Mr. Eric Desaulniers reports

NMG PROVIDES Q2 2026 UPDATE AND HIGHLIGHTS A DEFINING QUARTER SHIFTING FROM DEVELOPMENT TO EXECUTION OF ITS MATAWINIE MINE

Nouveau Monde Graphite Inc. has provided a quarterly update on its financial and operational performance and strategic progress for the second quarter ended June 30, 2026. Aligned with its strategy to develop one of the first fully integrated natural graphite production platforms in the G7, this second quarter was marked by the financial investment decision (FID) and construction launch of the Matawinie mine, while the company also actively continued to advance key activities supporting a targeted FID in H2 2026 for its 13,000-tonne-per-year Becancour battery material plant.

Highlights

• Finalization of agreements and establishment of a strategic supply and marketing framework with the government of Canada translating into a long-term take-or-pay agreements covering 30,000 tpy (tonnes per year) of flake graphite to be produced at the Matawinie mine. The marketing structure allows Nouveau Monde to market the government of Canada's committed volumes with an upside-sharing mechanism on proceeds above a fixed price and the ability for Canada to store product.
• On May 15, 2026, the company completed for the phase 2 Matawinie mine a private placement with strategic investors for aggregate gross proceeds of $295-million ($213-million (U.S.)). In addition, aggregate gross proceeds of $132-million ($97-million (U.S.)) from the company's subscription receipts issued on April 16, 2026, were released upon satisfaction of the applicable escrow release conditions. These transactions formed part of an aggregate equity financing package of $427-million ($310-million (U.S.)).
• The participation of Eni SpA, Nouveau Monde's new strategic investor, in the private placement was complemented by a letter of intent to advance commercial discussions toward a potential 15,000 tpy graphite concentrate offtake from the phase 2 Matawinie mine or equivalent in active anode material.
• Following this successful private placement and the previously announced debt financing commitment of $335-million (U.S.), Nouveau Monde confirmed the FID for the phase 2 Matawinie mine and officially launched construction.
• The company recently completed a Class 3 AACE cost estimate for the development of the 13,000 tpy Becancour battery material plant, with an estimated capex (capital expenditure) of $374-million ($267-million (U.S.)). In addition, it is pursuing the advancement of engineering and accelerating due diligence processes of its various stakeholders in support of a targeted FID in H2 2026.
• Twelve-month rolling total recordable injury frequency rate (TRIFR) of 0.95 for the company's employees and 0 for the contractors active at the Matawinie mine construction site and no major environmental incidents as of June 30, 2026.
• Looking ahead, Nouveau Monde remains focused on the next phase of execution across its integrated business model which includes, amongst others, pursuing the civil works at the Matawinie site, continuing to advance the conditions required to support a targeted FID for its 13,000 tpy Becancour battery material plant and pursuing continuing business development.
• Period-end cash position of $461-million.

"The second quarter of 2026 was a key chapter in NMG's journey," said Eric Desaulniers, Nouveau Monde founder, president and chief executive officer. "With the successful financing and launch of construction activities at the Matawinie mine, we transitioned from years of planning and development into execution all while remaining focused on advancing the next major development stage for our 13,000 tpy Becancour battery material plant. At a time when supply chain security, industrial resilience and strategic autonomy have become key priorities, these milestones reflect the dedication of our team, the confidence of our partners and shareholders, and the continued strategic importance of NMG's integrated graphite operations in Western markets. The momentum from the second quarter is carrying us into our next stage of growth, with a clear focus on advancing construction at the Matawinie mine, securing FID for our 13,000 tpy Becancour battery material plant and continuing to position NMG for the opportunities that lie ahead."

Matawinie mine (phase 2)

In May, following the successful private placement and debt financing commitment, Nouveau Monde confirmed the FID for the phase 2 Matawinie mine and officially launched construction in the presence of federal and provincial leaders, including the Prime Minister of Canada, as well as community representatives, indigenous partners and industry stakeholders.

Since the launch of construction, the company reports ongoing progress at the Matawinie mine, with activities remaining within the overall budget. As of June 30, 2026, $33-million had been incurred in project expenditures and $167-million had been committed, reflecting ongoing construction, engineering, procurement and project execution activities. Primary focus has been on civil works, with first concrete pours undertaken in July, 2026. Key activities also included excavation for the concentrator and associated infrastructure at the industrial platform, excavation of water control structures, backfill of material into the overburden and organic stockpiles, continued advancement of detailed engineering, and procurement of key equipment and construction packages and initiation of deposits on critical long-lead equipments.

In addition, the amendment to Decree 47-2021 for the Matawinie mine (phase 2) was officially published on Aug. 5, 2026. It updates the initial government authorization issued in 2021 to reflect the project's evolution since then. This amendment primarily relates to certain operational parameters of the project, including a minor southward extension of the open pit made possible through the acquisition of additional surface rights, and the corresponding increase in the authorized annual graphite production capacity from 100,000 tonnes to 106,000 tonnes.

13,000 tpy Becancour battery material plant

The company recently completed a Class 3 AACE cost estimate for the development of the 13,000 tpy Becancour battery material plant, with an estimated capex of $374-million ($267-million (U.S.)). In addition, it is pursuing the advancement of engineering and accelerating due diligence processes of its various stakeholders in support of a targeted FID in H2 2026.

Panasonic Energy has reiterated its intent to support the development of NMG's phase 2 facility, which may entail an equity investment by Panasonic at the FID of the phase 2 13,000 tpy Becancour battery material plant, in line with Panasonic's initial investment in 2024.

To support customer demand, Nouveau Monde also continues various workstreams to develop additional battery material plants of active anode material and/or advanced graphite materials production that could be developed on its existing 200,000 square m adjacent greenfield or other strategically positioned sites either in North America or in Europe.

Near-term priorities

Looking ahead, Nouveau Monde remains focused on the next phase of execution across its integrated business model.

Key priorities include:

• Pursuing civil works at the Matawinie site, pouring of concrete foundations for major equipment and building foundations in advance of the installation of structural steel in early 2027;
• Continuing to advance the conditions required to support a targeted FID for its 13,000 tpy Becancour battery material plant in H2 2026, including the optimization of the capital structure;
• Pursuing continuing business development, including securing additional offtake agreements and diversifying Nouveau Monde's mix of products.

Alongside these priorities, the company will continue to actively engage with customers, shareholders, investors, government partners, indigenous communities and other stakeholders to support, amongst others, commercialization efforts and long-term growth.

Planned engagement activities include participation in key industry and investor forums, such as for example the H.C. Wainwright 28th Annual Global Investment Conference (Sept. 14 to Sept. 16) and the Maxim Growth Summit 2026 (Oct. 13 to Oct. 14), as Nouveau Monde continues to maintain strategic relationships across the critical minerals value chain.

Current business opportunities

The company has observed growing interest from potential customers seeking to diversify and secure their critical minerals supply chains as they try to navigate the current geopolitical situation, characterized by growing trade frictions between Europe, China and the United States, and near-term uncertainty in certain regions of the Middle East and Africa.

Nouveau Monde's integrated business model, underpinned by low-cost hydropower, the proximity between the mine and the planned transformation asset, and Canada's and Quebec's established industrial ecosystems, remains a key differentiator.

In the near future, the corporation intends to expand commercial discussions with respect to the 30,000 tonnes of flake graphite expected to be produced at the Matawinie mine and which is currently earmarked for the spot market. Amongst others, it intends to advance commercial discussions with Eni SpA toward a potential 15,000 tpy graphite concentrate offtake or equivalent in active anode material.

At the same time, it is also exploring various business opportunities, mainly with customers that are part of the lithium-ion battery supply chain, may it be for electric vehicles or the fast-growing battery energy storage systems (BESS) market.

Notwithstanding the outcome of these specific commercial discussions, the corporation has also approached other large G7 integrated conglomerates that have investments or investment plans in battery plants making them potential customers for the corporation's natural graphite anode material.

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, advanced technology and manufacturing. With recognized ESG (environmental, social and governance) standards and structuring partnerships with major customers, Nouveau Monde 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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