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Nouveau Monde Announces Closing of Oversubscribed Bought Deal Public Offering

Financings

PRESS RELEASE

Not for distribution to U.S. news wire services or dissemination in the United States

NOUVEAU MONDE ANNOUNCES CLOSING OF OVERSUBSCRIBED BOUGHT

DEAL PUBLIC OFFERING

MONTRÉAL, QUÉBEC, January 20, 2021 – Nouveau Monde Graphite Inc. (“Nouveau Monde” or the

“Corporation”) (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to ann ounce that it has

closed its bought deal public offering of C$17 million (the “Public Offering”), which forms part of

the previously announced C$20 million financing. The Corporation expects the previously-

announced C$5 million private placement launched concurrently with the Public Offering to close

in early February 2021.

The Public Offering was conducted on a bought deal basis through BMO Capital Markets as sole

underwriter (“BMO”), by way of a prospectus supplement dated January 15, 2021 (the “Prospectus

Supplement”) to the Co rporation’s short form base shelf prospectus dated January 10, 2019

(the “Base Shelf Prospectus”).

Pursuant to the Public Offering, the Corporation issued a total of 11,896,750 Common Shares at a

price of C$1.45 per Common Share (the “Offering Price”) for gross proceeds to the Corporation of

C$17,250,287.50, which includes the exercise, in full, by BMO of the over-allotment option granted

by the Corporation to purchase an additional 1,551,750 Common Shares at the Offering Price.

The net proceeds of the Public Offering will be used for the Bécancour value added graphite project

development, the Matawinie mine and concentrator detailed engineering , as well as corporate

general and administrative expenses.

In connection with the Public Offering, BMO received a cash commission of 6% of the gross

proceeds of the Public Offering.

Under the Public Offering, Pallinghurst Graphite Limited (“Pallinghurst”) and Charles -Armand

Turpin, insiders of the Corporation’s , purchased respectively 2,379,316 and 690,000 Common

Shares, which constitutes “related parties transactions” within the meaning of Regulation 61-101

respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”) and

TSXV Policy 5.9 – Protection of Minority Security Holders in Special Transactions . However, the

directors of the Corporation who voted in favour of the Public Offering have determined that the

exemptions from formal valuation and minority approval requirements provided for respectively

under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair

market value of the Common Shares issued to Pallinghurst and Charles-Armand Turpin nor the fair

market value of the consideration paid exceed 25% of the Corporation’s market capitalization.

None of the Corporati on’s directors has expressed any contrary views or disagreements with

respect to the foregoing.

A material change report in respect of th ese related parties transactions will be filed by the

Corporation but could not be filed earlier than 21 days prior to the closing of the Public Offering

due to the fact that the terms of the participation of each of the non-related parties and the related

parties in the Public Offering were not confirmed.

The securities offered have not been and will not be registered under the U.S. Securities Act of

1933, as amended, and may not be offered or sold in the United States absent registration or an

applicable exemption from the registration requirements. This press release shall not constitute an

offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any

jurisdiction in which such offer, solicitation or sale would be unlawful.

Copies of the Prospectus Supplement and the Base Shelf Prospectus are avail able on SEDAR at

www.sedar.com. Copies of the Prospectus Supplement and the Base Shelf Prospectus may also be

obtained by contacting BMO at Brampton Distribution Centre C/O The Data Group of Companies,

9195 Torbram Road, Brampton, Ontario, L6S 6H2, by telephone at +1 -905-791-3151, ext 4312 or

by email at [email protected].

About Nouveau Monde

Nouveau Monde will be a key operator in the sustainable energy revolution. The Corporation is

developing the only fully-integrated source of green battery anode material in the Western World.

Targeting full-scale commercial operations by early 2023, the Corporation will provide advanced

carbon-neutral graphite-based material solutions to the growing lithium-ion and fuel cell markets.

With low- cost operations and the highest of ESG standards, Nouveau Monde will become a

strategic supplier to the World’s leading battery and auto manufacturers, ensuring robust and

reliable advanced material, while guaranteeing supply chain traceability.

Media Investors

Julie Paquet

Director, Communications

Nouveau Monde

+1-450-757-8905 #140

[email protected]

Christina Lalli

Director, Investor Relations

Nouveau Monde

+1-438-399-8665

[email protected]

Cautionary Note Regarding Forward-Looking Information

All statements, other than statements of historical fact, contained in this press release including,

but not limited to those relating to the the expected use of proceeds, the closing of the previously-

announced C$5 million private placement, and the “About Nouveau Monde Graphite” paragraph

which essentially describes Nouveau Monde’s outlook and objectives, constitute “forward-looking

information” or “forward-looking statements” within the meaning of certain securities laws, and

are based on expectations, estimates and projections as of the time of this press release.

Forward-looking statements are necessarily based upon a number of estimates and assumptions

that, while considered reasonable by Nouveau Monde as of the time of such statements, are

inherently subject to significant business, economic and competitive uncertainties and

contingencies. These estimates and assumptions may prove to be incorrect. Many of these

uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to

differ materially from those expressed or implied in any forward- looking statements. Certain

important estimates or assumptions by the Corporation in making forward- looking statements

include. There can be no assurance that forward-looking statements will prove to be accurate, as

actual results and future events could differ materially from those anticipated in such statements.

By their very nature, forward- looking statements involve inherent risks and uncertainties, both

general and specific, and risks exist that estimates, forecasts, projections and other forward-

looking statements will not be achieved or that assumptions do not reflect future experience.

Forward-looking statements are provided for the purpose of providing information about

management’s expectations and plans relating to the future. Readers are cautioned not to place

undue reliance on these forward- looking statements as a number of important risk factors and

future events could cause the actual outcomes to differ materially from the beliefs, plans,

objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such

forward-looking statements. All of the forward-looking statements made in this press release are

qualified by these cautionary statements and those made in our other filings with the securities

regulators of Canada. The Corporation disclaims any intention or obligation to update or revise

any forward-looking statements or to explain any material difference between subsequent actual

events and such forward-looking statements, except to the extent required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy

of this release.

Further information regarding Corporation is available in the SEDAR database (www.sedar.com)

and on the Corporation’s website at: www.NouveauMonde.group