Mr. Scott Monteith reports

AVALON INITIATES UPDATED PRELIMINARY ECONOMIC ASSESSMENT FOR NECHALACHO PROJECT

Avalon Advanced Materials Inc. has commissioned a new preliminary economic assessment for its Nechalacho rare earth and zirconium project in the Northwest Territories. The refreshed PEA is intended to update and modernize the project's 2013 definitive feasibility study by incorporating advances in processing technology and updated capital and operating cost assumptions reflective of current market conditions.

Advancing the PEA reflects a strategic effort to align Nechalacho with current technical, commercial and geopolitical realities, including advances in rare earth processing technologies, evolving infrastructure and logistics requirements, and the growing emphasis on secure, allied supply chains for critical minerals. The study will integrate updated cost data, revised engineering inputs, and environmental and regulatory considerations, establishing a refreshed economic and technical basis to advance project optimization, financing discussions and strategic partnerships.

The company has engaged Wood Canada Ltd. to complete the PEA and National Instrument 43-101 technical report. Wood is a global leader in engineering and consulting, with extensive experience delivering prefeasibility and feasibility studies for remote mining projects, including several rare earth element projects across Canada and the United States.

The company expects the refreshed PEA to be completed within approximately six months. Thereafter, Avalon intends to proceed directly to a definitive feasibility study as the next phase of project development, providing the level of engineering, cost definition and risk validation required to confirm project viability and support project financing, offtake and strategic partnership discussions.

"Commencing a new PEA represents the first step in refreshing the Nechalacho feasibility study and positioning the project for its next phase of development and funding. Following the PEA, our plan is to transition into a full definitive feasibility study, enabling Nechalacho to move toward construction readiness with updated economics and execution planning.

"As one of the few North American deposits with both light and heavy rare earths and a uniquely high concentration of magnet-grade materials, Nechalacho is strategically positioned to support secure, allied supply chains for defence, clean energy and advanced technologies. Advancing these studies positions the project to play a role in strengthening allied rare earth supply chains as countries seek secure, diversified sources of critical minerals," said Scott Monteith, president and chief executive officer.

John Day, president of projects, Western Hemisphere, at Wood, commented: "We are proud to begin work on the PEA for Nechalacho, which represents an important step towards advancing a secure and sustainable supply of rare earth elements in North America. Our team brings deep experience in delivering complex studies for remote Northern projects, and we look forward to applying that expertise to help Avalon optimize the project and position it for successful development."

As previously announced in connection with the company's $18.65-million financing, Avalon is committed to advancing its core rare earth and lithium assets through updated technical and economic studies. The initiation of the updated PEA at Nechalacho demonstrates the company's execution on those commitments, advancing project readiness and supporting continuing strategic partnership and financing discussions.

About Avalon Advanced Materials Inc.

Avalon is a Canadian critical mineral company advancing the supply of materials essential for Canada's future. The company is focused on developing strategic assets that support secure, domestic supply chains and long-term economic growth. Avalon is advancing the Nechalacho rare earth element and zirconium project in the Northwest Territories, which contains all light and heavy rare earth elements, as well as yttrium, zirconium, tantalum and niobium -- critical minerals used in advanced technologies across the communications, defence, cleantech and energy sectors. The company is also focused on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium Inc., Ontario's first mid-stream lithium hydroxide processing facility, located in Thunder Bay. This facility will serve as a vital link between Northern Ontario's lithium resources and the growing electric vehicle battery manufacturing base in Southern Ontario and North America. Through a joint venture with SCR Sibelco NV, Avalon is advancing the Separation Rapids lithium project near Kenora, Ont., as well as continuing exploration at its Snowbank lithium and Lilypad lithium-cesium deposits.

We seek Safe Harbor.