Germany's BGR Assesses NextSource Materials' Molo Graphite Mine as Part of Federal Critical Minerals Study
Germany's BGR Assesses NextSource Materials' Molo Graphite Mine
as Part of Federal Critical Minerals Study
NEWS RELEASE – TORONTO, May 14, 2026
NextSource Materials Inc. (TSX: NEXT) (OTCQB: NSRCF) (“NextSource” or the “Company”) is pleased to
announce that a technical team from Germany’s Federal Institute for Geosciences and Natural
Resources (“BGR”) attended a site visit at the Company’s Molo Graphite Mine in southern Madagascar this
week.
This requested visit formed part of an independent study by the BGR on graphite production in Madagascar,
financed by Germany’s Federal Ministry for Economic Cooperation and Development.
BGR expressed specific interest in assessing Molo, alongside traditional graphite operations elsewhere in
Madagascar, as a benchmark asset and potential supplier of natural graphite and anode material to Germany
- reflecting the strategic priority the German Federal Government places on graphite as a critical raw material
for German industry, the European battery supply chain, and energy security.
The study is being conducted with the approval and support of the Madagascar Ministry of Mines, with
findings to be presented back to Germany’s Federal Ministry for Economic Cooperation and Development.
As with the United States and Canada, Germany has placed critical raw materials at the centre of its industrial
and energy security policy. Natural graphite is on the European Union's Critical Raw Materials List, and the
German Federal Government has committed significant capital to its diversification agenda — including the
€1 billion Rohstofffonds (Raw Materials Fund) administered by Germany's state development bank KfW,
which provides minority equity investment of up to €150 million in qualifying upstream mining and processing
projects, alongside a coordinated €2.5 billion critical minerals investment framework with France and Italy.
As one of very few sources of high-quality natural flake graphite in production outside of China, Molo is well-
suited to and aligned with the strategic supply objectives Germany is actively focused on.
Notably, NextSource already has an established commercial link to German industry. In May 2021,
NextSource executed a 10 -year commercial sales agreement with thyssenkrupp Materials Trading GmbH
(thyssenkrupp”), a division of the German industrial engineering and steel production company,
Thyssenkrupp AG. The sales agreement comprises terms whereby thyssenkrupp is guaranteed a minimum
of 7,300 tonnes per annum (“tpa”) of SuperFlake® graphite concentrate from Molo Phase 1 operations, and
up to 35,000 tpa when Molo capacity is expanded to Phase 2.
About the BGR
The Federal Institute for Geosciences and Natural Resources (“BGR” – Bundesanstalt für
Geowissenschaften und Rohstoffe) is Germany’s central geoscientific authority, operating under the Federal
Ministry for Economic Affairs and Energy. BGR provides neutral, scientific advice to the German Federal
Government on critical raw materials supply security, the assessment of energy and mineral resources both
domestically and globally, and international cooperation on resource governance and ge ological surveys.
BGR is widely regarded internationally as a serious and trusted geoscientific institution central to Germany’s
critical raw materials policy.
About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials 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
through Phase 1 mine operations.
The Company is also developing a significant downstream graphite value -add business through the staged
rollout of Battery Anode Facilities (BAF) capable of large-scale production of coated, spheronized and purified
graphite for direct delivery to battery and automotive customers, in a fully transparent and traceable manner.
The Company is now in the process of developing its first BAF in the UAE and has executed a multi -year
offtake agreement for the supply of anode active material with Mitsubishi Chemical Corp of Japan into North
America.
NextSource Materials is listed on the Toronto Stock Exchange under the symbol “NEXT” and on the OTCQB
under the symbol “NSRCF".
For further information about NextSource Materials, please visit our website at
www.nextsourcematerials.com or contact us at +1.416.364.4911 or email Brent Nykoliation, Executive Vice
President at [email protected].
Cautionary Note
Safe Harbour: This press release contains statements that may constitute “forward-looking information” or “forward-looking statements”
within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance
on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such
as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and othe r similar words, or statements
that certain events or conditions “may”, “will”, “could”, “expected” or “should” occur. Forward-looking statements include any statements
regarding, among others, that non-binding LOI’s and term sheets will progress to definitive agreements and the timing thereof, timing of
construction, development and completion of the BAF, timing and completion of front -end engineering and design, timing of FID, the
phased development plan of the BAF as well as the Company’s intent on becoming a fully integrated global supplier of critical battery
and technology materials. These statements are based on current expectations, estimates and assumptions that involve a number of
risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company a nd
described in the forward-looking statements contained in this press release. These risks inclu de that the non-binding term sheets will
not progress to definitive agreements, the parties to the non-binding term sheet will not be satisfied with their due diligence review, risks
related to the construction and development of the BAF, the risk that a positive FID decision may never be reached as well as other risk
factors set forth in the Company’s latest Annual Information Form (which includes the disclosed risk related specifically to the
development commissioning and operation of the BAF) There is no assurance that the definitive agreements will be completed with the
above noted timeframe or at all. No assurance can be given that any of the events anticipated by the forward -looking statements will
transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained
in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly
or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be
required by applicable securities laws. Although the forward -looking statements contained in this news release are based on what
management believes are reasona ble assumptions, the Company cannot assure investors that actual results will be consistent with
them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this
cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.