AVALON ADVANCED MATERIALS INC.

Critical Minerals for a Sustainable Future

Separation Rapids Lithium Project:

The Big Whopper Pegmatite

Emerging Growth Conference

Presented by: Zeeshan Syed, President
March 2023
Forward-Looking Information
This corporate presentation contains or incorporates by reference “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities legislation, which may not be based on historical fact. Readers can identify many of these statements by looking for words such as “believe”, “expects”, “will”, “intends”, “projects”,
“anticipates”, “estimates”, “continues” or similar words or the negative thereof. Statements that are not based on historical fact contained in this presentation, including through documents incorporated by
reference herein, are forward-looking statements that involve risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected
in the forward-looking statements . Such forward looking statements reflect the Company’s current views with respect to future events and include, among other things, statements regarding targets,
estimates and/or assumptions in respect of reserves and/or resources , and are based on estimates and/or assumptions related to future economic, market and other conditions that, while considered
reasonable by the Corporation, are inherently subject to risks and uncertainties, including significant business, economic, competitive, political and social uncertainties and contingencies. These estimates
and/or assumptions include, but are not limited to: grade of ore; rare metal and by-product commodity prices; metallurgical recoveries; operating costs; achievement of current timetables for development;
strength of the global economy; availability of additional capital; and availability of supplies, equipment and labour. Factors that could cause the Company’s actual results, performance, achievements,
developments or events to differ materially from those expressed or implied by forward-looking statements include, among others, but are not limited to, market conditions, the possibility of cost overruns
or unanticipated costs and expenses, the impact of proposed optimizations at the Company’s projects, actual results of exploration activities, mineral reserves and mineral resources and metallurgical
recoveries, discrepancies between actual and estimated production rate, mining operational and development risks and delays, regulatory restrictions (including environmental), activities by governmental
authorities, financing delays, joint venture or strategic alliances risks, or other risks in the mining industry, as well as those risk factors discussed or referred to in the Company’s annual Management’s
Discussion and Analysis and Annual Report filed with the securities regulatory authorities in all provinces and territories of Canada, other than Québec, and available at www.sedar.com. Most of the
foregoing factors are beyond Avalon’s ability to control or predict. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the
plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are qualified in their entirety by this cautionary
statement. Readers should not place undue reliance on the forward-looking statements, which reflect management’s plans, estimates, projections and views only as of the date hereof. The forward-looking
statements contained herein is presented for the purpose of assisting readers in understanding the Corporation’s expected financial and operating performance, and the Company’s plans and objectives,
and may not be appropriate for other purposes. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities law. The
geological information contained in this presentation 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.

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About Avalon
Lilypad
Avalon Advanced Materials Inc. is a Canadian Cesium-Tantalum-Lithium

mineral development company specializing

in sustainably-produced materials for clean
technology. East Kemptville
Tin-Indium-Cu-Zn
The Company has 4 projects, providing
investors with exposure to lithium, tin,
indium, as well as rare earth elements,
tantalum, cesium and zirconium.
Avalon’s flagship asset is the Separation KENORA

Rapids Lithium Project near Kenora, Ontario. Nechalacho TORONTO

Rare Earths
Separation Rapids
Lithium

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2023 Objectives

• Formalize strategic partnerships to advance lithium projects supporting multiple sectors

• Pursue available government funding for mid-stream processing

• Grow lithium resources via acquisitions and through exploration activities at Separation
Rapids; expect to update project MRE in H2 2023
• Expand drill program at adjacent properties

• Commence Definitive Feasibility Study on Separation Rapids in 2023

• Finalize Thunder Bay site acquisition and commence site preparation
• Complete test work for lithium concentrate conversion to hydroxide

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Critical Minerals Value Chain
Applying innovation and designing an appropriate extraction process to meet the requirements of the end users

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Demand and Market Opportunity
Global lithium Supply and Demand Forecast

Total demand for lithium battery materials is forecast to jump by 50%

this year to 4.8 million tonnes, nearing 17.5 million tonnes by 2030

Demand for lithium is set to grow the fastest, increasing more

than sevenfold between 2021 and 20301

Lithium hydroxide prices have risen from $5,000/t in 2020 to over Source: Benchmark Minerals Intelligence (2018)

$70,000/t by the end of 2022 due to the very limited supply Benchmark Minerals Lithium Price Index

Once new supply sources are established, prices should come back to
levels in the range of $20,000 to $30,000/tonne

Adding to this, the growing demand from applications

By 2030, electric vehicles (EV) will represent more than such as energy storage systems (ESS), 5G devices, and
60% of vehicles sold globally2 Internet of Things (IoT) infrastructure.

1 https://about.bnef.com/blog/race-to-net-zero-the-pressures-of-the-battery-boom-in-five-charts/

C O R P O R A T E P R E S E NT A T I O N TSX: AVL | OTCQB: AVLNF 2.https://www.iea.org/reports/by-2030-evs-represent-more-than-60-of-vehicles-sold-globally-and-require-an-adequate- | 6

surge-in-chargers-installed-in-buildings
Government Support
Ontario’s Critical Mineral Strategy to support “made-in-Ontario”
EV supply chain by:

• Attracting EV and battery manufacturers to establish plants in Ontario LG Energy Solution Ltd. and Stellantis N.V. are constructing
Ontario’s first large-scale electric EV battery manufacturing
plant in Windsor, expected to come online by 2025.
• Supporting the establishment of the mid-stream processing capacity to produce
the lithium battery materials

• Investing in innovation, research and development

• Improving the regulatory framework to encourage more investment in mineral

development in Ontario
GM announced plans in April 2022 to launch Canada’s first
commercial EV hub in Ontario.
• Creating new economic development opportunities for Indigenous partners and
remote First Nation communities

The recent Federal government budget also announced $15B in funding in 2022 to
support critical minerals mining and processing, battery component manufacturing,
Umicore announced plans in July 2022 to make a C$1.5B
EV production and the establishment of Canada’s first gigafactory1 investment to build an industrial-scale cathode and precursor
materials manufacturing plant in Ontario.

C O R P O R A T E P R E S E NT A T I O N TSX: AVL | OTCQB: AVLNF 1 https://financialpost.com/commodities/energy/electric-vehicles/canadas-ev-battery-supply-credibility-jumps

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 Experienced Team
Experienced team of resource professionals

Donald S. Bubar, M.Sc., P.Geo Zeeshan Syed, M.Sc. Amiel Blajchman, MES, P.Ag. Cindy Hu, CPA,
CEO, Director President Manager, ESG & Sustainability CA, CPA (Illinois)
MANAGEMENT

Controller

R.J. (Jim) Andersen, CPA, Rickardo Welyhorsky, Georgi Doundarov, M.Sc., Salisha Ilyas
CA, CPA (Illinois), CGMA P.Eng, PMP, CCP Investor Relations
P.Eng.
Vice President, Finance, COO and Vice President, Operations Senior Metallurgist
Corporate Secretary and CFO

Alan Ferry, B.Sc., CFA Chief Harvey L.A. Yesno John E. Fisher, B.Sc., MBA
BOARD OF DIRECTORS

Board Member Board Member

Non-Executive Board Chair

Naomi Johnson, BA, LL.B. Marilyn Spink, P.Eng.

Board Member Board Member

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Strong ESG Profile
Committed to environmentally & socially responsible mineral resource development

“Avalon aims to become a leading global supplier of sustainably-produced lithium battery

materials and other rare metals needed for renewable energy production and storage.”

20 Years 11TH Annual Top 5%

Sustainable Dec ‘22 published 2022 Avalon Pledges to be Culture of Responsible Forefront of Well positioned for Diversified Metals
Practices Sustainability Report which Carbon Neutral by 2050 Mining in our history Energy Transition Canadian Supply Chain ESG Risk Rating from
addresses GRI framework, 150 companies
UN 17 SDGs and MAC’s TSM

All executives and Board members, former
Eabametoong First Nation Chief Harvey
Yesno, are actively involved in AVL’s First
Nations community engagement program
Received excellent Sustainalytics ESG
risk rating licence following an audit on
Avalon’s business practices and policies
to attract interest from new ESG
investors
Ranked as “Benchmark Approved” in
Benchmark Minerals’ first report that
ranks global lithium producers based on
Environmental, Social and Governance
criteria.

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Capital Structure
Long-term, supportive shareholder base
12-Month Share Price Performance

AVL Share Capitalization (as of November 30, 2022)

Shares issued and outstanding 417.5M
Warrants 33.7M
Options 17.5M
RSUs and DSUs 1.5M
Convertible note (based on 5-day VWAP ($0.118) 30.3M
Fully diluted 500.5M
Cash on Hand ~C$10.0MM
Market cap (February 2, 2023) C$60.1M
Avg-volume 330,979

Recent Financing
• Closed private placement priced at $0.17 for gross
proceeds of $1.95M in Flow-through funding for
Separation Rapids deep drilling program

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Separation Rapids Lithium Project
• Site is host to the “Big Whopper” lithium pegmatite discovery
acquired by Avalon in 1997

• 100% owned with 6,000+ acres of exploration lands

• Close to hydro power (~25 km Whitedog Generating Station).

• Road and rail access, close to (hydro) power infrastructure

• Local First Nation community support (Wabaseemoong Independent

Nations)

• PEA initially published in 2016 for lithium hydroxide production.

Later updated in 2018 based on growing demand for
petalite in glass-ceramic applications

Note the PEA is preliminary, includes inferred mineral resources considered too
speculative geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. There is no certainty that the
preliminary economic assessment will be realized.

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Separation Rapids
NI-43-101 Resource (as at May 23, 2018)

Total (Petalite + Lepidolite)

• Large LCT (lithium-cesium-tantalum) pegmatite containing two lithium minerals: petalite
and lepidolite
Petalite is the predominant lithium mineral Tonnes % % Wt. %
• Class % Li20 % Cs2O
(Mt) Ta2O5 Rb2O feldspar
• Petalite contains 4.5% Li2O (average grade) with no impurities and is a limited resource
Measured 3.364 1.431 0.006 0.015 0.365 43
• Lepidolite is a lithium mica containing other elements, including cesium
Indicated 5.041 1.393 0.007 0.014 0.366 43
• Petalite and lepidolite can each be concentrated to make saleable products:
• Petalite can be used as an industrial mineral for high strength glass and as M+I 8.405 1.408 0.007 0.015 0.365 43
a high purity feed to make battery grade lithium hydroxide or carbonate
Inferred 1.791 1.349 0.007 0.018 0.365 43
• Lepidolite concentrates can be used to produce battery grade lithium
hydroxide

• Tantalum minerals are also recoverable along with Rubidium-rich K-feldspars as an

industrial mineral by-product

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Separation Rapids: Two-Pronged Strategy

• Petalite concentrate to the glass-ceramics market

• Global glass-ceramics market US$1.5B in 2021 → expected to
grow to US$2.1B by 20281
Petalite • Various discussion underway with major international glass-
ceramics manufacturers and interest from others continues to
grow.
o Near-term cash flow opportunity
Separation Rapids
Lithium Project
• Petalite + lepidolite concentrate to meet growing battery demand
o Global LCE demand is expected to grow to 2.4 million tonnes
Petalite + by 20302
Lepidolite • MOU signed in September 2022 to supply LG Energy Solution with
battery-grade lithium hydroxide from AVL’s planned lithium
refinery in Thunder Bay

1 https://beyondmarketinsights.com/report/glass-ceramics-market/
C O R P O R A T E P R E S E NT A T I O N TSX: AVL | OTCQB: AVLNF 2 https://source.benchmarkminerals.com/article/analysis-lithium-industry-needs-42-billion-to-meet-2030-demand
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The Lithium Processing Facility

• We seek to establish North America’s first vertically integrated lithium processing facility in
Thunder Bay, Ontario.
• The project will bridge a current gap in the supply chain with midstream processing and
amplify Canada’s critical minerals investments by ensuring the long-term security of lithium
supply to battery and cathode manufacturers and auto OEMs.
• Our vision is to create a geostrategic facility, accepting lithium concentrates from multiple
regional producers and position Canada as a critical minerals hub.
• We aim to create an ESG-leading, best-in-class project with a process design that produces
minimal waste, and a NetZero carbon footprint.

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The Bridge to the Electric Mobility Era
Avalon’s lithium processing facility will:
• Advance the Canada’s 2030 emissions reduction plan by providing security of supply of lithium
battery materials
• Infuse large-scale FDI into the Canadian clean energy sector and help strengthen economic ties
• Deliver on the federal budget’s call for midstream processing capacity necessary to develop a
Canadian battery ecosystem to advance decarbonization priorities and support business
innovation and growth
• Accelerate the growth of the Canadian EV industry for the future NetZero economy activating
further downstream value-added manufacturing investments
• Help strengthen the Canada-U.S. and Canada-EU Joint Action Plan on Critical Minerals
Collaboration and create clean energy industrial transformation opportunities

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 Timeline to Lithium Hydroxide Production

2023 2024 2025 2026 2027 2028

DFS – Mine / Mill (Petalite and Lepidolite Concentrate)

Baseline Study and Permitting Environmental and

Government Approval
Engineering/Procurement/Construction/Commissioning

Petalite and Lepidolite Production Start-Up and Ramp-Up

to Full Production

DFS – Lithium Hydroxide Refinery

Baseline Study and Permitting Environmental and

Government Approval

Engineering/Procurement/Construction/Commissioning Begin lithium battery materials production

Lithium Hydroxide Production and Start-Up and Ramp-

Up to Full Production

First Nations and Community Engagements

Note the PEA is preliminary, includes inferred mineral resources considered too speculative geologically to have the economic considerations applied to
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them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized.