BIG MACK LITHIUM

Overview

Targeting battery-grade lithium production for electric vehicle and energy storage

Property contains rare-metal mineralization similar to world class TANCO (Manitoba) and Bikita pegmatites (Zimbabwe)

Petalite concentrate created from a 5-tonne sample from the Big Mack Pegmatite was approved by Corning Laboratory Services of Corning, New York

The project has an existing closure plan allowing for accelerated exploration and development

Ideal location to ship material to the proposed lithium processing facility in Thunder Bay

Location

Located in the Paterson Lake Area, Ontario Canada

~80 km north of Kenora, ON
Accessible by all-weather highway and logging roads
~50 km by road to Canadian National Railway (Redditt, ON)
Proximal to existing Separation Rapids, Big Whopper Pegmatite deposit (~1.3 km)¹:
- Tonnage-Grade Estimates
- Measured: 4.28 Mt @ 1.33% Li₂O
- Indicated: 5.80 Mt @ 1.36% Li₂O
- Measured & Indicated Total: 10.08 Mt @ 1.35% Li₂O
- Inferred: 2.81 Mt @ 1.38% Li₂O

1 – Avalon Advanced Materials

The information regarding adjacent properties is taken from public disclosure of the owner or operator of the adjacent property. The Company has not had a qualified person verify this information and this information is not necessarily indicative of the mineralization on the Company’s property.

Eleven Zone, Sprinkler Zone, and 6059 | Geology

Eleven Zone is the second largest petalite dike on the property
- Eleven Zone is interpreted as having a high potential for hosting economic reserves of petalite-tantalum mineralization (Chastko, 2011)
Two rare-metal zones lie 600 metres to the east-southeast of the Big Mack pegmatite
- 1) Sprinkler Zone pegmatite is exposed over a length of 17 metres and a surface width of 2 metres
  - Grab samples returned tantalum values from 10 to 159 ppm
- 2) 6059 pegmatite has been exposed over a strike length of 30 metres and a width of 5 metres
  - Diamond drill hole SR98-49 assayed over 4785 ppm Li (1.03% LiO2) over a core length of 1.40 metres

Drilling History

Li-bearing zone at Big Mack Pegmatite extending to a vertical depth of 50 metres along a 280° trend
Highest historical drill-core sample results:
- Lithium – 2.74% – Li₂O
- Cesium – 0.088% – Cs₂O
- Rubidium – 0.814% – Rb₂O
- Tantalum – 0.135% Ta₂O₅
Based EFR’s 15-hole diamond drilling program (1998 & 2001), Chastko and Pryslak (MNDM assessment file 2.22913, 2001) proposed a volume of petalite of 325,000 tonnes*

(*Note: A Qualified Person has not done sufficient work to classify the volume estimate as current mineral resources. The Company is not treating the historical estimate as a current mineral resource or reserve. The Company believes that the historic volume estimate is relevant to an appraisal of the merits of the Property and forms a reliable basis upon which to develop future exploration programs. The Company will need to conduct further exploration which will include drill testing the project, and there is no guarantee that the results obtained will reflect the historical estimate. The historical estimates should not be relied on.)

Emerald Field Resources Corporation 1998 and 1999 Diamond Drilling Holes

Emerald Field Resources Corporation 2001 Diamond Drilling Holes

Chastko, L.C., 2001. Independent report on rare element pegmatite properties in the Separation, Huston and Linklater lakes area; internal unpublished report, Emerald Fields Resource Corporation 120p.

http://www.geologyontario.mndm.gov.on.ca/mndmfiles/afri/data/imaging/52L07SE2011/52L07SE2011.pdf

Geophysical Program: Magnetic Survey

The UAV-Borne Magnetic survey was completed by EarthEx Geophysical Solutions Inc. and was successful in identifying multiple prospective features exhibiting low magnetic responses which have been interpreted to have the potential to host lithium-bearing pegmatites

Collaborative Separation Rapids project between Pan American Energy Corp, Avalon Advanced Materials, EarthEx Geophysical Solutions Inc., and University of Manitoba’s Earth Sciences department
Identified multiple prospective features exhibiting low magnetic responses interpreted to have the potential to host lithium-bearing pegmatites
Three high priority targets zones have been identified at the Project (EEX01, EEX02, and EEX03)
LiDAR and Radiometrics work is underway

Daniel Card, President of EarthEx. “The correlation between historic drilling and the 3D modelled magnetic low directly below Big Mack, as well as the 2D representation of the mineralization’s surface expression, are among the best EarthEx has seen to date.”

2023 Summer Prospecting Program

Samples graded up to 3.21 % Li2O, with 25 samples reporting lithium assays above 1.00% Li2O from the Eleven, Big Mack, and 6059 zones.

A total of 342 grab/channel samples were collected with 98 collected shown to be above determined background threshold lithium values
25 Samples graded above 1.00% Li2O – all three pegmatites (Eleven, Big Mack, and 6059 zones) have visible petalite at surface
Assays appear to show a geochemical trend (>1 km) continuing along strike between the Big Mack and Sprinkler/6059 Pegmatites
Channel sampling returned 1.06% Li2O over 19.30 m across the Eleven Zone, and 1.72% Li2O over 6.30 m at the 6059 Pegmatite
Assays showed anomalous tantalum, tin, and rubidium, associated with the complex-type petalite bearing LCT pegmatites, including assays up to 150 ppm tantalum and 4200 ppm tin.

Infrastructure

Hydroelectric power generating station is at Whitedog Falls, on the Winnipeg River (68 MW capacity)
The transmission line comes within ~30 km of the Property
Opportunity to produce ‘green lithium’

First Nations Engagement

Property lies within the traditional land use area of the Wabaseemoong Independent First Nations of Whitedog, Ontario
Previous holders have had discussions with Wabaseemooong Independent Nations regarding exploration activities on the property
The Company is committed to collaborating and working with the First Nation community

Work Plan

Prospecting, additional sampling and diamond drilling to further define the potential of the lithium and other rare-metal mineralization associated with the pegmatites
Geophysical and subsurface 3D modelling
Geochemistry and additional diamond drilling will enable further expansion of the Big Mack pegmatite along strike and depth and help to understand relationships of the identified pegmatites adjacent to the property

Qualified Person

The scientific and technical information contained on this website relating to the Big Mack Project has been reviewed and approved by Craig Ravnaas, P. Geo, a “Qualified Person” as defined by National Instrument 43-101.

For further information regarding the exploration information contained herein regarding the Big Mack Property, including additional information regarding sample, analytical and testing results, please see the Company’s technical report with respect to the Big Mack Property entitled Technical Report on the Big Mack property, Kenora Mining District Northwestern Ontario, Canada with an effective date of December 12, 2022 filed on the Company’s SEDAR profile at www.sedar.com on December 14, 2022.

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