Avalon Announces Updated Mineral Resource Estimate for Nechalacho Basal Zone, Revalidating Scale and Economic Development Potential of a Large, North American Source of Light and Heavy Rare Earth Elements

Avalon Advanced Materials Inc. (AVL) released an updated Mineral Resource Estimate (MRE) for the Nechalacho Basal Zone, marking the first comprehensive technical refresh since 2013. The MRE defines 58.6 million tonnes of Measured and Indicated resources grading 1.49% TREO, alongside 130.6 million tonnes of Inferred resources grading 1.31% TREO.

Economic parameters utilize a Net Metal Revenue (NMR) cut-off of US$366.40/t, prepared under SEC Regulation S-K 1300 standards. The resource is heavily weighted toward magnet-critical rare earth elements (Neodymium, Praseodymium, Dysprosium, Terbium), which collectively represent approximately 88% of the in-situ REO value.

A Preliminary Economic Assessment (PEA) is currently underway with Wood Canada Ltd., with results targeted for Q4 2026. Management plans to process a minimum of one ton of existing material to secure strategic offtake agreements and establish a processing partner.

Avalon Advanced Materials Inc. (AVL) released an updated Mineral Resource Estimate (MRE) that validates its long-standing geological database without representing a step-change in resource size or grade compared to historical estimates. The update serves as a necessary regulatory and technical baseline under modern SEC standards, aligning with the company’s stated roadmap to modernize the 2013 Definitive Feasibility Study.

The announcement confirms the asset's scale and high-value magnet rare earth element (REE) content but does not alter near-term capital requirements or the development timeline. While technically positive, the news is considered incremental and expected, lacking the unexpected, market-moving catalysts typically required to be classified as material. The announcement provides a modernized technical foundation but does not trigger immediate financing or production milestones.

The stock’s recent decline to $5.00 reflects market impatience with the pre-revenue development stage, broader commodity cycles, and the long lead times inherent to rare earth and lithium processing projects.

Avalon Advanced Materials Inc. (AVL) is a pre-revenue critical minerals developer focused on North American lithium and rare earth supply chains. The company is strategically pivoting toward a fully integrated critical minerals platform, emphasizing non-Chinese supply chains and government-supported financing.

Its flagship projects include the 100%-owned Nechalacho Rare Earths & Zirconium Project in the Northwest Territories, Canada, which contains light and heavy rare earth elements, zirconium, tantalum, and niobium. Land use permits and water licenses have been secured for this site.

In Thunder Bay, Ontario, Avalon owns the Lake Superior Lithium (LSLi) Project, where it has proposed a 30,000 tonnes per annum battery-grade lithium hydroxide/carbonate facility using Metso's alkaline leach technology. A preliminary economic assessment completed in September 2024 indicated a $4.1 billion net present value and a 48% internal rate of return. A feasibility study is currently underway.

Additionally, the company owns the Lilypad Cesium Project in Ontario, Canada, following its exit from the Separation Rapids joint venture in April 2026.