Mr. Hanre Rossouw reports

NEXTSOURCE MATERIALS EXECUTES LETTER OF INTENT WITH ONE OF THE MAJOR JAPANESE ANODE PROCESSORS TO SUPPLY EV ANODE MATERIAL TO OEMS

NextSource Materials Inc. has executed a letter of intent with a major Japanese anode material producer for the potential long-term supply of anode active materials for use in electric vehicle batteries. The company previously announced a binding, multiyear offtake with Mitsubishi Chemical Corp., Japan's largest chemical company, to supply 9,000 tonnes per annum of AAM to a major original equipment manufacturer for its North American electric vehicle operations.

The producer is another prominent and well-established Japanese chemical company with global operations in advanced battery materials, supplying multiple OEMs and battery cell manufacturers. The LOI follows a lengthy and intensive technical evaluation and qualification process of the company's anode active material, during which NextSource's products were assessed for suitability in the producer's anode material supply chain.

The LOI establishes the framework to negotiate two concurrent, multiyear supply agreements starting in 2027 and covering multiple grades of AAM that will be produced at the company's proposed battery anode facility in the industrial city of Abu Dhabi, United Arab Emirates.

Together with the company's existing offtake agreement with Mitsubishi for approximately 9,000 tonnes per annum of AAM, these potential agreements would fully utilize and exceed the expected 14,000 tpa production capacity of phase 1, representing a major commitment to the UAE BAF's future production capacity.

Pricing for the company's anode products will be based on a market-linked mechanism, with final specifications and terms to be finalized in the definitive agreements. Due to confidentiality requirements, the producer has requested that its identity remain confidential at this time.

Hanre Rossouw, president and chief executive officer of NextSource, commented: "This LOI represents another important step in building a portfolio of long-term commercial relationships with globally recognized battery materials players, and is another significant endorsement from the Japanese battery supply chain, which is recognized for its stringent quality standards. Following the successful validation of our anode products, this offtake partnership further derisks our UAE battery anode facility and demonstrates the clear market demand for our sustainably produced, vertically integrated graphite products."

The LOI is non-binding and is subject to the successful completion of final technical qualification and the execution of definitive term sheets.

About NextSource Materials Inc.

NextSource is a battery material 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 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 multiyear offtake agreement for the supply of anode active material with Mitsubishi Chemical Corp. of Japan.

NextSource Materials is listed on the Toronto Stock Exchange under the symbol NEXT and on the OTCQB under the symbol NSRCF.

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