Mr. Scott Monteith reports

AVALON ADVANCED MATERIALS APPOINTS GLEN SMITH AS PROJECT DIRECTOR FOR LAKE SUPERIOR LITHIUM REFINERY FEASIBILITY & CONSTRUCTION

Avalon Advanced Materials Inc. has appointed Glen Smith, PEng, as project director, refinery feasibility and construction, based in Thunder Bay, where he will lead the advancement of the company's Lake Superior Lithium Inc. (LSLi) project.

As project momentum continues and feasibility work advances, Mr. Smith's over 35 years of experience as a professional engineer across the hydrometallurgical, petrochemical and nuclear industries will be instrumental in progressing the LSLi project through its next stage of development. He brings extensive expertise in process design, process control, plant operations and project execution -- capabilities directly aligned with the technical requirements of advancing the project toward construction readiness. His experience spans engineering and feasibility studies, brownfield and greenfield project development, operations readiness, plant commissioning, and operational optimization, with project work undertaken across Canada, the United States, South America, Africa and Asia.

This presents a significant step forward for Avalon's technical team and engineering partners in Thunder Bay as it advances the detailed work required to complete the feasibility study by 2027 and further position the project for development planning.

"As the project advances, it is essential that we have a fully integrated project team based in Thunder Bay. Mr. Smith positions the technical leadership on the ground for close coordination of engineering activities, effective project management, and direct engagement with regional partners and communities. Building this capability locally strengthens our ability to advance the project in a disciplined and responsible manner and we are thrilled to welcome Glen," said Scott Monteith, president and chief executive officer of Avalon Advanced Materials.

LSLi's preliminary economic assessment (PEA) project highlights

After-tax net present value of $4.1-billion at an 8-per-cent discount rate and an after-tax internal rate of return of 48 per cent over a 30-year operating mine life, based on annual production of approximately 30,000 tonnes of battery-grade lithium hydroxide;

LSLi is positioned to deliver a state-of-the-art lithium hydroxide conversion facility, supplying battery-grade material to the rapidly growing electric vehicle and energy-storage sectors;

Located in Thunder Bay, Ont., the project benefits from existing road, rail, deepwater port, power and municipal infrastructure, supporting accelerated development timelines and reduced execution risk;

The plant will use Metso's advanced, lower-carbon processing technology to produce 30,000 tonnes per annum (tpa) of lithium hydroxide or carbonate. A full feasibility study is underway with Nordmin Engineering and Primero North America, selected for their extensive experience with the Metso Process. The Feasibility Study will include trade-off studies with a comprehensive evaluation of whether battery-grade lithium hydroxide and/or lithium carbonate represents the optimal final product for the facility, based on evolving market demand, customer qualification requirements and downstream engagement;

The Thunder Bay refinery converts what would normally be waste minerals in lithium processing into analcime, a usable industrial material that has blending applications in the cement industry;

Completion of a preliminary economic assessment in September, 2024, demonstrating strong project economics, supporting advancement into the feasibility study phase;

Advancing with a strong focus on environmental responsibility, social accountability and sound governance. Sustainability features include on-site renewable energy integration and responsible byproduct utilization, supporting Canada's climate objectives and Ontario's clean-growth priorities;

Engaged SCP Resource Finance as strategic capital adviser to support the development of a long-term capital and partnership strategy in connection with Avalon's lithium and rare earth element projects.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian critical minerals 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 Elements 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, defense, clean tech and energy sectors.

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