Avalon commissions PEA for Nechalacho

Executive Summary

• Avalon Advanced Materials Inc. has commissioned Wood Canada Ltd. to conduct an updated Preliminary Economic Assessment (PEA) for its Nechalacho rare earth and zirconium project in the Northwest Territories.
• The refreshed PEA will modernize the project's 2013 definitive feasibility study by integrating new processing technologies, updated capital and operating cost assumptions, and current market, engineering, and regulatory conditions.
• Completion is expected within six months, after which the company plans to advance directly to a definitive feasibility study to validate project economics and support financing, offtake, and strategic partnership discussions.

Key Details

• Study Scope & Objective: Update and modernize the 2013 definitive feasibility study to align Nechalacho with current technical, commercial, and geopolitical realities, including evolving infrastructure, logistics, and allied supply chain requirements.
• Engineering Partner: Wood Canada Ltd. engaged to complete the PEA and National Instrument 43-101 technical report; selected for extensive experience in remote mining and rare earth projects across North America.
• Timeline: PEA expected to be completed within approximately six months.
• Next Development Phase: Direct transition to a definitive feasibility study post-PEA to provide engineering, cost definition, and risk validation required for construction readiness, financing, and partnership discussions.
• Strategic Context: Execution aligns with commitments made during a previously announced $18.65-million financing to advance core assets through updated technical and economic studies.
• Project Composition: Nechalacho contains all light and heavy rare earth elements, yttrium, zirconium, tantalum, and niobium, with a uniquely high concentration of magnet-grade materials.

Notable Quotes

• Scott Monteith, President & CEO: "Commencing a new PEA represents the first step in refreshing the Nechalacho feasibility study and positioning the project for its next phase of development and funding. Following the PEA, our plan is to transition into a full definitive feasibility study, enabling Nechalacho to move toward construction readiness with updated economics and execution planning."
• John Day, President of Projects, Western Hemisphere at Wood: "We are proud to begin work on the PEA for Nechalacho, which represents an important step towards advancing a secure and sustainable supply of rare earth elements in North America. Our team brings deep experience in delivering complex studies for remote Northern projects, and we look forward to applying that expertise to help Avalon optimize the project and position it for successful development."