Wood selected to advance strategic Canadian rare earths project

Avalon Advanced Materials Inc. (“Avalon” or the “Company”) is pleased to announce the commissioning of a new Preliminary Economic Assessment (“PEA”) for its Nechalacho Rare Earths and Zirconium Project in the Northwest Territories. The refreshed PEA is intended to update and modernize the project’s 2013 Definitive Feasibility Study (“DFS”) by incorporating advances in processing technology and updated capital and operating cost assumptions reflective of current market conditions.

Advancing the PEA reflects a strategic effort to align Nechalacho with current technical, commercial, and geopolitical realities — including advances in rare-earth processing technologies, evolving infrastructure and logistics requirements, and the growing emphasis on secure, allied supply chains for critical minerals. The study will integrate updated cost data, revised engineering inputs, and environmental and regulatory considerations, establishing a refreshed economic and technical basis to advance project optimization, financing discussions, and strategic partnerships.

The Company has engaged Wood Canada Limited (“Wood”) to complete the PEA and NI 43-101 Technical Report. Wood is a global leader in engineering and consulting, with extensive experience delivering prefeasibility and feasibility studies for remote mining projects, including several rare earth elements projects across Canada and the U.S.

The Company expects the refreshed PEA to be completed within approximately six months. Thereafter, Avalon intends to proceed directly to a DFS as the next phase of project development, providing the level of engineering, cost definition, and risk validation required to confirm project viability and support project financing, offtake, and strategic partnership discussions.

“Commencing a new PEA represents the first step in refreshing the Nechalacho feasibility study and positioning the project for its next phase of development and funding. Following the PEA, our plan is to transition into a full Definitive Feasibility Study, enabling Nechalacho to move toward construction readiness with updated economics and execution planning.

As one of the few North American deposits with both light and heavy rare earths and a uniquely high concentration of magnet-grade materials, Nechalacho is strategically positioned to support secure, allied supply chains for defense, clean energy, and advanced technologies. Advancing these studies positions the project to play a role in strengthening allied rare-earth supply chains as countries seek secure, diversified sources of critical minerals,” said Scott Monteith, President and CEO at Avalon.

John Day, President of Projects Western Hemisphere at Wood, commented: “We are proud to begin work on the PEA for Nechalacho, which represents an important step towards advancing a secure and sustainable supply of rare earth elements in North America. Our team brings deep experience in delivering complex studies for remote northern projects, and we look forward to applying that expertise to help Avalon optimize the project and position it for successful development.”

As previously announced in connection with the Company’s C$18.65 million financing, Avalon is committed to advancing its core rare earth and lithium assets through updated technical and economic studies. The initiation of the updated PEA at Nechalacho demonstrates the Company’s execution on those commitments, advancing project readiness and supporting ongoing strategic partnership and financing discussions.