Strengthening the North American Graphite Provide Chain

+ NMG’s management workforce to interact with {the marketplace} and funding group by way of upcoming participation at BMO World Metals, Mining & Vital Minerals Convention, PDAC 2023 Conference and the Annual ROTH Convention.

+ Jean Cayouette appointed as Vice President, Metallurgy & Course of, complementing NMG’s technical workforce with over 30 years of expertise within the mining trade taking care of the design, start-up, and optimization of varied mineral processing vegetation.

Following the publishing of results on January 10, 2023 , Nouveau Monde Graphite Inc. (“NMG” or the “Firm”) ( NYSE: NMG , TSX.V: NOU ) has filed the preliminary financial evaluation (“PEA”) for the Uatnan mining undertaking (the “Uatnan Mining Mission”) positioned in Québec, Canada, with the securities commissions and regulatory authorities in Canada and the U.S. The PEA, carried out by engineering corporations BBA Inc. (“BBA”) and GoldMinds Geoservices Inc. (“GMG”) based on Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Initiatives (“NI 43-101”), was carried out in collaboration with Mason Graphite Inc. (“Mason Graphite”) (TSX.V: LLG, OTCQX: MGPHF) because the Uatnan Mining Mission leverages the Lac Guéret deposit wholly-owned by Mason Graphite and topic to an investment agreement and option and joint venture agreement with NMG .

The PEA reveals robust economics for NMG’s up to date operational parameters and manufacturing volumes concentrating on the manufacturing of roughly 500,000 tonnes of graphite focus every year over a 24-year lifetime of mine (“LOM”). The proposed Uatnan Mining Mission is at the moment one of many largest projected pure graphite productions being developed on the planet. In step with NMG’s vertical integration technique, the Uatnan Mining Mission’s contemplated manufacturing would function feedstock for battery supplies superior manufacturing, offering refining growth alternative, growing potential margins, and enhancing the Firm’s progress profile.

In right this moment’s dynamic market, the Uatnan Mining Mission aligns with NMG’s business engagement amidst electrical car (“EV”) adoption reaching unprecedented ranges with 10.3 million autos bought in 2022 (Rho Movement, February 2023). With 7,940 GWh of worldwide lithium-ion battery manufacturing capability projected by 2030, demand for superior supplies is ready to extend as much as fivefold, with graphite outpacing the opposite battery metals (Benchmark, January 2023) at 10,363,000 tonnes every year for that market phase alone.

Arne H Frandsen, Chair of NMG, declared: “The market is actively trying to find different sources of graphite, in vital volumes, to cut back its dependence on Chinese language-controlled provide chains. NMG’s built-in working mannequin, from ore to battery supplies, caters to western world’s EV and battery producers with a turnkey, scalable, and ESG-driven manufacturing. The Uatnan Mining Mission suits completely into the Firm’s improvement plan, offering a big useful resource to enhance our Section-2 Matawinie Mine and Bécancour Battery Materials Plant. Now greater than ever, NMG is demonstrating its management in striving to determine North America’s largest pure graphite manufacturing to serve the power transition.”

PEA Outcomes: The Potential of the Uatnan Mining Mission

NMG and its consultants revisited the basics for the property improvement with a view to aligning the Uatnan Mining Mission with right this moment’s market alternative. Design of the Uatnan Mining Mission has been tailor-made to the wants of the battery and EV market, orienting manufacturing volumes for beneficiation with a view to produce lively anode materials.

The Uatnan Mining Mission optimizes the Mineral Sources (see Desk 2) and goals to develop the unique mining undertaking tenfold by concentrating on the manufacturing of roughly 500,000 tonnes of graphite focus every year. It might be operated as a traditional open pit with a concentrator close to the deposit. According to NMG’s accountable mining method, plans embody concerns for top requirements in time period of tailings administration, progressive website closure with backfilling of the pit and a transition to fleet electrification. Québec’s reasonably priced clear hydropower underpins the Uatnan Mining Mission’s financial construction and helps NMG’s undeterred carbon-neutrality dedication.

Desk 1: Operational Parameters of the Uatnan Mining Mission

OPERATIONAL PARAMETERS

LOM

24 years

Nominal annual processing price

3.4 M tonnes

Stripping ratio (LOM)

1.3:1

Common grade (LOM)

17.5% Cg

Common graphite restoration

85%

Common annual graphite focus manufacturing (LOM)

500,000 tonnes

Completed product purity

94% Cg

Cautionary Observe: Graphite is expressed in graphitic carbon (“Cg”). The PEA is preliminary in nature and contains Inferred Mineral Sources, thought-about too speculative geologically to have the financial concerns utilized to them that might allow them to be categorized as Mineral Reserves, and there’s no certainty that the PEA shall be realized. Mineral assets that aren’t mineral reserves haven’t demonstrated financial viability. Extra trenching and/or drilling shall be required to transform inferred mineral assets to indicated or measured mineral assets. There isn’t a certainty that the assets improvement, manufacturing, and financial forecasts on which this PEA is predicated shall be realized.

Desk 2: Present Pit-Constrained Mineral Useful resource Estimate

IN-PIT CONSTRAINED MINERAL RESOURCES

Tonnes (Mt)

Grade (% Cg)

Cg (Mt)

Measured 5.75%

15.65

15.2

2.38

Measured Cg > 25%

3.35

30.6

1.02

Whole Measured

19.02

17.9

3.40

Indicated 5.75%

40.29

14.6

5.89

Indicated Cg > 25%

6.33

31.6

2.00

Whole Indicated

46.62

16.9

7.89

Indicated + Measured 5.75%

55.94

14.8

8.27

Indicated + Measured Cg > 25%

9.70

31.2

3.03

Whole Measured + Indicated

65.64

17.2

11.30

Inferred 5.75%

15.35

14.9

2.28

Inferred Cg > 25%

2.47

31.8

0.79

Whole Inferred

17.82

17.2

3.07

Notes :

  1. The Mineral Sources offered on this desk have been estimated by M. Rachidi P.Geo., and C. Duplessis, Eng., (QPs) of GoldMinds Geoservices Inc., utilizing present Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Requirements on Mineral Sources and Reserves, Definitions and Pointers.
  2. Mineral Sources which aren’t Mineral Reserves don’t have demonstrated financial viability. The estimate of Mineral Sources could also be materially affected by environmental, allowing, authorized, title, market or different related points. The amount and grade of reported Inferred Mineral Sources are unsure in nature and there has not been adequate work to outline these Inferred Mineral Sources as indicated or Measured Mineral Sources. There isn’t a certainty that any a part of a Mineral Useful resource will ever be transformed into Mineral Reserves.
  3. The Mineral Sources introduced right here have been estimated with a block measurement of 3mE x 3mN x 3mZ. The blocks have been interpolated from equal-length composites (3 m) calculated from the mineralized intervals.
  4. The Mineral Useful resource estimate was accomplished utilizing the inverse distance to the sq. methodology using three runs. For run 1, the variety of composites was restricted to 10 with a most of two composites from the identical drillhole. For runs two and three the variety of composites was restricted to 10 with a most of 1 composite from the identical drillhole.
  5. The Measured Mineral Sources categorized utilizing a minimal of 4 drillholes. Indicated assets categorized utilizing a minimal of two drillholes. The Inferred Mineral Sources have been categorized by a minimal of 1 drillholes.
  6. Tonnage estimates are based mostly on a set density of two.9 t/m 3 .
  7. A pit shell to constrain the Mineral Sources was developed utilizing the parameters introduced within the PEA. The efficient date of the present Mineral Sources is January 10, 2023.
  8. Mineral Sources are acknowledged at a cut-off grade of 5.75% C(g).

Estimates at the moment being on the market’s peak as influenced by inflationary tendencies, NMG and its consulting corporations have refined design, engineering, and building parameters to allow value optimization and aggressive pricing.

Desk 3: Financial Highlights of the Uatnan Mining Mission

ECONOMIC HIGHLIGHTS

Uatnan Mining Mission

Pre-tax NPV (8% low cost price)

C$ 3,613 M

After-tax NPV (8 % low cost price)

C$ 2,173 M

Pre-tax IRR

32.6%

After-tax IRR

25.9%

Pre-tax payback

2.8 years

After-tax payback

3.2 years

Preliminary CAPEX

C$ 1,417 M

Sustaining CAPEX

C$ 147 M

LOM OPEX

C$ 3,236 M

Annual OPEX

C$ 135 M

OPEX per tonne of graphite focus

C$ 268/tonne

Focus promoting value

US$ 1,100/tonne

Annual revenues from Uatnan manufacturing

US$ 550,000,000

All prices are in Canadian {dollars} excluding the graphite sale value which is offered in US {dollars}.

The PEA reveals that the Uatnan Mining Mission is technically possible in addition to economically viable. With pure flake graphite anticipated to enter a structural deficit in 2023 as a result of continued progress of the lithium-ion battery sector (Benchmark Mineral Intelligence, December 2022), market views and NMG’s lively business discussions point out favorable circumstances for commercializing the Uatnan Mining Mission manufacturing.

On the idea of those optimistic outcomes, NMG intends to launch an up to date feasibility research in compliance with the option and joint venture agreement signed with Mason Graphite .

NMG is dedicated to extending its method of open and proactive engagement with Indigenous Peoples and native stakeholders to the Uatnan Mining Mission. The Firm plans to take care of a clear dialogue with the Innu First Nation of Pessamit because it advances the undertaking improvement to make sure the respect of their rights, their tradition, lifestyle and spirituality, the inclusion of their perspective and conventional data, in addition to the safety of the surroundings. NMG additionally pledges to develop its relationships with stakeholders from all horizons to foster mechanisms for collaboration and form a undertaking producing shared worth.

The PEA entitled “NI 43-101 Technical Report – PEA Report for the Uatnan Mining Mission”, with an efficient date of January 10, 2023, was filed on SEDAR at www.sedar.com , on EDGAR at www.sec.gov and on NMG’s website . PEA outcomes as outlined on this press launch have been issued on January 10, 2023.

Scientific and technical data introduced on this press launch was reviewed and accredited by André Allaire, P.Eng. (BBA), Jeffrey Cassoff, P.Eng. (BBA), Vera Gella, P.Eng. (BBA), Claude Duplessis, P.Eng. (GoldMinds Geoservices), and Merouane Rachidi, P.Geo. (GoldMinds Geoservices) Certified Individuals as outlined underneath NI 43-101.

Jean Cayouette

NMG appointed earlier this month Mr. Jean Cayouette, Eng., Vice President, Metallurgy and Course of in alternative of Alain Dorval, who not too long ago retired. A graduate of Laval College in mining and metallurgical engineering, Mr. Cayouette has over 30 years of expertise within the mining trade. The design, start-up and optimization of varied mineral processing vegetation have contributed to his technical and administration expertise within the fields of metallurgy, operations, upkeep, and surroundings. He’s an achieved company chief in operational optimization, mine website reclamation in addition to sustainable improvement initiatives.

Eric Desaulniers, Founder, President and CEO of NMG, added: “The Uatnan PEA outcomes are extraordinarily optimistic for our shareholders, our potential clients and stakeholders within the Manicouagan area. NMG is now shifting gears because it progresses quickly on a multi-lane expressway, advancing all three phases of its enterprise technique concurrently to seize a historic market alternative. Bringing on experience and depth corresponding to Jean’s supplies our technical groups with strong backup emigrate Section 1 operations into Section 2 business manufacturing, whereas informing the subsequent phases of improvement for the Uatnan Mining Mission. I am delighted to see one other gifted chief becoming a member of Workforce Nouveau Monde in our quest to drive sustainability into the battery/EV area. Bienvenue Jean! Blissful retirement Alain!”

NMG Engagement with the Market and Funding Sector

Vital minerals, the power transition and NMG’s strong enterprise technique are gaining consideration each within the market and inside funding circles. The Firm’s management workforce is taking part in BMO World Metals, Mining & Vital Minerals Convention till March 1, 2023, to place NMG’s engaging built-in manufacturing mannequin and related alternatives.

Executives will be a part of some 30,000 attendees at PDAC 2023 Conference in Toronto, Canada, from March 5 to eight, 2023, a world-renowned mineral exploration and mining occasion. NMG leaders shall be at sales space IE2830 and have interaction in various particular occasions. Eric Desaulniers, President & CEO, may even current on the Vital Metals: Battery Supplies Processing session on Tuesday, March 7, 2023, at 3:40 p.m.

And from March 12-14, 2023, NMG representatives will take part within the thirty fifth Annual ROTH Convention in California, an occasion devoted to focused progress corporations.

About Nouveau Monde Graphite

Nouveau Monde Graphite is striving to grow to be a key contributor to the sustainable power revolution. The Firm is working in direction of growing a completely built-in supply of carbon-neutral battery anode materials in Québec, Canada for the rising lithium-ion and gas cell markets. With low-cost operations and enviable ESG requirements, NMG aspires to grow to be a strategic provider to the world’s main battery and car producers, offering high-performing and dependable superior supplies whereas selling sustainability and provide chain traceability. www.NMG.com

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Cautionary Observe

All statements, aside from statements of historic truth, contained on this press launch together with, however not restricted to these describing the impression of the foregoing on the Uatnan Mining Mission economics, PEA outcomes (as such outcomes are set out within the varied tables featured above, and are commented within the textual content of this press launch), together with CAPEX, OPEX, NPV and IRR, the estimated worth of the Uatnan Mining Mission, operations improvement eventualities for the Uatnan Mining Mission, business and technical parameters, the engaging economics for the Uatnan Mining Mission, LOM plans, the Firm’s meant advertising and marketing technique, market tendencies, future graphite costs, the impression of the Uatnan Mining Mission on the native communities, together with job creation, the projected annual manufacturing of the Firm’s Section-3 operations, the anticipated electrification technique and its meant outcomes and advantages, the potential outcomes and advantages of the Firm’s proprietary applied sciences, the timelines and prices associated to the varied initiatives, deliverables and milestones described on this press launch and their anticipated outcomes, the Firm’s anticipated monetary and operational efficiency, the character of relationships with stakeholders corresponding to the local people together with the Innu First Nation of Pessamit, future demand for batteries and EVs, the target of growing one of many largest absolutely built-in pure graphite operations within the World, the manufacturing of carbon-neutral anode materials, Mineral Useful resource estimates (together with assumptions and estimates utilized in making ready the Mineral Useful resource estimates), the final enterprise and operational outlook of the Firm, the Firm’s future progress and enterprise prospects, the Firm’s ESG commitments, initiatives and targets, the Firm’s presence on the varied conferences talked about on this press launch, and people statements that are mentioned underneath the “About Nouveau Monde” paragraph and elsewhere within the press launch which primarily describe the Firm’s outlook and aims, represent “forward-looking data” or “forward-looking statements” (collectively, “forward-looking statements”) throughout the which means of Canadian and United States securities legal guidelines, and are based mostly on expectations, estimates and projections as of the time of this press launch. Ahead-looking statements are essentially based mostly upon various estimates and assumptions that, whereas thought-about cheap by the Firm as of the time of such statements, are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies. These estimates and assumptions might show to be incorrect. Furthermore, these forward-looking statements have been based mostly upon varied underlying components and assumptions, together with the present technological tendencies, the enterprise relationship between the Firm and its stakeholders, the power to function in a protected and efficient method, the well timed supply and set up at estimated costs of the gear supporting the manufacturing, assumed sale costs for graphite focus, the accuracy of any Mineral Useful resource estimates, future forex trade charges and rates of interest, political and regulatory stability, costs of commodity and manufacturing prices, the receipt of governmental, regulatory and third occasion approvals, licenses and permits on favorable phrases, sustained labor stability, stability in monetary and capital markets, availability of kit and important provides, spare components and consumables, the varied tax assumptions, CAPEX and OPEX estimates, the Uatnan Mining Mission permits’ standing, all financial and operational projections referring to the undertaking, native infrastructures, the Firm’s enterprise prospects and alternatives and estimates of the operational efficiency of the gear, and aren’t ensures of future efficiency.

Ahead-looking statements are topic to recognized or unknown dangers and uncertainties which will trigger precise outcomes to vary materially from these anticipated or implied within the forward-looking statements. Threat components that would trigger precise outcomes or occasions to vary materially from present expectations embody, amongst others, these dangers, delays within the scheduled supply instances of the gear, the power of the Firm to efficiently implement its strategic initiatives and whether or not such strategic initiatives will yield the anticipated advantages, the supply of financing or financing on favorable phrases for the Firm, the dependence on commodity costs, the impression of inflation on prices, the dangers of acquiring the required permits, the working efficiency of the Firm’s belongings and companies, aggressive components within the graphite mining and manufacturing trade, adjustments in legal guidelines and laws affecting the Firm’s companies, political and social acceptability threat, environmental regulation threat, forex and trade price threat, technological developments, the impacts of the worldwide COVID-19 pandemic and the governments’ responses thereto, and normal financial circumstances, in addition to earnings, capital expenditure, money move and capital construction dangers and normal enterprise dangers. An extra description of dangers and uncertainties may be present in NMG’s Annual Data Kind dated March 22, 2022, together with within the part thereof captioned “Threat Elements”, which is offered on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . Unpredictable or unknown components not mentioned on this Cautionary Observe might even have materials hostile results on forward-looking statements.

Many of those uncertainties and contingencies can straight or not directly have an effect on, and will trigger, precise outcomes to vary materially from these expressed or implied in any forward-looking statements. There may be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Ahead-looking statements are offered for the aim of offering details about administration’s expectations and plans referring to the long run. The Firm disclaims any intention or obligation to replace or revise any forward-looking statements or to elucidate any materials distinction between subsequent precise occasions and such forward-looking statements, besides to the extent required by relevant regulation.

The market and trade information contained on this press launch is predicated upon data from unbiased trade publications, market analysis, analyst experiences and surveys and different publicly accessible sources. Though the Firm believes these sources to be usually dependable, market and trade information is topic to interpretation and can’t be verified with full certainty attributable to limits on the supply and reliability of uncooked information, the voluntary nature of the data-gathering course of and different limitations and uncertainties inherent in any survey. The Firm has not independently verified any of the info from third-party sources referred to on this press launch and accordingly, the accuracy and completeness of such information shouldn’t be assured.

Disclosures relating to Mineral Useful resource estimates included on this press launch have been ready in accordance with Canadian NI 43-101. The disclosures included on this press launch use the phrases “Feasibility Research,” “Mineral Useful resource,” “Inferred Mineral Useful resource,” “Indicated Mineral Useful resource,” “Measured Mineral Useful resource,” in reference to the presentation of assets, as every of those phrases is outlined in accordance with the CIM Definition Requirements on Mineral Sources and Reserves adopted by the CIM Council, as required by NI 43-101. Until in any other case indicated, all useful resource estimates included on this press launch have been ready in accordance with the CIM Definition Requirements, as required by NI 43-101.

NI 43-101 is a rule developed by the Canadian Securities Directors that set up the Canadian requirements for all public disclosure an issuer makes of scientific and technical data regarding mineral initiatives. These requirements differ from the necessities of the United Securities and Alternate Fee (the “SEC”). Accordingly, mineral useful resource and reserve data included on this press launch will not be akin to related data made public by United States corporations reporting pursuant to SEC reporting and disclosure necessities.

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this launch.

Additional data relating to the Firm is offered within the SEDAR database ( www.sedar.com ), and for United States readers on EDGAR ( www.sec.gov ), and on the Firm’s web site at: www.NMG.com

MEDIA
Julie Paquet
VP Communications & ESG Technique
+1-450-757-8905 #140
[email protected]

INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993
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