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Federal Ministers, The Hon. Francois-Philippe Champagne, The Hon. Patty Hajdu and Other Dignitaries Tour Avalon's Planned Lithium Processing Site in Thunder Bay, ON

Corporate Updates

Federal Ministers, The Hon. Francois-Philippe

Champagne, The Hon. Patty Hajdu and Other

Dignitaries Tour Avalon's Planned Lithium

Processing Site in Thunder Bay, ON

Thunder Bay, Ontario--(Newsfile Corp. - October 12, 2023) - Consistent with its strategic objective to

build Ontario's first vertically integrated lithium supply chain serving the North American EV battery

market,

Avalon Advanced Materials Inc.

(TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company")

today hosted the Hon. François-Philippe Champagne, Minister of Innovation, Science and Industry, the

Hon. Patty Hajdu, Minister of Indigenous Services and FedNor and other officials for a private tour of the

Company's planned lithium processing site in Thunder Bay, ON.

Visit Highlights:

The ministers were joined by Marcus Powlowski, MP for Thunder Bay-Rainy River.

The delegation toured Avalon's 383-acre industrial property on Strathcona Avenue that features

major transportation infrastructure including, road, rail and deep-water port access.

The Avalon team provided the delegation with details of its burgeoning project plan for an Industrial

Park concept that includes Ontario's first lithium processing facility, an Innovation, Technology and

R&D Hub as well as lithium battery recycling capabilities, all of which will help catalyze Ontario's

economy, generate long-term job growth and deploy sustainable innovative process technology.

François-Philippe Champagne, Minister of Innovation, Science and Industry, speaks to

reporters at Avalon’s Strathcona industrial property in Thunder Bay, Ontario on October 12,

2023.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/3386/183782_img_8329.jpeg

From left: Zeeshan Syed, President, Avalon Advanced Materials, Inc., François-Philippe

Champagne, Minister of Innovation, Science and Industry, Jim Jaques, Chief Administrative

Officer, Avalon, Marcus Powlowski, Member of Parliament, Thunder Bay-Rainy River.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/3386/183782_img_8328.jpeg

"We are extremely pleased to host the ministers and other dignitaries to showcase how far we've come

in actualizing our vision to help decarbonize the economy and shift Canada to cleaner sources of energy-

and underscore that we must continue to move quickly in order to secure Canada's leading position in

the global race to net-zero," Zeeshan Syed, President of Avalon, said.

"Avalon is developing the province's first domestic supply chain that will link the considerable lithium

deposits of Ontario's north to an expanding EV battery manufacturing base in the south, which at present

lacks a stable, regional supply of this strategically vital resource."

Significant investment has been made in rapidly expanding the downstream capacity of Ontario and

North America's EV battery manufacturing base. A proportionate level of financing is now required to

develop a secure, fully on-shored supply of lithium raw material to manufacturers. Avalon's core strategic

objective is to build the midstream lithium processing solution in Thunder Bay that bridges the lithium

resources of Northwestern Ontario with EV battery manufacturing in the south.

"As proud Canadians, our vision is that lithium should be mined in Ontario, refined in Ontario, and

consumed in Ontario," added Jim Jaques, Avalon Chief Administrative officer. "On a North American

level, and from a decarbonisation perspective, a lower carbon domestic supply source is paramount. We

intend to generate long-term job growth and economic benefits for the region and province, both directly

through our own commercial activities, and indirectly by attracting the capital necessary to

commercialize other regional lithium projects."

Avalon Supply Chain Overview

Over 500 direct jobs are expected to be created in Thunder Bay and Kenora, ON. Through

Avalon's upstream and midstream commercial activities.

The Avalon processing facility in Thunder Bay will operate as a regional hub, helping generate

associated investment flow across Ontario.

Thunder Bay is ideally positioned as the geographic bridge between the lithium resources of

Ontario's northwest and the EV battery and EV battery manufacturing in the south.

Avalon's Industrial Park in Thunder Bay will also host an Innovation, Technology and R&D Hub in

collaboration with local and regional educational institutions (Lakehead University and

Confederation College).

Innovative, Sustainable Processing

Avalon is diligently working with leading international partners to test and co-create novel commercial

production processes that will help accentuate Canada's environmental leadership. Through the R&D

efforts undertaken by Avalon and partners, the proprietary lithium hydroxide process is vastly less

pollutive than conventional acid roasting conversion methodologies. The process operates in an alkaline

state and utilizes a pressure leaching process which is unique for lithium conversion, allowing for the

elimination of sulfuric acid use, and therefore no production of sodium sulphate as a biproduct. Instead, a

substance called Analcime-an inert solid aluminium silicate-is produced, as well as calcium carbonate.

Both substances have use in industrial building applications and industries. The method also reduces

overall air emissions compared to conventional hydroxide production.

In addition, it is expected to be a safer process for the operating personnel, the environment and

community in general compared to the traditional acid roasting technology employed in jurisdictions with

less stringent commitments to environmental stewardship compared to North America.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company focused on vertically

integrating the Ontario lithium supply chain. The Company, through its joint venture with Sibelco NV, is

currently developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to

advance the Lilypad and Snowbank lithium projects located near Fort Hope, ON.

Avalon is also working

to develop its Nechalacho rare earths and zirconium project located in the Northwest Territories. This

deposit contains critical minerals for use in advanced technologies in the communications and defense

industries among other sectors.

In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontario's first

midstream lithium hydroxide processing facility in Thunder Bay, ON, a vital link bridging the lithium

resources of the north with downstream EV battery manufacturing customers and markets in the south.

Social responsibility and environmental stewardship are corporate cornerstones. Avalon is listed on the

TSX: AVL and OTCQB: AVLNF.

For more information and media inquiries, Zeeshan Syed, President of Avalon, is available for

comment at (647) 300-4706 or

[email protected]

.

Forward-Looking Information

This presentation contains "forward-looking information" within the meaning of applicable Canadian

securities legislation. Forward-looking information includes, but is not limited to, information with

respect to the development of the Company's material lithium projects, including the construction of

the Company's lithium processing facility', expected capital expenditures, operations outlook,

expected benefits from the facility the transition to a green economy, job creation, successful

development of a lithium supply chain, governmental support, sustainable processing practices,

environmental benefits, , requirements for additional capital, the Company's capital allocation;, and

government regulation of mining operations. 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, 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,

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, 2022 (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/183782