Toronto, ON – Avalon Advanced Materials Inc.(TSX: AVL and OTCQX: AVLNF) (“Avalon” or the “Company”) is pleased to announce that it has received results from recent laboratory testwork on lepidolite (lithium mica) mineralization from the Separation Rapids lithium deposit confirming that a 99.88% pure lithium carbonate product can be made from this material. The work was conducted by Lepidico Ltd., of Perth, Australia (ASX:LPD, “Lepidico”) using its patented L-Max® hydrometallurgical process technology. The results are summarized in more detail in Lepidico’s news release dated January 25, 2017.

Avalon and Lepidico have subsequently entered into a non-binding letter of intent (“LOI”) under which it is contemplated that Avalon would sell a minimum of 15,000 tonnes per annum of lepidolite concentrate produced from its planned demonstration-scale pilot plant to Lepidico for processing at Lepidico’s planned Phase 1 commercial lithium carbonate production facility. Lepidico is currently preparing a Pre-feasibility Study for this plant which it plans to be located near large consumers of lithium battery materials. Lepidico is also planning to complete a definitive feasibility study by December, 2017. Both companies anticipate initiating construction of their respective process plants in 2018.

Avalon’s President, Don Bubar commented “We are pleased to have identified a second opportunity to recover a lithium battery material from the Separation Rapids deposit, in addition to the lithium hydroxide product that can be recovered from the known petalite resource as documented in the Company’s recent Preliminary Economic Assessment. This gives us potential to increase the recoverable lithium resources in the deposit and serve more markets with our lithium products, as well as other potential by-products such as rubidium and cesium.”

Avalon plans to proceed with a winter drilling program by the end of February, 2017 to test known extensions of the Separation Rapids lithium deposit and expand the mineral resource. This will include a number of holes designed to better delineate the lepidolite-bearing sub-zones to the east of the main petalite resource and bring them into the total lithium resources on the property.

The technical information included in this news release has been reviewed and approved by the Company’s Senior Vice President, Metallurgy and Technology Development, Mr. David Marsh, FAusIMM (CP), and Donald S. Bubar, P.Geo. both Qualified Persons under NI 43-101. For questions and feedback, please e-mail the Company at [email protected], or phone Don Bubar, President & CEO at  416-364-4938.