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Avalon Announces Start of Winter Drilling Program on Separation Rapids Lithium Project

Exploration Programs

Avalon Announces Start of Winter Drilling Program on

Separation Rapids Lithium Project

Toronto, Ontario--(Newsfile Corp. - January 25, 2018) -

Avalon Advanced Materials Inc.

(TSX: AVL) (OTCQX: AVLNF)

("Avalon" or the "Company") is pleased to announce that it has commenced a diamond drilling program on its Separation

Rapids Lithium Project near Kenora, Ontario. At least seven holes totalling 1500 metres are planned in order to increase the

total lithium resources in the main Separation Rapids lithium deposit. The entire work program has a budget of $500,000. The

deposit is open for expansion to depth below 200 metres, with the deepest holes at present indicating similar widths and grades

as in the near surface holes. In addition, the lepidolite-rich sub-unit of the main pegmatite is also open for expansion to depth

and along strike.

The main deposit consists of a large, zoned vertical pegmatite dyke averaging 20-30 metres in thickness that has been

structurally flattened, accompanied by a swarm of narrower mineralized dykes of similar but variable lithium mineralogy. These

dykes tend to be lepidolite-rich on both the east, west extensions and on the northern side of the main petalite-rich portion of the

deposit. Resource estimates to date have indicated that about 20% of the total tonnage is lepidolite-rich, accompanied by

petalite, and the remaining portion is petalite with subordinate to low lepidolite content.

The diamond drilling program will also test the West Pegmatite, which is about 800 metres along strike from the main deposit.

The West Pegmatite consists of petalite mineralization that is very similar in appearance to the main deposit. Chip sampling has

produced assays of 1.56% Li

2

O across 8.9 metres. The majority of the drilling will be on the main deposit, primarily targeting

lepidolite mineralization, with holes continuing to the adjacent petalite-rich zone at depth as an additional benefit of targeting

lepidolite.

The drilling program is expected to be completed over a period of one month. Significant assay results will be announced when

available.

The technical information included in this news release has been reviewed and approved by the Company's Vice President,

Exploration, Dr. William Mercer, a Qualified Person under NI 43-101.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in niche market metals and minerals

with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors

with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently

focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social

responsibility and environmental stewardship are corporate cornerstones.

For questions and feedback, please e-mail the Company at

[email protected]

, or phone Don Bubar, President & CEO at 416-

364-4938.

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation

Reform Act of 1995 and applicable Canadian

securities legislation.

Forward-looking statements include, but are not limited

to, statements

related to

the Company

's planned drilling program, its targets, intentions

and duration, and that significant

assay results will be announced when available.

Generally, these forward-looking statements can be identified by the use of

forward-looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not expect", "is

expected", "scheduled", "targeted", "planned

", or "believes", or variations of such words and phrases or state that certain

actions, events or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or result, "will occur" or

"be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may

cause the actual results, level of activity

, performance or achievements of Avalon to be materially different from those

expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions

management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify

important factors that could cause actual results to differ materially from those contained in forward-looking statements, there

may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results

to differ materially from expected results described in forward-looking statements include, but are not limited to market

conditions, and the possibility of cost overruns or unanticipated costs and expenses

as well as those risk factors set out in the

Company's current Annual Information Form, Management's Discussion and Analysis and other disclosure documents

available under the Company's profile at

www.SEDAR.com

. There can be no assurance that such statements will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-

looking statements have been provided for the purpose of assisting investors in understanding the Company's plans and

objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-

looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in

accordance with applicable securities laws.