Mr. Eric Desaulniers reports

NMG DEVELOPS LOW-CARBON-FOOTPRINT ANODE MATERIAL COATING PROCESS IN COLLABORATION WITH MCGILL UNIVERSITY

Nouveau Monde Graphite Inc. has developed, in collaboration with a research team from McGill University, of a new green-chemistry coating process for anode materials that offers the potential to improve the carbon profile of manufacturing while meeting industry performance requirements. This solution reduces the carbon footprint associated with coating, uses readily available raw materials and remains compatible with existing manufacturing equipment.

"I am very proud of the work accomplished by our R&D team and of this successful collaboration with McGill University, a world-renowned institution, to develop this new coating process for anode materials," said Eric Desaulniers, founder, president and chief executive officer of Nouveau Monde. "This innovation, together with our ongoing investments in R&D, reflects our commitment to continuously improving our processes and products in order to deliver an ever-stronger value proposition to our present and future customers. It also aligns with our objective of developing sustainable and resilient supply chains that are less dependent on petroleum-derived products and sheltered from the volatility of their costs."

This process was developed through a collaboration between NMG and a McGill University research team, under a partnership that began in 2020 to advance low environmental footprint battery material technologies. The work was carried out under the supervision of Professor Philippe Ouzilleau, with contributions from professors Changhong Cao, Raynald Gauvin, Jinhyuk Lee, Sidney Omelon and Sylvain Coulombe. Prof. Ouzilleau specializes in metallurgical engineering and materials science, and is recognized for his expertise in the processing of carbon-based materials and the development of industrial processes with a lower environmental footprint for the metallurgy, advanced materials and energy sectors.

Under the terms of the agreement, Nouveau Monde Graphite benefits from commercial exclusivity for any future use of this technology. The research project was initially funded through the Quebec government's Mining Research and Innovation Support Program (PARIDM), and subsequently through a grant from the Natural Sciences and Engineering Research Council of Canada (NSERC).

According to the company's estimates, replacing a pitch coating, the industry standard, with a bio-based coating could substantially reduce Scope 1 CO2e (carbon dioxide equivalent) emissions by 130 kilograms per tonne of coated spherical purified graphite (CSPG) produced. This estimate relates to direct emissions and does not, at this stage, constitute an assessment of the product's full life cycle carbon footprint. The team is continuing its work to further reduce Scope 2 and Scope 3 CO2e emissions. Electrochemical testing was conducted in accordance with the protocol of a leading cell manufacturer, and the company's results demonstrate equivalent performance in terms of capacity, first-cycle efficiency and fast charging. Given the promising results achieved at the laboratory scale, the next steps toward the industrialization of this innovative technology, for which a patent application has been filed, will include comparative long-term cycling tests, the evaluation of new material types, and, ultimately, a validation campaign on industrial-scale equipment.

This collaboration with McGill University illustrates the role applied research and process innovation play in NMG's strategy to develop one of the first fully integrated natural graphite production platforms in the G7. As construction at the Matawinie mine is under way and a final investment decision for the 13,000-tonne-per-year Becancour battery material plant is targeted in the upcoming months, the company pursues the advancement of its integrated value chain while continuously enhancing the performance, sustainability and competitiveness of its future products.

This innovation in anode material coating will be among the topics covered by the Nouveau team at The Battery Show North America in Detroit next week (booth 4638). During the event, the company will meet with industry leaders, customers and partners to discuss the progress of its vertically integrated strategy, as well as its product portfolio, its R&D (research and development) projects, and opportunities to strengthen the North American supply chain through new strategic collaborations.

About Nouveau Monde Graphite Inc.

Nouveau Monde Graphite is an integrated company developing responsible mining and advanced processing operations to supply the global economy with carbon-neutral advanced graphite materials. The company is developing in Quebec, Canada, a fully integrated ore-to-processed-graphite value chain to serve tomorrow's industries in energy, advanced technology and manufacturing. With recognized ESG (environmental, social and governance) standards and structuring partnerships with major customers, Nouveau Monde is set to become a strategic supplier of advanced materials to leading specialized manufacturers while promoting sustainability, innovation and supply chain traceability.

We seek Safe Harbor.