Mr. Craig Scherba reports

NEXTSOURCE ANNOUNCES OVERNIGHT MARKETED OFFERING

NextSource Materials Inc. has filed a preliminary short form prospectus in connection with an overnight marketed public offering of common shares from the treasury of the company. The offering will be conducted through a syndicate of underwriters co-led by Cormark Securities Inc. and BMO Capital Markets.

The price per security and size of the offering will be determined in the context of the market at the time of entering into a definitive underwriting agreement between the company and the underwriters. The company will also grant the underwriters an option to purchase up to an additional 15 per cent of the securities of the offering on the same terms exercisable at any time up to 30 days following the closing of the offering, for market stabilization purposes and to cover overallotments, if any.

Closing of the offering is expected to occur on or about Aug. 1, 2023, and is subject to regulatory approval, including that of the Toronto Stock Exchange.

The net proceeds of the offering are intended to be used by the company: (1) to advance and complete construction of a battery anode facility in Mauritius; (2) for project development and technical studies for additional battery anode facilities in key geographic locations; and (3) for general corporate and working capital purposes, as to be described in the prospectus (as defined below).

The securities to be issued under the offering will be offered by way of a final short form prospectus in each of the provinces of Canada, other than Quebec, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States.

About NextSource Materials Inc.

NextSource is a battery material development company based in Toronto, Canada, that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.

The Molo graphite mine has begun production and is expected to ramp up to its phase 1 nameplate capacity of 17,000 tonnes per year of graphite concentrate over a period of up to three months.

The company has announced plans to build the first of several battery anode facilities in Mauritius, which will be capable of producing coated, spheronized and purified graphite.

We seek Safe Harbor.