NextSource Materials Signs Mandate Letter for US$91 Million Debt Facility with International Finance Corporation

NextSource Materials Signs Mandate Letter for US$91 Million

Debt Facility with International Finance Corporation

NEWS RELEASE – TORONTO, June 13, 2024

NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) (“NextSource” or “the Company”) is

pleased to announce the signing of a Mandate Letter with International Finance Corporation (“IFC”),

the private sector investment arm of the World Bank Group, to lead a senior debt facility

totaling US$91 million (the “IFC Debt Facility”) to fund an expansion of the Molo Graphite Mine (the

“Molo mine”) in southern Madagascar.

In December 2023, the Company released the results of a Technical Feasibility Study (the “FS”)

that confirmed the positive economics of a large-scale expansion of the Molo mine and processing

facility from its current production capacity of 17,000 tonnes per annum (tpa) to 150,000 tpa of

SuperFlake® graphite concentrate. The FS estimated a capital cost of US$161.7 million (including

contingency) plus working capital of US$25.2 million, resulting in a pre-tax NPV 8 (using an 8 %

discount rate) of US$424.1 million and a pre-tax Internal Rate of Return (IRR) of 31.1%, and a

NPV8 of US$370.0 and IRR of 29.0% on a post-tax basis.

IFC has provided indicative financial terms to lead the coordination of the overall debt syndicate

with other select commercial banks and development finance institutions. The IFC Debt Facility

would fund approximately 50% of the capital costs and working capital requirements for the mine

expansion to 150,000 tpa.

Craig Scherba, P.Geo., President, and CEO of NextSource commented:

“We are delighted to announce the signing of a Mandate Letter with IFC, marking a significant

milestone in our journey to expand the Molo Graphite Mine and support the diversification of global

supply chains for critical battery materials. This partnership underscores the confidence placed in

NextSource’s Molo mine expansion by one of the world's leading development finance institutions.

With IFC's support, we are poised to unlock Molo’s vast potential and further contribute to long term

sustainable development in Madagascar."

IFC’s mandate to provide financing to NextSource is subject to satisfactory technical, social, legal

and environmental due diligence, documentation and execution of acceptable terms, obtaining final

credit, and regulatory and board approvals. Due diligence has commenced and is anticipated to

complete in Q1 2025.

ABOUT NEXTSOURCE MATERIALS INC.

NextSource Materials Inc. 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 Mine in Madagascar is one of the largest known and highest-quality

graphite resources globally, and the only one with SuperFlake® graphite. The Molo Graphite Mine

has begun production, with Phase 1 mine operations currently undergoing ramp- up to reach its

nameplate production capacity of 17,000 tpa of graphite concentrate.

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 aut omotive customers, outside

of existing Asian supply chains, in a fully transparent and traceable manner. The Company intends

to build its first Battery Anode Facility in Mauritius.

NextSource Materials is listed on the Toronto Stock Exchange under the symbol “NEXT” and on

the OTCQB under the symbol “NSRCF".

The FS was filed on under the Company’s profile on SEDAR+ at www.sedarplus.ca and was

posted on NextSource’s website at www.nextsourcematerials.com.

The FS has an effective date of September 1, 2023 and was prepared by Erudite Strategies Ltd.

(“Erudite”) of South Africa, an independent engineering and consulting firm specializing in the

mining and processing of commodities and battery materials and aut hored by the following

“qualified persons” as defined under NI 43- 101: Johann De Bruin, (Pr. Eng) (ECSA), Hector

Mapheto, Pr.Eng. (ECSA), Schalk Pienaar, Pr.Eng. (ECSA) and Hercu Smit, Pr.Eng. (ECSA)

(Erudite Strategies Ltd.), Philip John Hancox, PhD, Pr. Sci.Nat. and Desmond Subramani,

Pr.Sci.Nat. (Caracle Creek International Consulting (Pty.) Ltd.), Oliver Peters, P.Eng. (PEO)

(Metpro Management Inc.), Eugène de Villiers, Pr.Eng. (ECSA) (ECMA Consulting (Pty.) Ltd.), Nico

Hamman, Pr.Tech.Eng. (ECSA) (Eco Elementum), Alkie Marais, M.Sc. (Geohydrology)

(Geostratum Water Management Consulting), and Ruan Daffue, M.Sc.Eng. (Practara (Pty.) Ltd).

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], Craig Scherba, President and CEO

at [email protected], or Aura Financial at [email protected].

CAUTIONARY NOTE

This news 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 other similar words , or statements that certain events or conditions “may”, “will”, “could”, or “should” occur. Forward-

looking statements include any statements regarding, among others: timing on the completion of commissioning, achieving

nameplate capacity, commercial sales of graphite concentrate, anticipated results of the FS including in respect of financial

metrics, capital and operating costs, mineral resource and mineral reserve estimates, metallurgy, and pricing; intended

expansion and construction plans; demand for CSPG; discussion of the FS results with potential strategic partners; debt or

equity investments by potential strategic parties or investors, purchase preferences of off-takers; the staged rollout of Battery

Anode Facilities; 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 and described in the forward- looking statements contained in this news release. 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 as a result. Although the forward-looking statements contained in this news release

are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual

results will be consistent with them. 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 latest information, future events or otherwise, except as m ay be required by

applicable securities laws. These forward- looking statements are expressly qualified in their entirety by this cautionary

statement.