Avalon Advanced Materials wins EUR 100M Finnvera backing for Thunder Bay lithium facility

Development represents an important milestone toward assembling a diversified long-term capital structure, with the potential to support financing for a significant portion of the Thunder Bay lithium processing facility's capital cost. Toronto, Ontario--(Newsfile Corp. - July 15, 2026) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to announce that Finnvera plc ("Finnvera"), Finland's official export credit agency, has issued a non-binding letter of interest in connection with the potential financing of equipment and services to be supplied by Metso Oyj ("Metso") for Avalon's proposed lithium processing facility in Thunder Bay, Ontario. The letter follows an application submitted by Metso relating to an anticipated commercial contract with an estimated value of approximately €100 million.

Finnvera has confirmed that sufficient Finnish interest has been established for it to consider supporting Metso's commercial contract through an export credit financing structure. Subject to satisfactory due diligence, credit approval and the establishment of an appropriate financing and security structure, Finnvera may provide a buyer credit guarantee for the benefit of an eligible arranging commercial bank. Finnish Export Credit Ltd., Finnvera's subsidiary, may also act as lender under the potential export credit facility.

"This letter of interest represents an important initial milestone in the development of a comprehensive financing strategy for Avalon's Lake Superior Lithium processing facility," said Scott Monteith, President and Chief Executive Officer. "Metso is a globally recognized processing technology and equipment provider, and the potential availability of Finnish export credit support provides Avalon with a credible pathway to finance a significant equipment package while advancing the development of a secure and resilient North American lithium supply chain." Under Finnvera's financing framework, an export credit may generally finance up to 85% of the value of eligible Finnish goods and services exported under the relevant commercial contract, together with certain eligible local costs, guarantee premiums and interest capitalized during construction. The ultimate amount and terms of any financing support would be determined following Finnvera's detailed assessment and would remain subject to its applicable policies, project-finance limits, internal credit requirements and final approvals.

"This development creates a potential foundation for long-term, government-supported project debt associated with the Metso equipment and services package," said Lorin Crenshaw, Chief Financial Officer. "Importantly, it also enhances our ability to pursue an integrated financing structure that could combine export credit support with Canadian and U.S. government programs, commercial project debt, strategic investment and customer or offtake-related financing. Our objective is to develop an optimized capital structure that minimizes our blended cost of capital by maximizing long-term institutional, strategic and project-level financing while minimizing reliance on parent-level common equity." Avalon intends to work with Metso and Finnvera to further define the eligible equipment and services package, applicable due diligence requirements and the potential financing process.

The Company also intends to evaluate eligible arranging banks and advance discussions regarding the prospective credit amount, tenor, security structure, covenants, repayment profile and any applicable offtake requirements. The letter of interest is non-binding and does not constitute a legal commitment by Finnvera or Finnish Export Credit. Any financing would remain subject to, among other matters, legal, financial, market, technical, environmental and regulatory due diligence; satisfactory credit and project-risk assessments; the establishment of an acceptable commercial, financing and security structure; negotiation of definitive documentation; and final approvals by the respective boards of Finnvera and Finnish Export Credit.

Accordingly, the potential financing remains subject to customary project finance due diligence, structuring and approvals, and there can be no assurance that definitive financing arrangements will ultimately be completed. About Finnvera Finnvera plc is a specialized financing company owned by the State of Finland and serves as Finland's official export credit agency. Finnvera supports the growth and internationalization of Finnish companies and promotes Finnish exports by providing financing and guarantees against commercial and political risks associated with export transactions.

Finnvera operates together with its subsidiary, Finnish Export Credit Ltd., in providing officially supported export financing. About Metso Metso is a global provider of sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries. Through its products, process expertise and services, Metso helps customers improve productivity, increase energy and water efficiency, and reduce environmental and operational risks.

Metso Corporation is headquartered in Espoo, Finland. About Avalon Advanced Materials Inc. Avalon Advanced Materials Inc. is a Canadian critical minerals company focused on advancing lithium and rare earth elements-two of the fastest-growing segments of the global energy transition. The Company is developing strategic assets to participate in high-growth markets and support the build-out of secure North American supply chains.

Avalon is advancing the Nechalacho Rare Earth Elements and Zirconium Project in the Northwest Territories, which contains all light and heavy rare earth elements, as well as yttrium, zirconium, tantalum, and niobium-critical minerals used in advanced technologies across the communications, defense, advanced technologies, and energy sectors. The Company is also focused on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium Inc., Ontario's first midstream lithium hydroxide processing facility, located in Thunder Bay. This facility is expected to serve as a cornerstone of North America's integrated battery materials supply chain, transforming northern Ontario lithium into essential inputs for transportation, grid storage, and advanced manufacturing.

For further information regarding Avalon Advanced Materials Inc., please visit www.avalonadvancedmaterials.com , email ir@avalonam.com , or call 416-364-4938. Cautionary Statement Regarding Forward-Looking Information This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "add" or "additional", "advancing", "anticipates" or "does not anticipate", "appears", "believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion", "deliver", "demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion", "expect" or "expectations", "forecasts", "forward", "goal", "improves", "increase", "intends", "justification", "plans", "potential" or "potentially", "promise", "prospective", "prioritize", "reflects", "robust", "scheduled", "suggesting", "support", "top-tier", "updating", "upside", "will be" or "will consider", "work towards", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors discussed or referred to in the annual information form of the Company dated November 26, 2025 (the "AIF") under the heading "Description of the Business - Risk Factors". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305330 Newsfile Corp. July 15, 2026 - 1:30 PM PDT News by QuoteMedia www.quotemedia.com