Mr. Arne Frandsen reports

NMG ACQUIRES MASON RESOURCES' LAC GUERET GRAPHITE DEPOSIT/UATNAN MINING PROJECT - ONE OF THE WORLD'S LARGEST GRAPHITE PROJECTS IN DEVELOPMENT

Nouveau Monde Graphite Inc. has entered into an asset purchase agreement with Mason Resources Inc. for the acquisition of the entire Lac Gueret property, targeted for the development of the Uatnan mining project. The transaction strengthens the company's long-term vision to be a dominant force in the supply of carbon-neutral anode material for the Western market. Nouveau's active commercial discussions with Tier 1 battery and electric vehicle (EV) manufacturers, including Panasonic Energy Co. Ltd., a wholly owned subsidiary of Panasonic Holdings Corp., confirm the strong projected demand by battery materials analysts for graphite. This acquisition of another major asset in Quebec, Canada, reinforces Nouveau's fully vertically integrated production model in North America with the highest ESG (environmental, social and governance) standards of the industry, as validated by Benchmark Mineral Intelligence's Sustainability Index.

Arne H. Frandsen, chair of Nouveau, declared: "With its very large, high-quality natural graphite deposit, the acquisition of the Lac Gueret deposit represents a strategically important move by NMG. This addition of a world-class asset to NMG's portfolio of resources, underpins the company's growth prospects and commercial attractiveness. It also puts us in a unique position in the global battery materials space. Our leadership and strong technical teams are looking forward to the smart further development of the Lac Gueret asset, fully synchronized with NMG's current execution plans. We also warmly welcome Mason as a shareholder of NMG as we build a pioneering -- and possibly the largest -- integrated natural graphite production in the Western world."

Eric Desaulniers, founder, president and chief executive officer of Nouveau, said: "In light of commercial discussions for our phase 2 production out of the Matawinie mine and Becancour battery material plant, we are confident in the current and future demand for ethically sourced and environmentally produced graphite-based anode material. NMG is set to match the sustained market growth with a robust expansion plan now secured in the Uatnan mining project. Uitshi-atussemitutau -- NMG aspires to work together with the Innu First Nation of Pessamit -- is our vision for the development of this project. We are committed to a strong involvement of the first nation and active engagement with the region's community and stakeholders to ensure a responsible and sustainable development."

Asset purchase agreement

Nouveau has agreed to acquire 100 per cent of Mason's Lac Gueret property, which consists among other things of 74 map-designated claims totalling 3,999.52 hectares. The consideration for the acquisition of the Lac Gueret property is payable in 6,208,210 common shares of Nouveau, representing 9.25 per cent of the pro forma issued and outstanding shares of Nouveau, to be issued to Mason upon the closing of the transaction. A subsequent payment of $5-million will be made to Mason at the start of commercial production of the contemplated Uatnan mining project. Of the common shares of Nouveau to be issued in connection with the transaction, 3,104,105 will be subject to a lockup for a period of 12 months and the remaining 3,104,105 common shares of Nouveau will be subject to a lockup of 18 months. The shares of Nouveau will also be subject to a four-month hold period pursuant to Canadian securities laws.

Closing of the transaction is expected to occur on or before Jan. 31, 2024, and is subject to certain standard conditions, including the receipt of the final approval from the TSX Venture Exchange.

The asset purchase agreement supersedes and terminates the previously announced investment agreement and option and joint venture agreement between Nouveau and Mason.

Planned development of the Uatnan mining project

Nouveau published in 2023 a preliminary economic assessment (PEA), according to National Instrument 43-101 (Standards of Disclosure for Mineral Projects), for the Uatnan mining project. The PEA, conducted by engineering firms BBA Inc. and GoldMinds Geoservices Inc., showed strong economics for Nouveau's updated operational parameters and production volumes targeting the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine (LOM).

The PEA is preliminary in nature and includes inferred mineral resources, considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves have not demonstrated economic viability. Additional trenching and/or drilling will be required to convert inferred mineral resources to indicated or measured mineral resources. There is no certainty that the resources development, production and economic forecasts on which this PEA is based will be realized.

All costs are in Canadian dollars with the exception of the graphite sale price which is provided in United States dollars.

The Uatnan mining project lies within Nitassinan, the Innu of Pessamit's ancestral territory, and the Riviere-aux-Outardes municipality located in the Cote-Nord administrative region, Quebec, Canada, approximately 220 kilometres as the crow flies, north-northwest of the town of Baie-Comeau. The Uatnan mining project is accessible by Road 389 and then by following Class 1 forestry roads.

Sustainability is centre to NMG's value proposition and will be reflected in the next phase of work as the company prioritizes the signature of a predevelopment agreement with the Innu First Nation of Pessamit. The company plans to maintain a transparent dialogue with the first nation as it advances the project development to ensure the respect of their rights, the protection of the environment, their culture and way of life, as well as the inclusion of their perspective, and traditional knowledge.

As Nouveau's team expands its relationships with the first nation, the community and local stakeholders, the company will prepare for subsequent studies to advance the Uatnan mining project. Nouveau has already mapped out a detailed work plan to enable the preparation of a feasibility study, including on-site fauna and flora inventories, geological surveys, environmental studies, impact assessment, stakeholder consultation and more. True to its practices in developing the Matawinie mine, Nouveau is committed to a responsible, sustainable and inclusive process to bring the Uatnan mining project from opportunity to engineering, construction and commercial production.

Nouveau will leverage its team of over 100 employees from all specialties -- from metallurgy and environment to mining, research and development, and sales -- plus its operational phase 1 concentration and processing facilities to support the development of the Uatnan mining project.

Market underpinnings

Nouveau's acquisition of the Lac Gueret property aims at securing the asset in view of the growing demand for locally produced natural graphite and the company's planned phase 3 expansion to supply the Western market.

Pushed by growth in electric vehicles, energy storage systems and other clean technology applications, graphite demand for lithium-ion batteries is projected to reach to over 10 million tonnes per annum by 2030, a 537-per-cent increase according to Benchmark Mineral Intelligence's (December, 2023) latest market assessment.

In late 2023, China and the United States have sharpened their respective trade instruments targeting graphite materials. China now enforces restrictions on Chinese graphite materials exports. The U.S. government has indicated that battery material sourced from China and other foreign entities of concern will not be eligible for EV tax credits under the Inflation Reduction Act. 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 is projected to become the largest natural graphite producer in North America, fully integrated from ore to anode material, and with demonstrated sustainability performance.

Scientific and technical information presented in this press release was reviewed and approved by Eric Desaulniers, MSc, PGeo, a qualified person as defined under NI 43-101.

About Nouveau Monde Graphite Inc.

Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy revolution. The company is working towards developing a fully integrated source of carbon-neutral battery anode material in Quebec, Canada, for the growing lithium-ion and fuel cell markets.

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