• Binding Agreement Reached with Sprott Streaming to Restructure Senior Secured Debt, Stream and Royalty Financing Arrangements

• Lac des Iles mine restart delayed due to financial constraints, market conditions and mining lease issue

• LDI plant maintenance and upgrade well advanced in preparation for mine restart and production increase

• Mill Relocation to Okanjande Mine Site Completed

Ottawa, Ontario--(Newsfile Corp. - September 1, 2026) - Northern Graphite Corporatio (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") is pleased to provide an operating summary and financial highlights for the three month period ending June 30, 2026. The Company's Financial Statements and Management's Discussion and Analysis for the period have been filed on SEDAR+ and posted to the Company website.

"In the second quarter Northern reached a transformative restructuring agreement of its senior secured debt with Sprott Streaming which will remove approximately US$22.5 million of debt and accrued interest from our balance sheet (balance as of June 30, 2026) and eliminate an overhang that has weighed on the Company's ability to execute on strategic objectives. The agreement will also make Sprott Streaming our largest shareholder, underscoring its confidence in our growth plans," said Chief Executive Officer Hugues Jacquemin. "However, the restart of our Lac des Iles mine is taking longer than anticipated and the lack of revenue is placing additional pressure on our financial position. We are actively working to address this issue and evaluating the best path to bring LDI back into production. LDI is a valuable and strategic asset as its upgraded processing plant and permitted tailings facility are located in a region with multiple graphite deposits that also represent potential sources of feed for the mill."

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Operational Highlights:

• There was no active mining or processing at the Lac des Iles mine and plant in the second quarter as the Company awaited authorization for its Phase I pit expansion plan from Quebec environmental authorities which was subsequently granted on July 9. Critical maintenance work to prepare the plant for the planned 2026 pit expansion is well advanced;
• Subsequent to quarter end, Northern announced a delay in restarting Lac des Iles as the Company addresses issues relating to its mining lease, financial constraints and current market conditions;
• The Company completed the relocation of its processing plant from its former location at Okorusu in Namibia to the mine site at Okanjande as it prepares the mine to supply graphite concentrate to its planned Battery Anode Material ("BAM") facility in Saudi Arabia. Subsequent to quarter-end, Northern signed an MOU with NamWater to assess sustainable bulk-water supply solutions for the planned restart;
• Northern's battery team continued to advance development of proprietary battery anode materials and actively engage with battery manufacturers and OEMs who want to secure offtake agreements with a quality supplier of graphite with established production assets and the capacity to support future growth;
• Subsequent to quarter end, Northern was selected by Natural Resources Canada to participate in a strategic Canada-Japan battery materials evaluation program through Japan's LIBTEC;
• Discussions continued with Canadian government bodies at the federal and provincial level to gain support to speed up the restart of LDI as well as the development of a battery anode supply chain, with a particular focus on Ontario and Québec.

Financial Highlights:
(Stated in thousands of Canadian Dollars except for per-tonne amounts)

• An operating profit of $6.8 million was realized in the three months ended June 30, 2026, compared to an operating loss of $1.3 million in the prior year's period which was largely due to the licensing and the transfer of the Company's carbon processing technology to a third party;
• No sales or revenue were recorded in the second quarter as a result of a temporary shutdown at the LDI mine and processing plant as the Company advanced critical plant maintenance work ahead of the planned restart. Accordingly, there were no earnings/loss from mine operations during the period (the loss from mine operations was $1.6 million for the prior year's quarter);
• Other revenue was $8.9 million for the three-month period ended June 30, 2026, including revenue of $8.3 million from an agreement to transfer carbon material processing technology to a third party compared to the prior year's second quarter, where only $2.0 million was recognized;
• General and administrative expenses during the second quarter of 2026 were $2.7 million compared with $1.8 million in the second quarter of 2025 as higher expenses at NGC Battery Materials were incurred as operations continue to increase and after a one-time write-off of a $0.4 million supplier prepayment;
• Finance costs decreased in the quarter to $1.9 million (2025 - $2.8 million) as a result of a larger gain on a revaluation of the Company's royalty liability and senior debt due to modifications to the anticipated timing of royalty and interest payments. This decrease was partially offset by higher accretion due to the non-payment of interest on senior secured debt and royalties and the increase in drawdowns on the repayable government loan associated with the planned pit expansion at LDI. Almost all of the finance costs were non-cash items;
• A net loss of $3.0 million ($0.02 per share) was recorded in the second quarter of 2026 compared to a net loss of $1.0 million ($0.01 per share) during the three months ended June 30, 2025. The primary reasons for the increased loss were the ongoing temporary shutdown of the LDI plant resulting in no revenue during the quarter, an increase in care and maintenance expenses of $1.3 million, expenditures of $2.1 million related to the relocation of the Okorusu production plant and the significant impact of non-cash items totaling $3.7 million, including foreign exchange losses on the Company's operations and U.S. dollar denominated financial instruments, interest accretion, stock-based compensation and depreciation. The loss was offset by the increase in license and other revenue by $6.4 million;
• Current and deferred tax expenses during the second quarter of 2026 were $2.1 million compared to a net current and deferred tax recovery of $0.2 million during the prior year quarter as NGCBM achieved a profit before tax of $7.5 million;
• As of June 30, 2026, the Company continued to report its senior secured loan ($31.8 million) and its royalty financing ($18.9 million) as current liabilities as a result of the lack of performance by the Company on the following covenants related to these instruments:

Senior secured loan:

• The payment of the face value of the senior secured loan, including capitalized interest of $22.7 million (US$ 16.0 million), at the maturity date of April 29, 2026;
• The payment of accrued interest of $9.3 million (US$6.5 million) on the semi-annual cash interest payment date (covering the period January 1, 2024 to June 30, 2026);
• Maintaining, at all times, on a consolidated basis, positive working capital, and;
• Maintaining, at all times, on a consolidated basis, a minimum cash balance of US$0.75 million;

Royalty Financing:

• The payment of royalty amounts totaling $6.4 million (US$4.5 million) which were due from 2024 through 2026;

As of August 31, 2026, all defaults have been waived by the lender effective June 30, 2026.

• Debt Agreement:
  • On April 29, 2026, the Company entered into a binding agreement (the "Debt Agreement") to restructure its secured debt, stream and royalty financing arrangements with funds managed by Sprott Resource Streaming and Royalty Corp. (collectively, "Sprott Streaming"), which will significantly strengthen the Company's financial position;

• Cash and equivalents were $0.2 million as at June 30, 2026, compared to $1.1 million as of March 31, 2026. The net decrease in cash and cash equivalents resulted from the following elements:
  
  • Net cash provided by operating activities was $0.1 million, largely driven by a US$2 million technology transfer and exclusivity fee, partially offset by the LDI plant remaining under a temporary shutdown during the first half of the year, resulting in no sales of product and changes in related working capital items;
  • Net cash used in investing activities was $1.5 million as the Company continued to pay for development of mineral interests and equipment modernization to extend the life of LDI mine; and
  • Net cash provided by financing activities of $0.6 million was mainly the result the receipt of a repayable government contribution of $0.7 million;

• The classification of the Company's senior debt and royalty classification as current liabilities ($50.7 million in total) was largely the reason for a negative working capital balance of $56.6 million as at June 30, 2026.

(1) The Company reports the non-IFRS financial measures of average realized sales price per tonne of graphite concentrate sold and cash costs per tonne of graphite concentrate sold to manage and evaluate its operating performance. See "Cautionary Note Regarding Non-IFRS Performance Measures" below.

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Northern is advancing toward its goal of becoming a vertically integrated, mine-to-market supplier to traditional downstream customers and to the emerging ‎‎market for battery anode material. The main catalysts of that strategy include growing graphite production from its cornerstone Lac des Iles asset, restarting its Okanjande mine in Namibia and developing downstream capacity to produce anode material for use in lithium-ion batteries and electric vehicles ("EVs") in North America, Europe and Saudi Arabia and to upgrade graphite mine concentrate into value added industrial products.

Balance Sheet Restructuring
During the second quarter, on April 29, 2026, Northern reached a transformative agreement to restructure its secured debt, stream and royalty financing arrangements with funds managed by Sprott Resource Streaming and Royalty Corp. ("Sprott Streaming"). Under the terms of the Debt Agreement, in return for cancelling the US$16 million face value of the senior secured loan (including capitalized interest) as well as all of the accrued and accruing interest to the maturity date of April 29, 2026 (US$6.0 million, increasing to US$6.5 million as of June 30, 2026), the parties will amend the streaming agreement in respect of the Company's Okanjande project to remove both the previously agreed step-down date limiting it to the first 350,000 tonnes of production and the option to then convert the stream to a 1% royalty. The Company will also issue 12,500,000 common shares to Sprott Streaming, which will increase its ownership to 9.9% of the Company's basic shares outstanding and make it Northern's largest shareholder. In addition, the Company will provide Sprott Streaming with priority payment from a portion of proceeds received from any equity financings or its IP licensing agreements until such time as it has paid in full for all accrued and unpaid amounts owing on the royalty in respect of the Company's LDI mine as of April 29, 2026 in the approximate amount of US$4.4 million (increasing to US$4.5 million as of June 30, 2026).

Graphite Markets Outlook
The outlook for wider graphite markets remains subdued in the short- and medium term amid structural oversupply, strong buyer leverage and uncertain visibility into the pace of demand growth in Western markets. Although graphite consumption in battery applications continues to rise, supported by the growth in electric vehicles and energy storage, low-priced Chinese supply continues to constrain prices for both Active Anode Material ("AAM") and natural graphite. Demand for natural graphite for traditional industrial applications, including refractories, steelmaking, lubricants and manufactured products, remains strong, in particular for the high-quality large and jumbo flake graphite produced at the Company's Lac des Iles mine, although these products account for a smaller portion of the mine's overall production. The March 12 decision by the U.S. International Trade Commission ("ITC"), which resulted in antidumping and countervailing duties not being imposed on Chinese AAM was an unexpected setback for the development of a domestic industry. The ruling preserved access to low-priced Chinese AAM in the United States, weakened investor sentiment and placed renewed pressure on graphite companies seeking to develop production outside China. The medium- and longer-term fundamentals for graphite remain constructive as Northern expects graphite demand to increase over the coming years. Growth in electric vehicles and energy storage and emerging demand for uses like robotics that have the potential for rapid growth, will require greater graphite supply at a time when China's position as the world's dominant producer and processor reinforces the strategic need for alternative sources. Policy momentum is also building, with the United States pursuing a plurilateral Agreement on trade in Critical Minerals and G7 leaders considering measures such as price floors, price-gap support, joint procurement and diversification requirements. These demand and policy drivers are expected to support the gradual development of more secure graphite supply chains, although progress is likely to remain uneven in the near term. As a member of the North American Graphite Alliance ("NAGA"), Northern continues to engage with government agencies on measures to support a domestic graphite industry in the United States.

Northern has historically supplied approximately 20 per cent of the U.S. industrial market for natural graphite and, in recent years, has been working to expand its footprint in other global markets. That strategy is particularly relevant amid growing trade tensions between Canada and the United States and is aligned with Canadian government efforts to grow trade with other partners. Northern's planned Battery Anode Material facility in Saudi Arabia, once built, would be capable of supplying customers in Europe and the Middle East, as well as North America.

Mining Operations
Northern is focused on advancing its key growth catalyst of adding mineral resources that will enable it to bring on scalable, low capex production from its existing mine and development projects in time to supply growing demand amidst widescale global electrification.

Lac des Iles Mine, Quebec
No production, sales or shipments were recorded during the second quarter at Lac des Iles as Northern awaited its authorization to begin mining under its Phase I pit expansion plan. Maintenance and upgrade work on the plant is now well advanced and is designed to support a transition to continuous seven-days-per-week operations targeting annual nameplate capacity of 25,000 tonnes per year ("tpy"). Subsequent to quarter end, Northern received authorization from the Ministère de l'Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs ("MELCCFP") to begin mining activities associated with a staged expansion of the existing pit. However, the Company also received notice on Aug. 10 from the Ministère des Ressources naturelles et des Forêts ("MRNF") that the LDI mining lease had been suspended in connection with an outstanding payment related to an increase in the financial guarantee for future site restoration. Northern disagrees with the MRNF's interpretation of the calculation and payment deadline and intends to contest the decision before the Quebec Court. This would result in the suspension being stayed pending a final decision by the Court and, accordingly, the mining lease will remain in effect until a final judgment is rendered.

Despite receiving the MELCCFP authorization, Northern is now unlikely to meet its previous target of restarting mining operations during the third quarter of 2026. A restart remains contingent upon resolution of the mining-lease matter, securing sufficient working capital or other financing and confidence that market demand can absorb the production levels contemplated under the Phase I mine plan. The staged pit expansion has the potential to extend the mine life by up to eight years. The current authorization permits mining down to the 209-metre elevation, or for approximately another 8 months, during which time Northern intends to complete additional studies required to support authorization for planned production of up to 44,000 tonnes of graphite concentrate during a three-year Phase I mining plan. Northern continues to pursue a practical resolution of the mining-lease matter while assessing the financing and market conditions required to establish a sustainable path to restarting the operation.

Okanjande Mine, Namibia
Northern advanced plans in the second quarter to restart its Okanjande mine in Namibia as the Company prepares to supply graphite concentrate to its planned Battery Anode Material ("BAM") facility in Saudi Arabia, which is targeted to begin production in 2028, subject to financing. During the second quarter, the former Okorusu processing plant was dismantled and transported to Okanjande by Rotary Engineering Services of Namibia for future reassembly. As per a Preliminary Economic Assessment ("PEA") conducted by CREO Engineering Solutions in August 2023, locating the plant at the mine site is expected to reduce operating costs, improve sustainability and enhance the operation's long-term expansion potential. Subsequent to quarter end, Northern also signed a Memorandum of Understanding with Namibia Water Corporation ("NamWater") to establish a technical partnership to assess sustainable bulk-water supply solutions for the planned restart. The partnership will evaluate technically viable and environmentally responsible options to support future mining operations while safeguarding Namibia's water resources. Okanjande benefits from high-quality graphite resources, proximity to the deep-water port at Walvis Bay and a comparatively short development timeline. Northern believes these advantages, together with progress on the processing plant and water-supply planning, position Okanjande to become a scalable source of graphite for customers in North America, Europe and the Middle East. The Company is evaluating options to fund the Okanjande project through the use of a royalty/stream/debt structure, with equity contributed by a strategic partner without having to go to the market. A full schedule is in place to be executed within 12 to 14 months once financing is available. Construction is forecast to begin at Okanjande in the first quarter of 2027, and a restart of the mine is now planned for the first quarter of 2028.

Battery Materials
Northern and Obeikan Investment Group continue to advance plans to jointly develop a large-scale Battery Anode Material facility in Yanbu Industrial City, Saudi Arabia. While regional geopolitical uncertainty has affected the timeline since the US$200 million project was announced in January, work is progressing on the corporate, commercial and financing framework required to move the project forward. Construction of the facility is now forecast to begin in the first half of 2027, with first production planned for 2028. In the interim, Northern and Obeikan are working to form a joint venture company and complete a shareholders' agreement and then proceed to engage with financial institutions in Saudi Arabia and internationally regarding project financing. The partners are also engaging with leading battery manufacturers and other potential customers to secure offtake agreements for the facility's planned initial production of 25,000 tonnes per year of BAM. The proposed facility is expected to support the restart of Northern's Okanjande mine in Namibia and establish an integrated supply chain serving battery markets outside China.

Northern's battery materials group continues to advance the development and customer qualification of BAM produced using graphite from the Company's Canadian and Namibian assets. Subsequent to quarter end, Northern was selected by Natural Resources Canada ("NRCan") to participate in a strategic Canada-Japan battery materials evaluation program through Japan's Lithium-ion Battery Technology and Evaluation Center ("LIBTEC"), an independent, internationally recognized battery evaluation organization. The initiative includes CAD$155,800 in funding and will evaluate Northern's BAM under standardized, customer-relevant testing protocols. Northern is the only BAM developer participating in the Japan-Canada program, which is intended to strengthen technical collaboration between Canada and Japan and support the development of secure battery supply chains outside China.

Closing Remarks
"Northern is navigating a challenging near-term environment and we recognize that the path forward, particularly at Lac des Iles, will require disciplined decisions around capital, operating economics and market demand," said Mr. Jacquemin. "Our immediate priority is to establish a sustainable path to restarting operations at LDI, while continuing to advance Okanjande and our battery materials initiatives at a pace that reflects our available resources and market conditions. The strategic need for secure graphite supply outside China has not diminished, and with an improving capital structure, established assets and growing technical and commercial relationships, we believe Northern remains well positioned to participate as these markets develop."

About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that owns the only flake graphite mine in North America. Northern is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries used in EVs and grid storage, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Group, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on advancing plans to develop battery anode material plants in Saudi Arabia, Quebec and France.

Northern's graphite assets include the Lac des Iles mine in Quebec, where the Company plans to boost output to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek graphite project in Ontario and the fully permitted Okanjande graphite mine in Namibia, which is currently on care and maintenance, and represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions.

Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "qualified person" as defined under NI 43-101 and has reviewed and approved the content of this news release.

For additional information
Please visit the Company's website at www.northerngraphite.com/investors/presentation, the Company's profile on www.sedarplus.ca, our Social Channels listed below, or contact the Company at (613) 271-2124.

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Cautionary Note Regarding Non-IFRS Performance Measures
This news release includes certain non-IFRS performance measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. The calculation and an explanation of these measures is provided in the Company's Management's Discussion and Analysis and such measures should be read in conjunction with the Company's Management's Discussion and Analysis and financial statements.

Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. 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 in this news release include statements regarding, among others, plans for extending the mine life and output at LDI, bringing the Company's Namibian operations back online, advancing plans for its Yanbu Battery Anode plant to a final investment decision, otherwise developing the capacity to manufacture value added products and raising the financing to complete any or all of these initiatives. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the inability to raise the required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements.

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. 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.

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 press release.

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