Mr. Hugues Jacquemin reports

NORTHERN GRAPHITE ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE FOR LAC-DES-ILES MINE

Northern Graphite Corp. has released an updated mineral resource estimate for its Lac-des-Iles mine (LDI) in Quebec. The mineral resource update was prepared by SLR Consulting (Canada) Ltd., which Northern engaged to update the mineral resource estimate that was previously prepared for the company by SLR as disclosed in the technical report dated Feb. 2, 2022, entitled "Technical Report on the Lac-des-Iles Quarry, Quebec."

The company also announces that it intends to meet rising demand by moving to a seven-day-per-week operation in the second quarter, targeting annual nameplate capacity of 25,000 tonnes per year.

The new resource creates potential to extend the life of the company's cornerstone asset and North America's only graphite-producing mine by at least eight years, which will be confirmed and quantified through an updated mineral reserve estimate and life-of-mine plan that will be available later this quarter.

"We are very excited to announce a material increase in our resource base at LDI, just as graphite demand gains momentum from industrial users and from battery makers building for North America's electric vehicle revolution," said Northern chief executive officer Hugues Jacquemin. "The company acquired LDI with its fully permitted and operational processing plant and tailings facility with a vision of extending the mine life, increasing production and developing it into a cornerstone asset. The resource and production increases represent the first step in that process, and we look forward to further exploration success and additional expansions in the future."

The updated mineral resource estimate for LDI is based on drill hole data available as of Nov. 2, 2023, assuming an open-pit mining scenario and a long-term average flake graphite concentrate price of $1,550 (U.S.) per tonne. Mineral resources are constrained within an optimized pit shell at a cut-off grade of 2.3 per cent graphitic carbon (Cg). Indicated mineral resources total approximately 3.29 million tonnes (Mt) at an average grade of 6.4 per cent Cg, containing approximately 213,000 tonnes of Cg. Inferred mineral resources total approximately 1.43 Mt at an average grade of 7.4 per cent Cg, containing approximately 106,000 tonnes of Cg. Existing stockpiles at the mine site are not included in the updated mineral resource estimate.

"We believe that when our updated mineral reserve estimate is released later this quarter we'll be able to show that the mine life at Lac des Iles can be extended by at least eight years," said chief operating officer Kirsty Liddicoat. "Our grades are very strong at 6.4 per cent Cg and that translates into about 65 kilograms of graphite per tonne of mined material."

Northern completed a phase I drilling program within the existing LDI lease in October, 2023. The program consisted of 88 holes and 7,890 metres of drilling and demonstrated significant near-surface graphite mineralization which is still open at depth. There are also 11 additional target zones that were identified by an airborne geophysical survey that are yet to be drilled.

"We believe that the phase I drilling has only scratched the surface and that there is significant potential to expand the resources with more drilling," said Ms. Liddicoat. "As we commence 2024, our focus turns now to the next drilling campaign to test resource potential both inside and outside the existing Pit 2, and toward expanding overall output at the mine. Planning is well advanced for the 2024 exploration program."

Northern will file an updated technical report for the updated mineral resource estimate prepared in accordance with National Instrument 43-101 under the company's profile on SEDAR+ within 45 days of the date of this news release.

Pressing Northern's first-mover advantage

Amid rising market demand for its graphite products, the company plans to boost production at LDI starting at the end of the first quarter by moving to a seven-days-a-week operating schedule from the current four days. This will increase the mine's annual output to as much as 25,000 tpy from the current annualized rate of approximately 10,000 tpy.

"We don't currently produce enough graphite to service demand, and we are getting more and more requests for our product," said Mr. Jacquemin. "As a result, we are ramping up production at Lac-des-Iles to seven days a week and accelerating exploration with the goal of further expansions in the future."

Markets for graphite, the largest component in the lithium-ion batteries used to power electric vehicles, began tightening in the second half of last year after China, the world's largest producer, reinstated incentives for electric vehicle sales. Supply concerns rose further when China announced it would start imposing controls on certain graphite exports used in battery making and again when the U.S. government announced plans to limit tax credits on electric vehicles built using components or raw materials sourced from foreign entities of concern (FEOC), including China.

"China's actions and the FEOC proposal have really put graphite in the spotlight, propelling it to the top of the list of difficult-to-source battery minerals," said Mr. Jacquemin. "As the only producer of natural graphite in North America today and the foreseeable future, Northern has a first-mover advantage in becoming the region's lead supplier as the EV revolution gains momentum."

Qualified persons, technical information and quality control notes

The LDI mineral resources disclosed in this news release have been estimated by Katharine Masun, MSc, MSA, PGeo, and Dorota El-Rassi, MSc, PEng, both employees of SLR and independent of Northern. By virtue of their education and relevant experience, Ms. Masun and Ms. El-Rassi are qualified persons for the purpose of National Instrument 43-101. The mineral resources have been classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for mineral resources and mineral reserves (2014). The QPs have read and approved the content of this press release as it pertains to the disclosed mineral resource estimate.

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.

The QPs have verified the information disclosed herein and are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the mineral resource estimate.

About Northern Graphite Corp.

Northern, the only graphite-producing company in North America, 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 expects to become the third-largest natural graphite producer outside of China when its Namibian operations come back on-line. The company also has the large-scale, advanced-stage Bissett Creek project in Ontario, and substantial additional measured and indicated resources in Namibia and on the Mousseau property in Quebec, which are expected to be sources of continued production growth in the future. All projects have battery-quality graphite and are located close to infrastructure in politically stable jurisdictions.

We seek Safe Harbor.