Avalon Clarifies Disclosure Contained In September 27, 2016 News Release Tuesday, October 25, 2016 Avalon Clarifies Disclosure Contained in September 27, 2016 News Release 17:10 EDT Tuesday, October 25, 2016 TORONTO, Oct. 25, 2016 (GLOBE NEWSWIRE) -- Avalon Advanced Materials Inc. (TSX:AVL) (OTCQX:AVLNF) (“Avalon” or the “Company”) announces that as a result of a review by staff of the Ontario Securities Commission, it is issuing the following news release clarifying the disclosure in its September 27, 2016, news release related to its 100% owned Separation Rapids Lithium Project (the “Project”), Kenora, Ontario. The Company neglected to inform readers that the comprehensive technical report would be filed on SEDAR within 45 days of the date of the news release, prior to November 11, 2016. The Company clarifies the classification and tonnes of the feldspar by-product in relation to the lithium mineral resource estimate (which was originally reported as 8.0 Mt of Inferred Resources), will be classified in the PEA as 4.03 Mt of Measured Resources and 3.97 Mt of Indicated Resources, as well as an additional 1.63 Mt of Inferred Resources. A table of the resource estimate providing full details and notes is appended below. This clarification is partially the result of additional quantitative mineralogical work completed since the original estimate was completed. The revised estimate appended below utilizes the same assumptions and parameters with respect to commodity prices, mining method and other factors as given in the news release of September 27, 2016. Some cautionary language required due to the inclusion of Inferred resources in the economic model was also inadvertently omitted. In compliance with paragraph 2.3(3)(a) of National Instrument 43-101 the Company states that the preliminary economic assessment described therein is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Finally, Paragraph 2.3(1)(b) of NI 43-101 restricts disclosure of an economic analysis on an extrapolation of results beyond the defined mineral resource estimate and the following is therefore retracted: “If additional drilling on untested extensions of the Deposit were to increase the resource and extend the initial 10 year lithium production period, each additional year of additional lithium production could add $200 million in revenues per year and significantly increase the NPV of the Project.”