Mr. Craig Scherba reports

NEXTSOURCE MATERIALS PROVIDES UPDATE ON MAURITIUS BATTERY ANODE FACILITY

NextSource Materials Inc. has provided an update to its plans to construct its first battery anode facility (BAF) in Mauritius.

In connection with the Mauritius BAF location, the company advises that the lessor has not delivered the premises free from any occupant(s) or occupation pursuant to the terms of the long-term lease agreement and accordingly the company has therefore terminated the agreement in accordance with the terms thereof.

The company remains committed to building its first BAF plant in Mauritius and is in advanced discussions in connection with an alternative location in the vicinity of the international freeport of Port Louis. The company has completed preliminary due diligence on the alternate location and expects it will reduce ground shipping costs, address stakeholder feedback, and improve the project's social and environmental standards. Like the original location, this alternative location has the capacity to house an initial production line of 3,600 tonnes per annum with space to expand capacity through the construction of additional production lines as demand increases. The company expects the lease terms for the alternative location will be on similar commercial terms as the previous lease and will provide an update once a lease is executed.

The company is assessing timing and costs related to construction and operation of the Mauritius BAF plant at the alternative site, as well as the economic impact of potential design improvements. The company expects that the preliminary economic and technical study completed for the original location will continue to be valuable in completing a similar study at the alternative location, however no assurance can be given in this regard. Accordingly, the previously announced results of the Mauritius BAF report relating to project evaluation measures, including the construction costs, timing of construction, sales potential, operating cash flows, NPV (net present value), IRR (internal rate of return) and other metrics, may not be achieved and should not be relied upon. The company will provide an update in respect of project evaluation measures for the alternate location once a new economic and technical report has been completed.

As part of the permitting process, the company is progressing with front-end engineering and design and an environmental impact assessment (EIA). As required as part of the EIA permitting process, the company held formal stakeholder consultations in connection with the original location and received valuable input from the community stakeholders. The company will continue to consider stakeholders' feedback as it advances the project.

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 company's Molo graphite project in Madagascar is one of the largest known and highest-quality projects globally, and the only one with SuperFlake graphite. Phase 1 of the Molo mine is in the final stages of commissioning and approaching first production.

We seek Safe Harbor.