Mr. Don Bubar reports

AVALON PROVIDES UPDATE ON RE-DEVELOPMENT PLANS FOR THE EAST KEMPTVILLE TIN-INDIUM PROJECT, NOVA SCOTIA

Avalon Advanced Materials Inc. has provided an update on its plans for small-scale redevelopment of the past-producing East Kemptville tin mine in Yarmouth county (Nova Scotia). Over the past year, the company has developed a new model involving tin concentrate production from a large stockpile of historically mined, low-grade tin ore, supplemented by limited mining of near-surface, higher-grade tin resources. This redevelopment model will result in full rehabilitation of the site (while supporting economic recovery of tin concentrates for at least 15 years).

Avalon is now in the process of applying for the necessary permits and approvals, including a mineral lease, and negotiating the transfer of existing surface tenure to allow it to proceed with final feasibility study work and project financing. The company is presently preparing a preliminary economic assessment for filing with the mineral lease application (along with a site closure plan). The preliminary economic assessment is scheduled to be released by mid-July, 2018. Once all approvals are in place, financing is secured and feasibility work is completed, the operation could be brought to initial production in just 12 to 16 months.

East Kemptville resource update

In conjunction with preparing the preliminary economic assessment on the new small-scale redevelopment model, an updated mineral resource estimate for both the Main and Baby zone tin-indium deposits has been prepared to include results from a 2015 infill drilling program. Total estimated measured and indicated mineral resources are now 22.97 million tonnes at 0.153 per cent Sn, with an additional inferred resource estimate of 14.25 million tonnes at 0.139 per cent Sn (at a cut-off grade of 0.1 per cent Sn (please see the attached table)). While the total deposit tonnage and grade did not change significantly, the proportion classified as measured and indicated increased by about 24 per cent, implying an increase in the overall confidence level in the resource.

Following the previously released East Kemptville mineral resource estimate, Avalon Advanced Materials completed a drilling program in 2015, which totalled 4,514 metres in 22 holes. Nine of these holes were in the Main zone, eight in the Baby zone and five in the Duck Pond zone. Results from the 17 infill holes in the Main and Baby zones are included in the updated resource. The main objectives of the drill program were to increase confidence in the resource and explore the poorly drilled northeast extension of the Main zone. Both of these objectives were achieved. At this time, the indium, zinc and copper grades of the updated resource have not been re-estimated. This will be completed over the next two months.

Separate block models were prepared for the Main and Baby zones, which allowed for a more detailed resource model in the Baby zone. The resource is based on improved geological models and utilizes an improved interpolation method. The addition of the 2014 and 2015 drill holes increased the estimated measured resources by 580,000 tonnes.

The updated mineral resource estimate aforementioned only applies to in-ground mineral resources and does not include the inferred resource contained in the low-grade stockpile, which totals 5.87 million tonnes at 0.112 per cent Sn.

Preliminary economic assessment project development model

The small-scale redevelopment model as conceived for the preliminary economic assessment contemplates processing 2,400 tonnes per day of ore to produce an average of 1,500 tonnes per year of tin concentrate for at least 15 years using a gravity concentration process. Demand for conflict-free tin concentrates remains strong, as new markets emerge in clean technology applications, such as lithium ion batteries. With growing demand, production could potentially be increased and operational life extended by accessing additional tin resources at depth or in other mineralized zones, such as Duck Pond. There is also potential to recover byproduct zinc-indium and copper concentrates in the future.

Interest from a potential development partner in the project has also led to further testwork to evaluate the use of ore-sorting technology to reject waste and create a higher grade of feed material for a smaller (lower-cost) gravity concentrator. Similar work conducted previously on a sample of material from the low-grade stockpile indicated that ore-sorting technology could be successfully applied at the project. This current ore-sorting testwork includes drill core from both the Main and Baby zones. Results are expected by the end of July, 2018.

Permitting and environmental studies

The Species at Risk Act study was initiated at the project (with the completion of the spring bird survey). Engagement continues by meeting with regulators, NGOs (non-governmental organizations) and local communities (with continued strong support for the project). With the update of the mine plan, permitting is well advanced, with the mineral lease and Crown land transfer planned for submission in the next 30 days. The closure plan is being updated to incorporate changes to the mine plan. The overall objective of fully rehabilitating the site on closure remains feasible and a key objective for Avalon Advanced Materials.

Sustainability

As with Avalon Advanced Materials' other advanced-stage projects, the company's focus is on materials that enable clean technology, including solar and wind power. In order to do this sustainably, Avalon Advanced Materials designs its operations to minimize environmental impacts and greenhouse gas emissions, while planning for rehabilitation and productive use of the land after closure. The company also applies a staged-development approach to its clean technology materials projects, which involves starting production at a modest scale, to minimize project footprint and potential risks to environment, while also reducing investment risk and creating opportunities for its indigenous business partners.

The technical information included in this news release has been reviewed and approved by the company's vice-president of exploration, Dr. William Mercer, PGeo (Ontario), and Dave Marsh, FAusIMM (CP), senior vice-president of metallurgy and technology development, both qualified persons under National Instrument 43-101.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials 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 per cent 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 in Kenora, Ont., and its East Kemptville tin-indium project in Yarmouth, N.S.

               EAST KEMPTVILLE IN SITU UNMINED MINERAL RESOURCE ESTIMATE, MAIN AND BABY ZONES, 
                       BASED ON PERCENTAGE TIN CUT-OFF GRADE, AS AT MAY 7, 2018

Classification             Cut-off grade    Main zone (northeast)          Baby zone                  Total      
                                            Tonnes (Mt)    Sn (%)    Tonnes (Mt)   Sn (%)    Tonnes (Mt)   Sn (%)

Measured                            0.08          0.40     0.173           0.22    0.241           0.61    0.197
                                    0.10          0.38     0.177           0.20    0.251           0.58    0.203
                                    0.12          0.32     0.188           0.19    0.259           0.51    0.214
Indicated                           0.08         27.89     0.133           1.72    0.194          29.61    0.137
                                    0.10         20.91     0.148           1.48    0.211          22.39    0.152
                                    0.12         14.84     0.163           1.27    0.228          16.11    0.168
Measured and indicated              0.08         28.28     0.134           1.93    0.199          30.22    0.138
                                    0.10         21.29     0.148           1.68    0.216          22.97    0.153
                                    0.12         15.16     0.164           1.46    0.232          16.62    0.170
Inferred                            0.08         18.54     0.125           0.90    0.153          19.43    0.126
                                    0.10         13.56     0.137           0.69    0.172          14.25    0.139
                                    0.12          8.11     0.156           0.51    0.193           8.62    0.158

We seek Safe Harbor.