Mr. Hanre Rossouw reports

NEXTSOURCE MATERIALS ANNOUNCES US$20M CREDIT FACILITY WITH VISION BLUE RESOURCES

NextSource Materials Inc. has secured a drawdown credit facility of up to $20-million (U.S.) with Vision Blue Resources Ltd. The proceeds of the facility, which is non-dilutive to shareholders, will be used, as needed, to progress the company's battery anode facility strategy, to support the continued ramp-up and growth of Molo, and for general working capital purposes.

Hanre Rossouw, president and chief executive officer, commented: "The funding from Vison Blue enables us to complete the ramp-up and growth of the Molo graphite mine while also continuing to advance our plans to develop battery anode facilities. The recent commencement of commercial sales of graphite concentrate and the strengthening of our management team demonstrate the progress we have already made. With the continued support from Vision Blue, we are making meaningful progress towards our vision of becoming a leader in sustainably produced battery materials."

The company may draw down on the facility in four equal tranches and anticipates that it will draw down the initial $5-million (U.S.) tranche under the facility prior to the end of January, 2025. Subsequent drawdowns will be determined based on the financial requirements of the company and the continued availability of the facility. Interest will accrue on the amount drawn down under the facility at a rate of 15 per cent per year. The facility is repayable on demand after June 30, 2025, and is secured by the assets of the company. NextSource may fully repay the facility at any time, without penalty or bonus.

Related party transaction

Vision Blue holds 47.7 per cent of the company's issued and outstanding shares (47.7 per cent on a partially diluted basis). Accordingly, the facility constitutes a related party transaction, as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

The company is not required to obtain a formal valuation in respect of the facility. The company is exempt from the need to obtain minority shareholder approval, per Subsection 5.7(1)(f) of MI 61-101, as the facility is on reasonable commercial terms that are not less advantageous to the company than if the facility were obtained from a person dealing at arm's length with the company, and the facility is not convertible, directly or indirectly, into equity of the company or a subsidiary of the company. The board of directors of NextSource, with the exception of Mick Davis (being a director of Vision Blue) who declared his interest and recused himself, unanimously approved the facility.

About NextSource Materials Inc.

NextSource Materials is a battery materials development company based in Toronto, Canada, that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.

The company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake graphite. The Molo mine has begun production, with phase 1 mine operations currently being optimized to reach its nameplate production capacity.

The company is also developing a significant downstream graphite value-add business through the staged rollout of battery anode facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner.

We seek Safe Harbor.