Mr. Brent Nykoliation reports

NEXTSOURCE MATERIALS ANNOUNCES FINAL INVESTMENT DECISION FOR UAE BATTERY ANODE FACILITY

NextSource Materials Inc. has approved a final investment decision (FID) on phase 1 of its proposed battery anode facility (BAF) in the Industrial City of Abu Dhabi, United Arab Emirates, marking a major milestone in the company's strategy to become a fully integrated, global producer of graphite anode materials.

The approval follows the successful completion of front-end engineering design (FEED), which confirmed the robust economics and project configuration outlined in the October, 2025, BAF study. The FEED results provide strong technical validation of the project's design, capital profile and operating parameters, reinforcing the company's confidence in advancing the UAE BAF as its next phase of growth.

Despite the conflict in the Middle East having inevitably delayed some work streams, proceeds from the company's recent $25-million LIFE offering were effectively deployed, enabling completion of the FEED study, progression of the Molo expansion feasibility study and continued progress toward BAF project financing.

The decision is underpinned by the continuing momentum in the company's financing process, including the proposed strategic investment from the Japanese consortium comprising Hanwa Co. Ltd. and the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government agency. The company is having continue constructive engagement with other equity investors, lenders and development finance institutions.

The FID authorizes the company to proceed into the pre-EPC mobilization phase, including finalization of the property agreements and approvals, awarding certain early works contracts, progressing environmental and permitting activities, and initiating long lead procurement for key equipment. This phase will also enable the commencement of equipment shipments from China and Mauritius, and the hiring of essential project personnel.

NextSource will continue to advance the project through defined stage gates to mitigate continuing global geopolitical and supply chain risks. As such, the FID is structured with defined conditions precedent and staged funding gates to ensure disciplined capital deployment in the current financing environment. This approach allows the company to advance critical activities while prudently managing financial exposure until external funding commitments are finalized.

Hanre Rossouw, president and chief executive officer of NextSource, commented:

"Approval of the FID represents a significant step forward for NextSource and reflects the board's confidence in the project's fundamentals, the strength of our financing strategy and the growing global demand for high-quality, vertically integrated anode materials. The UAE continue to offer a stable, strategically located and highly supportive environment for advanced materials manufacturing, and today's decision signals our confidence in moving ahead while maintaining disciplined risk management."

About NextSource Materials Inc.

NextSource Materials is a battery materials 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 graphite resources globally, and the only one with SuperFlake graphite. The Molo mine has begun production through phase 1 mine operations.

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

The company is now in the process of developing its first BAF in the UAE and has executed a multiyear offtake agreement for the supply of anode active material with Mitsubishi Chemical Corp. of Japan into North America.

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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