Nextsource Materials performs binding purchase agreement with Mitsubishi Chemical Corporation to deliver superflake graphite ano material for the North -American EV market

Nextsource Materials Inc. (TSX: Next) (OTCQB: NSRCF) (Nextsource or the company) and Mitsubishi Chemical Corporation (MCC), the largest chemical company in Japan and a leading supplier of Anode Active Material (AAM) to original manufacturers of Automotive Equipment (OEMs), have concluded a binding, multi -year affut agreement (the purchase agreement). According to the conditions of the purchase agreement, Nextsource and MCC are a partner to supply AAM to a large OEM for the North -American EV market. Nextsource will produce intermediate AAM and deliver to the Japanese factory of MCC, where MCC will produce the last AAM for the production facilities of the EV battery cells of OEM in Northern America.

Highlights

• Multi-year-old offensive agreement signed by Mitsubishi Chemical Corporation for delivery of c. 9,000 tons per year (TPA) from Anode Active Material
• Collaborate with Mitsubishi Chemical Corporation to deliver large OEM -Fehoe -Oem -Anode -Active Material for the North -Marician electric vehicle (EV) market
• Accelerates the development of the battery anodal facility of Nextsource in the Middle East
• Significant milestone for achieving vertical integration by 2027

This purchase agreement is an important milestone for Nextsource in its strategy to become one of the few vertically integrated graphite producers outside of China. The company now gives priority to the development of a large-scale battery anode facility (BAF) in the Middle East to meet the volume capacities required for MCC and has identified various potential locations in the United Arab Emirates (VAE). These locations offer streamlined permit processes, robust infrastructure and strategic proximity of other OEMs, so that the company can speed up its timeline and meet the growing demand for high -quality graphite ancient material.

Hanré Rossouw, president and CEO of Nextsource, explained,

“We are delighted to have entered into a partnership with Mitsubishi Chemical Corporation through a binding delivery agreement for the production of active anodia material in the Middle East, so that high -quality graphite input is made of high -quality use. We build a resilient and scalable solution that supports global electrification efforts.”

Due to the phased development of his BAFs, Nextsource focuses a considerably upstream company with added value capable of large -scale production of coated, speronized and purified graphite (CSPG). These facilities will serve as a safe, transparent and fully traceable source of delivery for battery and OEM customers, fully disconnected from existing Asian supply chains, and a critical alternative to American government-based supply chains. In July 2025, the US imposed a significant 160% total rate in Anode-Grade graphite input from China, a 93.5% anti-dumping measures.

More than 95% of the anode (negative) side of EV batteries are made of graphite, making it the most critical raw material of all battery metals (Benchmark Mineral Intelligence, July 2025). At the same time, Nextsource started preparations to expand its molo mining activities to ensure sufficient and safe graphite entry facility to support the purchase agreement with MCC.

Today’s announcement also supports the involvement of Nextsource in strategic financing partners, where it is in advanced discussions with regard to assistance in financing both the large-scale BAF and Molo expansion.

Quotation agreement conditions

The purchase agreement indicates Nextsource as the only supplier of C. 9,000 TPA from intermediate AAM to MCC for a multi -year term from the start of the company’s production of the company.

This agreement is further supported by a rigorous qualification process. Due to close technical collaboration between Nextsource and MCC to supply AAM of high-quality Superflake® Graphite concentrate, the qualification process is completed in 2026 by the installation of BAF processing equipment, of which about half of which has already been purchased and awaiting installation. SuperFlake® Anode Active Material will be processed by MCC in Japan and will be delivered to the cell production facility of the OEM customer in North America, with full slope from 2027.

The price formula that has been negotiated with MCC is based on an agreed price formula that comprises both a fixed and variable price component that underlies the economy of the project and confirms the capacity for the offtaker.

The purchase agreement is subject to conditions precedent and contains standard termination rights, which are common for a purchase agreement of this nature.

Fighting capacity requirements support the growth strategy of Nextsource

Through close technical collaboration, NextTsource qualifying, using Superflake® Graphite from Molo Phase 1 as a raw material, is provided to and evaluated by MCC for the OEM battery manufacturer, which confirms compliance with the specific anodal quality and performance requirements.

The company has started preparing for an expansion of Molo Phase 2 of the branch scale, which is expected to benefit from larger economies of scale, while they continue to qualify its graphite products and maintain existing important customers via Phase 1 campaign production.

The completion of the technical and economic studies for both mine and a BAF in the VAE will inform the final investment decisions, including capital requirements and detailed financing plans. The significant potential of an extensive Molo phase 2 and large-scale BAF in the Middle East offer a strong basis for growth by concluding further collection agreements for Superflake® AAM.

About Mitsubishi Chemical Corporation

Mitsubishi Chemical Corporation is a subsidiary of 100%owned by Mitsubishi Chemical Group Corporation. Mitsubishi Chemical Group wants to be a “green specialty company” that is committed to solving social problems and delivering impressive results to customers with the power of materials, under the aim that “we lead with innovative solutions to reach Kaiteki, the welfare of people and the planet.” Mitsubishi Chemical Group Corporation is on the Tokyo Stock Exchange Prime Market (code: 4188).

For more information, go to the company’s website: https://www.mcgc.com/english/

About Nextsource Materials Inc.

Nextsource Materials Inc. is a development company for battery materials based in Toronto, Canada, which intends to become a vertically integrated global supplier of battery materials through the mineral and added processing of graphite and other minerals.

The Molo Graphite project of the Madagascar company is one of the largest well-known and highest quality graphite sources worldwide, and the only one with Superflake® Graphite. The molo -my production has started production, with phase 1 operations that are currently being optimized.

The company also develops a significant downstream graphite with added value of graphite by the staged roll-out of battery anodal facilities that are capable of a large-scale production of coated, sferonized and purified graphite for direct delivery to battery and automobile clients, in an existing and tra-purply-to-back-up way.

Nextsource Materials is mentioned on the Toronto Stock Exchange (TSX) under the “Next” symbol and on the OTCQB under the “NSRCF” symbol.

For more information about Nextsource, go to our website nextsourcematerials.com

Investors can contact: Brent Nykoliation, Executive Vice President +1.416.364.4911 Brent@nextsourcematerials.com

Warning note

This press release contains statements that can form “future -oriented information” or “future -oriented statements” in the sense of applicable Canadian and American securities legislation. Readers are warned not to give unnecessary dependence on future -oriented information or statements. Forward -looking statements and information are often characterized by words such as “Plan”, “expected”, “project”, “intense”, “faith”, “anticipation”, “estimate”, “potential”, “possible” and other similar words, or statements that certain events or conditions “,”, “,”, or “, or”, or “, or”, or “, or”, “,”, “,”, “,”, “,”, “,”, “,”, “,”, “,”, “,”, “,”, “, Timing of commissioning and reaching the name capacity, including the processing factory, process improvements and mining plant adjustments, and production estimates, and timing thereof, the rollout of battery anxiety facilities, and the performance of offtake agreements and the conditions of an off-making Estimates and assumptions that cause a number of risks, which means that the actual results can vary and in some cases equipment differences and described in the future -oriented statements in this press release. covered on the date of this press release and the company has not taken an obligation to update publicly or to revise one of the future -oriented statements, either because of new information, future events or otherwise, it can be required by the applicable securities laws although the future statements in this press release do not have the effect of this. These are explicitly qualified by this warning statement with the applicable declaration of securities in their entirety -oriented statements.

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