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Avalon expands Separation Rapids Lithium Property with acquisition of Paterson Lake claims

Mergers & Acquisitions Property Options & Staking

NEWS RELEASE

March 2, 2017 No. 17-03

Avalon expands Separation Rapids Lithium Property with

acquisition of Paterson Lake claims

Toronto, ON – Avalon Advanced Materials Inc. (TSX: AVL and OTCQX: AVLNF) (“Avalon” or the

“Company”) is pleased to announce it has closed a transaction with GoldON Resources Ltd.

(“GoldON”) to acquire a 100% interest in the seven-claim, 1,008 hectare, Paterson Lake property

(the “Property”) located adjacent to the north and west of Avalon’s Separation Rapids Lithium

Project near Kenora, Ontario. In consideration for the acquisition of the claims, Avalon has issued

500,000 common shares of its capital stock to GoldON. The shares will be subject to a 4 month hold

period expiring on July 2, 2017.

As illustrated on the accompanying map, the Property is host to three known lithium pegmatite

occurrences known as the Glitter, Wolf and Rattler, along with a number of other, smaller, under-

explored lithium – tantalum – rubidium – tin bearing pegmatites. These occurrences fall within the

same geological formation that hosts Avalon’s Separation Rapids pegmatite deposit. Some of these

occurrences are in close proximity to targets planned for testing during the Company’s upcoming

drilling program and may be included in this program.

Avalon’s CEO, Don Bubar stated, “There is abundant potential for discovery of additional lithium

pegmatites in the Separation Rapids region that can provide future sources of feed for our planned

lithium production facility in the Kenora area. We are committed for the long term to building a

business that can take advantage of the energy storage revolution and the rapidly growing demand

for lithium battery materials. Consistent with Ontario’s commitment to innovation and clean energy

technology, we see an opportunity to participate in creating new cleantech supply chains, anchored

in Northern Ontario, for the advanced materials needed to make these goals a reality.”

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

S. Bubar, P.Geo. 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.

130 Adelaide St. W., Suite 1901, Toronto, ON M5H 3P5

Tel: (416) 364-4938 Fax: (416) 364-5162

[email protected]

www.AvalonAdvancedMaterials.com

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 R eform Act

of 1995 and applicable Canadian securities legislation. Forward looking statements include, but are not limited to, information or

statements about expected future drilling and exploration programs , potential discovery of additional lithium pegmatites in the Separation

Rapids region, building a lithium production facility in Kenora , and potential growth in demand for lithium battery materials. 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 s ubject to known and unknown risks, uncertaint ies and

other factors that may cause the actual results, level of acti vity, performance or achievements of Avalon to be materially diff erent from

those expressed or implied by such forw ard-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 th at could

cause actual results to differ materially from those contained in forward-looking stat ements, there may be other factors that c ause results

not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected resul ts described

in forward-looking statements include, but are not limited to ma rket conditions, and the possibility of cost overruns or unanti cipated costs

and expenses as well as those risk factors set out in the Comp any’s current Annual Information Form, Management’s Discussion an d

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 i n such

statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Comp any’s

plans and objectives and may not be appropriate for other purpos es. Accordingly, readers should not place undue reliance on for ward-

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

with applicable securities laws.