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AVL.TO ·

Avalon Announces Conclusion of Funding Agreement

Financings

Avalon Announces Conclusion of Funding

Agreement

Toronto, Ontario--(Newsfile Corp. - November 12, 2025) -

Avalon Advanced Materials Inc.

(TSX: AVL)

(OTCQB: AVLNF) ("Avalon" or the "Company"), a Canadian critical minerals company advancing the

supply of materials essential to a resilient North American supply chain, is pleased to announce it has

concluded its convertible security funding agreement with Lind Global Fund II, LP, managed by The Lind

Partners, a New York-based institutional fund manager, having satisfied all obligations due under the

agreement.

"Avalon is extremely appreciative of Lind's support over the last eight years, providing over $15 million of

invested capital," said Scott Monteith, President and Chief Executive Officer of Avalon. "Concluding the

funding marks another step forward and reflects our commitment to prudent capital management and

long-term shareholder value creation.

Avalon continues to transition into a new phase — one focused on

strategic partnerships, disciplined execution, and the continued advancement of our rare earth and

lithium initiatives."

About The Lind Partners

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and

mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's multi strategy funds

make direct investments ranging from US$1 to US$30 million, invest in syndicated equity placements

and selectively buy on market. Having completed more than 200 direct investments totaling over US$2

billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee

companies since 2011.

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

, email

[email protected]

, 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 statements with respect to concluding financing arrangement and strengthening balance sheet. 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/274016