Mr. Hanre Rossouw reports

NEXTSOURCE MATERIALS SECURES BINDING AGREEMENT FOR US$30 MILLION STRATEGIC INVESTMENT FROM JAPAN'S HANWA AND JOGMEC TO ADVANCE ITS UAE BATTERY ANODE FACILITY

NextSource Materials Inc. has executed a binding share subscription agreement with Hanwa Co. Ltd., a major Japanese trading company, and the Japan Organization for Metals and Energy Security, an agency of the Japanese government, establishing the definitive framework for their strategic partnership and investment in the company's battery anode facility in Abu Dhabi, United Arab Emirates.

Under the SSA, Hanwa and JOGMEC will acquire a 15-per-cent equity interest in the UAE BAF through a jointly owned investment vehicle, financed by a $30-million (U.S.) strategic investment that includes their contribution to capital expenditures for the first phase. NextSource will retain an 85-per-cent equity interest in the BAF. The parties expect to enter into the related shareholders' agreement (SHA) shortly following execution of the SSA, which will govern their respective rights and obligations as shareholders, and establish the framework for the funding, development, construction and operation of the BAF. The agreed ownership structure will become effective upon closing of the subscription transaction.

Hanre Rossouw, president and chief executive officer of NextSource, commented:

"The finalization of the Hanwa and JOGMEC investment in the UAE battery anode facility marks a significant milestone for NextSource. Our partnership with Hanwa and JOGMEC brings deep expertise in global battery materials, supply chains and critical mineral security, and their planned $30-million (U.S.) investment provides strong validation of our strategy to establish a vertically integrated, independent supply chain of battery anode materials."

The UAE BAF is being developed as a strategic, independent source of battery anode materials and an alternative to existing supply chains.

Use of proceeds and project progress

Proceeds from the investment will be used as a source of funding for the BAF project. The forthcoming SHA will establish the framework for the funding, development, construction and operation of the project.

The project has continued to advance through the pre-EPC mobilization phase, including finalizing property agreements and approvals, awarding early works contracts, progressing environmental and permitting activities, initiating long-lead procurement for key equipment, and hiring essential project personnel. Following the final investment decision announced on May 12, 2026, the project is being advanced through staged funding gates to support disciplined capital deployment while the company continues to finalize external funding commitments.

Next steps

The company is in advanced discussions with additional strategic investors regarding a further 35-per-cent interest in the UAE BAF project company and, following receipt of multiple expressions of interest to provide loan finance, is progressing discussions with potential debt providers. The company will provide an update on these workstreams, and on closing of the Hanwa and JOGMEC subscription, in due course.

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 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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