Toronto, Ontario--(Newsfile Corp. - October 26, 2017) - Avalon Advanced
Materials Inc. (TSX: AVL) (OTCQX: AVLNF) ("Avalon" or the "Company") is pleased to provide the following update on recent
activities on its Separation Rapids Lithium Project. The Company is focused on advancing its proposed Phase 1 lithium production
facility and has been analyzing various alternatives on flowsheets to meet the needs of potential battery materials and
glass-ceramics customers, as well as lithium mineral concentrate processors, that have expressed interest in the products. The
mineralogy of the Separation Rapids lithium resource, containing significant quantities of both petalite and lepidolite, provides
opportunities to produce both lithium carbonate and lithium hydroxide for battery makers and petalite as an industrial mineral for
glass makers. Accordingly, recent work on the resource block model following the spring drilling program has focused on generating
a detailed mineralogical model of the deposit.
Resource Update and Phase 1 Plant Design
As disclosed in the Company's News Release dated July 18, 2017, the spring drilling program
has generated considerable new data towards creating a detailed mineralogical model of the deposit. The four in-fill holes
contributed to a better understanding of resource geometry for mine planning purposes, in particular the spatial distribution of
the lepidolite rich sub-unit that comprises at least 20% of the known resource. The block model created will also help guide
further drilling planned for later this fall designed to expand the resource to depth.
Mapping mineralogical zonation in the deposit is integral to designing the flowsheet for the planned Phase 1 production facility
in order to maximize recoveries of lepidolite and petalite which will need to be concentrated separately. Initial testwork has
shown that lepidolite can be recovered as the first step in a sequential flotation process prior to flotation of petalite.
Concentrates of lepidolite are attracting increasing interest as a feedstock for production of lithium carbonate due to innovative
low cost process technology such as the L-Max® process of Lepidico Ltd. As reported in the Company's news release dated February 6, 2017, Avalon signed a letter of intent
with Lepidico under which it is contemplated that Avalon would sell a minimum of 15,000 tonnes per annum of lepidolite concentrate
produced from its Phase 1 plant to Lepidico for processing at Lepidico's planned Phase 1 commercial lithium carbonate production
facility. Lepidico now contemplates building this facility in Ontario. Avalon's Phase 1 plant would also include a circuit to
produce lithium hydroxide from petalite using the innovative new process flowsheet developed by the Company in 2016.
Numerous expressions of interest have been received from potential customers for the Company's lithium products and discussions
on off-take commitments are ongoing. Once off-take commitments are secured that define the priority lithium product lines, the
Company can finalize the design and engineering of the Phase 1 plant. With demand for lithium growing rapidly and few advanced
lithium projects ready to initiate production, the Company is well-positioned to bring a new supply to the market to serve priority
customers, once project financing is in place.
Summer Geological Mapping Program and Environmental Studies
The 2017 summer geological mapping and sampling program was carried out on the western part of the property covering the
new claims acquired earlier
this year. This work confirmed the potential for discovery of additional lithium pegmatite resources over a six
kilometre long trend to the west of the main Separation Rapids lithium deposit and has outlined six new pegmatite targets based on
either lithogeochemical or biogeochemical (vegetation) sampling. The westernmost occurrence, known as the Glitter pegmatite, has
never been drill-tested and yielded 1.18% Li2O over 14.8 metres in a continuous chip sample of
petalite mineralization collected this summer, confirming results obtained by previous operators.
Avalon completed site water, sediment, fish, invertebrate and endangered species studies in June and October that successfully
advanced the validation of the 1999 environmental baseline study. Sites for infrastructure, including the tailing management
facility, have been identified that do not impact fish or other wildlife habitat. Leachate work has been initiated on the site rock
and tailings to confirm that these have a low risk of generating acid rock drainage.
Avalon held a multi-Ministry meeting to review the project and associated permitting requirements as well as separate meetings
with the leadership of Wabaseemong Independent Nations and local representatives of the Métis Nation of Ontario to present the
project in detail, obtain input and discuss potential avenues for collaboration. Overall, the Company does not anticipate any
delays in securing the necessary permits and approvals to proceed with the Phase 1 production facility.
Future Work
Further drilling is planned in order to increase the total lithium resources in the main Separation Rapids lithium deposit,
which is open for expansion to depth below 200 metres with the deepest holes at present indicating similar widths and grades as in
the near surface holes. In addition, the lepidolite-rich sub-unit of the main pegmatite is also open for expansion to depth and
along strike.
Detailed mineralogical studies using several different techniques are underway in order to further quantify the lithium
pegmatite resources on the basis of mineralogy, as well as grades of the rare elements lithium, tantalum, cesium and rubidium.
Further geological work on the regional targets to the west is planned, in order to bring these to the drill stage. The Glitter
pegmatite merits drill-testing, along with the similarly untested petalite-bearing "West" pegmatite located just 800 metres west of
the main deposit. These can be tested in the same program as the deeper drilling planned for the main Separation Rapids lithium
resource.
The geological and technical information contained in this news release has been reviewed and approved by Don Bubar P. Geo.
(ONT) and President & CEO, Avalon Advanced Materials, qualified person for the purposes of National Instrument 43-101.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company focused on technology metals and minerals. The
Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as
rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project,
Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are
corporate cornerstones.
For questions and feedback, please e-mail the Company at ir@AvalonAM.com, or phone Don Bubar, President & CEO at 416-364-4938.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not
limited to, statements that the mineralogy of the Separation Rapids resource provides opportunities to
produce both lithium carbonate, lithium hydroxide and petalite, that lepidolite and
petalite will need to be concentrated separately, that concentrates of lepidolite are attracting increasing interest as a
feedstock for production of lithium carbonate, that Lepidico now contemplates building a facility in Ontario, that the
Avalon facility would include a circuit to produce lithium hydroxide from petalite, that once off-take commitments are secured
that define the priority lithium product lines, the Company can finalize the design and engineering of the Phase 1 production
facility, that few advanced lithium projects are ready to initiate production, that the Company is well-positioned to
bring a new supply to the market to serve priority customers once project financing is in place, that the summer drilling program
confirmed the potential for discovery of additional lithium pegmatite resources, that the Company does not anticipate any
delays in securing the necessary permits and approvals to proceed with the Phase 1 production facility, that further drilling is
planned in order to increase the total lithium resources, that reginal targets can can be tested in the same program as the
deeper drilling planned for the Separation Rapids resource . Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or
"does not expect", "is expected", "scheduled", "targeted", "planned", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or
result, "will occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from
those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions
management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important
factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ
materially from expected results described in forward-looking statements include, but are not limited to market conditions,
and the possibility of cost overruns or unanticipated costs and expenses as well as those risk factors set out in the
Company's current Annual Information Form, Management's Discussion and Analysis and other disclosure documents available under the
Company's profile at www.SEDAR.com. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the
Company's plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance
on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except
in accordance with applicable securities law
