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South Star Battery Metals Declares Efficient Date of Consolidation

+ Amid rising demand from battery and EV producers, NMG advances industrial discussions and technical product qualification with a view in the direction of securing an anchor buyer settlement with a possible monetary participation

+ NMG is creating a strong financing construction to fund its built-in Section 2, the Bécancour Battery Materials Plant and the Matawinie Mine, specializing in medium-term capital to be secured over time

+ ECA and governmental meant backing denotes NMG’s enticing and well timed enterprise mannequin, underpinned by sturdy ESG rules and proprietary applied sciences

Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Firm”) ( NYSE: NMG , TSXV: NOU ) reviews significant progress on its financing efforts for the event of its totally vertically built-in Section-2 operations, combining the Bécancour Battery Materials Plant and Matawinie Mine. Following the appointment of monetary advisors to help with the structuring and securing of challenge financing , the Firm has engaged with Export Credit score Companies (“ECAs”), governments, strategic traders, and potential clients to border a strong capital construction that leverages worldwide debt, authorities funding and fairness. NMG has obtained formal Expressions of Curiosity (“EOI”) to cowl roughly as much as 70% of the estimated complete funding for an built-in challenge, topic to straightforward challenge finance circumstances. NMG’s financing method strives to additional derisk its growth by looking for to safe medium-term debt, complemented by strategic fairness participation.

Arne H Frandsen, Chair of NMG, stated: “The sturdy expressions of curiosity obtained by means of our financing efforts to date illustrates the technical, industrial, and sustainable attractiveness of NMG’s ore-to-battery-material enterprise. Because the Western World rushes to safe minerals, superior supplies, and manufacturing capability to interact within the world clear vitality economic system, the staff at NMG has made great progress in advancing our totally built-in mannequin by means of our proprietary ecotechnologies, Section-1 manufacturing, engineering of our Section 2 and lively engagement with {the marketplace}. The contemplated construction of our financing and the participation of main worldwide lenders would strategically place the Firm for future steps.”

Senior Debt Facility

As NMG’s technical staff and engineering consultants finalize the number of key gear and repair suppliers for Section 2, discussions with ECAs have superior significantly and have led to a big degree of curiosity by sure ECAs. The Firm has obtained indicative expressions of curiosity for a senior debt facility from Euler Hermes Aktiengesellschaft, the German Export Credit score Company (“EH”) and Export Improvement of Canada (“EDC”) Canada’s export credit score company.

The proposed medium-term challenge finance is anticipated to ship a considerably decrease value of capital than conventional financing constructions. As each ECAs and the capital markets more and more flip their consideration to help affect funding, the funding would additionally replicate NMG’s vital environmental, social and governance (“ESG”) advantages to key stakeholders, together with the local people, in addition to contribute to the worldwide clear vitality drive in the direction of zero emissions. The decrease rates of interest and longer reimbursement phrases related to ECA financing minimizes the monetary dangers with this degree of funding.

Eric Desaulniers, Founder, President, and CEO of NMG, commented: “I’m assured that the aggressive and built-in nature of our initiatives, mixed with our best-in-class method to ESG requirements, will advantageously place NMG in the direction of worldwide lenders and clients. As governments, establishments and traders look to help decarbonization ventures, our worth proposition offers distinctive publicity to battery supplies whereas selling a carbon-neutral footprint, native growth of essential worth chains and accountable sourcing.”

The EOIs have indicated funding of as much as roughly 70% of the full funding required, to incorporate each an imported element and the native prices related to the set up of that imported content material and a further native element. EH has supplied a powerful EOI which is in keeping with the Organisation for Financial Co-operation and Improvement (“OECD”) Preparations of Formally Supported Export Credit. EH has stipulated minimal German content material necessities and welcomes EDC’s involvement in serving to to facilitate the event of the challenge as a way to help higher exports out of Canada beneath their “Export Capability” mandate. EDC will doubtlessly present direct lending in both CAD$ or US$, the phrases of which can must be agreed. EDC is anticipated to take part alongside EH beneath a Frequent Phrases Settlement.

The EOIs present a sign of the attractiveness of the challenge, and canopy, in precept, the extent of monetary help and their flexibility and desired circumstances. The EOIs are usually not binding commitments and are topic as is customary to a sequence of ordinary challenge finance phrases and passable due diligence.

To additional advance the event of this facility, NMG has appointed Société Générale as the only real coordinating mandated lead arranger (“MLA”). The appointment of Société Générale was undertaken after a Tender Panel issued by NMG’s advisor, GKB Ventures Ltd (and supported by SD Capital Advisory Restricted), to the banking market and after an in depth evaluate and choice course of. Société Générale is a number one worldwide monetary companies group, has very sturdy credentials within the metals and mining house in addition to the battery worth chain. It was named Worldwide Financing Overview’s 2021 Financial institution of the Yr for Sustainability for its position in serving to sort out world warming by means of monetary management and local weather motion.

The next phases within the Firm’s financing efforts will embody, amongst different issues, establishing due diligence workstreams, completion of the definitive feasibility research, securing a proper credit score approval and offering lenders with its Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Tasks (“NI 43-101”)-compliant feasibility research. Focused to be delivered earlier than the top of Q2-2022, the research will replicate NMG’s built-in enterprise mannequin for the Section-2 Bécancour Battery Materials Plant and Matawinie Mine in a unified economics construction.

The ECA backing that the Firm is striving to safe demonstrates a sound vote of confidence within the accountable, carbon-neutral and sustainable growth of what’s projected to be North America’s largest totally built-in pure graphite operation.

Business Engagement

In parallel to its financing efforts, NMG continues to advance industrial discussions with tier-1 battery producers due to the manufacturing of its Section-1 amenities that permits technical product qualification and affirmation of specs and high quality requirements. The Firm is striving to safe an anchor buyer offtake settlement that might doubtlessly be coupled with a cornerstone strategic investor’s participation within the financing construction. This settlement might show helpful in advancing the financing efforts to the subsequent stage.

Leveraging its world advisory experience within the battery and vitality transition sectors, Société Générale can even help NMG as a strategic advisor within the negotiation with a possible off-taker and equity-stake investor. All through the negotiation course of, Société Générale will probably be known as upon to supply a valuation view, help within the formulation of an optimum consequence throughout off-take circumstances, valuation of the fairness and timeline to allow the challenge finance debt, and help in structuring and finalizing the phrases and circumstances of the fairness funding.

Governmental Levers

Based mostly on discussions thus far, NMG anticipates significant authorities help within the type of debt, fairness and/or grants as each the Québec and Canadian governments are rolling out beneficiant measures to develop an area battery and electrical business underpinned by an abundance of strategic minerals, mining experience, superior manufacturing capability and ESG-leading requirements. The U.S. Authorities has additionally positioned its capability to fund essential mineral companies by adopting the Protection Manufacturing Act Title III Presidential Dedication for Essential Supplies in Massive-Capability Batteries.

About Nouveau Monde Graphite

Nouveau Monde Graphite is striving to turn out to be a key contributor to the sustainable vitality revolution. The Firm is working in the direction of creating a totally built-in supply of carbon-neutral battery anode materials in Québec, Canada for the rising lithium-ion and gas cell markets. With low-cost operations and enviable ESG requirements, NMG aspires to turn out to be a strategic provider to the world’s main battery and vehicle producers, offering high-performing and dependable superior supplies whereas selling sustainability and provide chain traceability. www.NMG.com

Subscribe to our information feed: https://NMG.com/traders/#information

Cautionary Be aware Relating to Ahead-Trying Data

All statements, apart from statements of historic reality, contained on this press launch together with, however not restricted to these describing the potential challenge financing and the phrases and circumstances thereof, the involvement of ECAs, the Quebec and Canadian Authorities and the opposite events talked about on this press launch, the meant conclusion of a buyer offtake settlement and potential strategic investor’s participation within the financing construction, the meant outcomes of the initiatives described on this press launch, future demand from battery and EV producers, the advantages of the Firm’s financing technique, the Firm’s ESG initiatives and commitments and their advantages to stakeholders, the target of creating the most important totally built-in pure graphite operation in North America, and people statements that are mentioned beneath the “About Nouveau Monde” paragraph and elsewhere within the press launch which primarily describe the Firm’s outlook and goals, represent “forward-looking info” or “forward-looking statements” (collectively, “forward-looking statements”) throughout the that means of Canadian and United States securities securities legal guidelines, and are primarily based on expectations, estimates and projections as of the time of this press launch. Ahead-looking statements are essentially primarily based upon plenty of estimates and assumptions that, whereas thought of affordable by the Firm as of the time of such statements, are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies. These estimates and assumptions might show to be incorrect. Furthermore, these forward-looking statements had been primarily based upon varied underlying components and assumptions, together with the present technological developments, the enterprise relationship between the Firm and its stakeholders, the flexibility to function in a protected and efficient method, the well timed supply and set up of the gear supporting the manufacturing, the Firm’s enterprise prospects and alternatives and estimates of the operational efficiency of the gear, and are usually not ensures of future efficiency.

Ahead-looking statements are topic to recognized or unknown dangers and uncertainties that will trigger precise outcomes to vary materially from these anticipated or implied within the forward-looking statements. Threat components that might trigger precise outcomes or occasions to vary materially from present expectations embody, amongst others, delays within the scheduled supply instances of the gear, the flexibility of the Firm to efficiently implement its strategic initiatives and whether or not such strategic initiatives will yield the anticipated advantages, the supply of financing or financing on favorable phrases for the Firm, the dependence on commodity costs, the affect of inflation on prices, the dangers of acquiring the mandatory permits, the working efficiency of the Firm’s property and companies, aggressive components within the graphite mining and manufacturing business, modifications in legal guidelines and laws affecting the Firm’s companies, political and social acceptability danger, environmental regulation danger, foreign money and alternate fee danger, technological developments, the impacts of the worldwide COVID-19 pandemic and the governments’ responses thereto, and normal financial circumstances, in addition to earnings, capital expenditure, money move and capital construction dangers and normal enterprise dangers. An additional description of dangers and uncertainties may be present in NMG’s Annual Data Type dated March 22, 2022, together with within the part thereof captioned “Threat Components”, which is accessible on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . Unpredictable or unknown components not mentioned on this Cautionary Be aware might even have materials adversarial results on forward-looking statements.

Many of those uncertainties and contingencies can immediately or not directly have an effect on, and will trigger, precise outcomes to vary materially from these expressed or implied in any forward-looking statements. There may be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Ahead-looking statements are supplied for the aim of offering details about administration’s expectations and plans regarding the long run. The Firm disclaims any intention or obligation to replace or revise any forward-looking statements or to clarify any materials distinction between subsequent precise occasions and such forward-looking statements, besides to the extent required by relevant legislation.

The market and business information contained on this press launch is predicated upon info from impartial business publications, market analysis, analyst reviews and surveys and different publicly accessible sources. Though the Company believes these sources to be typically dependable, market and business information is topic to interpretation and can’t be verified with full certainty on account of limits on the supply and reliability of uncooked information, the voluntary nature of the data-gathering course of and different limitations and uncertainties inherent in any survey. The Company has not independently verified any of the information from third-party sources referred to on this press launch and accordingly, the accuracy and completeness of such information will not be assured.

Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

Additional info concerning the Firm is accessible within the SEDAR database ( www.sedar.com ), and for United States readers on EDGAR ( www.sec.gov ), and on the Firm’s web site at: www.NMG.com

MEDIA

Julie Paquet
VP Communications & ESG Technique
+1-450-757-8905 #140
jpaquet@nmg.com

INVESTORS

Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993
mjasmin@nmg.com

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