NextSource Materials Provides Progress Update On Molo Graphite Mine In Madagascar |

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to provide a progress update for Phase 1 of the Molo Graphite Mine in Madagascar

The Processing Plant has arrived and been unloaded at the local port of Fort Dauphin in Madagascar and has cleared customs. Company-appointed logistics specialists have now commenced transporting all modules of the Processing Plant, including two mobile cranes, to the mine site. Earthworks at the mine site are complete and civil works are on schedule to be completed by the time the Processing Plant arrives.

It is expected to take approximately 45 days to re-assemble the Processing Plant, which was previously erected and underwent Factory Acceptance Testing prior to shipment. Once re-assembled, the Processing Plant will undergo Site Acceptance Testing, which is the final step before mine commissioning.

The pre-fabricated units for the camp accommodations and auxiliary buildings have also arrived at site and assembly of these support structures will commence shortly.

President and CEO, Craig Scherba commented,

"Now that the processing plant has arrived in-country, on-site activity will ramp up significantly over the next several weeks as we begin re-assembly of the processing plant and the auxiliary buildings".

Construction Update of Solar and Battery Hybrid Power Plant

As announced on May 24, 2022, CrossBoundary Energy's Madagascar subsidiary commenced construction of a solar thermal hybrid energy power plant ("Hybrid Plant") that will power Phase 1 of the Molo mine. Construction of the Hybrid Plant is on schedule with the thermal portion of the hybrid solution expected to be installed and operational at the time of commissioning of the Processing Plant, with the renewable energy portion following thereafter.

The Hybrid Plant will be located adjacent to the Molo mine site and when fully operational, will provide up to 33% of the mine's total Phase 1 electricity needs from renewable solar energy, with the remainder coming from thermal generators.

NextSource Materials Inc. is a strategic materials development company based in Toronto, Canada that is intent on becoming a fully integrated, global supplier of critical battery and technology materials needed to power the sustainable energy revolution.

The Company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite deposits globally, and the only one with SuperFlake® graphite. Construction of Phase 1 of the Molo Project is underway, with commissioning expected in the autumn of 2022.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others, timing of on-site construction including completion of the civil and earthworks, timing of the on-site arrival of the processing plant and installation thereof, delivery and installation of the auxiliary buildings and structures, delivery and construction of the Solar Hybrid Battery System, shipping of all plant infrastructure to site, all re-assembly and commissioning of the Molo Project, initiation of a Feasibility Study and timing of its completion, production capacity, NPV, IRR and life of mine of the Molo mine, timing of the FEED Study and Feasibility Study, as well as the Company's intent on becoming a fully integrated global supplier of critical battery and technology materials. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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Vision Blue Resources Ltd, a newly created battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), made a significant strategic investment in NextSource Materials to fully fund the construction of its Molo graphite mine in Madagascar. Production is scheduled in Q4 2022.

According to UK’s Roskill Research, battery demand for raw material graphite is expected to grow by approximately 23 per year-over-year for the next decade. This dramatic spike in demand is due to graphite’s critical role as the anode material in lithium-ion batteries. Electric vehicle batteries contain between 60 to 90 kilograms of graphite per battery. By volume, graphite is the largest raw material in a lithium-ion battery. As the electric vehicle market continues to grow, investing in the companies that produce these valuable battery materials and have first-mover advantage can provide significant value-creation and exposure to this expanding market.

NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is entering production with its 100%-owned Molo Graphite Project in southern Madagascar in 2022. The Molo Graphite Project is a fully permitted and funded project that ranks as one of the largest and highest quality flake graphite deposits globally, and is the only project with SuperFlake® graphite.

The Company utilized an all-modular build approach when constructing the Molo mine. Initial production is 17,000 tonnes per annum (“tpa”) over the first two years of production followed by mine expansion in Year three of an additional 150,000 tpa. Offtakes are in place for more than 100% of initial Phase 1 production.

Graphite in Madagascar is renowned for its quality and flake size. For almost a century, Madagascar has been exporting flake graphite to the world but in limited quantities. Molo will catapult Madagascar to a top 5 graphite producing country. With its Green Giant vanadium project also within close proximity to the Molo project, NextSource Materials controls two very strategic sources of battery materials at one source.

NextSource’s 100 percent owned and fully permitted Molo graphite project drew investor attention for its large-high-quality flake graphite deposit and unique SuperFlake graphite concentrate. The company announced in May 2021, that former Xstrata CEO Sir Mick Davis committed a strategic investment of US$29.5 million in NextSource mining operations. This investment provided the entire funding to bring the Molo Graphite mine into production.

Vision Blue Resources, the firm that Davis founded in December 2020 to invest in battery and technology minerals, selected the Molo graphite project as its flagship investment, noting that the graphite market has been underinvested considering the increasing demand in recent years. “This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply-side response, largely as a result of capital constraints,” Davis stated.

The company utlized an all-modular build approach to construct the Molo mine. Phase one production will be approximately 17,000 tonnes per annum over the first two years with a phase two expansion on 150,000 additional tonnes in year three.

NextSource has also outlined a fully integrated supply chain plan to build a battery anode facility (BAF) to produce coated, spherical, purified graphite (CSPG). The company will be outlining its phase one BAF construction plans by the end of 2022. NextSource has a significant advantage over other projects attempting to produce anode material via its exclusive collaboration with one of Japan’s prominent producers of anode material to OEM supply chains.

In April 2021, the company finalized an exclusive partnership with a well-established and leading company that processes SPG for leading Japanese anode and battery makers, who in turn supply the Tesla supply chain and Toyota supply chains. The company has also executed an commercial offtake agreement with thyssenkrupp Materials Trading GmbH, an international trading and services company headquartered in Essen, Germany, for the sale of 35,000 tonnes per annum (tpa) of the SuperFlake® graphite products.

NextSource’s other highly prospective project, the Green Giant vanadium project in Madagascar, stands out for its sediment-hosted deposit profile, which is only seen in approximately 5 percent of total vanadium occurrences.

The company believes strongly in vanadium’s potential market growth with the popularization of VRBs as a leading technology for green energy applications. Since project acquisition in 2007, NextSource has spent over US$20 million on the exploration and development of the Green Giant.

NextSource’s management team and directors bring decades of professional mine development and capital markets expertise. Combined, NextSource has assembled an impressive team that has proven track record in mine operations and building shareholder value. This positions the company for significant growth and economic success as it strives to meet the world’s increasing demand for graphite.

The Molo graphite project is a wholly owned feasibility-stage asset that ranks as one of the largest-known and highest quality flake graphite deposits in the world. The property is over 62.5 hectares, sits in the Tulear region of South-western Madagascar and is located 11.5 kilometers east of the town of Fotadrevo

Total combined graphite resources are measured at 141.28 million tonnes at 6.13 percent total graphitic carbon, with a contained ore reserve of 22.44 million tonnes at 7.02 percent graphitic carbon. The company has delinatined over 300 line kms of continuous graphite mineralization at surface. NextSource has virtually an unlimited supply of graphite it can bring to the market in lockstep with demand.

NextSource has superior flake size distribution and well above the global average. The Molo asset is relatively unique for having almost 50 percent premium-priced large and jumbo flake graphite, and can achieve up to 98 percent carbon purity with simple flotation alone. Molo SuperFlake® has been verified by end-users and meets or exceeds all criteria for the top demand markets for flake graphite; anode material for lithium-ion batteries, refractories, graphite foils and graphene inks.

NextSource has completed a series of Feasibility Studies on the project since 2015, with an updated Feasibility Study for phase two mine expansion due this November.

For all details and assumptions relating to the parameters of the mineral resource, reserve estimates, and data verification procedures for phase one of the Molo Project, please see “Molo Feasibility Study, National Instrument 43-101 Technical Report on the Molo Graphite Project located near the village of Fotadrevo in the Province of Toliara, Madagascar Prepared by Erudite Strategies (Pty) Ltd” dated May 31, 2019.Green Giant Vanadium Project

The 100 percent owned Green Giant vanadium project is an advanced stage exploration project located in South-central Madagascar and is one of the world’s largest known vanadium deposits. The project leverages good mining conditions and convenient close proximity to NextSource’s flagship Molo graphite project.

The Green Giant Project is a rare type of vanadium deposit because it is sediment-hosted. No magnetic metals are associated with Green Giant’s vanadium, making the project ideal for producing high-purity vanadium pentoxide, a key material in vanadium redox batteries.

The property’s National Instrument 43-101 compliant resource measures an estimated 60 million tonnes of vanadium pentoxide at an average grade of almost 0.7 percent at a 0.5 percent cut-off.

Since 2008, Green Giant has seen extensive diamond drilling campaigns, soil sampling, airborne and ground geophysics and EM surveying. NextSource intends to continue developing the property’s three main zones, which are referred to as the Jaky, Manga and Mainty deposits.

Craig Scherba was appointed president and CEO in September 2012 and has been a director since January 2010. Previously, Scherba served as vice president, Exploration of the company, since January 2010. Prior, Scherba was a managing partner for six years with Taiga Consultants Ltd., a mining exploration consulting company. He has been a professional geologist since 2000, and his expertise includes supervising large Canadian and international exploration programs. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high-grade gold, copper and zinc Bisha project in Eritrea. He served as the company’s country and exploration manager in Madagascar during its initial exploration stage, discovering both the Molo Graphite and the Green Giant Vanadium deposits.

Robin Borley is a Graduate mining engineering professional and a certified mine manager with more than 25 years of international mining experience building and operating mining ventures. He has held senior management positions both Internationally and within the South African mining industry. He has most recently served as mining director for DRA Mineral Projects and was instrumental as the COO of Red Island Minerals in developing a Madagascar coal venture.

His diverse career has spanned resource project management, evaluation, exploration and mine development. Robin has completed several mine evaluations, including operational and financial assessment of new and existing operations across various resource sectors. He has experience in managing underground and surface mining operations from both the contractor and owner-miner environments.

Brent Nykoliation joined the senior management team at NextSource Materials as vice president, Corporate Development. In 2007, he oversaw all communication with analysts, institutional investors and strategic offtake partners for the company. He brings over 20 years of management experience, having held senior marketing and strategic development positions with several Fortune 500 corporations in Canada, notably Nestlé, Home Depot and Whirlpool. Nykoliation holds a Bachelor of Commerce with Honours degree from Queen’s University.

Marc Johnson is a bilingual senior executive with over 20 years of business experience, including ten years at public corporations as CFO, VP Corporate Development and other financial management positions, and ten years in capital markets in investment banking and equity research. Johnson is a Chartered Financial Analyst and a Chartered Professional Accountant and joined as CFO in October 2015. He also holds a Bachelor of Commerce (Finance) from the John Molson School of Business at Concordia University in Montreal.

Sir Mick Davis is the CEO of Vision Blue Resources and a highly successful mining executive accredited with building Xstrata plc into one of the largest mining companies in the world prior to its acquisition by Glencore plc. Before listing Xstrata on the LSE as CEO he was CFO of Billiton plc and Chairman of Billiton Coal which he joined from the position of Eskom CFO. During his career in mining he has raised over US$40bn from global capital markets and successfully completed over US$120bn of corporate transactions, including the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the LSE; the merger of BHP and Billiton; as well as numerous transactions at Xstrata culminating in the sale to Glencore plc. Sir Mick Davis is a Chartered Accountant by profession, and holds an honours degree in Commerce from Rhodes University, South Africa and an Honorary Doctorate from Bar Ilan University, Israel.

Brett Whalen has over 20 years of investment banking and M&A expertise, spending over 16 of those years at Dundee Corporation. During his tenure at Dundee Corp., Whalen was directly involved in completing approximately $2 billion in M&A deals and helped raise over $10 billion in the capital for resource sector companies. While a vice president and portfolio manager of Goodman & Co., he oversaw the investment of $6 million into NextSource, enabling the company to achieve key technical milestones, notably the completion of its July 2017 Phase One Feasibility Study and the concept and design of the whole modular build approach NextSource will be utilized for construction of both Phase One and Phase Two of the Molo mine. Whalen has extensive knowledge of both graphite and vanadium and the general battery materials industry.

Whalen has held Board seats of several TSX-listed and privately held companies and holds a BA (Honours) degree in Economics and Finance from Wilfrid Laurier University.

Mr. Ian Pearce is the former CEO of Xstrata Nickel, and prior to that was the former COO of Falconbridge Limited, which was acquired by Xstrata Plc in 2006. Xstrata Plc’s acquisition of Falconbridge was one of the largest mining takeovers globally and one of the largest takeover bids in Canadian history. Mr. Pearce was also a founding partner of X2 Resources who, along with Sir Mick Davis, made up the team of six ex-Xstrata executives who formed the mid-tier diversified mining and metals company. He currently serves as a director for several global companies in the mining and metals, energy, and sustainability industries:

Mr. Pearce previously served as Chair of the Mining Association of Canada and Chair of the Nickel Institute. He holds a BSc from the University of the Witwatersrand, South Africa and an HNDT in Mineral Processing from the University of Johannesburg, South Africa.

Mr. Kruba is Vice-President and Legal Counsel to Nostrum Capital Corporation and a number of related corporations that are part of the Toldo Group. The Toldo Group is headquartered in Windsor, Ontario and is composed of several privately held corporations in Canada and the United States, some of which have large manufacturing operations in diversified sectors and others which are involved in active and passive investments across capital markets throughout North America, Europe and Africa. In addition to his responsibilities as counsel to the Toldo Group, Mr. Kruba serves as corporate secretary to all the companies, is a member of group’s investment committee and he serves on the board of directors of many of the companies.

Mr. Kruba has extensive manufacturing and capital markets experience and has lead merges and acquisitions and participated in the management and strategic planning for numerous companies, including venture capital corporations in which the group has invested.

Nostrum Capital Corporation and Mr. Kruba personally have been investors in NextSource Materials Inc. since 2011.

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to provide a site works update and to announce that a Madagascar subsidiary of CrossBoundary Energy ("CBE") has commenced the construction process for the solar and battery hybrid power plant for Phase 1 of the Molo Graphite Mine in Madagascar after the Company executed a definitive energy services agreement with CrossBoundary Energy's ("CBE") Madagascar subsidiary

Earthworks and civil construction at the mine site are progressing according to schedule and will be ready for the arrival of the processing plant and auxiliary buildings in June 2022. Completion of construction and plant commissioning is expected in Q3 2022, followed by a ramp up period of up to three months to achieve nameplate capacity.

Due to increases in global logistics costs the Company has increased the construction budget for Phase 1 of the Molo Graphite Mine by approximately $3.0 million. The Phase 1 capital cost budget is now $24.0 million plus an additional $3.0 million for working capital.

Construction of Solar and Battery Hybrid Power Plant

As announced on November 23, 2021, CBE was selected to build, own, and operate a solar, battery and thermal hybrid energy power plant ("Hybrid Plant") over a 20-year term. The Hybrid Plant will consist of a 2.6MW solar PV facility, a 1MWh battery energy storage system ("BESS") and a 3.1MW thermal facility (diesel generators). The Hybrid Plant will be located adjacent to the Molo mine site and will provide up to 33% of the mine's total Phase 1 electricity needs from renewable solar energy, with the remainder coming from thermal generators.

Construction of the Hybrid Plant has begun and all required licenses to initiate construction of the solar facility have been obtained. The thermal facility, solar facility and BESS are all expected to be installed and operational prior to initiating commissioning of the Molo processing plant in Q3 2022.

President and CEO, Craig Scherba commented,

"The solar facility and battery energy storage system is integral to our commitment to minimize our carbon emissions and build a sustainable mine. Over the life of the project, we will aim to further reduce our reliance on fossil fuels with the added benefit of lower costs and therefore better project economics."

During peak daylight hours, the solar facility and BESS will be capable of supplying up to 100% of the plant's power requirements. The thermal facility will be used in combination to provide uninterrupted power supply and always ensure 100% power availability to the mine.

NextSource and CBE are committed to optimizing the solar component throughout the contract to increase the percentage of renewable energy available to the mine.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others, timing of on-site construction including completion of the civil and earthworks, timing of the delivery of the processing plant and installation thereof, delivery and installation of the auxiliary buildings and structures, delivery and construction of the Solar Battery System, shipping of all plant infrastructure to site, all re-assembly and commissioning of the Molo Project, initiation of a Feasibility Study and timing of its completion, production capacity, NPV, IRR and life of mine of the Molo mine, timing of the FEED Study and Feasibility Study, as well as the Company's intent on becoming a fully integrated global supplier of critical battery and technology materials. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that its construction team is now setup at the Molo Graphite Mine site in Madagascar and civil and earthworks have been initiated in preparation for the delivery and installation of the processing plant. The offsite fabrication and construction of the auxiliary buildings and structures has also been completed and these are in the process of being delivered to the mine site

President and CEO, Craig Scherba commented,

"With the mobilization of construction crews to the mine site and initiation of civils and earthworks, we have reached yet another key milestone towards commissioning of the Molo Graphite mine later this year."

Work crews have begun civil construction and earthworks, utilizing heavy construction equipment to prepare the ground for the delivery and installation of the processing plant and auxiliary buildings. The work will involve:

The Phase 1 processing plant was designed and built using an all-modular approach and is capable of processing 240,000 tpa of ore and producing approximately 17,000 tpa of high-quality SuperFlake® graphite concentrate. On February 28, 2022, the Company announced the processing plant, which was fully assembled at an offshore facility and had successfully passed factory acceptance testing and final verification, had been dismantled, packaged, and is ready to be shipped to the mine site. The processing plant is expected to be delivered to the mine site in Q2 2022, followed by installation and commissioning in Q3 2022.

The following auxiliary buildings and structures are expected to be delivered and installed at the mine site during Q2 2022:

Once Phase 1 of the Molo Graphite Mine is completed and commissioned as expected in Q3 2022, it will become one of the few operating graphite mines outside of China.

UPDATED PHASE 2 PEA TECHNICAL STUDY

The Company announces updated results for the Phase 2 Preliminary Economic Assessment (the "PEA") for an enhanced Phase 2 expansion of its 100%-owned Molo Graphite Mine Project. The original results were press released on February 28, 2022.

The PEA considers an enhanced Phase 2 expansion consisting of a stand-alone processing plant with a production capacity of 150,000 tonnes per annum ("tpa") of graphite concentrate over a 26-year life of mine ("LOM"). The PEA assumes the Phase 2 processing plant is built adjacent to the Phase 1 processing plant currently under construction.

The PEA was updated to reflect changes to the processing plant power cost assumptions involving the consumption of diesel fuel. The PEA estimated that Phase 2 capital costs will be US$155.8 million (no changes) resulting in a pre-tax NPV utilizing an 8% discount rate of US$904.8 million (previously US$929.6 million) and a pre-tax IRR of 40.4% (previously 41.1%), the details of which are set out in the PEA. The original press release stated an incorrect average stripping ratio, which is corrected in the table below with no impact on the PEA results.

The following is a summary of the economic and operational highlights in the updated PEA that considers the increase in the power cost assumptions, as compared to the previously released results, and which supersedes the previously released results:

Pre-tax Net Present Value ("NPV") (8% discount rate) (1)(2)(4)(8)

Pre-tax Internal Rate of Return ("IRR") (1)(2)(4)(8)

Life of Mine ("LoM")

Capital costs ("CAPEX") including contingency of $31.96 million (2)

Graphite concentrate sale price (US$ per tonne of concentrate) (8)

Average operating costs FOB ("Opex")

(US$ per tonne of concentrate following ramp-up)(7)

Average annual production of concentrate (5)(6)

Average ore mined per annum over LoM

Concentrate purity (Cg) of finished product

(1) Assumes Project is financed with 100% equity.

(2) Capex includes process equipment, civil and infrastructure, mining, buildings, electrical infrastructure, project and construction services.

(3) Assumes 2% government gross revenue royalty, 3% Vision Blue gross revenue royalty, 1.5% NSR royalty and corporate tax rate of 20%.

(4) Assumes no inflationary adjustments in sales price, or operating costs.

(5) Assumes all mineralized material from the Company's 2019 Feasibility Study, including ore from the Measured, Indicated and Inferred Mineral Resource categories, are sent to the treatment plant.

(6) Assumes a cut-off grade of 4.5% carbon has been applied, with all material below this cut-off grade treated as waste.

(7) Assumes all concentrate will be sold on a FOB basis at the Port of Ehoala, Madagascar.

(8) Based on current market prices provided by UK-based commodity price reporting agencies Benchmark Minerals Intelligence and fast markets.

Mining cost (US$ per tonne)

Processing cost (US$ per tonne)

Transport cost (US$ per tonne) (1)

General and admin cost (US$ per tonne)

(1) Assumes all concentrate will be sold on a FOB basis at the Port of Ehoala, Madagascar.

The PEA has been filed and is now available on SEDAR (www.sedar.com) and is also available on NextSource's website at www.nextsourcematerials.com. The PEA was prepared by Erudite Strategies (Pty) Ltd. ("Erudite") of South Africa, an independent engineering and consulting firm specializing in the mining and processing of commodities and battery materials.

The Company cautions that the PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability and there is no certainty that the PEA will be realized.

INITIATION OF PHASE 2 FEASIBILITY STUDY

The Company announces the initiation of a front-end engineering design (FEED) study and Feasibility Study for the proposed Phase 2 expansion of 150,000 tpa of graphite concentrate that was considered in the PEA. The Feasibility Study is expected to be completed by the end of 2022. Upon completion, the Company will analyze the results of the Feasibility Study prior to making a construction decision.

The PEA was prepared in accordance with National Instrument 43-101 standards by Mr. Johann de Bruin, Pr.Eng, of Erudite Strategies (Pty) Ltd. Please refer to the PEA titled "Molo Phase 2 Preliminary Economic Assessment" dated April 27, 2022 filed on the Company's profile at www.SEDAR.com.

Mr. Craig Scherba, P.Geo., President and CEO of NextSource, is the qualified person who reviewed and approved the technical information provided in this press release.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others, timing of on-site construction including completion of the civil and earthworks, timing of the delivery of the processing plant and installation thereof, delivery and installation of the auxiliary buildings and structures, shipping of all plant infrastructure to site, all re-assembly and commissioning of the Molo Project, initiation of a Feasibility Study and timing of its completion, production capacity, NPV, IRR and life of mine of the Molo mine, timing of the FEED Study and Feasibility Study, as well as the Company's intent on becoming a fully integrated global supplier of critical battery and technology materials. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) ("NextSource" or "the Company") is pleased to announce the results of a Preliminary Economic Assessment ("PEA") for an enhanced Phase 2 expansion of its 100%-owned Molo Graphite Mine Project in southern Madagascar

The PEA considered an enhanced Phase 2 expansion consisting of a stand-alone processing plant with a production capacity of 150,000 tonnes per annum ("tpa") of flake graphite concentrate over a 26-year life of mine ("LOM"). The PEA projects that the capital costs to construct 150,000 tpa of processing capacity would be US$155.8 million with a pre-tax NPV utilizing an 8% discount rate of US$929.6 million and a pre-tax IRR of 41.1%.

The PEA assumed the Phase 2 processing plant will be built adjacent to the 17,000 tpa Phase 1 processing plant, currently under construction.

Craig Scherba, P.Geo., President and CEO of NextSource commented,

"We are very pleased the PEA defines the strong financial returns of a larger scale operation and significant scalability of our project as market demand for flake graphite for use in electric vehicle batteries is rising. A Phase 2 expansion of this magnitude will position NextSource as a major global supplier and will underpin our vertical integration strategy to construct our own battery anode facility in due course, enabling direct supply to the electric vehicle battery market."

The PEA was prepared by Erudite Strategies Ltd. ("Erudite") of South Africa, an independent engineering and consulting firm specializing in the mining and processing of commodities and battery materials.

The following summary highlights the financial metrics provided in the PEA:

(1) Assumes Project is financed with 100% equity. Unless otherwise noted, all monetary figures presented throughout this press release are expressed in US dollars (USD). (2) CAPEX includes process equipment, civil & infrastructure, mining, buildings, electrical infrastructure, project & construction services. Values shown are based on real graphite sales pricing. (3) Assumes 5% revenue and 1.5% NSR royalty payments. (4) Assumes no inflationary adjustments in sales price or operating costs. (5) Assumes all mineralized material from the Company's 2019 Feasibility Study, including ore from the Measured, Indicated and Inferred Mineral Resource categories, are sent to the treatment plant. (6) Assumes a cut-off grade of 4.5% carbon has been applied, with all material below this cut-off grade treated as waste. (7) Assumes all concentrate will be sold on a FOB basis at the Port of Ehoala, Madagascar. (8) Assumes a 2% increase in the sales price reported in the Company's 2019 Feasibility Study (i.e. $1208/tonne), based on current market prices provided by UK-based commodity price reporting agencies Benchmark Minerals Intelligence and Fastmarkets.

Based on discussions with off takers, their preference is to purchase Molo graphite concentrate at the local Madagascar port at freight on board (FOB) China prices. As such, Operating costs ("OPEX") include the all-in FOB cost to ship the graphite concentrate to the local port of Ehoala.

The Molo project hosts the following mineral resources and remains open along strike and to depth:

C% = carbon percentage ; Graphite Tonnes = tonnes of graphite concentrate

(1) Mineral Resources are classified according to the Canadian Institute of Mining definitions. (2) Mineral Resources are reported Inclusive of Mineral Reserves. (3) "Low Grade" Resources are stated at a cut-off grade of 2% C. (4) "High grade" Resources are stated at a cut-off grade of 4% C. (5) Eastern and Western high-grade assays are capped at 15% C. (6) A relative density of 2.36 tonnes per cubic metre (t/m3) was assigned to the mineralized zones for the mineral resource tonnage estimation. (7) The effective date of the Mineral Resource tabulation above is August 14, 2014. (8) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The PEA is based on a full suite of metallurgical test work performed by SGS Canada Metallurgical Services Inc. in Lakefield, Ontario, Canada. These tests included lab and bench scale process development work, a bulk sample/pilot plant program, and metallurgical variability testing. The overall graphitic carbon recovery into the final concentrate is 88.3%.

Metallurgical Data - Flake Size Distribution and Product Grade

Pricing Matrix - Flake Size Distribution Grouping and Product Grade

The selling price used in the PEA is the volume weighted average sales price for the various flake sizes and grades of SuperFlake® graphite concentrate that are expected to be produced from the Molo deposit. Prices used are based on current market prices provided by UK-based, commodity price reporting agencies Benchmark Minerals Intelligence and Fastmarkets, who are recognized as leaders in providing independent and unbiased market research, pricing trends and demand and supply analyses for the natural flake graphite market.

No price escalation for graphite sales prices into the future was applied to the PEA model. Current market prices were used and flatlined over the life of mine. No pricing premium for valued-added applications was applied on any sales. Furthermore, no financial or operational calculations and/or scenarios in the PEA financial model with regards to downstream value-added processing of SuperFlake® graphite concentrate were included. This includes purification, spherodization coating for battery-grade graphite and thermal expansion for specialty graphite applications, such as foils.

The PEA's enhanced Phase 2 capacity was determined based on discussions with automotive manufacturers ("OEMs") and our battery anode offtake partners. The Company and the battery anode offtake partners are evaluating construction of a battery anode facility ("BAF"), capable of converting flake graphite concentrate from any qualified mine into spheronized and purified graphite ("SPG") and into coated SPG ("CSPG"). CSPG is the final form of natural graphite required to manufacture lithium-ion batteries required by OEMs. As announced on November 15th, 2021, the Company initiated a technical study to determine the capital and operating costs for our first BAF and is considering several proposed locations.

Based on recent discussions with OEMs and our battery anode offtake partners, the Company expects demand for CSPG to experience significant growth. For example, a single mid-sized OEM's 7-year demand forecast would require NextSource to construct a BAF with a CSPG production capacity of 58,000 tpa. Since it takes 2.2 tonnes of flake graphite to produce 1 tonne of CSPG, the majority of Phase 2 production capacity would be dedicated to supply the BAF for such a single mid-sized OEM.

Molo PHASE 1 Construction and Commissioning Update

On January 11, 2022, the Company announced the Molo Phase 1 processing plant (the "Processing Plant"), which was fully fabricated and constructed at an offshore facility, had successfully passed Factory Acceptance Testing and final verification. The Processing Plant has since been dismantled, packaged and is now ready to be shipped to the mine site.

Due to Madagascar's ongoing COVID-19 travel restrictions, and recent cyclone activity impacting the eastern seaboard of the country, the commencement of earthworks and civil work at the mine site has been delayed and commissioning of the Molo Phase 1 process plant is now targeted for Q3, 2022.

Phase 1 of the Molo Graphite Mine is fully funded and when commissioned, Molo will become one of the few operating graphite mines outside of China.

The Company has not yet made a production decision in respect of Phase 2. The Company expects that it will assess the results of a definitive feasibility study before making a production decision in respect of Phase 2.

This PEA technical report will be filed under the Company's profile on SEDAR at www.sedar.com and will be posted on NextSource's website at www.nextsourcematerials.com within 45 days of this new release.

Data verification programs have included review of QA/QC data, re-sampling and sample analysis programs, and database verification. Validation checks were performed on data, and comprise checks on surveys, collar co-ordinates and assay data. Sufficient verification checks were undertaken on the database to provide confidence that the database is appropriate to support the technical information contained herein.

The PEA was prepared in accordance with National Instrument 43-101 standards by Mr. Johann de Bruin, Pr. Eng, of Erudite Strategies. Mr. de Bruin is the Qualified Person who verified the technical data using industry acceptable standards and signed off on the relevant sections in the report to be filed on SEDAR.

Mr. Craig Scherba, P.Geo., President and CEO of NextSource, is the qualified person who reviewed and approved the technical information provided in this press release.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

To learn more, please visit the Company's website at www.nextsourcematerials.com or email investor relations at info@nextsourcematerials.com

Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others; regarding the results of the PEA for Phase 2 expansion, collaboration agreements to build a value-added CSPG (anode) facility, time to commissioning the Molo Phase 1 and the BAF, the demand for EVs, demand for CSPG, the use of SuperFlake®, successful and on-budget construction of the Molo Graphite Project, CSPG plant and BAF, sourcing the funds needed to construct the BAF, , estimated future production, capex and opex from the Molo Graphite Project (for Phase 1 and Phase 2), completion of the study relating to the BAF, and the continuation of the supply relationships of the Partners. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that Factory Acceptance Testing and final verification of equipment design specifications and end-to-end functions of the processing plant for Phase 1 of the Molo Graphite Mine (the "Processing Plant") is complete

The Processing Plant was designed and built using an all-modular approach and is capable of processing 240,000 tpa of ore and producing approximately 17,000 tpa of high-quality SuperFlake® graphite concentrate. Factory Acceptance Testing ("FAT") was the final validation step after the fabrication and assembly of the Processing Plant equipment and was completed by our Engineering, Procurement and Construction contractor in their off-shore assembly facility under the supervision of SGS, the world-leader in process plant testing, inspection, and process certification.

President and CEO, Craig Scherba commented,

"2021 was a transformative year for the Company, and we are very pleased to begin the New Year with the successful completion of the Factory Acceptance Testing of our Molo Processing Plant. We can now shift our focus to achieving our next major milestones for this year, which include completing site works, and the delivery, installation and commissioning of the Processing Plant".

With the FAT process and final verification process now successfully completed, the Processing Plant will be dismantled and shipped to the mine site for installation.

Phase 1 of the Molo Graphite Mine is fully funded and when commissioned, will become one of the few operating graphite mines outside of China.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

Brent Nykoliation, Senior Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others the timing of the re-assembly and commissioning of the Molo Plant, completion of FAT, collaboration agreements to build a value-added CSPG (anode) facility, time to commissioning the BAF, the demand for EVs, the use of SuperFlake®, successful and on-budget construction of the Molo Graphite Project, CSPG plant and BAF, sourcing the funds needed to construct the BAF, expansion of the BAF, estimated future production from the Molo Graphite Project, completion of the study relating to the BAF, and the continuation of the supply relationships of the Partners. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that fabrication and assembly of the processing plant for Phase 1 of the Molo Graphite Mine (the "Processing Plant") has been completed by our Engineering, Procurement and Construction contractor (the "EPC Contractor") in their off-shore assembly facility and that Factory Acceptance Testing has been initiated

The Processing Plant has been designed and built using an all-modular approach and is capable of processing 240,000 tpa of ore and producing approximately 17,000 tpa of high-quality SuperFlake® graphite concentrate. The Processing Plant will now undergo Factory Acceptance Testing ("FAT") to validate the proper operation of the equipment and ensure that all design specifications and operational requirements have been achieved.

President and CEO, Craig Scherba commented,

"We have reached yet another major milestone with the completion of the fabrication and assembly of the Molo processing plant. The various challenges associated with the construction of a mine during a global pandemic have been greatly mitigated due to NextSource adopting a modular construction philosophy and because of the extremely hard work and perseverance of our technical teams."

FAT is the final and important assembly validation step that simulates and tests the end-to-end functional operation of the Processing Plant in a controlled engineering environment. Once all design specifications and functions have been verified, the Processing Plant will be containerized and shipped to the mine site for installation.

The FAT process is being overseen by the Company's EPC Contractor and SGS, the world-leader in testing, inspection and process certification. SGS designed the process flow sheet for the Processing Plant, which was based on their previous design and operation of our 200-tonne bulk sample pilot plant in 2015.

The Processing Plant is expected to be delivered to the mine site by the end of Q1 2022, followed by installation and commissioning in Q2 2022. The EPC Contractor and SGS will then perform Site Acceptance Testing prior to completing the commissioning process.

Phase 1 of the Molo Graphite Mine is fully funded and when commissioned, Molo will become one of the few operating graphite mines outside of China.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

Brent Nykoliation, Senior Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others the timing of the re-assembly and commissioning of the Molo Plant, completion of FAT, collaboration agreements to build a value-added CSPG (anode) facility, time to commissioning the BAF, the demand for EVs, the use of SuperFlake®, successful and on-budget construction of the Molo Graphite Project, CSPG plant and BAF, sourcing the funds needed to construct the BAF, expansion of the BAF, estimated future production from the Molo Graphite Project, completion of the study relating to the BAF, and the continuation of the supply relationships of the Partners. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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Gratomic Inc is an advanced materials company. It is focused on low-cost mine to market commercialization of carbon-neutral, eco-friendly, high purity vein graphite and is set to become a key player in EV and Renewable Resource supply chains. The company is in the process of solidifying its plans for the micronization, spheronization, and coating of its Aukam vein graphite. The company is engaged in the acquisition and exploration of assets located primarily in Canada and Namibia.

+ Construction substantially finalized for the Company's Phase-1 coating unit, with commissioning activities initiated; production is scheduled to start towards the end of Q3-2022.

+ Completion of a compliant feasibility study following NI 43-101 rules and guidelines for the Phase-2 Bécancour Battery Material Plant and Matawinie Mine, demonstrating attractive economics with an after-tax net present value of C$ 1,581 million and internal rate of return of 21%.

+ Active engagement towards offtake agreement with potential tier-1 customers in the EV and battery sector with the production of samples, site visits, quality checks, commercial discussions, and environmental diligence reviews.

+ Signing and closing of a strategic investment agreement with Mason Graphite with a view towards the development and operation of Mason Graphite's Lac Guéret property, an anchor asset for NMG's Phase 3.

+ Meaningful progress on financing efforts for the development of NMG's fully vertically integrated Phase-2 operations with strong interest shown towards senior debt from Western World export credit agencies and governmental bodies.

+ Continued advancement of the Matawinie Mine through preliminary construction work at the site, engineering progress (63%), development of electrification plans and environmental initiatives supporting progressive site reclamation.

+ Publishing of a life cycle assessment for NMG's portfolio of graphite-based materials, confirming the minimal and industry-leading environmental footprint of the Company's production.

+ Safe conduct of operational and construction activities with a year-to-date OSHA rate of 0 at both the Company's facilities and the contractors' worksites, with no major environmental incident.

+ Period-end cash position of $32.1M.

Nouveau Monde Graphite Inc. ("NMG" or the "Company") ( NYSE: NMG , TSXV: NOU ) reports steady progress along its business execution plan as the Company prepares the transition to Phase 2 of its vertically integrated operations and explores opportunities for its Phase 3 with a view to establish North America's largest natural graphite production. Striving to develop a local, carbon-neutral, and traceable turnkey supply of graphite-based advanced materials for the Western World, the Company is carrying out a phased plan to de-risk its projects, secure commercial commitments and build robust full-scale operations.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220811005238/en/

Construction of the second shaping unit at NMG's Phase-1 plant is underway. (Photo: Business Wire)

Arne H Frandsen, Chair of NMG, commented: "Even as capital markets experienced significant turbulences over the past months, the energy transition trends continue to materialize. Consumers rally behind cleantech. Manufacturers invest in new production capacity. Demand for graphite and battery materials grows to unprecedented levels. Governments reinforce their climate action regulations and incentives. NMG advances diligently its business model to provide battery and electric vehicles ("EV") producers with a high-quality, scalable source of green advanced materials."

Eric Desaulniers, Founder, President, and CEO of NMG, added: "Step by step, we are establishing a robust operation to provide a local, carbon-neutral and attractive alternative to Chinese supplies. Progress made over the past months has strengthened our growth plan with first-hand data on the performance of our processes, tangible advancement of commercial discussions, demonstrated economics for our Phase-2 development and a secured position to potentially expand flake graphite production to meet future demand."

Phase 1: Derisking Growth & Informing Technical Development

During Q2-2022, NMG completed its integrated value chain with the successful addition of a commercial-scale coating unit at its Phase-1 plant . The coating of spherical graphite is the last process step to complete the Company's graphite-based product range for the EV and renewable energy sectors. Commissioning activities of the unit started at the end of the period with the objective of commencing production towards the end of Q3-2022 to support product qualification, operational optimization, and detailed engineering of the Phase-2 Bécancour Battery Material Plant.

At its Phase-1 purification facilities, NMG continued production and optimization to test the furnaces' optimal capacity, refine process and operational parameters, inform parallel engineering for Phase 2, and generate battery-grade spherical purified graphite volumes.

The second shaping unit previously ordered to increase production capacity and provide customers with a greater variety of specifications was delivered at the Company's facility in Q2-2022; construction has started with the objective to commence commissioning activities in Q4-2022. The delay for the equipment delivery caused by worldwide logistics disturbances has prolonged the project timeline, but NMG has taken advantage of the contractor base originally mobilized for the coating unit project to carry out the assembly of this new shaping module. Project costs remain within budgetary parameters at this stage.

Piloting of all Phase-1 concentration and processing modules is ongoing to produce large, customized samples per detailed specifications for potential clients to support the commercial qualification of NMG's battery-grade advanced materials.

Phase 2: Delivering Attractive Economics through Disciplined Execution

Engineering firm BBA Inc., with the support of various technical consultants, completed a feasibility study (the "Feasibility Study"), following the National Instrument 43-101 - Standards of Disclosure for Mineral Project ("NI 43-101") rules and guidelines, for NMG's integrated business operation comprised of the Phase-2 Matawinie Mine and Bécancour Battery Material Plant projects. The Feasibility Study demonstrated strong economics for NMG's model despite the inflationary trends. NMG's integrated business model, with a secured feedstock, close-by operations at the western market's doorstep and operational flexibility to adapt production based on demand, represents a stable and cost-effective structure in today's everchanging macroeconomics.

Table 1: Economic highlights of NMG's integrated Phase-2 graphite operations.

Bécancour Battery Material Plant

42,616 tonnes of anode material 3,007 tonnes of purified jumbo flakes 18,384 tonnes of by-product fines

Life of mine ("LOM")

The Company also provides notice that its Feasibility Study has been filed with the securities commissions or securities regulatory authorities in each of the provinces of Canada, and with the United States Securities and Exchange Commission. The Feasibility Study entitled "NI 43-101 Technical Feasibility Study Report for the Matawinie Mine and the Bécancour Battery Material Plant Integrated Graphite Projects" with an effective date of July 6, 2022. is available under the Company's profile on SEDAR at www.sedar.com , on EDGAR at www.sec.gov and on NMG's website .

In recent months, NMG advanced financing efforts for the development of its integrated Phase-2 operations . The Company engaged with export credit agencies, governments, strategic investors, and potential customers to frame a robust capital structure that leverages international debt, government funding and equity. NMG received formal expressions of interest that could cover up to approximately 70% of required funding, subject to standard project finance conditions.

To advance the development of the Matawinie Mine, NMG and its consultants continued detailed engineering and optimization to support the finalization of design parameters and equipment selection. At the period end, the project engineering was advanced at approximately 63%.

Construction of environmental protection infrastructure and preparatory work continued at the mining site to prepare the next phase of civil works, including proactive initiatives for the management of progressive reclamation (additional details under ESG Commitment in Action section). Electrification plans also advanced through collaborative work between Caterpillar and NMG's technical teams. On-site testing of a prototype electric service mining vehicle, a conversion project carried out through an industrial partnership , is expected to generate a valuable source of data to optimize the Company's electrification plan.

For the Bécancour Battery Material Plant, the Company focused on finalizing engineering and operational parameters for the Feasibility Study and preparing for upcoming construction at its 200,000 m 2 land in the Bécancour industrial park in Québec, Canada, adjacent to Olin's facility. In that regard, final fauna inventories were completed in Q2-2022 as part of the environmental site characterization, hence confirming the property presents no environmental limitations for construction. A study of archaeological potential for the land, comprised of surveys of historical documentation and on-site works, was also completed in Q2-2022. This study was carried out by the Ndakina Office of the Conseil de la Nation Waban-Aki , the Indigenous organization overseeing territorial and environmental protection questions for the Abenaki Councils of Odanak and Wôlinak. No archaeological discoveries were made.

On May 16, 2022, NMG entered into a strategic investment agreement with Mason Graphite Inc. to explore the potential development of the Lac Guéret graphite property . This agreement aligns with NMG's growth strategy with a view to establishing a large and fully vertically integrated natural graphite production, from ore to battery materials, at the western markets' doorstep.

Through this partnership, NMG intends to leverage the expertise of its technical team, its Phase-1 facilities and its knowledge of the graphite-based advanced materials commercial landscape to assess the economic, technical and environmental possibilities of developing Mason Graphite's Lac Guéret Property with a potential production of a minimum of 250,000 tpa of high-purity flake graphite.

Market Dynamics & Commercial Engagement

Engagement reaping from NMG's marketing and commercialization program, combined with increased pressure on EV and battery manufacturers to secure their supply chains, have led to enhanced activities with potential tier-1 customers in H1-2022. NMG is actively working towards negotiating a long-term cornerstone offtake agreement for its anode material. Sustained interest from top-tier potential customers across continents is supported by quality checks, site visits to the Company's Phase-1 operations, requests for information and environmental due diligence (see ESG Commitment in Action section for results of recent life cycle assessment of NMG's products).

NMG has retained Société Générale as a strategic advisor in the negotiation with a potential off-taker and equity-stake investor , leveraging its global advisory expertise in the battery and energy transition sectors. Throughout the negotiation process, Société Générale will be called upon to provide a valuation view, assistance in the formulation of an optimal outcome across offtake conditions, valuation of the equity and timeline to enable the project finance debt, and support in structuring and finalizing the terms and conditions of the equity investment.

Market conditions continue to be attractive for NMG. Pressure caused by gigafactories development across the world, limited production capacity impacted by Chinese pandemic measures and turbulent logistics is reflected in the year-over-year flake graphite price increase of 36% (Benchmark Mineral Intelligence, June 2022).

While expertise, technology and production capacity have historically been centred in Asia, the market is shifting towards localization. Canada is among the emerging leaders of this new economy, with $13 billion in investment commitments in recent months and significant interest for Québec's battery valley in Bécancour. NMG's site for its Phase-2 Bécancour Battery Material Plant is indeed located at the center of this fast-developing zone, supported by the Québec Government's battery hub strategy.

Concurrently to exponential demand, there is increased focus on carbon neutrality in the market to cater to consumers' green expectations and governments' more stringent environmental regulations. From the Global Battery Alliance's effort to develop a Battery Passport to the European Commission's proposed updated Battery Directive that would require labelling of batteries to disclose their carbon footprint, the market is shifting to encourage and eventually potentially require low-carbon products. The European Union, which already set GHG emissions limit for EVs and industrial batteries, adopted in June 2022 a deadline on combustion engine production by 2035 as it steps up the fight against climate change through faster adoption of EVs. The U.S. Senate has just approved the Inflation Reduction Act of 2022 that namely promotes EV adoption through consumer incentives, North American sourcing and production for the lithium-ion battery supply chain, and development of charging infrastructure.

True to its Zero-Harm Philosophy, NMG completed the six-month period ended June 30, 2022, with an Occupational Safety and Health Administration ("OSHA") Recordable Incident Rate of 0 both at its facilities and its contractors' worksites. The Company also maintained its track record with no major environmental incidents as per the Global Reporting Initiative's definition.

As part of its responsible mining approach, NMG set forth two proactive environmental management initiatives in Q2-2022 to support progressive site reclamation. Firstly, hydroseeding of the site's 8-km access road borders was carried out on a total surface of 4 hectares. The initiative will enable the testing of 24 native species in different mixes, soil conditions and ground relief. In addition to helping vegetate the site, control potential dust emissions and minimize erosion, the seeding will provide insight into the ideal parameters for future site restoration. Over the next three to five years, the zones seeded will be subject to regular monitoring and documentation.

Secondly, through a plantation of 8,000 willows on its Phase-1 mining site, NMG started the establishment of a circular environmental system. Willow's phytoremediation capabilities will be leveraged to complement the Company's integrated water management system by reducing the volume of treated water. The project will also allow for the capture and sequestration of carbon as well as the in-situ production of biomass, organic matter input for vegetation, to support the progressive restoration of the site.

NMG is committed to promoting responsible production across its value chain for responsibly extracted, environmentally transformed, and ethically sourced materials. The Company mandated a specialized consultant to carry out an independent cradle-to-gate life cycle assessment for its portfolio of graphite-based materials . Results confirmed the minimal and industry-leading environmental footprint of its planned production. NMG's full commercial-scale Phase-2 all-electric facilities are forecasted to produce CSPG – anode material for lithium-ion batteries – with a Global Warming Potential GWP of 1.23 kg CO 2 equivalent per kg, an impact up to 11 times smaller than that of benchmarked production.

Table 2: Climate change impact of CSPG production along different production routes

GWP (kg CO 2 eq per kg)

GWP of NMG's CSPG (kg CO 2 eq per kg)

Streamlined Life Cycle Assessment Study of Global Anode Grade Natural Graphite Manufacturing, Minviro, March 2022.

LCA of Natural Graphite-Based Products Manufactured by NMG, CT Consultant, July 2022.

The Company is actively working to promote local and Indigenous recruitment opportunities to maximize benefits within its communities and strive to ensure representation of its milieu. In addition to the Diploma of Vocational Studies in Production Equipment Operation which has already trained six cohorts, the Mining and Logging Essentials socioprofessional integration program was launched in Q2-2022. This program, destined to members of the Atikamekw communities, aims to reinforce the employability of Indigenous workers.

On a foundation of accountability with a view to contributing to global environmental and sustainability goals, NMG published its 2021 ESG Report on May 19, 2022, to disclose its managerial approach to addressing material topics and highlight significant sustainability milestones and indicators. The Company is committed to engaging in this transparency exercise yearly to provide its stakeholders with a comprehensive set of data on its ESG performance.

As at June 30, 2022, the Company had $32.1M in cash and had issued 502,082 common shares through its "at-the-market" equity offering at an average price of CAD$7.97 (ranging from CAD$6.69 to CAD$9.83).

NMG is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in Québec, Canada for the growing lithium-ion and fuel cell markets. With low-cost operations and enviable ESG standards, NMG aspires to become a strategic supplier to the world's leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability. www.NMG.com

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Cautionary Note Regarding Forward-Looking Information

All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the timeline of the initiatives described in this press release, the results of the feasibility study, development and operation of Mason Graphite's Lac Guéret property, the Company's CSPG expected GWP, future demand for batteries, minerals and advanced materials, the intended production of eco-friendly advanced materials, the Company's commitments and initiatives outlined in the press release, the intended results of the initiatives described in this press release, the positive impact of the foregoing on project economics, the Company's intended all-electric operations, industry trends, natural graphite's advantage, international efforts to drive greater sustainability, transparency and circularity into the battery sector, the Company's objective to be North America's largest natural graphite production, the potential production of high-purity flake graphite of Mason Graphite's Lac Guéret Property, the Company's relationship with its stakeholders, market trends and those statements which are discussed under the "About Nouveau Monde Graphite" paragraph and elsewhere in the press release which essentially describe the Company's outlook and objectives, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") within the meaning of Canadian and United States securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Moreover, these forward-looking statements were based upon various underlying factors and assumptions, including the current technological trends, the business relationship between the Company and its stakeholders, the ability to operate in a safe and effective manner, the timely delivery and installation of the equipment supporting the production, the Company's business prospects and opportunities and estimates of the operational performance of the equipment, and are not guarantees of future performance.

Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, the operating performance of the Company's assets and businesses, competitive factors in the graphite mining and production industry, changes in laws and regulations affecting the Company's businesses, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, the impacts of the global COVID-19 pandemic and the governments' responses thereto, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in NMG's Annual Information Form dated March 22, 2022, including in the section thereof captioned "Risk Factors", which is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

The market and industry data contained in this press release is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the Corporation believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data-gathering process and other limitations and uncertainties inherent in any survey. The Corporation has not independently verified any of the data from third-party sources referred to in this press release and accordingly, the accuracy and completeness of such data is not guaranteed.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Further information regarding the Company is available in the SEDAR database ( www.sedar.com ), and for United States readers on EDGAR ( www.sec.gov ), and on the Company's website at: www.NMG.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005238/en/

Julie Paquet VP Communications & ESG Strategy +1-450-757-8905 #140 jpaquet@nmg.com

Marc Jasmin Director, Investor Relations +1-450-757-8905 #993 mjasmin@nmg.com

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About Altech Chemicals Ltd: Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia. HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

Contact: Corporate Iggy Tan Managing Director Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com Shane Volk Company Secretary Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com Investor Relations (Europe) Kai Hoffmann Soar Financial Partners Tel: +49-69-175-548320 Email: hoffmann@soarfinancial.com

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Focus Graphite Inc is an exploration stage company. The company is engaged in the acquisition, exploration, and development of mineral properties in Canada. Its projects include Lac Knife; Lac Tetepisca graphite and Lac Guinecourt graphite property.

Click here to read the previous graphite market update.

As the world continues to move away from fossil fuels to green sources of energy, the role of battery metals is becoming increasingly important, and graphite is no exception.

Analysts continue to be optimistic about the future of graphite and its use in electric vehicle (EV) batteries — at least for the next few years. Both synthetic graphite and natural graphite, in the form of the intermediate product spherical graphite, are currently used in the anodes of lithium-ion batteries.

What has happened in the graphite market so far in 2022? Read on to learn about the main supply and demand dynamics in H1 and what market participants are expecting for the rest of the year.

Last year, graphite prices rallied alongside most battery metals, as demand from the EV market picked up pace and the energy crisis put constraints on the market.

Graphite prices increased over the first half of 2022, which Daisy Jennings-Gray of Benchmark Mineral Intelligence told the Investing News Network is fairly typical for the commodity, particularly in Q1 and early Q2, because the cold weather in Heilongjiang province in Northeast China prevents operations from running,

“However, concerns over some of the mines in Luobei, where environmental transgressions had been uncovered by government inspections, did provide some stronger-than-usual upside to pricing in H1 2022,” she said.

Prices for higher-purity 100 mesh flake material, typically used for anodes in the batteries that power EVS, saw a nearly 30 percent increase in the first half of the year.

“Nonetheless, towards the end of Q2, with domestic seasonal supply ramping back up following expansion updates to facilities in the off season, prices began to soften again, as expected,” Jennings-Gray said.

At the end of last year, analysts were expecting demand from the battery segment to continue to grow on the back of increased EV sales, with growth opportunities for both synthetic and natural graphite.

By volume, graphite is one of the most important elements in any EV battery; there are between 50 and 100 kilograms of graphite, whether synthetic or natural, present within each vehicle.

Overall, Benchmark Mineral Intelligence still expects to see a tightly balanced flake graphite market in 2022, leaning towards a supply deficit as demand from the anode industry continues to accelerate.

“Synthetic graphite production is still expected to be in slight surplus; however, that market is tight too as the ever-growing capacity demands from the anode industry strengthen,” Jennings-Gray said.

In the second half of the year, demand for natural graphite looks as if it will continue to accelerate, with the Chinese EV market recovering very quickly following COVID-19 lockdowns in Shanghai in the second quarter.

“Anode majors and new market entrants alike continue to announce ambitious project plans, which will continue to require increasing volumes of graphite,” Jennings-Gray said.

Downstream demand over April and May was stifled by containment measures, although domestic graphite facilities themselves were largely unaffected by lockdowns.

“Issues with transport logistics did raise some concerns over availability of supply, providing some upside to pricing during April and May,” she said.

In 2021, China remained the world’s largest natural graphite producer, putting out 820,000 metric tons of the metal, significantly higher than the amount it produced in the previous two years. According to the US Geological Survey, the country accounted for 79 percent of world graphite mining in 2021. Brazil came in second, followed by Mozambique, with production reaching 68,000 metric tons and 30,000 metric tons respectively.

A notable amount of flake graphite from project developers outside of China is expected to come online in 2022, which will provide additional, and diversified, supply to market in 2023 and 2024.

“Overall, supply ramp up is not expected to be able to keep pace with demand from the anode industry in the second half of 2022 and going into 2023,” Jennings-Gray said. “But increasingly weak demand from traditional sectors as China clamps down on its carbon emissions will continue to provide some demand-side relief.”

Today, synthetic graphite anodes make up the majority of market share, and approximately 57 percent of the anode market, according to Benchmark Mineral Intelligence.

But concerns over the energy intensity of synthetic graphite remains a global challenge in regards to ramping up supply of this anode material.

“In China, efforts have been concentrated on developing synthetic graphite anode facilities in the southwestern provinces, where renewable energy, particularly hydroelectric power, is more readily available, after energy restrictions in other regions have become a concern,” Jennings-Gray said.

Additionally, rising oil prices amid the global energy crisis have given way to concerns over feedstock costs for synthetic graphite. That’s because the favored needle coke feedstock is a by-product of oil refineries.

“As such, some anode manufacturers have turned to using pitch coke as feedstock, which is sourced from coal, raising concerns further over pollution,” Jennings-Gray added.

Now that H1 is over, investors are looking for cues as to what could move the market going forward.

In terms of prices, given higher domestic seasonal supply in Q3 that will then wane in Q4, prices for anode end-use finer mesh sizes are likely to see some of the typical seasonal volatility.

“However, if recovery from COVID-19 lockdowns in China keeps momentum, then price upside is more likely than price downside, especially with no major volumes from new projects or expansions due to come online before the end of the year,” Jennings-Gray said.

That said, ongoing high global shipping prices will likely continue to prevent pricing from increasing dramatically, particularly for material from Africa.

“For larger flake typically used in industrial end applications, pricing will likely see stability or some softening as demand from these sectors wanes under Chinese environmental measures and concerns over the global economy,” she explained.

A key factor to keep an eye out for in the second half is further COVID-19 lockdowns, and whether these will hamper downstream demand or impact regions where graphite processing is happening.

Spheronization capacity is also a catalyst to keep in mind, according to Jennings-Gray, as previously there was a lot of latent spheronization capacity in China. “Accelerating anode demand has begun to squeeze this capacity and has begun to force anode manufacturers to develop their own integrated capacity,” she said. “As such, tolling has increased, tightening margins for anode producers.”

Other natural or geopolitical factors seen in the first half of the year — such as increasing regularity of cyclones in Madagascar as a result of climate change, and insurgent attacks in Mozambique — are also catalysts that could impact the market going forward.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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