Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) is pleased to announce that it has closed the $1,300,000 second drawdown of its up to $15,000,000 convertible security funding agreement with Lind Global Fund II, LP, an entity managed by The Lind Partners, a New York based institutional fund manager. The details of the Funding Agreement are contained in the Company’s news release dated July 21, 2025.

With the second drawdown now complete, Avalon will allocate the funds toward advancing its strategic projects – including byproduct innovation through its subsidiary Lake Superior Lithium Inc., as well as supporting general corporate initiatives.

Analcime Research Project Update

Avalon is pleased to provide an update on its ongoing Analcime Utilization Project, part of a broader initiative to enhance the value of byproducts generated from lithium processing. This initiative is being advanced by Avalon’s wholly owned subsidiary, Lake Superior Lithium Inc. (“LSLi”), and is supported by Ontario’s Critical Minerals Innovation Fund which recently released the second tranche of a $500,000 funding commitment.

The project is focused on developing innovative solutions for analcime – the byproduct from lithium hydroxide production at the future LSLi Facility. Initial research suggests that analcime’s pozzolanic properties – its ability to react with calcium hydroxide in cement – may help improve the durability and carbon profile of concrete. These findings align with the Ontario Ministry of Transportation’s broader efforts to adopt low-carbon construction materials and sustainable construction techniques.

Hydrometallurgical test work is currently underway by Metso Finland Oy to produce analcime samples from spodumene concentrate. Additional funding will support ongoing research and development into its use as a sustainable supplementary cementitious material for low-carbon infrastructure applications.

“This innovative project promises sustainability benefits through reduced carbon emissions, opens new revenue opportunities, and represents an opportunity for Avalon to contribute to the repair and expansion of provincial highways,” said Scott Monteith, President and CEO of Avalon.

The analcime project helps Avalon unlock additional value through the establishment of its LSLi Facility by repurposing a key byproduct of lithium processing. Avalon is proud to play a strategic role in securing Ontario’s economic future and positioning both the province and the company as leaders in the global critical mineral’s economy and among the most competitive in the G7.

This news release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”), and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) absent registration or an applicable exemption from registration. All currency reported in this release is in Canadian dollars.

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 focused on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium Inc., Ontario’s first midstream 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 EV 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, Ontario, as well as continuing exploration at its Snowbank lithium and Lilypad lithium-caesium deposits. The Company is also advancing the Nechalacho Rare Earths and Zirconium Project in the Northwest Territories. This deposit 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.