Mr. Jim Jaques reports

AVALON ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF UP TO C$9.3 MILLION

Avalon Advanced Materials Inc. has arranged a non-brokered private placement of up to a maximum of 93 million units of the company at a price of 10 cents per unit for aggregate gross proceeds of up $9.3-million. It is expected that insiders of the company will subscribe for up to $250,000 of units pursuant to the offering.

Each unit comprises of one common share in the capital of the corporation and one-half share purchase warrant. Each warrant will entitle the holder to acquire one share at a price of 15 cents for a period of 36 months following the closing date of the offering, provided, however, that if at any time following the closing date the closing price of the common shares of Avalon on the Toronto Stock Exchange, or the principal stock exchange on which the common shares may then trade, equals or exceeds 30 cents for a period of 20 consecutive trading days, the company may, by notice to the holder (supplemented by a news release of general dissemination), accelerate the expiry date of the warrants to a date not fewer than 30 days from the date of delivery of such notice, and any warrant that remains unexercised by the holder thereof shall expire on the accelerated expiry date without further notice to the holder.

The net proceeds of the offering are expected be used to finance: (i) site preparation and the preparation of a feasibility study for the corporation's Thunder Bay lithium hydroxide processing facility; (ii) the preparation of an updated feasibility study for the Nechalacho rare earths and zirconium project; (iii) repayment of the convertible debenture, including accrued interest thereon, to SCR Sibelco NV; and (iv) working capital and general corporate purposes. The closing of the offering will occur in one or multiple tranches, with the first tranche of the offering expected to close on or about Dec. 15, 2023.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials is a Canadian advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. The company, through its joint venture with SCR-Sibelco, is currently developing its Separation Rapids lithium deposit near Kenora, Ont., while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects located nearby. 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 defence industries, among other sectors.

In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontario's first mid-stream lithium hydroxide processing facility in Thunder Bay, Ont., a vital link bridging the lithium resources of the north with the downstream electric-vehicle battery manufacturing base in the south.

We seek Safe Harbor.