Mr. Zeeshan Syed reports

AVALON OUTLINES STRATEGIC DIRECTION AND PROVIDES UPDATE ON 2023 ACTIVITIES

Avalon Advanced Materials Inc. has outlined Avalon's strategic direction and provided an update on key 2023 activities.

Recent highlights:

• Appointment of Zeeshan Syed as president to lead the company's growth and commercial strategy, and Rickardo Welyhorsky as chief operating officer to lead key project initiatives and development work related to the company's lithium portfolio.
• Completion of 2022/2023 drill program at Separation Rapids, with recently announced drill results highlights (assays from four holes are still pending -- see news release dated May 4, 2023).
• Preparation of further exploration plans in 2023, which will include drilling the Snowbank target (six kilometres northwest of flagship Separation Rapids), continue drilling at Separation Rapids and Lilypad.
• Additional baseline environmental study work under way.
• Continuing lithium hydroxide conversion test work being conducted by a major technology group using innovative process technology.
• Discussions with various engineering firms in preparation of a definitive feasibility study on Separation Rapids.

"Avalon's new strategic direction, and the key to unlocking shareholder value, focuses on advancing Separation Rapids through continued exploration and project development work," commented Mr. Syed, president of Avalon. "Accelerated growth within our entire lithium portfolio will position the company as a substantial contributor to the North American critical minerals sector. Importantly, this mandate is supported by plans to assemble an execution-focused team of professionals at the corporate and board level."

Focused on lithium growth

Avalon's new strategy is focused on organic growth of its lithium portfolio, as well as finding strategic growth opportunities in the region. Growth at Separation Rapids will be advanced through drilling and project permitting work.

Planned activities in H2 2023 will comprise exploration work across all lithium projects, including:

• Separation Rapids -- continue with deeper drill program to further test the extensions of the deposit.
• Snowbank -- previous exploration includes sample assays of up to 2.51 per cent Li2O (lithium oxide) over 1.1 metres, indicating that petalite comprises approximately 50 per cent of the mineral content in the rock sampled.
• Lilypad -- shows lithium samples at greater than 1 per cent Li2O occurring primarily in spodumene in three separate occurrences. Avalon plans to initiate a drill program on select targets at Lilypad.

Development initiatives

Further baseline test work continues this year to thoroughly understand and derisk the site in preparation for future development and production activities, with a plan to submit the permitting application in late 2023. In addition, early discussions and a draft study are under way for a power line to site.

Lithium conversion facility

The proposed lithium hydroxide conversion facility is an important part of Avalon's growth strategy. Future activities include:

• Finalizing the purchase of an industrial property located in Thunder Bay, Ont.;
• Advancing commercial and financing discussions with various parties, the provincial and federal government, and with downstream parties interested in supporting the project;
• Completing test work to demonstrate the conversion of petalite and lepidolite concentrate into a lithium hydroxide product.

Community and indigenous engagement

Avalon looks to build upon a foundation of partnership with indigenous communities and seeks to elevate all forms of communication, partnerships and opportunities. Initial work has begun on community engagement and planning sessions with indigenous groups. The company's discussions will include participation from various groups and include former six-term chief of the Eabametoong First Nation, Harvey Yesno, who also serves as a director on Avalon's Board.

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

About Avalon Advanced Materials Inc.

Avalon Advanced Materials is a Canadian mineral development company specializing in sustainably produced materials for clean technology. Avalon is currently focusing on developing its Separation Rapids lithium project near Kenora, Ont., while continuing to advance other projects, including its 100-per-cent-owned Lilypad spodumene-cesium-tantalum project located near Fort Hope, Ont. Social responsibility and environmental stewardship are corporate cornerstones.

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