Mr. Craig Scherba reports

NEXTSOURCE MATERIALS PROVIDES DEVELOPMENT UPDATE ON BATTERY ANODE FACILITY IN MAURITIUS FREEPORT ZONE

NextSource Materials Inc. has made progress with the development of its battery anode facility (BAF) in the Freeport zone of the port of Port-Louis, Mauritius.

Following a comprehensive site selection process, the company has signed a long-term lease agreement for a site in the Freeport zone of Port-Louis for the location of its first BAF plant. The company has integrated engineering improvements into the plant design and initiated the environmental permitting (EIA) process.

Set within an industrial environment, the site offers significant operational benefits as compared with the previously leased site, including logistics improvements resulting from direct port access, a high-quality concrete structure requiring minimal modifications with sufficient space to expand the capacity of the plant in the future and financial benefits resulting from being located in a Freeport zone. A Freeport zone is where goods may be imported, stored, handled, manufactured and re-exported under specific customs regulation and are generally not subject to normal tax and customs duty.

The company has preordered process equipment with a production capacity of 3,600 tonnes per annum of SPG (spheronized and purified graphite) and CSPG (coated SPG). The process equipment is currently being fabricated and assembled offshore and will be shipped to Mauritius once the EIA process is completed. Meanwhile, Superflake graphite concentrate from the Molo mine and equipment for the operation of a small-scale pilot line have already arrived at the site in order to prepare for production of samples for key OEM customers.

The company is preparing an updated economic assessment for this site and will announce the results once completed.

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 mine in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with Superflake graphite. The Molo graphite mine has begun production, with phase 1 mine operations currently undergoing ramp-up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.

The company is also developing a significant downstream graphite value-add business through the staged rollout of battery anode facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner.

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

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