Mr. Brent Nykoliation reports

NEXTSOURCE MATERIALS ANNOUNCES CLOSING OF $25 MILLION LIFE OFFERING TO ADVANCE UAE BATTERY ANODE FACILITY

NextSource Materials Inc. has closed its previously announced brokered private placement offering of units of the company for aggregate gross proceeds of $24,999,987, issuing 58,823,500 units at a price of 42.5 cents per unit.

The offering was oversubscribed due to strong investor demand, with investor allocation capped by the final amount of $24,999,987. Vision Blue Resources Ltd. purchased 27,944,464 units under the offering to maintain its pro rata ownership in the company.

The net proceeds from the offering are expected to be used to advance the United Arab Emirates (UAE) battery anode facility, to update the Molo technical report and for general corporate purposes as disclosed in the offering document.

Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant entitles the holder thereof to purchase one common share at an exercise price of 55 cents per common share for a period beginning 61 days after the date hereof and expiring 36 months following the date hereof.

The units distributed in connection with the offering were issued and sold in accordance with the listed issuer financing exemption under Part 5A of National Instrument 45-106, Prospectus Exemptions, as amended by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. A copy of the offering document related to the offering is available to access under the company's issuer profile on SEDAR+ and on the company's website. In accordance with the LIFE exemption, the units issued in connection with the offering are not subject to a hold period pursuant to applicable Canadian securities laws. The offering is subject to final approval of the Toronto Stock Exchange.

The offering was conducted on a best-efforts basis by Stifel Canada, acting as lead agent and sole bookrunner, and Maxim Group LLC, as co-agent.

The participation of Vision Blue in the offering constitutes a related party transaction pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company has determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of securities issued to Vision Blue nor the consideration paid by Vision Blue exceeded 25 per cent of the company's market capitalization. The company did not file a material change report in respect of the transaction 21 days in advance of closing of the offering because Vision Blue's participation had not been confirmed. The shorter period was necessary in order to permit the company to close the offering in a time frame consistent with usual market practice for transactions of this nature.

About NextSource Materials Inc.

NextSource Materials 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.

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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