Mr. Jim Jaques reports

AVALON ENTERS PURCHASE AND SALE AGREEMENT TO TRANSFER THE SEPARATION RAPIDS AND LILYPAD PROJECTS INTO JOINT VENTURE WITH SIBELCO

Further to its news release dated June 15, 2023, and consistent with its strategic objective to build Ontario's first vertically integrated lithium supply chain serving the North American EV (electric vehicle) battery market, Avalon Advanced Materials Inc. has entered into a definitive tripartite purchase and sale agreement with SCR-Sibelco NV and Separation Rapids Ltd. (SRL) to provide for the transfer of the company's Separation Rapids and Lilypad projects to SRL. SRL will be a joint venture entity co-owned by Sibelco (60%) and Avalon (40%). Sibelco will be the operator of SRL.

Closing of the sale remains subject to a number of conditions, including but not limited to, the execution of a definitive Joint Venture Company Shareholders Agreement (the "JV Agreement") between Avalon, Sibelco and SRL.

Pursuant to the terms of the Purchase and Sale Agreement, Avalon agreed to transfer the Separation Rapids and Lilypad properties to SRL, including all personal property, assumed contracts, permits, books and records in consideration for approximately euros23.2 million (C$34.1 million), representing a 40% interest in the joint venture entity together with reimbursements of approximately C$903,000 plus HST in funds expended by Avalon on the joint venture properties since the signing of a binding joint venture term sheet in June 2023. Sibelco's original commitment to the joint venture of euros35.0 million was reduced by approximately euros134,000 in connection with an additional subscription of common shares of Avalon by Sibelco for this same amount in July 2023. As agreed between Avalon and Sibelco, Avalon used the amount raised from the additional subscription to fund expenditures on the joint venture properties.

Closing of the transaction, signing the JV Agreement and the establishment of SRL as the joint venture company is expected to occur on or about November 9, 2023.

"We are very pleased with the dynamic working relationship that exists between Avalon and Sibelco as we continue to advance this exciting joint venture towards completion. This partnership will unlock tremendous value for Avalon shareholders and accelerate our vision to build Ontario's first vertically integrated lithium supply chain," said Scott Monteith - Avalon CEO.

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 SCR Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to advance the Snowbank lithium project nearby, and its Lilypad lithium-caesium project 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).

About SCR-Sibelco NVHeadquartered in Antwerp, Belgium, SCR-Sibelco NV is a global leader in material solutions. Sibelco mines, processes and sellsspecialty industrial minerals-particularly silica, clays, feldspathics and olivine - and is a leader in glass recycling. Sibelco's solutions serve a diverse range of industries including semi-conductors, solar photovoltaic, glass, ceramics, construction, coatings, polymers and water purification. The Sibelco Group hasproduction facilities inmore than 30countries and a team ofmore than5,000people worldwide.

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