Northern Graphite Corporation announces that it has entered into an agreement with Innovation et Development Manicouagan ("IDM") at Baie-Comeau, Quebec to evaluate sites for the construction of a planned 200,000 tonnes per year ("tpy") battery anode material ("BAM") plant in the industrial port zone of Baie-Comeau. The plant would be one of the largest in the world and would convert graphite concentrate from the Company's mines, as well as other producers, into anode material to supply existing and planned lithium-ion battery manufacturing plants throughout North America. Building a low-cost, large-scale conversion facility is a key component of Northern's strategy to empower the electric vehicle industry by creating an end-to-end North American graphite supply chain from the mine to the battery.

Pursuant to the agreement, Northern has a 12-month period to evaluate several sites around Baie- Comeau to determine their technical and economic suitability for the proposed BAM plant. The sites range between 200,000 and 450,000m2 in size and have direct rail and port access as well as green hydroelectric power that would result in one of the lowest CO2 footprints in the industry. Quebec's industrial rate for large power customers is one of the most competitive in the world.

Baie-Comeau is located 400km from Quebec City in the Cote-Nord economic region and has direct rail and road access to the rest of North America as well as a deep water, all season port. It is eligible for Plan Nord incentives and other assistance is potentially available under programs offered by the Manicouagan region, the province of Quebec and the Canadian and US Governments. Construction of the proposed battery plant would be subject to identification and acquisition of an appropriate site, receipt of regulatory approvals and financing.