Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (September 2026)
26 slides from Avalon Advanced Materials's investor presentation, September 2026
Slide 1: Restoring North American Critical Minerals Control
1 Restoring North American Critical Minerals Control Rare Earths | Lithium | Processing Corporate Presentation September 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 that are not based on historical fact contained in this p
Slide 3: 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 INFRASTRUCTURE TECHNOLOGY ELEC
Slide 4: Asset Overview
ASSET OVERVIEW A diversified portfolio of strategically important critical minerals assets across Canada. MAGMIC RARE EARTHS INC LAKE SUPERIOR LITHIUM INC (LSLI) Strategic Partnership & NECHALACHO PROJECT (Basal Zone) LITHIUM PROCESSING FACILITY Divestment Opportunities Location: Location: Lilypad C
Slide 5: 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 5 TSX:AVL OTCQB:AVLNF FRA:OU5A
Slide 6: 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 7: 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 8: 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 9: Board of Directors
Board of Directors Alan Ferry, Chair Timothy Haig, Director Mr. Ferry, with 28 years in mining finance, is A successful entrepreneur in renewable fuels and cleantech, known Avalon's director since 2000, and chairs the Audit for transforming lab ideas into public companies, leading motivated Committe
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 advanced industrial tec
Slide 11: Positioning Avalon for a Potential U.S. Exchange Listing
POSITIONING AVALON FOR A A strategic step to broaden investor access, enhance market visibility and strengthen long- POTENTIAL U.S. EXCHANGE LISTING term capital markets flexibility. BROADER IMPROVED STRATEGIC CAPITAL MARKETS INVESTOR ACCESS MARKETABILITY ALIGNMENT FLEXIBILITY A U.S. exchange listin
Slide 12: Share Price Has Recovered from Post-Split Weakness as De-Risking Continues
SHARE PRICE HAS RECOVERED FROM POST-SPLIT WEAKNESS AS Favorable post-split vs. pre-split trading dynamics: >4.0x increase in trading volume | >3.0x increase in average daily value traded(1) FUNDAMENTAL DE-RISKING CONTINUES POST-SPLIT MARKET DYNAMICS FUNDAMENTAL DE-RISKING Share price then De-risking
Slide 13: Nechalacho Project
NECHALACHO PROJECT BASAL ZONE 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 elect
Slide 14: Project Overview
NECHALACHO PROJECT 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 Basal Zone High Demand for Ownership Growing Industries An unrelated third Supports
Slide 15: Nechalacho Project (Basal Zone)
NECHALACHO PROJECT (Basal Zone) 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
Slide 16: Highest Magnet REE Ratio & Among the Most Advanced Development Paths in NA Peer Group
NECHALACHO PROJECT (Basal Zone) HIGHEST MAGNET REE RATIO & AMONG THE MOST ADVANCED DEVELOPMENT PATHS IN NA PEER GROUP One Oneofoffew few projects projects totohave have achieved achieved DFS-level DFS-level — with — with unmatched unmatched quality quality (NdPrproportion) (NdPr / DyTb / DyTb propor
Slide 17: A Clean Approach to Rare Earth Processing
NECHALACHO PROJECT (Basal Zone) 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
Slide 18: Nechalacho's Updated MRE Highlights Significant Magnet-Critical REE Scale
NECHALACHO'S UPDATED MRE HIGHLIGHTS SIGNIFICANT (1) (2) MAGNET-CRITICAL REE SCALE NOT REFLECTED IN AVALON'S VALUATION Avalon trades at only ~1% to 2% of its Study NPV, well below the peer average, despite strong technical advancement and Nechalacho’s significant exposure to magnet-critical NdPr and
Slide 19: Nechalacho: 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 DFS FS PEA PFS PEA Scope. FS Scope. PFS NECHA
Slide 20: 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) Market Cap / Study NPV @ 8% Stage Stage REE Deposit – Scope Currently Underrecognized MRE ‘26 FS PEA PFS PEA PFS by the Market DFS Scope DFS
Slide 21: 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 22: 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 23: Strategic Investment Overview
LAKE SUPERIOR LITHIUM PROJECT 2024 PEA Financials (CAD $) STRATEGIC INVESTMENT OVERVIEW $35,360 30 Year • Strategic Location: Operating Life Base Case LiOH $/t LiOH $4.1B Proximity to key markets and resources, supporting efficient supply chains (USD $26,000/t LiOH) • Infrastructure Advantage: Robus
Slide 24: 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 25: Levers to Close Valuation Disconnect
LEVERS TO CLOSE VALUATION DISCONNECT ACHIEVED Secured Tactical Funding & Advancing Technical Studies Strengthened Balance Sheet Leadership Team Rebuilt Governance Reset • Initiated Nechalacho PEA; expected to be • C$18.7M capital raise (October 2025) followed by Feasibility Study. CEO appointed in 2
Slide 26: Capital Structure
Capital Structure OWNERSHIP STRUCTURE Description Value ( CAD) Ticker Symbol TSX: AVL Stock Price $5.91 52-Week High / Low $27.00- $4.52 Common Shares Outstanding 4.64M RSU & DSU 23K Stock Options (additional shares if converted) 155K Warrants (additional shares if converted) 1.18M Fully Diluted Sha
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