Mr. Eric Desaulniers reports

NMG AND PANASONIC ENERGY UPDATE THEIR COMMERCIAL AGREEMENT; PLAN TO LAUNCH A DEDICATED INITIAL CAPACITY OF ACTIVE ANODE MATERIAL PRODUCTION

Nouveau Monde Graphite Inc., through its wholly owned subsidiary, NMG Becancour Inc. (NMG Becancour, collectively referred to as NMG), and Panasonic Energy Co. Ltd., a wholly owned subsidiary of Panasonic Holdings Corp., have successfully revised and updated their multiyear binding offtake with the objective of advancing the production of active anode material. As a customer and strategic shareholder, Panasonic Energy reaffirm their support for the development of NMG's phase 2 integrated ore-to-battery-materials value chain.

Kazuo Tadanobu, president and chief executive officer of Panasonic Energy, announced: "We're pleased to see our partnership with NMG moving into the next phase. Built on mutual trust and shared goals, this collaboration is an important step toward establishing a more sustainable and reliable battery materials supply chain. Together, we're combining our expertise and resources to strengthen supply stability, enhance innovation and meet the growing needs of the industry. This partnership underscores our shared commitment to long-term growth, responsible progress and building a foundation for future technologies."

Eric Desaulniers, founder, president and CEO of NMG, stated: "Panasonic Energy has been a steady and invaluable partner in the technological development of our business strategy. With this revised offtake, we are setting the path for launching the initial capacity of the phase 2 Becancour battery material plant, tailored to Panasonic Energy's specifications and in tune with the North American gradual market growth. From electric vehicles (EVs) to energy storage systems for renewable energies and data centres, Panasonic Energy's commercial reach provides NMG with solid footings for our market entry."

The 2025 Panasonic Energy binding offtake agreement

In view of evolving market conditions, results from NMG's updated feasibility study, and project financing requirements, NMG has worked with Panasonic Energy to update their existing commercial agreement and conditions precedent. The 2025 Panasonic Energy binding offtake agreement covers 13,000 tonnes per annum (tpa) of NMG active anode material for an initial seven-year term from the commencement of the company's phase 2 production. Approximately 25,000 tpa of graphite concentrate is being reserved of the future phase 2 Matawinie mine production to execute this Panasonic Energy volume. NMG's active anode material continues to progress through Panasonic Energy's qualification protocol to confirm its quality and performance.

The sales price will be based on an agreed upon price formula linked to future prevailing market prices as well as a pricing mechanism to satisfy project financing ratios and ensure stable procurement for Panasonic Energy. The 2025 Panasonic Energy binding offtake agreement is subject to conditions precedent which are standard for a project of this nature, including among others, the successful start of commercial operation and final product qualification. It also contains standard termination rights for an agreement of this nature.

Panasonic Energy reiterates its intend to support the development of NMG's phase 2 facilities, which may entail an equity investment by Panasonic at the phase 2 Becancour battery material plant final investment decision (FID), in line with Panasonic's initial investment in 2024.

Through the 2025 Panasonic Energy binding offtake agreement, Panasonic Energy is set to leverage NMG's fully integrated North American production, carbon neutrality profile and pro-active ESG (environmental, social and governance) practices for the establishment of a reliable, local and responsible battery manufacturing value chain.

Complementary information

With potentially close to 100 per cent of the future phase 2 Matawinie mine graphite concentrate production now allocated between multiple customers across diversified applications, the company is working toward bringing its mining project to a FID, concurrently with or prior to its phase 2 Becancour battery material plant that might be adjusted for the appropriate capacity to fulfill the secured multiyear offtake agreements with customers prior to FID.

Information on NMG's execution strategy to launch its phase 2 commercial production along with details of parallel commercial agreements with the government of Canada and Traxys North America LLC, plus continuing negotiations with an established anode manufacturer, can be accessed on the company's website.

Cautionary note

There can be no assurance that NMG will be able to meet the condition precedents of the 2025 Panasonic Energy binding offtake agreement or to reach the successful start of commercial operation and final product qualification.

About Nouveau Monde Graphite Inc.

Nouveau Monde Graphite is an integrated company developing responsible mining and advanced processing operations to supply the global economy with carbon-neutral advanced graphite materials. The company is developing in Quebec, Canada, a fully integrated ore-to-processed-graphite value chain to serve tomorrow's industries in energy, defence, technology and manufacturing. With recognized ESG (environmental, social and governance) standards and structuring partnerships with major customers, NMG is set to become a strategic supplier of advanced materials to leading specialized manufacturers while promoting sustainability, innovation and supply chain traceability.

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