MAGMIC RARE EARTHS INC
NECHALACHO BASAL RARE EARTHS PROJECT
A Secure Stockpile in an Allied Jurisdiction
Rare earth supply chains remain among the most geographically constrained in the world. The vast majority of global processing and magnet production is concentrated in China, creating significant geopolitical and economic risk for North American industries that depend on these materials.
Nechalacho combines scale, high-value rare earth enrichment, and a cleaner development path to restoring North American rare earth independence.
Thor Lake
Northwest Territories, Canada
Highlights of 2013 DFS*
Completed Feasibility Study by SNC-Lavalin
NI 43-101 Report prepared by Micon
The results of the feasibility study demonstrate that the project is technically feasible and economically robust.
The FS covers all aspects of project development, including mining, mineral concentration, hydrometallurgical processing, refining and separation of individual rare earth oxides as well as all related infrastructure.
*Historical information. Avalon’s 2026 Mineral Resource Estimate, prepared in accordance with S-K 1300 and NI 43-101, is the Company’s current mineral resource estimate for Nechalacho. The 2013 feasibility study was prepared under NI 43-101 based on information and assumptions available at that time and is historical in nature. It should not be relied upon as a current feasibility study, current mineral reserve estimate, or evidence of current economic viability. The Company has not independently updated or verified the economic and operating assumptions underlying the 2013 feasibility study against current information. Avalon is currently advancing an updated Preliminary Economic Assessment (“PEA”) based on the 2026 MRE, incorporating current technologies, processing alternatives and economic assumptions.
Overview
Unlocking Supply for Technological Advancements in Nuclear, Defense, and Communications Sectors
Ownership:
Avalon Advanced Materials Inc. holds 100% ownership of the resources located below 150 meters above sea level.
Location:
Situated at Thor Lake, The Nechalacho Project is located in the mineral-rich region of the Northwest Territories, Canada. This location provides access to key transportation corridors and is within proximity of established Indigenous communities, supporting regional employment and infrastructure development.
Stage:
The Nechalacho Project is supported by a Definitive Feasibility Study (DFS) completed in 2013. Early works permits are already in place, positioning the project for near-term advancement.
Mineralization/Commodity:
All Light Rare Earth Elements
All Heavy Rare Earth Elements
Transitional Rare Earth Element Yttrium
Zirconium, Tantalum, Niobium
Indigenous Engagement and Community Partnerships:
The Nechalacho property is situated in an area known as the Akaitcho Territory, an area which is subject to a comprehensive land claim negotiation involving four communities of the Dene Nation. The area is also subject to a settled Land Claim of the Tlicho Government who refer to the area as the Monfwe overlap. In 2012, Avalon signed its first Accommodation Agreement with the Deninu K’ue First Nation. In February 2014, Avalon signed a similar Participation Agreement with the Northwest Territory Métis Nation.
Prepared by Micon International, this 2013 Technical Report compiles SNC-Lavalin's feasibility study for Avalon's Nechalacho rare earth elements project.
