TSX: AVL

OTCQB: AVLNF

2019 Annual General

Meeting

February 25, 2019

Don Bubar

President & CEO

Safe Harbour Statement

Forward looking information

This corporate presentation contains or incorporates by reference “forward looking statements” within the meaning of the United States Private

Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which may not be based on historical fact. Readers can

identify many of these statements by looking for words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”,

“continues” or similar words or the negative thereof. Statements that are not based on historical fact contained in this presentation, including

through documents incorporated by reference herein, are forward-looking statements that involve risks and uncertainties that could cause actual

events or results to differ materially from estimated or anticipated events or results reflected in the forward-looking statements . Such forward-

looking statements reflect the Company’s current views with respect to future events and include, among other things, statements regarding

targets, estimates and/or assumptions in respect of reserves and/or resources , and are based on estimates and/or assumptions related to future

economic, market and other conditions that, while considered reasonable by the Corporation, are inherently subject to risks and uncertainties,

including significant business, economic, competitive, political and social uncertainties and contingencies. These estimates and/or assumptions

include, but are not limited to: grade of ore; rare metal and by-product commodity prices; metallurgical recoveries; operating costs; achievement

of current timetables for development; strength of the global economy; availability of additional capital; and availability of supplies, equipment and

labour. Factors that could cause the Company’s actual results, performance, achievements, developments or events to differ materially from

those expressed or implied by forward-looking statements include, among others, but are not limited to, market conditions, the possibility of cost

overruns or unanticipated costs and expenses, the impact of proposed optimizations at the Company’s projects, actual results of exploration

activities, mineral reserves and mineral resources and metallurgical recoveries, discrepancies between actual and estimated production rate,

mining operational and development risks and delays, regulatory restrictions (including environmental), activities by governmental authorities,

financing delays, joint venture or strategic alliances risks, or other risks in the mining industry, as well as those risk factors discussed or referred

to in the Company’s annual Management’s Discussion and Analysis and Annual Report filed with the securities regulatory authorities in all

provinces and territories of Canada, other than Québec, and available at www.sedar.com. Most of the foregoing factors are beyond Avalon’s

ability to control or predict. Although the Company has attempted to identify important factors that could cause actual actions, events or results to

differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as

anticipated, estimated or intended. There can be no assurance that the plans, intentions or expectations upon which these forward-looking

statements are based will occur. The forward-looking statements contained herein are qualified in their entirety by this cautionary statement.

Readers should not place undue reliance on the forward-looking statements, which reflect management’s plans, estimates, projections and views

only as of the date hereof. The forward looking statements contained herein is presented for the purpose of assisting readers in understanding

the Corporation’s expected financial and operating performance, and the Company’s plans and objectives, and may not be appropriate for other

purposes. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable

securities law. The geological information contained in this presentation has been reviewed and approved by Don Bubar P. Geo. (ONT) and

President & CEO, Avalon Advanced Materials, qualified person for the purposes of National Instrument 43-101.

2

3

Establish a diversified clean technology

metals business, built on strong

environmental and social performance.

Create shareholder value and long term

growth through sustainable

development of our lithium, tin and REE

assets.

Avalon’s Vision and Mission

Share Structure & Sustainability

› Toronto-based, operating in Canada since 1995

› Focused on technology minerals and metals including lithium,

cesium, REE and tin-indium with three advanced projects

› Listed: TSX (AVL), OTCQB (AVLNF), Frankfurt (OU5)

› Market Cap: $15M (265 million S/O @ $0.055), FD: 310 million

shares with over 20,000 shareholders worldwide

› Sustainability: committed to environmentally and socially

responsible resource development

› Among Corporate Knights’ Future 40

Responsible Corporate Leaders in

Canada (2015, 2016, 2018)

› Avalon’s 7th annual GRI compliant Sustainability Report

released November 2018

› Aligns Avalon’s operating philosophy with its cleantech

customers and reduces social licence risk

4

Technology Metals and Minerals

Project Pipeline

5

Lithium Critical ingredient both for

energy storage and high

strength glass products

Tin An emerging technology

metal vital in electronics

with potential in batteries

Rare Earths, Lithium ‘Energy Metals’ vital to electric

vehicle technology

Cesium A rare element in high demand

for space technology and

specialty drilling fluids

› Separation Rapids Updated PEA

completed on model that focuses

initially on production of petalite for

glass, along with updated resource

estimate

› Discovery of new lithium “Snowbank”

pegmatite, with assays of up to 2.51%

Li2O over 1.1 metres in channels

› Nechalacho property re-activated due

to strong demand for the 'magnet rare

earths' neodymium and praseodymium

› Binding term sheet signed with

Cheetah Resources for joint venture

on small scale REE development of T-

Zone and Tardiff Zones

2018/2019 highlights

› East Kemptville PEA completed on

small scale site rehabilitation model

through profitable recovery of tin

concentrates from previously-mined

mineralized material on site

› Positive results from ore-sorting test

work encouraging to pursue

collaboration with Cronimet to

develop project

› Approvals process well advanced

with completion expected in 2019

› Lilypad property re-activated due to

growing interest in the cesium ore

mineral pollucite

Separation Rapids Lithium A rare LCT type of pegmatite deposit enriched in the lithium minerals

petalite and lepidolite

Large, high quality resource amenable to

open pit mining, discovered in 1996

› PFS initially completed in 1999 on model

to produce petalite for glass-makers

› Secure Tenure under a Mining Lease:

100% owned

› 6,000 acres of exploration lands

› Road access, proximity to clean hydro-

power allow low carbon intensity

› Strong community support: will diversify

local economy and create jobs

› No acid mine drainage or toxic heavy

metals in the deposit

Discovery outcrop after clearing for

mapping in 1998

7

Lithium Minerals: enable innovation

in high strength glass products

› Glass and Ceramics

• Lithium creates thermal shock resistance

Glass-ceramic stovetops

Corningware® Cookware

Fireplace Shields

• Lithium additions reduce the melting temperature and lower

GHG emissions from furnace

• Lithium additions also strengthen glass and are being used

to develop innovative high strength glass products

(computer screens and automotive)

Avalon’s Super Petalite product (>4.5% Li2O) is well-

suited for high-strength glass due to its very low impurity

content (very low alkalis & iron<100ppm)

8

Lithium Demand forecast to 2015 (k/tonne)

Source: UBS Securities 2018 Research Report

9

2018 Updated PEA Highlights

› Simplified business model with initial focus on production

of lithium mineral concentrates for glass and ceramics

› Production of 71,500 tpa petalite, 11,800 tpa lepidolite

› Initial CAPEX: C$77.7 million (475,000 tpa mill capacity)

› Feldspar circuit added in Year 6 (C$13.7 million CAPEX)

› 20 year operational life

› Average Annual Revenues: C$90 million

› Average Annual Costs: C$60 million

› NPV pre-tax (8% discount rate): $156 million

› IRR (pre-tax): 27.1% IRR (post tax): 22.7%

10

The PEA is preliminary in nature, 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 PEA will be realized.

› Minimum $3 million program planned to prepare for construction of mine and

process plant in 2019-20 to produce lithium mineral concentrates

• Bulk sample processing to produce more lithium mineral product

samples and finalize process flowsheet and plant design parameters

• Secure off-take agreements and arrange project financing (in progress)

• Complete FS-level cost estimates and project engineering

• Complete environmental assessments and advance project permitting

› 2020: Initiate site development & construction work and continue exploration

of new Snowbank pegmatite discovery

› 2022: Begin commercial operations, sales of petalite & lepidolite products

› 2023-25: Initiate pilot plant work on lithium hydroxide battery material

product for potential future production scale-up

Next Steps:

Moving toward Phase 1 Production Facility

11

12

Separation Rapids

Mineral Tenure and

Regional targets

Regional trend of lithium pegmatites, where exploration commenced in summer 2018 and several new targets developed. Map includes new claims acquired in 2017 to the north and west of existing land holdings

Glitter, Wolf and Rattler pegmatites

New Snowbank

pegmatite discovery

Snowbank Petalite Pegmatite

Discovery

13

Coarse white crystals of

petalite

› Large exposure of a new petalite pegmatite discovery

averaging 6 metres wide and traceable for over 100

metres along strike open on both ends.

› Assays of up to 2.51% Li2O over

1.1m in channel (50% of rock

is petalite)

› Other preliminary channel

sample highlights include:

• 1.53% Li2O / 2.6m

• 1.61% Li2O / 2.3m

• 1.07% Li2O / 2.9m

› Located just 4km NW of

Separation Rapids deposit

Snowbank Petalite Pegmatite –

August 2018

East Kemptville Tin Recovery

and Site Rehabilitation Project

› Opportunity to fully rehabilitate the site through

small-scale sustainable redevelopment and

economic recovery of tin from stockpiles

› Mine produced from 1985-92, when it closed

prematurely due to low tin prices

› Significant mineral resources left both in ground

and in large surface stockpiles

› 10,000 tpd mill removed and pits flooded

› Operated as a closed mine site since 1992 with

water treatment system to manage acid mine

drainage from stockpiles and tailings

› AVL acquired 100% of mineral rights in 2005

14

Metals Most Impacted by New Technology:

Tin is No. 1!

Source: MIT / Rio Tinto , March, 2018

15

Tin markets create opportunity

› Demand for tin increasing due to use in electronics as a

lead-free solder and other emerging applications in

clean technology (Li-batteries, solar panels)

› Supply becoming restricted as traditional low-cost placer

resources in SE Asia are exhausted

› Tin prices are anticipated to strengthen due to declining

supply and growing demand. Price now stable at US$20-

22,000/tonne

› East Kemptville can be approved, constructed and into

operation relatively quickly, utilizing mined ore stockpiles

› Small scale project has positive economics at current

prices while remediating the environmental liability and

creating a new supply of conflict -free tin concentrates

16

East Kemptville Site Layout

and surface resources

Baby Zone Pit

Low-grade Stockpile Inferred

Resource:

5.87M tonnes @ 0.112% tin*

North Waste Pile:

1.29M tonnes @ 0.089% tin`

Main Zone Pit

Existing Tailings Dam

with spare capacity,

18.8 M tonnes historical tailing

In-ground resources:

Indicated:18.5Mt @ 0.176% tin

Inferred:17Mt @ 0.148% tin (Resources as of October 31, 2014 (NR 14-13) Don Hains (P.Geo) is QP under NI 43-101)

`Historic resource prepared by previous operators, not treated by the Company as NI43-101 defined resource estimates and should not be relied upon.

*The stockpile resources are considered Inferred under NI43-101 guidelines and should therefore not be relied upon

17

Two Composite Views of Low Grade Ore Stockpile

at East Kemptville

18

6 million tonnes of previously mined tin ore now generating AMD

Can be re-processed to recover tin and remove need for perpetual water treatment

Current Brownfield Site

19

East Kemptville Site Rehabilitation

Concept

› Remove or isolate historical sources of acid mine

drainage “AMD” (Low-grade stockpile, waste piles

and stacked tailings) by new processing and

recovery of tin concentrates

• Eliminate long term environmental liabilities

• Minimize closure and financial assurance costs

• No new environmental impacts

• Create new productive uses for the land such

as agriculture and solar power generation

› Project has strong local community and

government support including ENGO & FN

20 Canola grown on paper mill bio-solids on

tailing, Sudbury, Ontario

East Kemptville Tailing cover

Year 17 to Year 20

22

› Several options for land

post-closure and earlier in

some areas

› LGO stockpile fully

processed

› Main Pit reclaimed as

wetland

› Waste dumps and

stockpiles reclaimed as

field

› Buildings removed or re-

purposed

Approximate Artist Rendering

East Kemptville Tin Project: Preliminary

Economic assessment (“PEA”) for Small

Scale Re-Development Model

› Process low grade ore stockpile and near-surface, higher grade

ore in existing pits at rate of 2,400 t/day for tin recovery only

› Crushing-Milling-Gravity Concentration to recover cassiterite

concentrates grading 55% tin using modular plant design

› Produce ave.1,300 t/yr of a 55% tin concentrate over 19 years

› Keep operation as simple and cost effective as possible with

low CAPEX estimated at just US$24.2 million

› Pre-tax IRR of 15%, NPV of US$14 million at 8% discount rate

› Average annual revenues of US$13.65 million vs annual

production costs of US$8.9 million at average tin price of US

$21,038/tonne

› Use existing tailings facilities and infrastructure, pre-fabricated

building with flexibility to expand production in future

23

Falcon Gravity concentrator that

uses centrifugal force to recover tin

*In accordance with regulations under NI 43-101, it is noted that the PEA must be considered preliminary in

nature, as it includes Inferred mineral resources that are considered too speculative 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.

East Kemptville Project

Next Steps for 2019

› Finalize closure plan

› Sign MOU with Acadia First Nation (M’ikmaq)

› Drilling of stockpile to map internal grade distribution and

bulk sampling for further ore-sorting testwork with

Cronimet (in progress)

› Finalize engineering and complete Feasibility Study

› Complete environmental studies and permitting process

› Finalize project financing and off-take agreements

• Conclude partnership arrangements with Cronimet and Acadia FN

then finalize transition arrangements with surface rights holder

2020: Construction and initial production within 16 months

of arranging project financing

24

NORTHWEST TERRITORIES

Fort Smith

Fort Resolution Hay River/

K’atl’odeeche

Canadian National Railway

Yellowknife

Pine Point

Bluefish Hydro Dam

Taltson Hydro Dam

Great

Slave

Lake

Behchoko

Nechalacho Rare Earths Property

Regional Infrastructure

]

] Snare

Hydro Dam

Lutsel K’e

Proposed National Park

Thor Lake (Nechalacho Mine and Concentrator)

ALBERTA

N

0 100 km

Whati

SASKATCHEWAN

Potential Hydro Line

]

25

What has changed since 2013?

› Soaring demand for neodymium and praseodymium for

use in high strength magnets - now vital for electric

motors used in electric vehicles

› No significant supply chain created outside China

› Rising prices of neodymium and praseodymium

› Presence of high grade, near surface Nd-Pr and Dy

resources in Tardiff and T-Zones

› T-Zone also contains significant lithium resources as

lepidolite / polylithionite - which are in increasing

demand to make lithium battery materials

› Potential for near-term, small-scale development to

produce Nd-Pr rich concentrates for export

26

Joint Venture with Cheetah

Resources

› January 2019: Avalon and Cheetah Resources Pty

Ltd. announced the signing of a binding terms sheet

› Cheetah would acquire ownership of the near surface

T-Zone and Tardiff Zone resources for C$5 million

• High grade, near surface neodymium-praseodymium and

dysprosium resources in T-Zone and Tardiff Zones provide

potential for near term, small scale development to produce

Nd-Pr-rich concentrates

• Avalon will retain 100% ownership of Basal Zone HREE

Deposit (focus of 2013 Feasibility Study)

› Avalon will continue to manage work programs and

retain its 3% NSR type royalty

› Formal agreement is expected to be completed in

late March 2019

27 Motors in electric vehicles rely on rare

earth magnets to reduce

motor size and weight and reduce

power consumption. Approximately

30% of the magnet is Nd-Pr metal

Nechalacho Property Map

28

Nechalacho Lake Zone General Geology (Vertical Cross Section Looking West)

29

Looking west at 416200E

High Grade “Basin”

S N

1600 metres

Upper Zone

Basal Zone High Grade HREE “Basin”

T-Zone deposits are satellite pegmatites

to the north also rich in Nd-Pr, as well as

lithium and beryllium

N S

North & South Tardiff

Rich in Nd-Pr grading up to

8%TREO and 2% Nd+Pr

The S, R and T Zones also rich in REE

F Zone – Particularly high grade REE

› The adit into the North T encounters the first mineralization

in the F Zone (subzone of North T Deposit)

› The F Zone contains Bastnaesite-Quartz mineralization

assaying up to 6.5% TREO of which 25% is Nd-Pr

› Small tonnage but very high grade REE and bastnaesite

readily recoverable using low-cost optical sorting or DMS

technology

› Nd2O3 and Pr2O3 projected value 2020 is >$100/kg so this

is US$1000+ rock gross value

› Mining out the F Zone would open further access to the

deeper lithium, and xenotime (dysprosium) rich portions of

the North T deposit

› Can be developed at a small scale with very modest initial

CAPEX and limited environmental impacts

30

Lilypad Property Access Map

› Property consists of 14 claims covering 3,108 ha

› 100% owned by Avalon

› Originally explored by Tanco in the 1990’s for tantalum

› Staked by Avalon in 1999

› Explored for tantalum primarily in 2001-2002 under a joint venture with a

Ta-capacitor manufacturer

› Completed geophysical surveys, detailed mapping and sampling and 2786

metres of drilling in 18 holes

› Discovered exceptional cesium enrichment in the tantalum rich dykes and

host rocks, not yet followed up

Lilypad Project Background

› Production from Pollucite bearing LCT Pegmatites:

› Supply shortage looming in 2-3 years

• Tanco (Canada) care & maintenance (mine closed)

• Bikita (Zimbabwe) 2-3 years of stockpiles

• Yichun Granite (China) Low grade, intermittent producer

• Pioneer (Australia) 10,000t @17% Cs2O (construction phase)

› Potential new source from recent hot spring deposit

• Taron (Argentina) (early stage resource definition and process

testwork)

› Other potential pollucite sources are all early stage exploration

targets

Cesium Supply

› ~ 75% of cesium production is used to make cesium formate (CsCHO2).

(The remaining 25% goes to high margin fine chemical and pharmaceutical

applications)

› It has high density and low viscosity and is used to control formation

pressures and temperatures in drilling of deep oil wells.

› Cesium formate solution is environmentally benign. It biodegrades in water

so only option for offshore drilling.

› Price of cesium formate in 2017 was US$ $55 / 25g lot

› Cesium Formate is typically leased to drilling companies who pay for losses

Cesium Demand

Lilypad Claim Map with known LCT Pegmatites

Kawitos

Batholith

Cluff

Lake

Stock

2 kms

North

Anomaly

Pollucite

Dyke F Zone Rubellite

Dyke South

Dyke

Northwest Southeast

LCT Pegmatite Emplacement Model

Kawitos

Batholith

with

fractionation

upwards

Cluff Lake

Stock

Pegmatite/

Mineralized

structure

Volcanics

Postulated

Tanco type

pegmatite

Hydrothermal volatiles

Pollucite Dyke

Rubellite Dyke

North Anomaly

500 m

>50ppm

25->50ppm

10-25ppm

<10ppm

Cs in bedrock

Rock units adjacent to the pegmatites are highly anomalous in cesium over

a broad area suggestive of a large source

Lithogeochemical Survey

Pollucite Dyke

› 340,000 tonnes @ 2.294% Cs2O and 0.037%

Ta2O5 delineated in 2001-2003 drilling

programs*

› Cesium grades increase with depth, open at

300m below surface

› “Western extension” new, undrilled zone of

dykes 200m to southwest with two grab

samples containing 4.62% and 2.11% Cs2O

› Strong cesium lithogeochemical anomalies in

surrounding volcanic outcrops

*Cautionary note: the resources described above are considered historic under NI43-101

guidelines and have not been verified by a QP and therefore should not be relied upon.

Proposed 2019 Work Program

› Baseline biogeochemical and soil surveys over

known pegmatite areas (Pollucite, Rubellite Dykes)

› Biogeochemical and soil surveys over covered areas

plus lithogeochemical sampling, particularly on the

northern part of property, to identify new drill targets

› Bulk sampling of known occurrences, initial 50kg

samples from Pollucite, Rubellite, and North

Anomalies for bench scale metallurgical testwork

› Review and sampling of historic drill core at old

campsite for grade confirmation and QA/QC

purposes

› Rehabilitate existing exploration camp

Contact us: 1901-130 Adelaide St. W.

Toronto, Ontario, Canada

M5H 3P5

+1 (416) 364-4938

ir@AvalonAM.com

Thor Lake, NWT

www.AvalonAdvancedMaterials.com

TSX: AVL

OTCQB: AVLNF