Avalon Advanced Materials Inc. · TSX:AVL

Avalon Advanced Materials — Shareholder Meeting (February 2022)

32 slides from Avalon Advanced Materials's shareholder meeting presentation, Feb 24, 2022

  1. Slide 1: 2022 Annual Meeting Update Presentation

    2022 Annual Meeting Update Presentation February 24, 2022 TSX: AVL Don Bubar, President & CEO OTCQB: AVLNF

  2. Slide 2: Safe Harbour Statement

    2 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 b

  3. Slide 3: Avalon Advanced Materials: Corporate Info

    3 Avalon Advanced Materials: Corporate Info › Toronto-based, operating in Canada since 1995 › Listed: TSX (AVL), OTCQB (AVLNF), Frankfurt (OU5) › Market Cap: CAD$50m (389.5m S/O, 462m fully-diluted) with over 20,000 shareholders worldwide 2021 Sustainability Report › Working Capital: CAD $1.6 millio

  4. Slide 4: Experienced Management Team and Diversified Board of Directors

    4 Experienced Management Team and Diversified Board of Directors MANAGEMENT & SENIOR STAFF › Zeeshan Syed, M.Sc. › Jim Andersen, CA, CPA V.P, External Affairs V.P. Finance, CFO & Corporate Secretary › Mark Wiseman, B.Sc., MBA › Donald S. Bubar, M.Sc., P.Geo. V.P. Sustainability President & CEO › Chr

  5. Slide 5: Critical Minerals for Clean Technology: Project Pipeline

    Critical Minerals for Clean 5 Technology: Project Pipeline

  6. Slide 6: Avalon's Strategy for Growth and Value Creation in Critical Minerals

    Rare earth magnets create 6 efficiency in electric motors for EVs and generators for wind turbines Avalon’s Strategy for Growth and Value Creation in Critical Minerals Staged development: Create a platform for growth with a demonstration scale production facility to prove process and introduce produ

  7. Slide 7: The Challenges Ahead

    7 The Challenges Ahead › Production of Critical Minerals is more like an advanced manufacturing business where it is about recognizing the market opportunity & designing an appropriate extraction process to make a product that will meet the needs of the end-users. › Mining Regulations need to adapt

  8. Slide 8: Closed Mine Sites offer new Critical Minerals Opportunities

    Canola grown on paper 8 mill bio- solids on tailing (Sudbury, Ontario) Closed Mine Sites offer new Critical Minerals Opportunities › Many historical mining operations were developed to produce one bulk commodity such as copper, but the resource contained critical minerals that were discarded as wast

  9. Slide 9: The Critical Minerals Opportunity for Canadian First Nations

    9 Rare earths and other critical minerals are essential for effective wind turbine motors and solar The Critical Minerals Opportunity for panel technology Canadian First Nations › Many opportunities exist to develop new resources for critical minerals in the north including mine wastes › Many occur

  10. Slide 10: 2021/2022 Progress & Highlights

    10 2021/2022 Progress & Highlights › Still planning to establish a new lithium battery materials refinery in Thunder Bay Growing interest in establishing Lots of interest from international new critical minerals supply consumers of lithium battery materials and chains in Canada especially for lithiu

  11. Slide 11: Separation Rapids Lithium: Avalon's Most Advanced Project

    11 Separation Rapids Lithium: Avalon’s Most Advanced Project A large LCT pegmatite enriched in the rare lithium mineral petalite 10 million tonne resource amenable to open pit mining, discovered in 1996 › PFS initially completed in 1999 on model to produce petalite for glass-ceramics. New PEA model

  12. Slide 12: Separation Rapids is located close to transportation and power infrastructure

    12 Separation Rapids is located close to transportation and power infrastructure

  13. Slide 13: Separation Rapids Mineral Tenure and Regional Targets

    13 Separation Glitter, Wolf and Rattler pegmatites Rapids New Snowbank Mineral Tenure pegmatite discovery 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

  14. Slide 14: Snowbank Petalite Pegmatite 2021 Exploration Program

    Snowbank Petalite Pegmatite – 14 August 2018 Snowbank Petalite Pegmatite 2021 Exploration Program › The geological mapping and sampling program on the northwest claims to follow-up on the 6 metre wide Snowbank petalite pegmatite outcrop discovered in 2018 was completed as planned in late September ›

  15. Slide 15: The Lithium Battery Materials Supply Chains Opportunity in Northwestern Ontario

    15 The Lithium Battery Materials Supply Chains Opportunity in Northwestern Ontario › NWO is blessed with hundreds of lithium pegmatites of various sizes and mineralogy. › To get production started the key next step is to have a centrally located Lithium Refinery that can purchase concentrates produc

  16. Slide 16: Product Recovery - Lithium Hydroxide Production Flowsheet

    16 Product Recovery -Lithium Hydroxide Production Flowsheet Petalite/ Decrepitation Roasting Water Leach Lepidolite Solution Impurity Metal Filtration Filtration Removal Hydroxides Zero Sulphate Al- Silicate Alkali Solution Waste “Potential” Market Conc. Electrolytic Lithium Evaporators H2SO4 Recove

  17. Slide 17: Separation Rapids Lithium Project PEA Model Highlights ($CAD)

    17 Separation Rapids Lithium Project PEA Model Highlights ($CAD) ● Assumes open pit mining at 950,000 tpy with concentrator at site to recover petalite and hydromet plant in Kenora to make Li hydroxide ● Minimum 10 year life lithium, 20 years for feldspars ● 14,600 tpy lithium hydroxide and 100,000

  18. Slide 18: Lithium is not just a battery material: also critical for glass-ceramic products

    18 Lithium is not just a battery material: also critical for high strength glass-ceramic products › Lithium additions create thermal shock resistance in: Stovetops, Corningware® Cookware, Fireplace Shields › Now being used in many new high strength glass products, such as Corning’s Gorilla Glass (di

  19. Slide 19: Petalite Production - Using Ore Sorting & Dense Media Separation (DMS)

    19 Petalite Production- Using Ore Sorting & Dense Media Separation (DMS) ROM Ore <40mm <12mm Crushed Ore 2-Stage Crush Screen Stockpile <40mm >12mm Tertiary Glass-Ceramic Ore Sorter Screen DMS Crush Product <1mm Mill Feed Rejects Milling & to Waste Flotation Rock

  20. Slide 20: Separation Rapids Next Steps: Moving toward Phase 1 Production Facility

    20 Separation Rapids Next Steps: Moving toward Phase 1 Production Facility › 2020-21 work: Continued process optimization work and secured permit to recover 5,000 tonne bulk sample which was collected in March, 2021 • Determined that Thunder Bay is ideally situated to locate battery materials refine

  21. Slide 21: East Kemptville Tin: a closed minesite with value in the wastes

    21 Tailings Stock- East Kemptville Tin: a closed pile minesite with value in the wastes › In production from 1985-92 by Rio Algom then operated as a closed mine site since 1992 with water treatment to manage acid mine drainage › During the early years of operation, tin recoveries Above: Current East

  22. Slide 22: Sensor-based Ore-sorting Technology

    22 Sensor-based Ore-sorting Technology Advances in sensor technology now allow for detection of physical properties of minerals, such as specific gravity. Minerals can be concentrated after crushing without using water or chemical reagents.

  23. Slide 23: East Kemptville Location and Regional Infrastructure

    23 East Kemptville Location and Regional Infrastructure › On paved highway › Grid power on site › Yarmouth (55 km) & other communities within commuting distance › Ample water › Skilled labour available locally › Strong local community support ( TREPA, AFN) Power lines 69kV East Kemptville location,

  24. Slide 24: Avalon's East Kemptville Project History

    24 Avalon’s East Kemptville Project History 2005: Initial Special Licence for mineral tenure granted. Required Access Agreement with surface rights holder Rio Algom Ltd. (BHP). 2014: Access Agreement finally arranged; confirmation drilling program completed; NI 43-101 compliant Mineral Resource prep

  25. Slide 25: East Kemptville Site Layout & Tin Resources

    25 East Kemptville Site Layout & Tin Resources Existing Tailings Dam with spare capacity, 18.8 M tonnes historical tailing North Waste Pile: 1.29M tonnes @ 0.089% tin` Low-grade Stockpile Inferred Resource: 5.87M tonnes @ 0.112% tin* In-ground resources: Main Zone Pit Measured:0.58Mt @ 0.203% tin In

  26. Slide 26: Two Composite Views of Low Grade Ore Stockpile at East Kemptville

    26 Two Composite Views of Low Grade Ore Stockpile at East Kemptville 6 million tonnes of previously-mined tin ore generating AMD since 1980’s Can be re-processed to recover tin and remove need for perpetual water treatment

  27. Slide 27: Metals Most Impacted by New Technology: Tin is No. 1!

    27 Metals Most Impacted by New Technology: Tin is No. 1! Source: MIT / Rio Tinto , March, 2018 Tin now in very short supply and trading at record high prices over US$43,000/t

  28. Slide 28: Other Critical Minerals Potential: Indium, Gallium, Germanium and Lithium

    28 Other Critical Minerals Potential: Indium, Gallium, Germanium and Lithium › Zinc concentrates are highly enriched in Indium (0.25%) from which an indium product could be derived › Indium is in growing demand for use in solar panels, LED Lighting and LCD flat panels. Prices are increasing › Along

  29. Slide 29: Lilypad Project - Cesium

    16 Lilypad Project - Cesium Avalon’s 100% owned Lilypad Project hosts a significant resource of the rare cesium mineral pollucite and recently re-activated the Project in June, 2021 What is Cesium and why is it important? - Mainly used to create a low viscosity fluid for drilling deep oil wells call

  30. Slide 30: Lilypad Pollucite Dyke

    Lilypad 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

  31. Slide 31: 2020-21 Work Program

    2020-21 Work Program › 2020: Carried out short program to collect 250kg Pollucite Dyke sample for bench-scale process testwork to define pollucite concentration process › Tested Selfrag and SB ore-sorting as methods for pre-concentration of pollucite which proved effective › Prepared new block model

  32. Slide 32: Contact us

    www.AvalonAdvancedMaterials.com TSX: AVL OTCQB: AVLNF Contact us: 1901-130 Adelaide St. W. Toronto, Ontario, Canada M5H 3P5 +1 (416) 364-4938 ir@AvalonAM.com Thor Lake, NWT

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