Mr. Scott Monteith reports

AVALON COMMENCES NEW $3.6M DRILLING PROGRAM AT FLAGSHIP SEPARATION RAPIDS JOINT VENTURE LITHIUM DEPOSIT

Consistent with its strategic transformation into a vertically integrated Canadian lithium producer serving both the North American glass ceramics and EV (electric vehicle) battery markets, Avalon Advanced Materials Inc. has commenced a new comprehensive drilling program at Separation Rapids, the Avalon-Sibelco joint venture lithium deposit in Northwestern Ontario.

New Drill Program Highlights:

8,000m drilling program intended to upgrade the Inferred resources to Indicated status Potential increase of the total lithium resource available in the open pit and underground portions of the project

C$3.6M ( euros2.51M) of capital budget with an estimated program duration of four months First major capital initiative funded by the new Avalon-Sibelco joint venture

"This is the logical and exciting next step in moving Separation Rapids forward into commercial production. We have already identified a quality volume asset and are now defining the total scope of the resource as part of Avalon's broader efforts to build a vertically integrated lithium supply chain serving the Ontario and North American EV battery market place," said Scott Monteith, Chief Executive Officer, Avalon.

Mr. Monteith added: "At the same time, we and our partners at Sibelco are tremendously excited about the potential that Separation Rapids holds for the glass-ceramics market, which is part of the dual-market commercial strategy we are pursuing."

On August 10th, 2023 Avalon announced a Mineral Resource Estimate ("MRE") for Separation Rapids, which is located near Kenora, ON. The updated MRE, compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, revealed 10.08 million tonnes (Mt) averaging 1.35% lithium oxide ("Li2O") in Measured and Indicated resources, a 20% increase compared to previous results. The MRE results confirmed sufficient qualities in the Separation Rapids deposit for both the glass-ceramics and lithium battery markets. In addition, the MRE indicated the potential of an additional 3Mt to 6Mt of available resource, with an average grade of between 1.0% and 1.4% Li2O, which the current drilling program will seek to confirm.

Avalon retained Major Drilling Group International Inc. to conduct the work program. Major Drilling Group is one of the largest drilling services providers in the world, with over 3,500 employees across five continents.

Objectives of the Drilling Program:

Priority 1: Upgrade the Inferred to Indicated category in the open pit

Priority 2: Test east and west extension on strike to increase total pit resource

Priority 3: Upgrade the Inferred to Indicated category and add further resource in the underground

This new Separation Rapids drilling program follows the acquisition in June of the Strathcona property in Thunder Bay, ON., a 383-acre industrial site that is intended to host Ontario's first lithium hydroxide conversion facility built and operated by Avalon.

Avalon-Sibelco Joint Venture

Avalon and Sibelco are continuing to negotiate in good faith a definitive agreement in respect of the joint venture. Avalon has applied for, but not yet received, approval of the Ontario Ministry of Mines to the assignment and transfer of leasehold PIN 42180-2461(LT) forming part of the Separation Rapids property. Avalon and Sibelco have agreed to extend their timing with a view to execute a definitive agreement in respect of the joint venture by November 15 th, 2023, and in any event no later than December 31 st 2023.

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

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