Mr. Arne Frandsen reports

NMG ADVANCES ELECTRIFICATION EFFORTS: CONFIRMED HYDROPOWER SUPPLY AND PROGRESS ON COLLABORATION WITH CATERPILLAR

In line with its commitment to adopt clean energy sources and technologies, Nouveau Monde Graphite Inc. has provided an update on its advancement in its electrification program for the phase 2 Matawinie mine and Becancour battery material plant. Leveraging Quebec's power grid, one of the greenest in the world, as the bedrock of its electrification strategy, Nouveau Monde Graphite has confirmed electrical capacity, competitive rates and defined zero-exhaust emission equipment deployment with Caterpillar Inc.

Arne H. Frandsen, chair of Nouveau Monde, declared: "Clean energy is central to our operational, commercial and ESG [environmental, social and governance] strategy. I am extremely pleased to see the progress made by our team and in collaboration with partners to translate our objectives into plans, technological design and schedules. Quebec is becoming North America's green battery thanks to its vast hydropower network, and we, in turn, are leveraging this renewable energy and its multiple jurisdictional advantages to establish a new operational model, from ore to battery materials, fully electrified, fully integrated, fully traceable."

Renewable electricity powering clean processing

Complementary to agreements in place for the phase 2 Matawinie mine, which include the construction of a dedicated powerline, Nouveau Monde Graphite obtained confirmation from Hydro-Quebec -- the government corporation that produces, transmits and distributes electricity in Quebec -- of a 77 MW (megawatt) electricity block for the phase 2 Becancour battery material plant. In the context of intense industrial development in the province, in part related to the expanding battery ecosystem, electricity allocations are now assessed on basis of technical connection capacities, economic and regional development benefits, environmental and social impact, and alignment with governmental orientations.

The allocated electricity block will enable the establishment of a fully integrated advanced manufacturing platform in Becancour, in the heart of Quebec's battery valley, for refining graphite into active anode material.

Nouveau Monde Graphite has received confirmation of its discounted industrial rate for hydroelectricity at both the phase 2 Matawinie mine and Becancour battery material plant. Such favourable commercial electricity rate provides a cost-competitive environment for energy-intensive sectors such as mining and advanced manufacturing, an incentive for investment and continued upgrading of facilities, and operational visibility for the company.

Electrifying mining at Matawinie

Active technical work between Caterpillar and Nouveau Monde's teams have enabled the establishment of a calendar to deploy early learners and/or pilot models for the phase 2 Matawinie mine, to test equipment in actual terrain and weather, and to map the transition to future zero-exhaust-emission production models. The Cat 950 GC wheel loader would be the first battery-electric pilot machine to arrive at Matawinie.

These developments also support planning for the site's charging infrastructure. Modelling and simulating the location of charging stations, equipment operations on site, as well as charging cycles in relation to operational schedules and the mining plan, help optimize site design and technology choices. The simulation of charging needs helps identify peak power demand and define energy management strategies.

Denise Johnson, Caterpillar group president, commented: "The Matawinie project highlights the complex questions miners are faced with when determining the amount of energy required to run a fully electric site. This is part of the learning NMG and Caterpillar are navigating together as we work through the realities of supporting the mine site of the future. I'm proud of the work our teams are accomplishing together to propel this project forward."

Eric Desaulniers, founder, president and chief executive officer of Nouveau Monde Graphite, said: "It started with a bold vision. Going all-electric at our Matawinie mine is the way to go -- environmentally to limit our carbon footprint, socially to rally the community behind a new mining development and to reduce the sound level of our operations, and commercially to engage with battery/EV [electric vehicle] manufacturers and tap into consumers' responsible purchasing desires. Now, Caterpillar is providing us with a comprehensive solution, derisking the adoption of new technologies and optimizing operational excellence through integrated infrastructure."

Through definitive agreements signed earlier this year, Caterpillar is set to be Nouveau Monde's supplier of heavy mining equipment, supporting the progressive transition from traditional models to Cat zero-exhaust-emission machines as they become available. Moreover, Nouveau Monde Graphite and Caterpillar signed a non-binding memorandum of understanding to advance commercial discussions targeting Nouveau Monde's active anode material. Hence, a full circular value chain could be established whereas Nouveau Monde Graphite would supply carbon-neutral graphite materials to Caterpillar for the development of its secure, resilient and sustainable battery supply chain that would serve to electrify heavy vehicles, including Nouveau Monde Graphite's Matawinie fleet.

Clean energy to support decarbonization

Quebec's energy grid is among the greenest in the world. Hydro-Quebec generates over 99 per cent of its electricity from renewable energy sources, mainly through hydroelectric generating stations, for an emission factor of 0.6 kilogram (kg) CO2eq (carbon dioxide equivalent) per MWh (megawatt-hour) (Hydro-Quebec, 2021).

Nouveau Monde Graphite's confirmed capacity to tap into this electricity network provides a solid foundation for deploying new equipment and proprietary technologies with a view to produce advanced materials with a very low climate change impact, in line with global decarbonization efforts. An independently conducted cradle-to-gate life cycle assessment for the company's portfolio of graphite-based materials confirmed the minimal and industry-leading environmental footprint of its production. Nouveau Monde's full commercial-scale phase 2 all-electric facilities are forecasted to produce active anode material for lithium-ion batteries with a global warming potential of 1.23 kg CO2 equivalent per kg, an impact up to 11 times smaller than that of benchmarked production.

Advancement of electrification initiatives aligns with Nouveau Monde Graphite's objective of reaching net zero by 2030, as detailed in the company's climate action plan. Nouveau Monde Graphite has placed environmental stewardship at the heart of its business strategy. Maintaining a carbon-neutral footprint and bringing to market net-zero products provide a competitive advantage in the battery and electric vehicle sector as manufacturers actively seek to reduce their scope 3 emissions, comply with regulatory requirements and respond to consumer demands for sustainable, responsible production.

About Nouveau Monde Graphite Inc.

Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy revolution. The company is working toward developing a fully integrated source of carbon-neutral battery anode material in Quebec, Canada, for the growing lithium-ion and fuel cell markets. With enviable ESG standards, Nouveau Monde aspires to become a strategic supplier to the world's leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability.

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