Mr. Eric Desaulniers reports

NMG IDENTIFIED AS INDUSTRY-LEADING NATURAL GRAPHITE PRODUCER IN BENCHMARK MINERAL INTELLIGENCE'S SUSTAINABILITY INDEX

Nouveau Monde Graphite Inc. has been identified as industry leading in Benchmark Mineral Intelligence's latest ESG (environmental, social, governance) assessment of critical minerals for battery materials focusing on natural graphite. The sustainability index developed by Benchmark's team of expert ESG analysts aims to inform battery and electric vehicle (EV) manufacturers on the environmental, ethical and sound management practices of producers in a push toward responsible and transparent production. Nouveau Monde is the only company to have been qualified in the industry leading category according to Benchmark's comprehensive examination of ESG practices, transparency and engagement.

Arne H. Frandsen, chair of Nouveau Monde, declared: "Legislation, consumer preferences, geopolitics and industry standards are all converging toward trusted and ESG-compliant sources of critical minerals and advanced materials. Benchmark's sustainability index sheds a new light on these important questions, studying the multiple facets of ESG performance. NMG's top position, with a significant advance over peers, demonstrates the commitment and depth of our sustainability promise to customers, regulators and stakeholders. Congratulations to the team for such a recognition!"

Charlotte Selvey Miller, head of sustainability at Benchmark, commented: " We're pleased to release the first-of-its-kind sustainability index, specifically designed for the lithium-ion battery supply chain. This in-depth assessment is rooted by our multistakeholder approach in order to identify key risks and areas for companies operating, or planning to operate, in this space. The industry leading classification is given to companies who score over 70/100 in our meticulous assessment of ESG indicators and we aim to continue developing the Index to allow companies to keep striving towards best practices in ESG transparency, disclosure and performance."

Eric Desaulniers, founder, president and chief executive officer of Nouveau Monde, said: "Sustainability is core to our business model; we are climate-oriented by design and deeply invested in a partnered and inclusive approach to responsible mining and manufacturing. This rating positions NMG at the forefront of the battery and EV market for environmental and ethical sources of advanced materials. We are setting a new standard for our sector together with our potential customers who share this vision of a green, clean and just value chain for the electric revolution."

ESG performance and beyond

Steered by Benchmark's team of expert ESG analysts and LCA (life cycle assessment) practitioners, the ESG assessment of the natural graphite industry examines the sustainability credentials of over 60 flake graphite companies. The sustainability index is a composite index measuring the ESG transparency of natural graphite industry players and their commitments to best practices. Companies are assessed against 79 ESG indicators across 26 ESG topics of concern, and classified into four tiers: industry leading, good practice, moderate visibility and limited visibility. Among all Chinese, African and Western flake graphite producers, Nouveau Monde is the only company to have obtained the industry leading rank.

Benchmark also released a graphite global LCA to calculate the environmental impacts of graphite anode material based on natural and synthetic sources, production regions, and end-users markets.

In 2022, Nouveau Monde published the results of an ISO-compliant life cycle assessment of the company's planned operations demonstrating that Nouveau Monde's active anode material production is among the cleanest in the world, an expected global warming potential of 1.23 kilograms carbon dioxide equivalent per kg, an impact up to 11 times smaller than that of benchmarked production.

These results provide a competitive advantage for Nouveau Monde as potential customers seek to secure sources of low-carbon supply to reduce their scope 3 emissions and comply with increasingly stringent environmental regulations.

In partnership with first nations, communities and key stakeholders, Nouveau Monde strives to be a model in the development of its ore-to-battery-material operations to drive greater sustainability into its sector and the industries it serves. The company prioritizes the well-being of employees, business partners and communities as well as environmental stewardship. The company regards diversity and robust governance as important drivers of strategy, creative thinking and business performance.

Responsible mining practices, such as dry-stacking and co-disposal of tailings, backfilling, progressive restoration and water stewardship, greener manufacturing technologies and innovation, are embedded into the company's business model. Leveraging Quebec's hydroelectricity, the company is committed to adopting clean energy sources and technologies at every level, as demonstrated by its collaboration with Caterpillar Inc. to develop an integrated solution covering a zero-exhaust emission fleet, infrastructure and services for Nouveau Monde's Matawinie mine.

Geopolitics reinforce responsible sourcing of graphite

The release of Benchmark's graphite sustainability index comes as China and the United States sharpen their respective trade instruments targeting graphite materials and other critical minerals. China previously announced restrictions on Chinese graphite materials came into effect on Dec. 1, 2023. Chinese companies must now obtain a government-issued export permit to sell certain graphite products internationally. China currently controls 65 per cent of the natural graphite global production (U.S. Geological Survey, January, 2023) and over 99 per cent of spherical graphite refining for lithium-ion batteries (Benchmark Mineral Intelligence, Q3 2023).

On the same day, the U.S. government issued its guidance as to battery material sources from which foreign entities of concern (FEOC) are not eligible for electric vehicle tax credits under the Inflation Reduction Act (IRA). Manufacturing companies' location, ownership as well as technology licences tied to China, North Korea, Iran and Russia are specifically targeted by this measure.

These recent political developments reaffirm the importance of establishing of a local, resilient and ESG-compliant supply chain of graphite to support battery and EV production. Nouveau Monde is targeted to become the largest natural graphite producer in North America, fully integrated from ore to anode material, and with demonstrated sustainability performance.

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.

We seek Safe Harbor.