Mr. Don Bubar reports

AVALON CLOSES $1.5 MILLION PREFERRED SHARE FINANCING

Avalon Advanced Materials Inc. has closed its previously announced preferred share financing with an entity managed by The Lind Partners, a New York-based asset management firm, as described in the company's news release of Dec. 22, 2017.

The financing involved the issuance of 300 Series B1 preferred shares on a private placement basis at a price of $5,000 per share for gross proceeds of $1.5-million, which brings Lind's total investment in Avalon to $4-million. In addition, Lind received 6.25 million common share purchase warrants exercisable until Jan. 15, 2023, at a price of 15 cents per common share.

The proceeds will be used for continuing market development work, metallurgical studies and preliminary engineering work on the Separation Rapids lithium project and for general working capital purposes. The work at Separation Rapids will include a 1,500- to 2,000-metre diamond drilling program, scheduled to begin during the week of Jan. 22. This program will test projected extensions of the currently defined lithium resource and test some new targets on the western part of the property.

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, Kenora, Ont., and its East Kemptville tin-indium project, Yarmouth, N.S. Social responsibility and environmental stewardship are corporate cornerstones.

We seek Safe Harbor.