Mr. Guillaume Jacq reports

NORTHERN GRAPHITE SIGNS LAND AGREEMENT FOR BAIE-COMEAU BATTERY ANODE MATERIAL PLANT, ADVANCES MINE-TO-MARKET STRATEGY

Northern Graphite Corp. has signed a letter of intent (LOI) with the City of Baie-Comeau to purchase land for a 200,000-tonne-per-year battery anode material (BAM) plant as it advances plans to supply anode material to lithium-ion battery manufacturing plants throughout North America. The LOI, which is subject to financing and receipt of regulatory approvals, gives Northern the right to purchase a 1.2-million-square-metre property, approximately 300 acres, in the Baie-Comeau port industrial zone, with access to municipal services and infrastructure, for $1.2-million (U.S.).

"This is a big step forward in our strategy to be an integrated, sustainable, cost-effective mine-to-market supplier to the booming EV battery manufacturing market and a key player in North America's critical minerals strategy," said Northern chief executive officer Hugues Jacquemin. "From here, everything flows. We now know where the facility will be located, how much power it will require, and where the power needs to go and can proceed with all the design and logistical work required to begin construction."

There is effectively no capacity in the west to convert graphite mine concentrates into anode material and the electric vehicle (EV) manufacturers are depending on project proponents such as Northern to fill the void and supply existing and planned lithium-ion battery manufacturing plants throughout North America. The Baie-Comeau BAM plant will be one of the world's largest such conversion facilities and will process concentrates from Northern's mines as well as from other producers that will be coming on line. The plant will have one of the lowest carbon dioxide (CO2) footprints in the industry due to its access to green, hydroelectric power with pricing that is among the most competitive in the world.

"ID Manicouagan is delighted with this agreement, which marks an essential milestone in the development of our partnership with Northern for the implementation of a major graphite processing project in the industrial port zone of Baie-Comeau," said Innovation et Developpement Manicouagan (ID Manicouagan) president Marcel Cadoret.

"The evaluation of options, and the selection and securing of the industrial site set the stage for the technical, social and economic studies needed to implement plans for one of the largest suppliers of battery materials in Quebec and North America," said Guy Simard, director of industrial development for ID Manicouagan.

Baie-Comeau is located on the shores of the St. Lawrence River, approximately 400 kilometres northeast of Quebec City in the Cote-Nord economic region and has direct access to the rest of North America via road, rail and a deepwater, all-season port. The BAM plant, which the company expects the first phase would cost in the range of $500-million and which the company would target for completion in 2026, will be subject to financing, regulatory approvals and certain other conditions, and is eligible for assistance under programs offered by the province of Quebec, the Canadian and U.S. governments, as well as other assistance by the Manicouagan region and potential Plan Nord incentives.

About Northern Graphite Corp.

Northern is a Canadian, TSX Venture Exchange-listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies.

Northern is the only significant graphite producing company in North America and will become the third-largest producer outside of China when its Namibian operations come back on line. The company also has two large-scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, which have the potential to generate continued production growth in the future. All projects have battery-quality graphite and are located close to infrastructure in politically stable jurisdictions.

Qualified person

Gregory Bowes, BSc, MBA, PGeo, the chairman of Northern, is a qualified person as defined under National Instrument 43-101, and has reviewed and approved the content of this news release.

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