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  • Northern Graphite Corporation (NGC) has signed binding P&S agreements to acquire assets from Imerys Group and its joint venture partner for approximately US$40 million
  • Northern Graphite intends to acquire the producing Lac des Iles graphite mine in Quebec, the Okanjande graphite deposit, and Okorusu processing plant in Namibia
  • Northern Graphite will raise US$55 million in financing to complete the transaction which includes payment of the purchase price, capital improvements, reclamation bonding, working capital and transaction expenses
  • Northern Graphite is acquiring a graphite concentrate production capacity which will make it the third largestnatural graphite producing company outside of China
  • Third party sources have verified that all deposits have high quality flake graphite that is suitable for all battery and industrial applications which is not the case with all deposits
  • Northern Graphite Corporation (NGC) is unchanged trading at $0.83 per share as of 3:50 p.m. EST

Northern Graphite Corporation (NGC) has signed binding P&S agreements to acquire assets from Imerys Group and its joint venture partner.

Northern Graphite intends to acquire the producing Lac des Iles graphite mine in Quebec, the Okanjande graphite deposit, and Okorusu processing plant in Namibia for approximately US$40 million.

Northern Graphite will raise US$55 million in financing to complete the transaction which includes payment of the purchase price, capital improvements, reclamation bonding, working capital and transaction expenses.

Northern Graphite has signed a term sheet with Sprott Resource Streaming and Royalty Corp. for US$40 million in debt, royalty, stream financing and an engagement letter with Sprott Capital Partners LP to act as lead agent for an equity offering of up to US$15 million.

The Sprott group will join in the equity offering with an investment of US$3 million and Imerys will receive US$3 million in equity, on the same terms as the offering, as partial payment of the purchase price.

Northern Graphite is acquiring a graphite concentrate production capacity which will make it the third-largest natural graphite producing company outside of China

The Namibian operation will be brought back online and enable Northern Graphite to expand its market share in North America and Europe by reducing dependence on Chinese supply.

The transaction provides a platform to finance and develop Northern Graphite’s Bissett Creek deposit.

The Lac des Iles, Bissett Creek and Okanjande deposits are all located close to infrastructure in politically stable countries with high ESG standards.

Third-party sources have verified that all deposits have high-quality flake graphite that is suitable for all battery and industrial applications which is not the case with all deposits.

Bissett Creek and Okanjande have substantial measured and indicated resources which provide the ability to significantly expand production to meet growing demand from the electric vehicle and battery markets.

Northern Graphite will acquire all the assets of the LDI operation and all the outstanding shares of Imerys Geckco Holdings Ltd. on a cash and debt-free basis.

The purchase price is approximately US$40 million and Northern Graphite will assume rehabilitation obligations for the eventual closure of LDI which have been estimated at US$6.6 million.

Northern Graphite Corporation (NGC) is unchanged trading at $0.83 per share as of 3:50 p.m. EST.

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