{"success":true,"data":{"pressRelease":{"id":"129118","rtpr_id":"nNFC2D1V7k","ticker":"AVL","exchange":"TSX","all_tickers":["AVL"],"title":"Avalon Advanced Materials Invited to Submit Full Project Proposal Under Natural Resources Canada's Critical Minerals Research, Development and Demonstration and Global Partnerships Initiative Program","author":"Newsfile Corp","published_at":"2026-08-27T11:00:15.527Z","article_body":"Toronto, Ontario--(Newsfile Corp. - August 27, 2026) - Avalon Advanced\nMaterials Inc. (https://api.newsfilecorp.com/redirect/GzXN8uyYKp) (TSX:\nAVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") has been selected to advance\nto the next round of project proposals under Natural Resources Canada's\nCritical Minerals Research, Development and Demonstration and Global\nPartnerships Initiative program.\n\nNatural Resources Canada (\"NRCan\") invited Avalon Advanced Materials Inc.\n(\"Avalon\" or the \"Company\") on June 30, 2026 to submit a Full Project Proposal\nto the Critical Minerals Research, Development and Demonstration and Global\nPartnerships Initiative (\"CMRDD-GPI\") program. The invitation followed\nAvalon's March 2026 Expression of Interest.\n\nAvalon has now submitted its Full Project Proposal and is seeking\napproximately C$20 million of NRCan funding to advance the 100%-owned Basal\nZone at the Nechalacho Rare Earth Elements Project toward a construction-ready\nengineering basis and demonstrate a Canadian processing pathway for producing\nseparated rare earth oxides. The invitation to submit a Full Project Proposal\nfollows Avalon's March 2026 Expression of Interest and is not a funding\ndecision or a commitment of funding by NRCan.\n\nThe proposed program would support three principal workstreams:\nfeasibility-level engineering, including development of an AACE Class 3\ncapital cost estimate by Wood Canada Limited; validation and optimization of\nEngina Corporation's Hybrid Supercritical Refining (\"HSR\") process using\nexisting Nechalacho concentrate; and the design, construction and operation of\na modular demonstration plant to be tested at a Canadian rare earth processing\nfacility and subsequently relocated to Nechalacho for an on-site\ndemonstration.\n\n\"This proposal is focused on advancing Nechalacho toward a financeable\ndevelopment plan,\" said Scott Monteith, President and Chief Executive Officer\nof Avalon. \"By integrating feasibility engineering with process validation and\ndemonstration, we believe the program can accelerate project de-risking and\nestablish a stronger foundation for commercial development.\"\n\nAvalon is pursuing a diversified capital strategy as Nechalacho advances,\nincluding government programs, non-dilutive funding, strategic partnerships,\npotential offtake support and project-level financing opportunities.\n\n\"Securing non-dilutive and strategic capital is an important part of our\napproach to advancing Nechalacho,\" said Lorin Crenshaw, Chief Financial\nOfficer of Avalon. \"Our objective is to match the appropriate source of\ncapital to each stage of development and use government and strategic funding\nwherever possible to accelerate project de-risking and use shareholder capital\nefficiently.\"\n\nThe CMRDD-GPI programs are designed to advance Canada's critical minerals\nstrategy by supporting pre-commercial research, development, and demonstration\nactivities that strengthen critical mineral value chains and accelerate the\ncommercialization of innovative mining and processing technologies. The\nprograms support projects that validate the feasibility and viability of\ncritical mineral technologies and processes, with the GPI additionally\nsupporting projects undertaken with trusted international partners to\nstrengthen secure, resilient and sustainable critical mineral supply chains.\n\nAvalon's Nechalacho project directly aligns with these objectives by advancing\nan innovative rare earth processing technology from pilot-scale validation\ntoward commercial readiness. The proposed program would focus on process\noptimization, engineering and demonstration using existing Nechalacho\nconcentrate, supporting the development of a domestic pathway for producing\nseparated rare earth oxides, including magnet-critical neodymium-praseodymium\n(\"NdPr\"), dysprosium and terbium. The project would contribute to Canada's\nability to establish a secure, sustainable and diversified North American\nsupply chain for critical rare earth materials.\n\nAdvancing Nechalacho Toward Commercial-Scale Processing\n\nThe proposed HSR process combines caustic pretreatment with supercritical CO2\nextraction and has the potential to simplify conventional rare earth\nprocessing, reduce water and reagent intensity and improve recovery.\n\nAvalon is seeking funding to advance the Nechalacho project's rare earth\nprocessing technology toward commercial readiness, generating engineering,\noperating and product-quality data needed to support subsequent commercial\ndevelopment and project-financing activities through engineering, process\nvalidation and demonstration.\n\nThe program will include detailed engineering and an AACE Class 3 capital cost\nestimate by Wood Canada Limited; testwork with Engina Corporation to optimize\nthe Hybrid Supercritical Refining process using existing Nechalacho\nconcentrate; and the design, construction and operation of a modular,\ncontainerized demonstration plant capable of processing approximately one\ntonne of concentrate per day. The demonstration will validate the process at\nboth a Canadian processing facility and the Nechalacho site, using existing\nmaterial and requiring no new mining, drilling or sampling, positioning the\ntechnology for commercial-scale development.\n\nAdvancing Canada's Path to Rare Earth Oxide Production\n\nCanada does not currently produce separated rare earth oxides. Nechalacho\ncontains one of the highest combined magnet rare earth grades among advanced\nNorth American rare earth projects, including neodymium and praseodymium, as\nwell as dysprosium and terbium. When global rare earth prices declined\nsignificantly in 2013, the economic case for the project was no longer viable,\ndespite no fundamental change to the underlying resource. The key challenge is\nprocessing, and the proposed program is designed to address this critical gap.\n\nNechalacho contains both light and heavy rare earth elements, including the\nmagnet-critical elements neodymium, praseodymium, dysprosium and terbium, as\nwell as tantalum, niobium and zirconium. These materials are used in permanent\nmagnets, electric vehicles, renewable energy, advanced manufacturing and\ndefence applications.\n\nTarget products include NdPr oxide for the permanent magnets used in electric\nvehicle traction motors and direct-drive wind generators, dysprosium and\nterbium oxides for magnet thermal stability, as well as samarium, yttrium and\na zircon co-product. These magnet materials support both commercial and\nstrategic applications, including electric vehicles, renewable energy, defence\nsystems, sensors, uncrewed systems and specialized manufacturing capabilities\nidentified in Canada's Defence Industrial Strategy released in February 2026.\n\nAbout Avalon Advanced Materials Inc.\n\nAvalon Advanced Materials Inc. is a Canadian critical minerals company focused\non advancing lithium and rare earth elements-two of the fastest-growing\nsegments of the global energy transition. The Company is developing strategic\nassets to participate in high-growth markets and support the build-out of\nsecure North American supply chains. Avalon is advancing the Nechalacho Rare\nEarth Elements and Zirconium Project in the Northwest Territories, which\ncontains all light and heavy rare earth elements, as well as zirconium,\ntantalum, and niobium-critical minerals used in advanced technologies across\nthe communications, defense, advanced technologies, and energy sectors. The\nCompany is also focused on vertically integrating the Ontario lithium supply\nchain through the development of Lake Superior Lithium Inc., Ontario's first\nmidstream lithium hydroxide processing facility, located in Thunder Bay. This\nfacility is expected to serve as a cornerstone of North America's integrated\nbattery materials supply chain, transforming northern Ontario lithium into\nessential inputs for transportation, grid storage, and advanced manufacturing.\n\nFor further information regarding Avalon Advanced Materials Inc., please visit\nwww.avalonadvancedmaterials.com, email ir@avalonam.com, or call 416-364-4938.\n\nCautionary Statement Regarding Forward-Looking Information\n\nThis news release contains \"forward-looking information\" within the meaning of\napplicable Canadian securities legislation. Generally, forward-looking\ninformation can be identified by the use of forward-looking terminology such\nas \"add\" or \"additional\", \"advancing\", \"anticipates\" or \"does not anticipate\",\n\"appears\", \"believes\", \"can be\", \"conceptual\", \"confidence\", \"continue\",\n\"convert\" or \"conversion\", \"deliver\", \"demonstrating\", \"estimates\",\n\"encouraging\", \"expand\" or \"expanding\" or \"expansion\", \"expect\" or\n\"expectations\", \"forecasts\", \"forward\", \"goal\", \"improves\", \"increase\",\n\"intends\", \"justification\", \"plans\", \"potential\" or \"potentially\", \"promise\",\n\"prospective\", \"prioritize\", \"reflects\", \"robust\", \"scheduled\", \"suggesting\",\n\"support\", \"top-tier\", \"updating\", \"upside\", \"will be\" or \"will consider\",\n\"work towards\", or variations of such words and phrases or state that certain\nactions, events or results \"may\", \"could\", \"would\", \"might\", or \"will be\ntaken\", \"occur\", or \"be achieved\".\n\nForward-looking information is subject to known and unknown risks,\nuncertainties and other factors that may cause the actual results, level of\nactivity, performance or achievements of the Company to be materially\ndifferent from those expressed or implied by such forward-looking information,\nincluding those risk factors discussed or referred to in the annual\ninformation form of the Company dated November 26, 2025 (the \"AIF\") under the\nheading \"Description of the Business - Risk Factors\". Forward-looking\ninformation is based on the reasonable assumptions, estimates, analysis and\nopinions of management made in light of its experience and perception of\ntrends, current conditions and expected developments, as well as other factors\nthat management believes to be relevant and reasonable in the circumstances at\nthe date that such statements are made, but which may prove to be incorrect.\nAlthough the Company believes that the assumptions and expectations reflected\nin such forward-looking information are reasonable, undue reliance should not\nbe placed on forward-looking information because the Company can give no\nassurance that such expectations will prove to be correct. Although the\nCompany has attempted to identify important factors that could cause actual\nresults to differ materially from those contained in forward-looking\ninformation, there may be other factors that cause results not to be as\nanticipated, estimated or intended. There can be no assurance that such\ninformation will prove to be accurate, as actual results and future events\ncould differ materially from those anticipated in such information.\nAccordingly, readers should not place undue reliance on forward-looking\ninformation. The Company does not undertake to update any forward-looking\ninformation, except in accordance with applicable securities laws.\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/311480","article_body_html":"","raw_payload":{"data":{"id":"nNFC2D1V7k","title":"Avalon Advanced Materials Invited to Submit Full Project Proposal Under Natural Resources Canada's Critical Minerals Research, Development and Demonstration and Global Partnerships Initiative Program","author":"Newsfile Corp","ticker":"AVL","created":"2026-08-27T11:00:15.527Z","tickers":["AVL"],"exchange":"TSX","article_body":"Toronto, Ontario--(Newsfile Corp. - August 27, 2026) - Avalon Advanced\nMaterials Inc. (https://api.newsfilecorp.com/redirect/GzXN8uyYKp) (TSX:\nAVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") has been selected to advance\nto the next round of project proposals under Natural Resources Canada's\nCritical Minerals Research, Development and Demonstration and Global\nPartnerships Initiative program.\n\nNatural Resources Canada (\"NRCan\") invited Avalon Advanced Materials Inc.\n(\"Avalon\" or the \"Company\") on June 30, 2026 to submit a Full Project Proposal\nto the Critical Minerals Research, Development and Demonstration and Global\nPartnerships Initiative (\"CMRDD-GPI\") program. The invitation followed\nAvalon's March 2026 Expression of Interest.\n\nAvalon has now submitted its Full Project Proposal and is seeking\napproximately C$20 million of NRCan funding to advance the 100%-owned Basal\nZone at the Nechalacho Rare Earth Elements Project toward a construction-ready\nengineering basis and demonstrate a Canadian processing pathway for producing\nseparated rare earth oxides. The invitation to submit a Full Project Proposal\nfollows Avalon's March 2026 Expression of Interest and is not a funding\ndecision or a commitment of funding by NRCan.\n\nThe proposed program would support three principal workstreams:\nfeasibility-level engineering, including development of an AACE Class 3\ncapital cost estimate by Wood Canada Limited; validation and optimization of\nEngina Corporation's Hybrid Supercritical Refining (\"HSR\") process using\nexisting Nechalacho concentrate; and the design, construction and operation of\na modular demonstration plant to be tested at a Canadian rare earth processing\nfacility and subsequently relocated to Nechalacho for an on-site\ndemonstration.\n\n\"This proposal is focused on advancing Nechalacho toward a financeable\ndevelopment plan,\" said Scott Monteith, President and Chief Executive Officer\nof Avalon. \"By integrating feasibility engineering with process validation and\ndemonstration, we believe the program can accelerate project de-risking and\nestablish a stronger foundation for commercial development.\"\n\nAvalon is pursuing a diversified capital strategy as Nechalacho advances,\nincluding government programs, non-dilutive funding, strategic partnerships,\npotential offtake support and project-level financing opportunities.\n\n\"Securing non-dilutive and strategic capital is an important part of our\napproach to advancing Nechalacho,\" said Lorin Crenshaw, Chief Financial\nOfficer of Avalon. \"Our objective is to match the appropriate source of\ncapital to each stage of development and use government and strategic funding\nwherever possible to accelerate project de-risking and use shareholder capital\nefficiently.\"\n\nThe CMRDD-GPI programs are designed to advance Canada's critical minerals\nstrategy by supporting pre-commercial research, development, and demonstration\nactivities that strengthen critical mineral value chains and accelerate the\ncommercialization of innovative mining and processing technologies. The\nprograms support projects that validate the feasibility and viability of\ncritical mineral technologies and processes, with the GPI additionally\nsupporting projects undertaken with trusted international partners to\nstrengthen secure, resilient and sustainable critical mineral supply chains.\n\nAvalon's Nechalacho project directly aligns with these objectives by advancing\nan innovative rare earth processing technology from pilot-scale validation\ntoward commercial readiness. The proposed program would focus on process\noptimization, engineering and demonstration using existing Nechalacho\nconcentrate, supporting the development of a domestic pathway for producing\nseparated rare earth oxides, including magnet-critical neodymium-praseodymium\n(\"NdPr\"), dysprosium and terbium. The project would contribute to Canada's\nability to establish a secure, sustainable and diversified North American\nsupply chain for critical rare earth materials.\n\nAdvancing Nechalacho Toward Commercial-Scale Processing\n\nThe proposed HSR process combines caustic pretreatment with supercritical CO2\nextraction and has the potential to simplify conventional rare earth\nprocessing, reduce water and reagent intensity and improve recovery.\n\nAvalon is seeking funding to advance the Nechalacho project's rare earth\nprocessing technology toward commercial readiness, generating engineering,\noperating and product-quality data needed to support subsequent commercial\ndevelopment and project-financing activities through engineering, process\nvalidation and demonstration.\n\nThe program will include detailed engineering and an AACE Class 3 capital cost\nestimate by Wood Canada Limited; testwork with Engina Corporation to optimize\nthe Hybrid Supercritical Refining process using existing Nechalacho\nconcentrate; and the design, construction and operation of a modular,\ncontainerized demonstration plant capable of processing approximately one\ntonne of concentrate per day. The demonstration will validate the process at\nboth a Canadian processing facility and the Nechalacho site, using existing\nmaterial and requiring no new mining, drilling or sampling, positioning the\ntechnology for commercial-scale development.\n\nAdvancing Canada's Path to Rare Earth Oxide Production\n\nCanada does not currently produce separated rare earth oxides. Nechalacho\ncontains one of the highest combined magnet rare earth grades among advanced\nNorth American rare earth projects, including neodymium and praseodymium, as\nwell as dysprosium and terbium. When global rare earth prices declined\nsignificantly in 2013, the economic case for the project was no longer viable,\ndespite no fundamental change to the underlying resource. The key challenge is\nprocessing, and the proposed program is designed to address this critical gap.\n\nNechalacho contains both light and heavy rare earth elements, including the\nmagnet-critical elements neodymium, praseodymium, dysprosium and terbium, as\nwell as tantalum, niobium and zirconium. These materials are used in permanent\nmagnets, electric vehicles, renewable energy, advanced manufacturing and\ndefence applications.\n\nTarget products include NdPr oxide for the permanent magnets used in electric\nvehicle traction motors and direct-drive wind generators, dysprosium and\nterbium oxides for magnet thermal stability, as well as samarium, yttrium and\na zircon co-product. These magnet materials support both commercial and\nstrategic applications, including electric vehicles, renewable energy, defence\nsystems, sensors, uncrewed systems and specialized manufacturing capabilities\nidentified in Canada's Defence Industrial Strategy released in February 2026.\n\nAbout Avalon Advanced Materials Inc.\n\nAvalon Advanced Materials Inc. is a Canadian critical minerals company focused\non advancing lithium and rare earth elements-two of the fastest-growing\nsegments of the global energy transition. The Company is developing strategic\nassets to participate in high-growth markets and support the build-out of\nsecure North American supply chains. Avalon is advancing the Nechalacho Rare\nEarth Elements and Zirconium Project in the Northwest Territories, which\ncontains all light and heavy rare earth elements, as well as zirconium,\ntantalum, and niobium-critical minerals used in advanced technologies across\nthe communications, defense, advanced technologies, and energy sectors. The\nCompany is also focused on vertically integrating the Ontario lithium supply\nchain through the development of Lake Superior Lithium Inc., Ontario's first\nmidstream lithium hydroxide processing facility, located in Thunder Bay. This\nfacility is expected to serve as a cornerstone of North America's integrated\nbattery materials supply chain, transforming northern Ontario lithium into\nessential inputs for transportation, grid storage, and advanced manufacturing.\n\nFor further information regarding Avalon Advanced Materials Inc., please visit\nwww.avalonadvancedmaterials.com, email ir@avalonam.com, or call 416-364-4938.\n\nCautionary Statement Regarding Forward-Looking Information\n\nThis news release contains \"forward-looking information\" within the meaning of\napplicable Canadian securities legislation. Generally, forward-looking\ninformation can be identified by the use of forward-looking terminology such\nas \"add\" or \"additional\", \"advancing\", \"anticipates\" or \"does not anticipate\",\n\"appears\", \"believes\", \"can be\", \"conceptual\", \"confidence\", \"continue\",\n\"convert\" or \"conversion\", \"deliver\", \"demonstrating\", \"estimates\",\n\"encouraging\", \"expand\" or \"expanding\" or \"expansion\", \"expect\" or\n\"expectations\", \"forecasts\", \"forward\", \"goal\", \"improves\", \"increase\",\n\"intends\", \"justification\", \"plans\", \"potential\" or \"potentially\", \"promise\",\n\"prospective\", \"prioritize\", \"reflects\", \"robust\", \"scheduled\", \"suggesting\",\n\"support\", \"top-tier\", \"updating\", \"upside\", \"will be\" or \"will consider\",\n\"work towards\", or variations of such words and phrases or state that certain\nactions, events or results \"may\", \"could\", \"would\", \"might\", or \"will be\ntaken\", \"occur\", or \"be achieved\".\n\nForward-looking information is subject to known and unknown risks,\nuncertainties and other factors that may cause the actual results, level of\nactivity, performance or achievements of the Company to be materially\ndifferent from those expressed or implied by such forward-looking information,\nincluding those risk factors discussed or referred to in the annual\ninformation form of the Company dated November 26, 2025 (the \"AIF\") under the\nheading \"Description of the Business - Risk Factors\". Forward-looking\ninformation is based on the reasonable assumptions, estimates, analysis and\nopinions of management made in light of its experience and perception of\ntrends, current conditions and expected developments, as well as other factors\nthat management believes to be relevant and reasonable in the circumstances at\nthe date that such statements are made, but which may prove to be incorrect.\nAlthough the Company believes that the assumptions and expectations reflected\nin such forward-looking information are reasonable, undue reliance should not\nbe placed on forward-looking information because the Company can give no\nassurance that such expectations will prove to be correct. Although the\nCompany has attempted to identify important factors that could cause actual\nresults to differ materially from those contained in forward-looking\ninformation, there may be other factors that cause results not to be as\nanticipated, estimated or intended. There can be no assurance that such\ninformation will prove to be accurate, as actual results and future events\ncould differ materially from those anticipated in such information.\nAccordingly, readers should not place undue reliance on forward-looking\ninformation. The Company does not undertake to update any forward-looking\ninformation, except in accordance with applicable securities laws.\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/311480"},"type":"article","timestamp":"2026-08-27T11:00:15.594776905Z","server_sent_at_ms":1787828415594},"received_at":"2026-08-27T11:00:15.645Z","source_url":"https://www.newsfilecorp.com/release/311480"},"analysis":{"id":"118068","press_release_id":"129118","analysis_json":{"industry":{"label":"Metals & Mining","sector":"Materials"},"redFlags":["Invitation to submit is not a funding decision or commitment","Project is in pre-commercial development stage"],"eventType":"operations_update","narrative":"Avalon Advanced Materials has been invited by Natural Resources Canada to submit a Full Project Proposal seeking approximately C$20 million in funding for its Nechalacho Rare Earth Elements Project.\n\nThe proposed program would support feasibility-level engineering by Wood Canada Limited, validation of Engina Corporation's Hybrid Supercritical Refining process, and the construction of a modular demonstration plant.\n\nManagement noted the invitation is not a funding decision or commitment, but part of a diversified capital strategy to de-risk the project and advance it toward a financeable state.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":"Avalon advances to next stage of Canadian government funding process for Nechalacho project."},"keyFigures":{"customDimensions":{"funding_sought":"C$20 million"}},"quotedText":"This proposal is focused on advancing Nechalacho toward a financeable development plan","namedEntities":{"people":[{"name":"Scott Monteith","role":"President and Chief Executive Officer"},{"name":"Lorin Crenshaw","role":"Chief Financial Officer"}],"products":["Nechalacho Rare Earth Elements Project","Basal Zone","Hybrid Supercritical Refining (HSR)","Lake Superior Lithium Inc."],"companies":[{"name":"Avalon Advanced Materials Inc.","ticker":"AVL"},{"name":"Natural Resources Canada","relationship":"government agency"},{"name":"Wood Canada Limited","relationship":"engineering contractor"},{"name":"Engina Corporation","relationship":"technology partner"}],"dollarAmounts":[{"amount":"C$20 million","context":"NRCan funding sought"}]},"materialImpact":{"score":2,"reasoning":"The invitation to submit a proposal represents a procedural milestone rather than a secured funding agreement. While it validates the project's alignment with national strategy and offers a potential non-dilutive capital source, the probability and timing of funding remain uncertain."},"tickerRelevance":{"others":[],"primary":"AVL"},"globalImportance":10,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"government-grant-proposal","sectorWeight":"critical-minerals"}},"event_type":"operations_update","event_type_secondary":null,"sentiment":"bullish","material_impact_score":2,"narrative":"Avalon Advanced Materials has been invited by Natural Resources Canada to submit a Full Project Proposal seeking approximately C$20 million in funding for its Nechalacho Rare Earth Elements Project.\n\nThe proposed program would support feasibility-level engineering by Wood Canada Limited, validation of Engina Corporation's Hybrid Supercritical Refining process, and the construction of a modular demonstration plant.\n\nManagement noted the invitation is not a funding decision or commitment, but part of a diversified capital strategy to de-risk the project and advance it toward a financeable state.","key_figures":{"customDimensions":{"funding_sought":"C$20 million"}},"named_entities":{"people":[{"name":"Scott Monteith","role":"President and Chief Executive Officer"},{"name":"Lorin Crenshaw","role":"Chief Financial Officer"}],"products":["Nechalacho Rare Earth Elements Project","Basal Zone","Hybrid Supercritical Refining (HSR)","Lake Superior Lithium Inc."],"companies":[{"name":"Avalon Advanced Materials Inc.","ticker":"AVL"},{"name":"Natural Resources Canada","relationship":"government agency"},{"name":"Wood Canada Limited","relationship":"engineering contractor"},{"name":"Engina Corporation","relationship":"technology partner"}],"dollarAmounts":[{"amount":"C$20 million","context":"NRCan funding sought"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-27T11:41:23.961Z","global_importance":10,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"government-grant-proposal","sectorWeight":"critical-minerals"}},"durationMs":null,"modelName":"glm-4.7"}}