Mr. Hugues Jacquemin reports

NORTHERN GRAPHITE LAUNCHES BATTERY MATERIALS GROUP TO SPEARHEAD MINE-TO-BATTERY STRATEGY

Northern Graphite Corp. has launched the NGC Battery Materials Group to spearhead its mine-to-battery strategy, which would make Northern one of the sole integrated developers, producers and processors of natural graphite outside of China.

NGC Battery Materials Group was formed through the acquisition of the assets and research and development team of the battery division of Germany's Heraeus Group, and includes a fully operational, state-of-the-art laboratory in Frankfurt. Northern has also licensed IP from Heraeus to develop, produce and sell Porocarb, a high-performance porous hard carbon material developed over the last 10 years and patented by Heraeus to enhance the efficiency and speed of energy storage mechanisms. NGC Battery Materials Group will be operated by Northern and financed by selling excess production capacity to partners and other material developers. Northern will pay Heraeus a 2-per-cent royalty on sales of all Porocarb products.

NGC Battery Materials Group will specialize in advanced material analytics and electrochemical characterization techniques for carbon and battery materials as well as providing in-depth expertise in the field of high temperature processing, scale-up and carbon design. This will enable Northern to provide tailored solutions to electric vehicle battery makers and original equipment manufacturers (OEMs) to satisfy their various unique battery requirements.

"This is a pivotal move for Northern," said chief executive officer Hugues Jacquemin. "What sets this group apart is the wealth of expertise that comes with it. With a fully functioning laboratory equipped for analytics and battery testing, access to existing customers in the battery market, and the ability to scale high heat and carbon materials processes, Northern is set to accelerate the execution of its vision. The move is not merely a plan; it's a commitment to tangible results."

Battery anode material facility

NGC Battery Materials Group will lead the development of Northern's planned 200,000-tonne-per-year Baie-Comeau battery anode material facility, with construction anticipated to commence in 2026, subject to financing. Northern plans to build Baie-Comeau in modules tailored to the specific needs of OEMs and EV battery makers, including proper milling, shaping and classification of graphite flakes, followed by purification and coating.

"We are excited to join Northern and to spearhead its mine-to-battery strategy of developing a sustainable and CO2-friendly active anode material," said Michael Grimm, who will lead the NGC Battery Materials Group that officially starts on Feb. 1. "It's not just about the physical and chemical properties of the material; it's about the performance of the product in the battery and ensuring we improve that performance in each application."

"The emphasis on application-oriented testing is crucial, especially in an industry where each battery maker's design is unique, necessitating a tailored approach," said Dr. Moritz Hantel, who will oversee innovation and product management.

"In creating this group, we move one step closer to our goal of being a fully integrated, mine-to-battery graphite company and press our first mover competitive advantage as North America's only graphite producer," said Mr. Jacquemin. "The new battery group will work closely with our mining group to bring critical, cutting-edge technological and processing expertise to the company as we work to supply battery makers with anode material for use in lithium-ion batteries for electric vehicle production."

Porocarb solid state and lithium-ion battery capabilities

Porocarb can be used as a performance additive in lithium-ion batteries or utilized as protective carbon coating for solid state battery anodes. Its well-defined network of interconnected macropores serve as reservoirs and transport pathways that lend unique functionality and performance-enhancing capabilities for next-generation battery systems, including lithium-ion and solid state batteries. It is already being evaluated by a number of solid state and lithium-ion battery makers globally.

"This is a high-value, breakthrough carbon product for solid state batteries and with this transaction, Northern now has the exclusive licence from Heraeus to make and sell it for use in anodes and cathodes in exchange for a 2-per-cent royalty on sales," said Mr. Jacquemin, noting that Porocarb is currently priced on the market at around $100/kilogram on average, depending on product grade. "We also have access to a demonstration plant that can produce 100 tonnes of Porocarb per year, and that's just to start."

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/electric vehicles, fuel cells and graphene, as well as advanced industrial technologies.

Northern owns and operates the Lac des Iles graphite mine in Quebec and 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.

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