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Avalon discovers new lithium pegmatite with grades over 2.5% Li2O at Separation Rapids Lithium Project, Kenora, ON

Drill Results

Avalon discovers new lithium pegmatite with grades over

2.5% Li2O at Separation Rapids Lithium Project, Kenora,

ON

Toronto, Ontario--(Newsfile Corp. - September 4, 2018) -

Avalon

Advanced Materials

Inc.

(TSX: AVL) (OTCQX: AVLNF)

("Avalon" or the "Company") is pleased to report the discovery of a new lithium pegmatite on its 100% owned Separation

Rapids Lithium Property near Kenora, Ontario. The new discovery, named the Snowbank Pegmatite, occurs on the Paterson

Lake claims acquired by Avalon in 2017, approximately four kilometres northwest of the main Separation Rapids lithium deposit.

It was discovered in a large outcrop area traceable for over 100 metres along strike (open under overburden at both ends)

averaging 6 metres wide. Like the main deposit, the lithium occurs primarily in the ore mineral petalite, which occurs as large

crystals up to 15 centimetres in diameter. Individual channel samples have yielded assays of up to 2.51% Li

2

O over 1.1 metres,

indicating that petalite comprises approximately 50% of the mineral content in the rock sampled.

The Snowbank Pegmatite was discovered in the course of a summer geological mapping and geochemical sampling program

on the Paterson Lake claims, following up on other known petalite pegmatite occurrences in the area. The new discovery

illustrates how challenging even coarse grained petalite can be to recognize in the field (due to its similar appearance to

common feldspar) and how much potential there may be for more discoveries in the Separation Rapids area to extend the life

and production capacity for the new operation planned for the main deposit. Next steps will include a first phase drilling program

tentatively planned for winter 2019.

Following the discovery, a preliminary channel sampling program was carried out, focused on the petalite mineralized areas,

with results compiled in the table below. The main Snowbank Pegmatite zone is up to 9 metres wide, but pinches and swells with

some sections bifurcating into two to three smaller parallel dykes from 1 to 3 metres in width, for a combined average width of 6

metres, over the 100 metre long exposure. Individual dykes exhibit classic pegmatite zoning features, with an internal

assemblage of coarse petalite, potassium feldspar, albite and quartz, flanked by narrow albitic border and wall zones. Three

channel samples collected from the petalite mineralized sections of the main Snowbank Pegmatite zone average 1.40% Li

2

O,

while three other parallel dykes, also sampled, locally host similar mineralization over narrower widths.

Highlights include lithium values of 1.53% Li

2

O over 2.6 metres in channel 1A; 1.61% Li

2

O over 2.3 metres in channel 2B; and

1.07% Li

2

O over 2.9 metres in channel 4A - comprising six out of 11 analysed samples. The channel samples are all close to

right angles to the strike of the pegmatite and thus approximate true widths. The values can be compared with the 0.6% Li

2

O

cutoff grade and 1.4% Li

2

O resource grade at the main Separation Rapids lithium pegmatite deposit. The three channels are

distributed over a strike length of just over 30 metres, with spacing averaging about 10 metres, in one discrete pegmatite dyke.

Visible petalite is exposed continuously for about 100 metres. Sampling methods and analysis details are included as footnotes

to the table below.

Avalon's Paterson Lake claims, contiguous with the claims and mining lease hosting the Separation Rapids lithium deposit, host

three previously-known pegmatite occurrences: the Glitter, Wolf and Rattler (of which the Glitter is known to contain petalite).

These occurrences fall within the same geological structure that hosts Avalon's main Separation Rapids deposit. The new

Snowbank Pegmatite is located two kilometres southeast of the Glitter and four kilometres northwest of Separation Rapids, with

potential for more petalite pegmatite discoveries along this minimum six kilometre trend.

The next steps for advancing Avalon's knowledge of the Snowbank Pegmatite, along with the nearby Glitter, Wolf and Rattler

pegmatite occurrences, are further rock sampling, possibly accompanied by trenching, and finally drilling. Avalon now has

multiple drill targets on the western part of the property that would be most easily accessed in winter.

The Paterson Lake claims are located in the traditional territory of the Wabaseemoong Independent Nation of Whitedog,

Ontario. Engagement is ongoing with local Indigenous communities, provincial regulators and municipal government.

The technical information included in this news release has been reviewed and approved by

the

Company's Vice President,

Exploration, Dr. William Mercer, P. Geo (Ont),

who is 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

about the

potential

that

there may be for more discoveries in the Separation Rapids area to extend the life and

production capacity for the new operati

on planned for the main deposit, that n

ext steps will include a first phase drilling

program tentatively planned for winter 2019

, that the

next steps for advancing knowledge of the Snowbank Pegmatite along

with the nearby Glitter, Wolf and Rattler pegmatite occurrences would be further rock sampling, possibly accompanied by

trenching, and finally drilling

, and that

Avalon also now has multiple drill targets on the western part of the property that would

be most easily accessed in winter

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.

Table 1: Results of Channel Sample Analysis, Snowbank Pegmatite, Separation Rapids Property

Channel number

Sample number

Length (m)

Li

2

O

(%)

MAIN PEGMATITE

Channel 1A

2.60

1.53

including

W860205

1.30

0.99

and

W860206

1.30

2.08

Channel 2B

2.30

1.61

including

W860209

1.20

0.78

and

W860210

1.10

2.51

Channel 4A

2.90

1.07

including

W860213

1.30

0.90

and

W860214

1.60

1.21

PARALLEL PERIPHERAL PEGMATITES

Channel 1B

W860207

1.20

1.19

Channel 2A

W860208

0.88

0.43

Channel 2C

W860211

0.48

0.84

Channel 3

W860212

0.62

0.08

Channel 4B

W860215

1.07

1.64

NOTES

Sampling was supervised in the field by Avalon geologist J.C. Pedersen, P.Geo.

Samples were collected by channel sampling using a portable rock saw, making two cuts about 5 centimetres apart and

chiseling out the sample in between. For each analysed sample the cuts and sample were continuous. The average weight

of each of the twelve samples was 3 kgs with a range of 1.3 to 4.8 kgs.

Samples were shipped to ALS Global Laboratory in Thunder Bay. Lithium was analysed by method ME-4ACD81 and re-

analysed by method LI-OG63 for concentrations above 0.5% Li.

QA/QC samples (standard and blank) were included with the sample batch and gave acceptable results.