Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (June 2026)
28 slides from Avalon Advanced Materials's investor presentation, June 2026
Slide 1: Restoring North American Critical Minerals Control
1 Restoring North American Critical Minerals Control Rare Earths | Lithium | Processing Corporate Presentation June 2026
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT FORWARD-LOOKING STATEMENT This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with that are not based on historical fact contained in t
Slide 3: Why Avalon is Evaluating a Potential U.S. Exchange Listing
WHY AVALON IS EVALUATING A Evaluating a potential path to broader investor access, improved marketability and greater POTENTIAL U.S. EXCHANGE LISTING long-term capital markets flexibility BROADER IMPROVED STRATEGIC CAPITAL MARKETS INVESTOR ACCESS MARKETABILITY ALIGNMENT FLEXIBILITY If pursued and Av
Slide 4: Avalon Advanced Materials Inc
AVALON ADVANCED MATERIALS INC A CANADIAN CRITICAL MINERALS COMPANY BUILDING DOMESTIC CAPACITY IN RARE EARTHS AND LITHIUM Avalon operates with a clear conviction that the future will be defined by our ability to develop resilient, domestically anchored supply chains. As demand accelerates across elec
Slide 5: A Critical Risk. A Broken System.
A CRITICAL RISK. A BROKEN SYSTEM. >90% OF RARE EARTH CHINA DOMINATES THE SUPPLY CHAINS PROCESSING OCCURS THAT POWER OUR FUTURE IN CHINA CREATING Supply Concentration DEPENDENCY AND A significant portion of global critical mineral HIGH RISK processing is concentrated in a single region. Geopolitical
Slide 6: Lessons from China's Rare Earth Playbook: 2005-2015
LESSONS FROM CHINA’S RARE EARTH PLAYBOOK: 2005-2015 2005 Avalon acquires 100% interest in the Thor Lake/Nechalacho property Avalon’s Market Capitalization 2005- China’s dominance in REEs grows; export quotas constrain 2010 global supply and concentrate processing in China Sept REE shipments to Japan
Slide 7: Asset Locations
Asset Locations Corporate Headquarters Toronto, ON Lake Superior Lithium Inc. Thunder Bay, ON Nechalacho Project Thor Lake, NWT Lilypad Cesium Project Fort Hope, ON East Kemptville Yarmouth, NS Warren Township Project Timmins, ON 7 TSX:AVL OTCQB:AVLNF FRA:OU5A
Slide 8: Asset Overview
ASSET OVERVIEW A diversified portfolio of critical minerals assets and opportunities strategically located in Canada. NECHALACHO LAKE SUPERIOR LITHIUM (LSLI) Strategic Partnership & RARE EARTH PROJECT LITHIUM PROCESSING FACILITY Divestment Opportunities Location: Location: Lilypad Cesium Project – F
Slide 9: Avalon: A Strategic Critical Minerals Platform for the Next Industrial Cycle
Avalon: A Strategic Critical Minerals Platform for the Next Industrial Cycle RARE EARTHS & LITHIUM POWERING ELECTRIFICATION, DEFENSE, DIGITAL INFRASTRUCTURE & AUTOMATION ELECTRIC ENERGY ADVANCED DRONE DIGITAL DEFENSE FREIGHT TRANSPORTATION STORAGE ROBOTICS TECHNOLOGIES IINFRASTRUCTURE TECHNOLOGY ELE
Slide 10: Investment Thesis
Avalon: A Strategic Critical Minerals Platform for the Next Industrial Cycle INVESTMENT THESIS Structural Demand Tailwinds Valuation Disconnect • REE: Permanent magnet demand scaling • Market cap materially below intrinsic across electrification, wind energy, and asset values (REE C$1.2B NPV; Lithiu
Slide 11: Nechalacho Project
NECHALACHO BASAL PROJECT 920 lbs 1 kg 2 tons 9200 lbs of rare earth of rare earth of rare earth of rare earth One of the most advanced rare earth deposits in North elements in a elements in magnets in a materials in each America, located in the Northwest Territories Canada, single US F-35 electric v
Slide 12: Project Overview
NECHALACHO PROJECT BASAL Strategic Location 100% Owned Basal Project Overview Located at Thor Lake, Northwest Territories, - Zone Avalon owns 100% of resources below 150 100 km southeast of metres (Basal Zone) Yellowknife Tardiff Zone High Demand for Ownership Growing Industries An unrelated third S
Slide 13: High-Value Rare Earth Exposure
NECHALACHO BASAL PROJECT HIGH-VALUE RARE EARTH EXPOSURE Elements of 1 Deposit 18 Economic Interest High value High demand Strategic advantage MAGNET RARE EARTH ELEMENTS – THE CORE VALUE ENGINE 65 66 59 60 Tb Dy Pr Nd Terbium Dysprosium Praseodymium Neodymium Improves high temperature Provides heat r
Slide 14: Highest Magnet REE Ratio & Among Most Advanced Development Paths in Peer Group
NECHALACHO BASAL PROJECT HIGHEST MAGNET REE RATIO & AMONG MOST ADVANCED DEVELOPMENT PATHS IN PEER GROUP One Oneofoffew fe wprojects proje cts to to have ha ve achieved DFS-level a chie ve d DFS — with -le ve l — with unmatched quality unma tche d qua (NdPr lity (NdP r / /DyTb DyTbproportion) proport
Slide 15: Nechalacho's Magnet-Critical REE Profile Not Reflected in Avalon's Valuation
NECHALACHO’S MAGNET-CRITICAL (1)(2) REE PROFILE NOT REFLECTED IN AVALON’S VALUATION Avalon trades at only ~1% to 3% of its Study NPV, well below the peer average, despite strong technical advancement and Nechalacho’s significant exposure to magnet-critical NdPr and DyTb. Mkt Data Asset Metrics (Main
Slide 16: Avalon Offers Technically Well-Advanced Heavy and Light REE Exposure
NECHALACHO: AVALON OFFERS TECHNICALLY WELL-ADVANCED HEAVY AND LIGHT REE EXPOSURE TRADING AT A MATERIAL DISCOUNT TO COMPARABLE REE DEVELOPERS HEAVY AND LIGHT (US$ millions) REE DEPOSIT – FS Study NPV @ 8% StageStage CURRENTLY UNDERRECOGNIZED BY THE MARKET FS PEA PFS PEA DFS Scope. FS Scope. PFS NECHA
Slide 17: Avalon Trades at a Fraction of Peer Valuation
NECHALACHO: AVALON TRADES AT A FRACTION OF PEER VALUATION DESPITE NECHALACHO’S SCALE, TECHNICAL ADVANCEMENT & HEAVY REE EXPOSURE Heavy and Light (US$ millions) REE Deposit – Scope Market Cap / Study NPV @ 8% Stage Stage Currently Underrecognized by the Market FS DFS PEA PFS Scope. PFS PEA FS FS PFS
Slide 18: A Clean Approach to Rare Earth Processing
NECHALACHO BASAL PROJECT A CLEAN APPROACH TO RARE EARTH PROCESSING Avalon and Engina Corporation have successfully recovered 15 rare earth elements from Nechalacho concentrate with >90% total recovery in preliminary bench-scale testing using a novel CO2-based extraction process. T W O D I F F E R E
Slide 19: Lake Superior Lithium Project
LAKE SUPERIOR LITHIUM PROJECT A proposed lithium chemical processing facility ~30% ~14-30% ~80%+ ~96% Expected demand Battery share of designed to convert spodumene concentrate into Lithium Demand growth in 2026 Demand driven by lithium demand by in 2025 EVs & batteries battery-grade lithium chemica
Slide 20: Project Overview
LAKE SUPERIOR LITHIUM PROJECT Strategic Location 100% Owned PROJECT OVERVIEW Located at Thunder Bay, Ontario, 100% Avalon Owned located in proximity of feed sources and A strategically located lithium main infrastructure hydroxide asset in Ontario, well Technology Optimized Site Collaboration positi
Slide 21: Strategic Investment Overview
LAKE SUPERIOR LITHIUM PROJECT 2024 PEA Financials (CAD $) STRATEGIC INVESTMENT OVERVIEW $35,360 30 Year • Strategic Location: Proximity to key markets and resources, supporting efficient supply chains Base Case LiOH $/t LiOH (USD $26,000/t LiOH) $4.1B Operating Life • Infrastructure Advantage: After
Slide 22: A More Efficient and Sustainable Path to Battery-Grade Lithium
LAKE SUPERIOR LITHIUM PROJECT A MORE EFFICIENT AND SUSTAINABLE PATH TO BATTERY-GRADE LITHIUM Avalon, in partnership with Metso, is advancing a proprietary alkaline process that converts spodumene to battery-grade lithium hydroxide using cleaner Cleaner Process chemistry, lower inputs, and a more sus
Slide 23: Levers to Close Valuation Disconnect
LEVERS TO CLOSE VALUATION DISCONNECT ACHIEVED Secured Tactical Funding Management Reset Governance Reset • Recent C$18.7M capital raise Advancing Technical Studies Senior leaders 4 of 7 directors joined since • Refresh 2013 Nechalacho DFS • Initiated Nechalacho PEA; to be new since 2023 2023, bringi
Slide 24: Executing the Plan, Delivering Results
EXECUTING THE PLAN DELIVERING RESULTS. C$18.7M ~15% 100% CAPITAL RAISED DEBT–FREE DILUTION REMOVED LILYPAD OWNERSHIP Strengthening liquidity ~$7.5M debt eliminated Potential shareholder 100% ownership of to fund growth In a non-cash transaction dilution eliminated Lilypad Cesium Project regained BAL
Slide 25: Management Team
Management Team Scott Monteith, President & CEO Christopher Senyk, VP, Corporate Development Mr. Senyk brings extensive experience across lithium, battery materials, and Scott Monteith, CEO of Avalon since May 2023, is an specialty chemicals, supporting Avalon’s corporate strategy, partnerships, and
Slide 26: Board of Directors
Board of Directors Alan Ferry, Chair Mr. Ferry, with 28 years in mining finance, is Avalon's director since 2000, and chairs the Audit Committee. Scott Monteith, CEO, Director Timothy Haig, Director A successful entrepreneur in renewable fuels and cleantech, known Scott Monteith, CEO of Avalon since
Slide 27: De-risked. Focused. Positioned
STRONG, SECULAR GROWTH TAILWINDS: RARE EARTHS AND LITHIUM . Advancing assets in two of the fastest-growing critical minerals—lithium and rare earths—projected to see sustained demand growth over the next decade TRANSFORMATIONAL FINANCING (OCTOBER 2025) CLOSED Poised to advance rare-earth and lithium
Slide 28: Capital Structure
Capital Structure OWNERSHIP STRUCTURE Description Value ( CAD) Ticker Symbol TSX: AVL 52 Week High/Low $0.135/0.02 Common Shares Outstanding 835M RSU & DSU 5.0M Stock options (additional shares if converted) 25.5M Warrants (additional shares if converted) 221M Fully Diluted Shares 1,087M Market Capi
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