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Avalon Shareholders Approve Share Consolidation; Board Authorizes Implementation One-for-180 consolidation expected to support potential U.S. exchange listing and broaden investor access

Corporate Updates

Avalon Shareholders Approve Share

Consolidation; Board Authorizes

Implementation

One-for-180 consolidation expected to support potential U.S.

exchange listing and broaden investor access

Toronto, Ontario--(Newsfile Corp. - June 30, 2026) -

Avalon Advanced Materials Inc.

(TSX: AVL)

(OTCQB: AVLNF) ("Avalon" or the "Company") today announced that shareholders have approved the

consolidation of the Company's issued and outstanding common shares (the "Common Shares") and

that the Board of Directors has subsequently authorized its implementation on the basis of one post-

consolidation Common Share for every 180 pre-consolidation Common Shares (the "Share

Consolidation").

At the Company's special meeting of shareholders held on June 29, 2026, the Share Consolidation was

approved by 80.107% of the votes cast:

Voting result

Common Shares

Percentage

For

249,614,857

80.107%

Against

61,987,164

19.893%

Total votes cast

311,602,021

100.000%

A total of 311,602,021 Common Shares, representing approximately 37.209% of the Company's issued

and outstanding Common Shares, were represented in person or by proxy at the meeting.

"We appreciate the strong support shareholders have provided for this important step in Avalon's capital

markets strategy," said Alan Ferry, Chair of the Board of Directors. "After considering the Company's

current trading price, prevailing market conditions, and potential future U.S. exchange-listing

requirements, the Board determined that a one-for-180 ratio appropriately positions Avalon for the next

stage of its development."

The Company currently has 835,628,796 Common Shares issued and outstanding, subject to the

treatment of fractional shares. Upon completion of the Share Consolidation, approximately 4.64 million

Common Shares are expected to be issued and outstanding.

The Share Consolidation will not, by itself, alter the proportionate value of a shareholder's investment,

except for minor differences resulting from the treatment of fractional shares. The exercise prices and

numbers of Common Shares issuable under the Company's outstanding options, warrants and other

equity-based securities will be proportionately adjusted in accordance with their terms.

The Share Consolidation is subject to final approval by the Toronto Stock Exchange ("TSX") and

completion of the customary processing requirements. The Company expects to complete the Share

Consolidation as soon as practicable following receipt and satisfaction of all such approvals and

requirements.

"The Share Consolidation does not change Avalon's underlying value, assets or strategic priorities,"

said Scott Monteith, President and Chief Executive Officer. "It is an enabling step intended to create a

share structure and trading price more consistent with major U.S. exchanges and comparable critical-

minerals companies. Sustainable value creation will continue to depend on our execution—advancing

Nechalacho and Lake Superior Lithium, developing strategic partnerships and securing the capital

required to move these projects forward."

The Share Consolidation is intended to support Avalon's broader capital markets strategy, including its

evaluation of a potential future listing on The Nasdaq Stock Market LLC or another major U.S. securities

exchange, and may broaden the universe of institutional and other investors able or willing to invest in

Avalon and improve the Company's comparability with U.S. exchange-listed peers.

Completion of the Share Consolidation does not constitute approval of, or a commitment to pursue, a

U.S. exchange listing, financing or other capital markets transaction. Any potential U.S. listing would

remain subject to the Company satisfying all applicable listing standards, regulatory review, Board

approval, market conditions and other customary requirements. There can be no assurance that a U.S.

listing will be pursued or completed.

Shareholder Information

Shareholders who hold their Common Shares through a brokerage account or other intermediary

generally will not be required to take any action, as their accounts are expected to be adjusted

automatically.

Registered shareholders holding physical share certificates will receive instructions from TSX Trust

Company, Avalon's transfer agent, regarding the exchange of their pre-consolidation certificates.

Shareholders should not submit certificates until they have received and reviewed those instructions.

No fractional Common Shares will be issued in connection with the Share Consolidation. Any fractional

entitlement will be treated in accordance with the terms described in the Company's management

information circular dated May 29, 2026, which is available on the Company's SEDAR+ profile at

www.sedarplus.ca

and may be obtained without charge, upon request to the corporate secretary of the

Company at Suite 2060, 130 Adelaide Street West, Toronto, Ontario, Canada M5H 3P5, Telephone:

(416) 364-4938.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian critical minerals company focused on advancing lithium

and rare earth elements—two of the fastest-growing segments of the global energy transition. The

Company is developing strategic assets to participate in high-growth markets and support the build-out

of secure North American supply chains. 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, advanced technologies, 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 is expected to serve as a cornerstone of North America's integrated battery materials

supply chain, transforming northern Ontario lithium into essential inputs for transportation, grid storage,

and advanced manufacturing.

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. 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

those risk factors discussed or referred to in the annual information form of the Company dated

November 26, 2025 (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. 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/303347