NextSource Materials Provides Update on Mauritius Battery Anode Facility

TORONTO, September 28, 2023 - Nextsource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") announces an update to its plans to construct its first battery anode facility (BAF) in Mauritius.

In connection with the Mauritius BAF location, the Company advises that the lessor has not delivered the premises free from any occupant(s) or occupation pursuant to the terms of the long term lease agreement (the "Agreement") and accordingly the Company has therefore terminated the Agreement in accordance with the terms thereof.

The Company remains committed to building its first BAF plant in Mauritius and is in advanced discussions in connection with an alternative location in the vicinity of the international freeport of Port Louis. The Company has completed preliminary due diligence on the alternate location and expects it will reduce ground shipping costs, address stakeholder feedback, and improve the project's social and environmental standards. Like the original location, this alternative location has the capacity to house an initial production line of 3,600 tpa with space to expand capacity through the construction of additional production lines as demand increases. The Company expects the lease terms for the alternative location will be on similar commercial terms as the previous lease and will provide an update once a lease is executed.

The Company is assessing timing and costs related to construction and operation of the Mauritius BAF plant at the alternative site, as well as the economic impact of potential design improvements. The Company expects that the preliminary economic and technical study completed for the original location will continue to be valuable in completing a similar study at the alternative location, however no assurance can be given in this regard. Accordingly, the previously announced results of the Mauritius BAF report relating to project evaluation measures, including the construction costs, timing of construction, sales potential, operating cash flows, NPV, IRR and other metrics, may not be achieved and should not be relied upon. The Company will provide an update in respect of project evaluation measures for the alternate location once a new economic and technical report has been completed.

As part of the permitting process, the Company is progressing with front-end engineering and design and an environmental impact assessment (EIA). As required as part of the EIA permitting process, the Company held formal stakeholder consultations in connection with the original location and received valuable input from the community stakeholders. The Company will continue to consider stakeholders' feedback as it advances the project.

About NextSource Materials Inc.

Nextsource Materials Inc. is a battery materials development 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 projects globally, and the only one with SuperFlake® graphite. Phase 1 of the Molo mine is in the final stages of commissioning and approaching first production.

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

For further information about NextSource visit our website at www.nextsourcematerials.com or contact us a +1.416.364.4911 or email Brent Nykoliation, Executive Vice President at brent@nextsourcematerials.com or Craig Scherba, President & CEO at craig@nextsourcematerials.com.

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. 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", "expected" or "should" occur. Forward-looking statements include any statements regarding, among others, timing of construction and completion of the BAF in Mauritius and proposed timing and plans related to the alternative location, terms of the lease for the alternative location, expected benefits of the new location, expected production capacity of the Mauritius BAF, timing and completion of the BAF permitting, the economic results of the construction and potential expansion of the BAF (and timing thereof), as well as the Company's intent on becoming a fully integrated global supplier of critical battery and technology materials. These statements are based on current expectations, estimates and assumptions that involve a number of risks, including identifying an alternative location of the BAF Plant, the terms of the new lease arrangement for the alternative location or if a new lease for the alternative site will be entered into at all, financing related to the construction and operation of the BAFs, receipt of all necessary permits, currency fluctuations, demand for flake graphite which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur (including whether a lease will be entered into in connection with the new location or if such terms will be favorable to the Company) or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be required by applicable securities laws. 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.

SOURCE: Nextsource Materials Inc.