AVALON RECEIVES FINAL PAYMENT FROM CHEETAH RESOURCES FOR ACQUISITION OF NECHALACHO RARE EARTH RESOURCES

Avalon Advanced Materials Inc., further to its news release dated June 24, 2019, has received the final instalment payment of the $5-million purchase price from Cheetah Resources Pty. Ltd. for the near-surface resources on the Nechalacho rare earth elements property at Thor Lake near Yellowknife, NWT, Canada. The parties are now working toward finalization of the terms of a co-ownership agreement that will allow Cheetah to move forward with development of the near-surface rare earth resources in the T-Zone deposit in collaboration with Avalon.

Since the original purchase agreement was entered in June, 2019, Avalon managed a $900,000 summer work program on the North T deposit for Cheetah involving core relogging and sampling, followed by an 800-metre, 19-hole diamond drilling program completed in September to October. The work program also included shipping of a 75-tonne stockpiled bulk sample for testwork to confirm the sensor-based ore-sorting process being developed for the unique coarse-grained quartz-bastnaesite mineralization present in the upper part of the T-Zone deposit.

The diamond drilling results will allow preparation of a new resource estimate for the T-Zone, which, combined with process testwork and additional environmental assessment work, will define the model for proceeding with pilot-scale development of the T-Zone rare earth (bastnaesite) resource in 2020. Commented Avalon president and chief executive officer Don Bubar, "With all the recent concern in the United States about security of supply of rare earths and other critical minerals outside China, this program represents a very timely opportunity to initiate a new rare earths supply chain in North America."

Cheetah Resources (now Vital Metals Ltd.)

On Oct. 22, 2019, Australia-based Vital Metals completed its acquisition of privately held Cheetah Resources, following the receipt of shareholder approval earlier in the month, with the company's focus now turning toward near-term production of rare earth oxides. Cheetah's managing director, Geoff Atkins, is now managing director of Vital Metals.

About Avalon Advanced Materials Inc.

Avalon Advanced is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The company has three advanced-stage projects, all 100-per-cent-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 developing its Separation Rapids lithium project, Kenora, Ont., and its East Kemptville tin-indium project, Yarmouth, N.S., to production, while continuing to advance its Nechalacho rare earths asset.