Mr. Don Bubar reports

AVALON EXPANDS RESOURCE POTENTIAL AT SEPARATION RAPIDS LITHIUM PROJECT, KENORA ON

The preliminary results from Avalon Advanced Materials Inc.'s winter 2023 diamond drilling program have potentially expanded the lithium resource at the company's Separation Rapids lithium project. Thirteen holes totalling 4,179 metres were drilled on the central main mass depth extensions of the resource. Of note, the final hole totalled 570 metres vertically through the deposit and confirmed visual petalite mineralization to a depth of 565 metres. This increases the potential depth of the deposit by 80 per cent from the previously tested 315-metre deepest intercept. The other 12 holes intersected mineralization to the east, west and at depth from the existing resource and justify completion of an updated resource estimate for the Separation Rapids lithium deposit. Assays from four of the holes are pending.

Drilling program details

The winter 2022/2023 diamond drilling program included 12 drill holes on the existing resource and one vertical drill hole on the main centre of the deposit designed to examine the potential depth extent of the petalite mineralization. Twelve holes were designed to undercut historic maximum-known mineralized drill intercepts on the widest part of the Separation Rapids as stepouts to expand the existing resource. The main deposit consists of a large, zoned vertical pegmatite dike averaging 50 to 70 m in thickness that has been structurally flattened, that includes both petalite and lepidolite accompanied by many narrower mineralized dikes of similar but variable lithium mineralogy. The dominant lithium mineral is petalite. The dikes tend to be lepidolite-rich on both the east and west extensions. Lepidolite is a lithium mica typically containing 7 to 9 per cent Li2O (lithium oxide) content while petalite typically contains 4 to 4.5 per cent Li2O, but with no impurities.

The 12 holes were drilled over a total strike length of about 300 metres. Six holes (SR-22-81 to SR-23-86, assays for SR-23-85 pending) were designed to intersect the main part of the zone below existing drilling and were successful in extending the mineralization to depth. Four holes (SR-23-87 to SR-23-90) were on the eastern extension of the deposit, which hosts both the lithium-bearing mica, lepidolite, as well as petalite; three of these were successful in extending the eastern mineralization (SR-23-90 assays pending). Finally, two holes (SR-23-91 to SR-23-92) were drilled on the western edge of the deposit. With SR-23-92 intersecting lithium mineralization, the deposit was extended to the west (SR-23-91 assays pending).

In summary, drilling tested the deposit to depth, over a 300-metre strike length in the main part of the deposit (the Big Whopper) with mineralization exceeding the 0.5-per-cent-Li2O cut-off grade encountered in all but one of the holes. Notable mineralized intervals (all widths estimated true width unless otherwise stated) include 1.67 per cent Li2O over 19.6 metres (SR-22-81), 1.20 per cent Li2O over 27.5 metres (SR-23-83) and 1.8 per cent Li2O over 9.63 metres contained within 0.96 per cent Li2O over 45 metres (SR-23-86). For the eastern extension of the deposit, SR-23-89 intersected 1.61 per cent Li2O over 5.74 metres and for the western extension SR-23-92 intersected intervals of 0.89 per cent Li2O over 12.4 metres and 1.49 per cent Li2O over 4.5 metres. These grades are typical of the Big Whopper resource as it also includes Rb-K-feldspars which are a significant potential byproduct along with tantalum and cesium.

Drill hole SR-23-93 was set up near the geographic centre of the deposit and drilled vertically to 570 metres. As mentioned above, the objective was to explore geologically the depth extent of the Big Whopper pegmatite assuming it continues with a vertical dip. The deepest intercept prior to this drill program was about 315 metres from surface. The vertical drill hole intersected pegmatite to a depth of 565 metres with continuous visible petalite mineralization similar to previous assayed core intervals along its entire length. The drill hole exited pegmatite entering amphibolite host rock at 565 metres but it is not known whether this was due to the hole exiting the main body due to dip, or entering a narrow zone of amphibolite which is commonly observed within the deposit. However, the drill hole has increased the vertical depth of known petalite mineralization by 80 per cent. Conclusions as to the grade of lithium are contingent on the pending assay results. Please note that this intercept does not represent a true width.

All drill hole data will be brought into Avalon's database and resource block model in order to develop an independent updated resource estimate for the deposit.

Commenting on the recent drilling results, Avalon's chief operating officer, Rickardo Welyhorsky, says, "The early visual result of drill hole SR-23-93 demonstrates the depth potential of the deposit and shows the necessity of an extensive drill program to bring forward the mineralization between 315 and 565 metres from surface into the Separation Rapids lithium resource."

This news release was reviewed by the Dr. Bill Mercer, PGeo (Ontario). Dr. Mercer is a qualified person for the purposes of National Instrument 43-101, who has reviewed and approved the technical information included in this news release.

Director appointment

The company is also pleased to announce the appointment of Scott Monteith to the company's board of directors. He is the son of a previous director, Joe Monteith.

Mr. Monteith is an experienced clean tech executive, entrepreneur and business owner with a successful record of moving inventions from ideation to commercial success. He is currently the chair of Monteco Ltd., Cable House Capital Ltd. and Imtex Membranes Corp. Mr. Monteith has extensive experience in the areas of chemical manufacturing, international businesses, mergers and acquisitions, government affairs, and strategic planning.

Commented Avalon chief executive officer Don Bubar: "We are thrilled that Mr. Monteith has agreed to join Avalon's board of directors. His vast array of experience with start-ups, especially in the area of chemicals manufacturing, will bring valuable guidance to the company as we transition towards development of the critical minerals supply chain in Ontario."

About Avalon Advanced Materials Inc.

Avalon Advanced Materials is a Canadian mineral development company specializing in sustainably produced materials for clean technology. The company now has four advanced-stage projects, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids lithium project near Kenora, Ont., while continuing to advance its other projects, including its 100-per-cent-owned Lilypad cesium-tantalum-lithium project located near Fort Hope, Ont. Social responsibility and environmental stewardship are corporate cornerstones.

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