Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (February 2023)
20 slides from Avalon Advanced Materials's investor presentation, February 2023
Slide 1: Critical Minerals for a Sustainable Future
AVALON ADVANCED MATERIALS INC. Critical Minerals for a Sustainable Future Separation Rapids Lithium Project: The Big Whopper Pegmatite Investor Presentation February 2023
Slide 2: Forward-Looking Information
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 fac
Slide 3: About Avalon
About Avalon Lilypad Avalon Advanced Materials Inc. is a Canadian Cesium-Tantalum-Lithium mineral development company specializing in sustainably-produced materials for clean technology. East Kemptville The Company has three advanced stage Tin-Indium-Cu-Zn projects, providing investors with exposure
Slide 4: 2022 Highlights
2022 Highlights Avalon Advanced Materials is executing on a strategically defined path to production & value creation. Announced Plans to Completed $3M Began Roadwork and Signed MOU with LG Entered Multi-Year Off- Completed $1.95M Flow- Establish Ontario’s First Commencement of Financing to Accelera
Slide 5: The Challenges
The Challenges Production of critical minerals is about recognizing the market opportunity and designing an appropriate extraction process to meet the requirements of the end users Mining regulations need to adapt to production of non- traditional, non exchange-traded commodities like lithium and RE
Slide 6: Demand and Market Opportunity
Demand and Market Opportunity Global lithium Supply and Demand Forecast Total demand for lithium battery materials is forecast to jump by 50% this year to 4.8 million tonnes, nearing 17.5 million tonnes by 2030 Demand for lithium is set to grow the fastest, increasing more than sevenfold between 202
Slide 7: Government Support
Government Support Ontario’s Critical Mineral Strategy to support “made-in-Ontario” EV supply chain by: • Attracting EV and battery manufacturers to establish plants in Ontario LG Energy Solution Ltd. and Stellantis N.V. are constructing Ontario’s first large-scale electric EV battery manufacturing
Slide 8: Strong ESG Profile
Strong ESG Profile Committed to environmentally & socially responsible mineral resource development “Avalon aims to become a leading global supplier of sustainably-produced lithium battery materials and other rare metals needed for renewable energy production and storage.” 20 Years 11TH Annual Top 5
Slide 9: Experienced Team
Experienced Team Experienced team of resource professionals Donald S. Bubar, M.Sc., P.Geo R.J. (Jim) Andersen, CPA, Rickardo Welyhorsky, Cindy Hu, CPA, President & CEO, Director CA, CPA (Illinois), CGMA P.Eng. CA, CPA (Illinois) MANAGEMENT Vice President, Finance, Vice President, Operations and COO
Slide 10: Capital Structure
Capital Structure Unlocking shareholder value 12-Month Share Price Performance AVL Share Capitalization (as of November 30, 2022) Shares issued and outstanding 417.5M Warrants 33.7M Options 17.5M RSUs and DSUs 1.5M Convertible note (based on 5-day VWAP ($0.118) 30.3M Fully diluted 500.5M Cash on Han
Slide 11: Separation Rapids Lithium Project
Separation Rapids Lithium Project • Site is host to the “Big Whopper” lithium pegmatite discovery acquired by Avalon in 1997 • 100% owned with 6,000+ acres of exploration lands • Relatively close to hydro power (~25 km t Whitedog Generating Station). More studies need to be done for feasibility of r
Slide 12: Separation Rapids NI 43-101 Resource
Separation Rapids NI-43-101 Resource (as at May 23, 2018) • Large LCT (lithium-cesium-tantalum) pegmatite containing two lithium minerals: petalite and lepidolite Total (Petalite + Lepidolite) Petalite is the predominant lithium mineral, with lepidolite occurring in Tonnes % % Wt. % • Class % Li20 %
Slide 13: Separation Rapids Strategy
Separation Rapids Strategy • Petalite concentrate to the glass-ceramics market • Global glass-ceramics market US$1.5B in 2021 → expected to grow to US$2.1B by 20281 Petalite • Off-take agreement for petalite concentrates entered into September 2022 with major international glass-ceramics manufacture
Slide 14: Separation Rapids 2018 PEA
Separation Rapids 2018 PEA Metric Value • Updated PEA (2018) included Production Lithium concentrate: 71,500 tpy petalite and 11,800 glass-ceramics production tpy lepidolite scenario Feldspars: 100,000 tpy • Significant project upside driven by Project life Lithium and Feldspars: 20 years lithium hy
Slide 15: Separation Rapids Timeline
Separation Rapids Timeline 2023 2024 2025 2026 2027 Secure financial support for processing of bulk Product for glass-ceramic manufacturers sample petalite Preliminary Economic Assessment (“PEA”) update It will be updated as part of the Feasibility Study Prepare Feasibility Study-level cost estimate
Slide 16: Why Avalon?
Why Avalon? Near-term Market Established Global Sustainability Supportive Regulatory & Opportunity Strategics Project Jurisdiction • Glass Ceramics • Off-take agreement for • Minimize GHG Emissions • Ontario and Federal Petalite Concentrates and governments showing • Battery Materials growing global
Slide 17: Contact Us
CONTACT US OUR ADRESS OUR EMAIL OUR PHONE OUR WEBSITE 1901 – 130 Adelaide St. West ir@AvalonAM.com 416-364-4938 avalonadvancedmaterials.com Toronto, ON M5H 3P5 Investor Presentation February 2023
Slide 18: Appendix
Appendix
Slide 19: Lilypad Cesium-Tantalum Project
Lilypad Cesium-Tantalum Project • 100% Avalon owned; staked in 2000 and hosts a significant resource of the rare cesium mineral pollucite along with tantalum and lithium • Project re-started in 2020-21 to collect pollucite samples for recovery test work, mapping and geochem sampling to identify new
Slide 20: Why Cesium?
Why Cesium? Cesium is a widely used advanced material with uses in specialty drilling fluids; atomic clocks; electric power devices that convert heat to energy; photoelectric cells for medical devices and videography; and in ion engines designed for space crafts on extended missions. Cesium is also
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