Mr. Craig Scherba reports

NEXTSOURCE ANNOUNCES MOU FOR STRATEGIC COLLABORATION WITH SOUTH KOREA'S POSCO INTERNATIONAL

NextSource Materials Inc. has signed a non-binding memorandum of understanding (MOU) with South Korea's POSCO International for a strategic collaboration that could involve an equity investment into the company as well as a long-term offtake agreement for spheronized and purified graphite (SPG) and the company's other graphite products.

The MOU envisages the potential for a definitive offtake agreement for 30,000 tonnes per annum (tpa) of SuperFlake graphite concentrate and 10,000 to 15,000 tpa of SPG over a 10-year period, to be supplied to POSCO Future M, a POSCO group subsidiary that is responsible for electric vehicle battery businesses and supplies all of South Korea's major battery cell manufacturers with finished cathode and anode materials.

Prior to executing a definitive agreement, certain customary technical and economic studies will need to be completed.

President and chief executive officer Craig Scherba commented:

"Exploring the potential for a strategic partnership with one of the world's largest suppliers of anodes to Western cell manufacturers and OEMs is a tremendous opportunity. We look forward to working with POSCO to advance the MOU."

About NextSource Materials Inc.

NextSource Materials is a battery materials 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 tpa of graphite concentrate by Q4 2023.

We seek Safe Harbor.