INDUSTRY BULLETIN: Avalon presents at International Electric Vehicle Symposium in Montreal July 7, 2016 Avalon Advanced Materials Inc. is pleased to report on its recent participation in the 29th Electric Vehicle Symposium and Exhibition (“EVS29”) held in Montreal, June 19 to 22, 2016: the largest electric vehicle (“EV”) conference in the world, with over 2,500 attendees and 150 exhibiting companies. Avalon was invited to participate as an exhibitor within the Ontario Pavilion, sponsored by the Government of Ontario. Rechargeable battery technology was a key theme of the symposium and Avalon was the only exhibitor representing the upstream in the battery materials supply chain. Avalon’s presentation included a well-received poster and accompanying research paper entitled “Electric Vehicle Growth Dependent on Lithium Supply.” This provided opportunities for dialogue with hundreds of attendees, including battery manufacturers interested in understanding the lithium supply chain and Avalon’s ability to serve their future critical materials supply needs. The poster presentation, summarizing the lithium ion battery supply chain, can be viewed at avalonadvancedmaterials.com/_resources/EV_Supply_Chain.pdf. There were many representatives of government in attendance, including the Premier of Quebec, Philippe Couillard; the Parliamentary Secretary to the Minister of Natural Resources, Kim Rudd; and the Minister of Environment and Climate Change for Ontario, Glen Murray. All spoke of the high priority their governments have given to EV adoption through policy and investment commitments. Automakers seem to be moving rapidly toward EV adoption regardless of government policy initiatives, as rapid advances in lithium ion battery technology are now making EVs both practical and affordable. Most recently, Volkswagen announced their plans to produce 2-3 million EVs annually by 2025 and to manufacture the batteries needed for these vehicles. A recent report by Japanese research firm B3 predicts that the worldwide EV battery market is expected to grow by 66.8% in 2016, and a further 57% in 2017, from a production level of 550,297 vehicles in 2015. There is little doubt that these very high EV production growth rates will require new secure, sustainable and high quality sources of lithium compounds. Avalon is well-positioned with its advanced Separation Rapids Lithium Project to participate in the rapidly growing lithium ion battery supply chain. For questions or feedback, please email Avalon at [email protected]. Lithium Demand Growth Forecasts (ktLCE/year) Lithium Demand Growth Forecasts (ktLCE/year) About Avalon Advanced Materials Inc. Avalon Advanced Materials Inc (TSX: AVL & OTCQX: AVLNF), formerly Avalon Rare Metals Inc., is a Canadian mineral development company specializing in niche market metals and minerals which are in growing demand in new technology. 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. 130 Adelaide St. W, Suite 1901 Toronto, ON M5H 3P5 Tel: (416) 364-4938 Email: [email protected]