (TRL 7-8) and full feasibility study to support commercial deployment.
These next steps will establish the design basis for Avalon's future rare earth recovery facilities and
reinforce Engina's position as a technology partner of choice for sustainable critical mineral extraction.
Qualified Person and NI43-101 Disclosure:
The scientific and technical data contained in this news release were reviewed and approved by Dr.
Gisele Azimi, P.Eng., a non-independent "Qualified Person" under the National Instrument 43-101
Standards of Disclosure of Mineral Projects.
IP and Legal Disclaimer
The Hybrid Supercritical Refining (HSR) process referenced in this release is proprietary to Engina
Corporation and is patent-protected and patent-pending. No rights or licenses to Engina intellectual
property are granted or implied by this release.
About Engina Corporation
Engina Corporation is a Canadian technology and engineering company specializing in innovative
metallurgical, chemical, and energy systems. Engina's proprietary HSR platform offers a cleaner, closed-
loop alternative to conventional hydrometallurgical processing of complex ores. The company provides
R&D, process-design, and techno-economic evaluation services to the mining, energy, and materials
industries. For more information, please visit
www.engina.ca
or email
.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian critical minerals company advancing the supply of
materials essential to a resilient North American supply chain. The Company is focused on developing
strategic assets that support secure, domestic supply chains and long-term economic growth. 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, defense, clean
tech, 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 will serve as a vital link between
northern Ontario's lithium resources and the growing EV battery manufacturing base in southern Ontario
and North America. Through a joint venture with SCR Sibelco NV, Avalon is advancing the Separation
Rapids Lithium Project near Kenora, Ontario, as well as continuing exploration at its Snowbank lithium
and Lilypad lithium-cesium deposits.
For further information regarding Avalon Advanced Materials Inc., please visit
www.avalonadvancedmaterials.com
, or call 416-364-4938.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is not limited to, statements related to
project development plans, pilot programs, and potential performance of proprietary processes.
Generally, forward-looking information can be identified by the use of forward-looking terminology
such as "add" or "additional", "advancing", "anticipates" or "does not anticipate", "appears",
"believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion", "deliver",
"demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion", "expect" or
"expectations", "forecasts", "forward", "goal", "improves", "increase", "intends", "justification", "plans",
"potential" or "potentially", "promise", "prospective", "prioritize", "reflects", "robust", "scheduled",
"suggesting", "support", "top-tier", "updating", "upside", "will be" or "will consider", "work towards", or
variations of such words and phrases or state that certain actions, events or results "may", "could",
"would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or achievements of the Company to
be materially different from those expressed or implied by such forward-looking information, including
risks associated with mineral exploration and development operations such as: environmental
hazards and economic factors as they affect the cost and success of the Company's capital
expenditures, the ability of the Company to obtain required permits and approvals, the ability of the
Company to obtain financing, uncertainty in the estimation of mineral resources, uncertainty with
respect to the ability to successfully construct and develop the Company's lithium processing facility,
the price of lithium, no operating history, no operating revenue and negative cash flow, land title risk,
the market price of the Company's securities, the economic feasibility of the Company's mineral
resources and the Company's commercial viability, inflation and uncertain global economic
conditions, uncertain geo-political shifts and risks, successful collaboration with indigenous
communities, changes in technology and advancements in innovation may impact the development
of the Company's technology innovation centre and its lithium hydroxide processing facility, future
pandemics and other health crises, dependence on management and other highly skilled personnel,
title to the Company's mineral properties, the ongoing war in Ukraine and Israel, extensive
government and environmental regulation, reliance on artificial intelligence technology to influence
mining operations, volatility in the financial markets, uninsured risks, climate change, threat of legal
proceedings, as well as those risk factors discussed or referred to in the annual information form of the
Company dated November 28, 2024 (the "AIF") under the heading "Description of the Business -
Risk Factors". Forward-looking information is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience and perception of trends,
current conditions and expected developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date that such statements are made, but which
may prove to be incorrect. Although the Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable, undue reliance should not be placed on
forward-looking information because the Company can give no assurance that such expectations will
prove to be correct. In addition to other factors and assumptions identified in the AIF, assumptions
have been made regarding, among other things: management of certain of the Company's assets by
other companies or joint venture partners, the Company's ability to carry on its exploration and
development activities without undue delays or unbudgeted costs, the ability of the Company to obtain
sufficient qualified personnel, equipment and services in a timely and cost effective manner, the
ability of the Company to operate in a safe, efficient and effective manner, the ability of the Company
to obtain all necessary financing on acceptable terms and when needed, the accuracy of the
Company's resource estimates and geological, operational and price assumptions on which these are
based and the continuance of the regulatory framework regarding environmental manners. Readers
are cautioned that the foregoing list is not exhaustive of all factors and assumptions that may have
been used. Although the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not undertake to update any forward-
looking information, except in accordance with applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/275564