Avalon Advanced Materials Inc. announced the commencement of a new comprehensive drilling program at Separation Rapids, the Avalon-Sibelco joint venture lithium deposit in Northwestern Ontario. New Drill Program Highlights: 8,000mrdrilling program intended to upgrade the Inferred resources to Indicated status; Pontial increasese of the total lithium resource available in the open pit and underground portions of the project; CAD 3.6 million (EUR2.51 million) of capital budget with an estimated program duration of four months; First major capital initiative funded by the new Avalon-Sibelco joint Venture lithium deposit; Thisis is the logical and exciting next step in moving Sepation Rapids forward into commercial productionon. The MRE results confirmed sufficient qualities in the Separation Rapids deposit for both the glass-ceramics and lithium battery markets.

In addition, the MRE indicated the potential of an additional 3Mt to 6Mt of available resource, with an average grade of between 1.0% and 1.4% Li(2) O, which the current drilling program will seek to confirm. Avalon retained Major Drilling Group International Inc. to conduct the work program. Major Drilling Group is one of the largest drilling services providers in the world, with over 3,500 employees across five continents.

objectives of the Drilling Program: Priority y 1: Upgrade the Inferred to Indicated category in the open pit; Priority 2: st east and west extension on strike to increase total pit resource; Priority 3: Upgrade the Inferred toIndicated category and add further resource in the underground. This new Separation Rapids drilling program follows the acquisition in June of the Strathcona property in Thunder Bay, ON., a 383-acre industrial site that is intended to host Ontario's first lithium hydroxide conversion facility built and operated by Avalon. Avalon and Sibelco are continuing to negotiate in good faith a definitive agreement in respect of the joint venture.