NextSource Materials Inc. announced the results of a Feasibility Study (the FS) for a mine expansion of its 100%-owned Molo Graphite Mine in southern Madagascar. The FS considers an expansion to the Molo Graphite Mine's current Phase 1 production capacity of 17,000 tonnes per annum ("tpa") through the construction of an additional and standalone processing plant that increases the steady-state production rate to 150,000 tpa of SuperFlak graphite concentrate over a 25-year life of mine ("LOM"). The FS projects a capital cost of USD161.7 million resulting in a pre-tax NPV using an 8% discount rate of USD424.1 million and a pre-tax IRR of 31.1%.

The FS assumes the additional processing plant will be built adjacent to the current Phase 1 processing plant, currently in the ramp-up stage of production. CSPG is the final form of natural graphite required by OEMs to manufacture lithium-ion batteries for electric vehicles. Ongoing discussions with numerous OEMs and battery anode offtake partners indicate market demand for CSPG over the long-term is expected to experience significant growth and could support additional expansions of the Molo's mine processing capacity.

The Company has not yet made a construction decision in respect to the expansion and will discuss the FS results with its strategic partners to determine the optimal timing and assess the funding options that are available with respect to this potential mine expansion. Results SUMMARY: The following summary highlights the financial metrics provided in the FS. All capital and operating costs estimates are prepared in line with a Class 3 estimate as per the American Association of Cost Engineers classification and are accurate to +/- 15 to 25%.

The LOM average selling price of US$1,191/t of concentrate (Real) used in the FS is the volume weighted average sales price for the various flake sizes and grades of SuperFlake® graphite concentrate that are expected to be produced from the Molo Graphite Mine. Prices used are based on current market prices provided by UK-based, commodity price reporting agencies Benchmark Minerals Intelligence and Fastmarkets, who are recognized as leaders in providing independent and unbiased market research, pricing trends, and demand and supply analyses for the natural flake graphite market. Current market prices in real US dollar terms were used through to 2028 and flatlined from that point forward over the rest of the LOM.

A pricing premium for increased carbon grade was applied based on recent market trends for products exceeding 94% carbon. No other premiums were applied. The FS does not consider any potential for downstream value-added processing of the flake graphite concentrate such as conversion into SPG and CSPG, thermal expansion for use in foils, and other specialty graphite applications.