# Avalon Advanced Materials

Avalon Advanced Materials Inc. is a Canadian mineral development company with a primary focus on the rare metals and minerals, headquartered in Toronto, Ontario, Canada. Avalon specializes in niche market of metals and minerals with growing demand in new technology. Avalon's principal assets are its Nechalacho Project (Yellowknife, Northwest Territories), Lake Superior Lithium Inc. (Thunder Bay, Ontario) Separation Rapids Ltd. Joint Venture, (near Minaki, Ontario),as well as its East Kemptville Tin Project (Yarmouth, Nova Scotia) and Warren Township Anorthosite Project (Timmins, Ontario).
Avalon is listed on the Toronto Stock Exchange under the symbol "AVL" and on the OTCQB market under the symbol "AVLNF". The company changed its name from Avalon Rare Metals to Avalon Advanced Materials in February 2016.

## Projects
### Lake Superior Lithium Inc.

The Lake Superior Lithium Project is part of a strategy to contribute to Canada's broader economic goals under the Canadian Critical Minerals Strategy, by establishing a domestic lithium supply chain to support the burgeoning electric vehicle (EV) industry.
On June 19, 2023 Avalon purchased an industrial site in Thunder Bay, Ontario, which has existing road, rail, deep-water port, and utilities services for its planned midstream lithium-hydroxide (LiOH) processing facility. The site is strategically located between the resources of the north and downstream EV battery and automotive manufacturing hubs in the south.
On July 10, 2023, Avalon announced a strategic partnership with Metso Corporation use Metso’s technology in its lithium hydroxide processing facility.
Avalon completed a Preliminary Economic Assessment on September 3, 2024, for the proposed facility. Conducted by DRA Americas Inc., the PEA demonstrates the project's compelling economic viability.
These developments highlight Avalon’s commitment to advancing clean energy technologies and enhancing the lithium supply chain in North America.

### Nechalacho Rare Earth Elements and Zirconium Project

Avalon's Nechalacho Rare Earth Elements Deposit is located 100 km southeast of Yellowknife in the Northwest Territories, Canada. Avalon completed a Feasibility Study in April 2013, focused on defining high-grade, resources in the large basal zone of the deposit.
On July 29, 2013, the Mackenzie Valley Environmental Impact Review Board completed its Report of Environmental Assessment and recommended approval of the Nechalacho Project. On November 4, 2013, the Federal government approved the project, allowing the company to proceed with formal applications for the required land use permits and water licenses.
As rare earth prices fell, the project become largely inactive. In May 2018, Avalon announced it was re-activating the project on the global demand for neodymium and praseodymium and in January 2019 it was announced that Avalon and private Australian company Cheetah Resources Pty Ltd would be collaborating to develop the T-Zone and Tardiff Zones of the project. Cheetah Resources Pty Ltd is owned by Vital Metals (ASX: VML; US-OTC: VTMXF). The subsidiary is focused on the small-scale development of rare earth resources enriched in the magnet rare earths - neodymium and praseodymium - presently in short supply and high demand for clean technology applications.
The Nechalacho Project at Thor Lake is situated in an area known as the Akaitcho Territory, which is subject to a comprehensive land claim negotiation between several communities of the Dene Nation and Canada's federal government. In 2012, Avalon completed an Accommodation Agreement with the Deninu Kue First Nation. The Accommodation Agreement provides business and employment opportunities for the Deninu Kue related to the project and contains measures to mitigate environmental and cultural impacts that may result from the project development. In February 2014, the company signed a Participation Agreement with the Northwest Territory Metis Nation.

### Separation Rapids Ltd.

On June 15, 2023, Avalon and SCR-Sibelco NV formed a joint venture, Separation Rapids Ltd. (SRL) to develop Avalon’s lithium projects at Separation Rapids and Lilypad in northwestern Ontario. The joint venture is structured with Sibelco holding a 60% stake and Avalon holding 40%. Sibelco, serving as the operator, has sole funding responsibility for the first C$50 million of joint venture expenditures. On November 2, 2023, Avalon and Sibelco entered into a definitive Tripartite Purchase and Sale Agreement to provide for the transfer of the Company’s Separation Rapids and Lilypad projects to SRL.
The Separation Rapids Project is located 70 km north of Kenora in Ontario, Canada. The Separation Rapids property is host to a large "complex-type" pegmatite; it is the fourth example in the world of a rare-metal pegmatite with the size required to be of major economic importance. The strike length of the deposit is over 1.5 km, and the width ranges from 10 to 70 metres. The mineralized zone is well exposed at surface in a low dome-shaped hill. This part of the deposit will be readily amenable to mining by low-cost quarrying methods. Avalon has demonstrated it is able to produce high-purity petalite from the deposit, for use in the glass-ceramics industry, as well as battery-grade lithium chemicals for use in the lithium-ion battery sector. On August 10, 2023, Avalon released an updated Mineral Resource Estimate (“MRE”) for Separation Rapids, conducted by SLR Consulting (Canada) Ltd., an independent global mining advisory and consulting firm. The MRE revealed a measured and indicated deposit 20% larger than earlier estimates. The MRE, compliant with NI 43-101, showed a measured and indicated resource of 10.08 million tonnes (Mt) of petalite, grading on average 1.35% Li2O. The resource is primarily from an open pit, while a smaller amount is from an underground resource. A 2024 winter drilling program was recently completed to upgrade the 2023 Mineral Resource Estimation classification as well as to expand the mineral resources.
The property lies within the traditional land use area of the Wabaseemoong Independent Nations of Whitedog, Ontario. In August 1999, Avalon signed a Memorandum of Understanding with WIN which was renewed in May 2013.

#### Lilypad Cesium-Tantalum Project

The Lilypad property consists of 14 claims covering 3,108 hectares located approximately 350 kilometres north of Thunder Bay, near the community of Fort Hope in the traditional territory of the Eabametoong First Nation. Work at Lilypad in 2001-2002 focused on defining tantalum resources but was also successful in identifying widespread occurrences of the cesium ore mineral pollucite in a field of highly fractionated lithium-cesium-tantalum pegmatite dykes. In October 2020, Avalon carried out a short field program to collect 200 kilograms of cesium mineralized pegmatite rock for study on how to efficiently concentrate the pollucite mineralization which is found widely distributed throughout the many LCT pegmatite dykes on the property.

### East Kemptville Tin Project

The East Kemptville Tin Project is located approximately 45 km northeast of Yarmouth, Nova Scotia in the vicinity of the former East Kemptville Tin Mine. In May 2014, Avalon entered into an agreement with the surface rights holder to secure access to lands held under the Special Licence for a limited drilling program, to confirm historic estimates of tin-copper-zinc resources remaining in the ground after production ceased at the East Kemptville mine in 1992, and bring them into compliance with NI 43–101 for reporting purposes. In July 2018, Avalon announced the completion of a positive Preliminary Economic Assessment on the project. The company's re-development model, as presently conceived, is an environmental remediation project that will be financed through the sale of tin concentrates recovered in large part from previously-mined mineralized material on the site.

### Warren Township Anorthosite Project

The Warren Township Anorthosite Project is located 100 kilometers west of Timmins in Ontario's Porcupine Mining Division, operates under a 21-year renewable lease covering 673.7 hectares. This project capitalizes on a significant resource found within the Shawmere Anorthosite Complex, notable for its high purity anorthosite composed of up to 98% high calcium plagioclase feldspar. Regulatory support for the project was bolstered in June 2012 when Avalon received a permit under Ontario’s Aggregate Resources Act to operate a quarry at Warren Township on 240 hectares. The project also includes a preliminary environmental baseline study. A Memorandum of Understanding with the Chapleau Cree First Nation has also been signed. Strategically positioned near key road and rail infrastructure, the property offers efficient access to markets in southern Ontario and the northeastern United States, enhancing its logistical and economic feasibility.

## Corporate sustainability

Avalon has made social responsibility, health and safety and environmental stewardship its cornerstones of development. In 2011, Avalon produced its first full corporate sustainability report, entitled Journey to a Sustainable Future, prepared within the framework of the GRI version G3.1. For detailed information on Avalon’s sustainability initiatives and access to additional reports, please visit the sustainability section on Avalon’s website.