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.
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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
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Technology Metals and Minerals
Project Pipeline
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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
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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%
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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
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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
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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
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Metals Most Impacted by New Technology:
Tin is No. 1!
Source: MIT / Rio Tinto , March, 2018
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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
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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
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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
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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
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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
]
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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
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Nechalacho Lake Zone General Geology (Vertical Cross Section Looking West)
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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$1000+ rock gross value
› Mining out the F Zone would open further access to the
deeper lithium, and xenotime (dysprosium) rich portions of
the North T deposit
› Can be developed at a small scale with very modest initial
CAPEX and limited environmental impacts
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Lilypad Property Access Map
› Property consists of 14 claims covering 3,108 ha
› 100% owned by Avalon
› Originally explored by Tanco in the 1990’s for tantalum
› Staked by Avalon in 1999
› Explored for tantalum primarily in 2001-2002 under a joint venture with a
Ta-capacitor manufacturer
› Completed geophysical surveys, detailed mapping and sampling and 2786
metres of drilling in 18 holes
› Discovered exceptional cesium enrichment in the tantalum rich dykes and
host rocks, not yet followed up
Lilypad Project Background
› Production from Pollucite bearing LCT Pegmatites:
› Supply shortage looming in 2-3 years
• Tanco (Canada) care & maintenance (mine closed)
• Bikita (Zimbabwe) 2-3 years of stockpiles
• Yichun Granite (China) Low grade, intermittent producer
• Pioneer (Australia) 10,000t @17% Cs2O (construction phase)
› Potential new source from recent hot spring deposit
• Taron (Argentina) (early stage resource definition and process
testwork)
› Other potential pollucite sources are all early stage exploration
targets
Cesium Supply
› ~ 75% of cesium production is used to make cesium formate (CsCHO2).
(The remaining 25% goes to high margin fine chemical and pharmaceutical
applications)
› It has high density and low viscosity and is used to control formation
pressures and temperatures in drilling of deep oil wells.
› Cesium formate solution is environmentally benign. It biodegrades in water
so only option for offshore drilling.
› Price of cesium formate in 2017 was US$ $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
Thor Lake, NWT
www.AvalonAdvancedMaterials.com
TSX: AVL
OTCQB: AVLNF