Northern Graphite Announces 2025 Year-End Results

• Secures Government Financing to Support Lac des Iles pit extension

• Restructures Senior Secured Debt, Strengthens Balance Sheet

• Announces Joint Venture to develop Saudi Battery Anode Material facility

Ottawa, Ontario--(Newsfile Corp. - May 1, 2026) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") announces that its Audited Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2025 have been filed on SEDAR+ and posted to the Company's website. The Company is pleased to provide the following operational and financial summary.

"While the Company's financial and operating performance continued to be negatively affected by a number of maintenance shutdowns of our Lac des Iles ("LDI") mine and processing plant, Northern has reached a series of important inflection points over the past year that have materially reshaped the trajectory of the Company," said Chief Executive Officer Hugues Jacquemin. "At Lac des Iles, we secured government funding to extend the life of the mine and are now preparing for a restart that will position us to meet growing demand with higher and more reliable production. At the same time, we advanced our plans to restart Okanjande as a future source of feedstock for our downstream strategy, which was significantly accelerated subsequent to year end with our agreement to develop a Battery Anode Material facility in Yanbu. Equally important, we have subsequently strengthened our balance sheet, restructuring our senior secured debt, stream and royalty financing arrangements with Sprott Streaming, removing a significant overhang and aligning our capital structure with our development timeline. We are now in a position to move from planning to execution as we build a fully integrated, mine-to-battery business capable of supplying critical materials to global markets."

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Operational Highlights: Driving toward Execution

• In 2025, Northern secured a $6.225 million, interest-free Federal loan from the Canadian government to cover 75% of the costs of a pit extension at Lac des Iles that has the potential to add eight more years of life to North America's only producing graphite mine. Subsequent to year end, the financing agreement was modified to include 90% of eligible expenses;
• In the fourth quarter, after completing overburden stripping, the Company temporarily placed the mine and plant on care and maintenance to accelerate development work and prepare for mining to resume by the end of June;
• After negotiating higher pricing in January of last year and as customers continued to reward secure suppliers amid geopolitical uncertainties, the Company experienced strong demand for its graphite flake concentrate throughout 2025;
• Concentrate production fell to 5,938 tonnes in 2025, compared to 11,697 tonnes in the prior year period due to startup issues following a maintenance shutdown at the end of 2024, ore quantity issues due to the mine restart, weather conditions and high strip ratios;
• Northern advanced its Mine-to-Market Strategy in 2025, announcing key R&D partnerships with Italy's Alkeemia and RAIN Carbon Canada in the fourth quarter. Subsequent to year end, the Company announcing a landmark agreement with the Obeikan Investment Group to develop a US$200 million Battery Anode Material ("BAM") facility in Yanbu Industrial City, Kingdom of Saudi Arabia. Separately, the Company's proposal to build a BAM facility in France using feedstock from our Okanjande mine in Namibia was awarded "Strategic Project" status under the European Union's Critical Raw Materials Act ("CRMA"), providing access to fast-tracked permitting and funding support;
• In June 2025, the Company entered into a number of intellectual property transactions related to its carbon material processing technology. The Company acquired the patents, trademarks and other intellectual property of the carbon material processing technology that it had previously licensed to develop, produce and sell high-performance carbon based materials. The Company then entered into an agreement to license its carbon material processing technology for synthetic carbon to an arm's length party for industrial applications;
• Northern is actively engaging with technology and original equipment manufacturing ("OEM") partners in both the US and Europe who want to collaborate with a quality supplier of graphite that has current production and the capacity to support future growth. Discussions are also being held with various Canadian government organizations at both the federal and provincial level to gain support to speed up the development of the battery anode supply chain, with a particular focus on Ontario and Québec;
• The Company announced changes in senior management in 2025 to better align strategy with growing demand for graphite in the battery sector, including the appointment of Maximilian Meier as Chief Operating Officer, Michael Grimm as Chief Commercial Officer and Moritz Hantel as Chief Product Officer. Separately, Niall Moore assumed the role of Chief Financial Officer on a fulltime basis.

Financial Highlights: Balance Sheet Restructuring(Stated in thousands of Canadian Dollars except for per-tonne amounts)

• Revenue and sales volumes decreased in the year, hampered by reduced inventory availability and production issues at both the mine and the mill. Total revenue fell 15% to $19.2 million and sales volumes decreased by 29% to 8,780 tonnes of graphite concentrate sold. The average realized sales price rose to $2,190 per tonne (US$1,567 per tonne), 20% above the year ended December 31, 2024, mainly due to price increases and a blend of sales that included a higher percentage of higher priced flake sizes than in the prior year;
• Cash costs of $1,861 (US$1,331) per tonne of graphite concentrate sold increased by 28% compared to costs in the year ended December 31, 2024 of $1,455 per tonne (US$1,041), primarily due to changes in the sales mix and higher operating costs that resulted in more higher cost inventory being sold in 2025;
• The loss from mine operations at LDI was $3.8 million for the year ended December 31, 2025 compared to $0.3 million for the prior year period. These amounts do not include impairment losses on inventory as discussed below;
• General and administrative expenses during the year ended December 31, 2025 were $9.1 million compared with $8.7 million in the prior period as higher legal and other professional expenditures were only partially offset by the impact of continuing strict overhead cost control measures and lower Namibian costs;
• IP license and other revenues were $5.8 million in the year ended December 31, 2025 (2024 - $1.5 million) reflecting the receipt of US$3.0 million in payments under the Company's new IP licensing agreement. Subsequent to year end a third payment of US$2.0 million was received;
• Finance costs decreased to $13.4 million in the year ended December 31, 2025 (2024 - $16.0 million) as a result of larger gains on a revaluation of the Company's royalty liability and senior debt due to an update of the LDI production plan and modifications to the anticipated timing of royalty and interest payments compared to 2024 (including a loss on extinguishment in 2024 of $4.4 million);
• Impairment losses of $1.4 million were incurred on stockpiled inventory and $0.7 million on finished goods inventory in the year ended December 31, 2025 due to identified inventory variances following a physical count of inventories and higher inventoried costs;
• A net loss of $21.3 million ($0.16 per share) was incurred in the year ended December 31, 2025 compared to a net loss of $38.8 million or $0.30 per share during the year ended December 31, 2024. The reduced loss was primarily due to foreign exchange gains on the Company's US dollar denominated financial instruments, first-time IP license revenue and significantly lower inventory impairment charges compared to the prior year period;
• As of December 31, 2025, the Company continued to report its senior secured loan ($28.5 million) and its royalty financing ($17.7 million) as current liabilities as a result of the lack of performance by the Company on the following covenants related to these instruments:
• Senior secured loan:
  • The payment of accrued interest of $7 million (US$5.1 million) on the semi-annual cash interest payment date as of December 31, 2025 (covering the period January 1, 2024 to December 31, 2025);
  • Maintaining, at all times, on a consolidated basis, positive working capital, and
  • Maintaining, at all times, on a consolidated basis, a minimum cash balance of US$0.75 million;
• Royalty financing:
  • The payment of royalty amounts for 2024 and 2025 totaling $5.8 million (US$4.2 million);
• Debt Agreement: As of April 30, 2026, all defaults have been waived by the lender effective December 31, 2025.
  • On April 29, 2026, the Company entered into a binding letter of agreement (the "Debt Agreement") to restructure its secured debt, stream and royalty financing arrangements with funds managed by Sprott Resource Streaming and Royalty Corp. (collectively, "Sprott Streaming"), which will significantly strengthen the Company's financial position. Under the terms of the Debt Agreement, all of the senior secured debt held by Sprott Streaming in the principal amount of approximately US$16.0 million, which matures on April 29, 2026, together with all accrued interest thereon which currently amounts to approximately US$6 million, will be satisfied through Northern issuing 12.5 million common shares to Sprott and an amendment to the Sprott streaming agreement in respect of the Company's Okanjande project to remove the current 350,000 tonnes of graphite concentrate cap on production and option to then convert the stream to a 1.0% royalty, such that the streaming agreement will now cover all future production from the Okanjande project;
• Cash and equivalents were $2.5 million as at December 31, 2025, compared to $0.4 million as of December 31, 2024. The net increase came primarily as a result of the first funds being received under the Company's IP licensing agreement and the implementation of strong working capital management measures during 2024 which continued into 2025, including optimizing accounts receivable and accounts payable balances;
  • Net cash used in investing activities of $4.9 million compared to $0.6 million in the year ended December 31,2024 as the Company continued to fund exploration and development work at LDI and equipment modernization to extend the life of the mine, as well as the purchase of intellectual property in connection with the Company's new IP licensing agreement; and
  • Net cash provided by financing activities of $4.8 million, compared to net cash used of $1 million in the year ended December 31, 2024, was mainly the result of $2.7 million in non-brokered private placements completed during the fourth quarter of the year, receipt of a repayable government contribution and a bank loan, offset by lease payments.

(1) The Company reports the non-IFRS financial measures of average realized sales price per tonne of graphite concentrate sold and cash costs per tonne of graphite concentrate sold to manage and evaluate its operating performance. See "Cautionary Note Regarding Non-IFRS Performance Measures" below.

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Northern is advancing toward its goal of becoming a vertically integrated, mine-to-market supplier to traditional downstream customers and to the emerging ‎‎market for battery anode material. The main catalysts of that strategy include growing graphite production from its cornerstone Lac des Iles asset, restarting its Okanjande mine in Namibia and developing downstream capacity to produce anode material for use in lithium-ion batteries and electric vehicles ("EVs") in North America, Europe and Saudi Arabia and to upgrade graphite mine concentrate into value added industrial products.

Graphite Markets Outlook2025 marked a year of accelerating structural change in global graphite markets, as Western governments moved beyond policy frameworks and into implementation to secure critical mineral supply chains. In Europe, the Critical Raw Materials Act is advancing efforts to ensure long-term access to strategic inputs, while in Canada and the United States, Northern's primary market, a combination of industrial policy, targeted investment and evolving trade measures continues to support the development of domestic battery material supply chains. Whereas during 2025 U.S. trade actions initially signaled a more aggressive stance toward addressing China's dominance in graphite processing, with preliminary countervailing and anti-dumping duties imposed on graphite active anode material ("AAM"), also known as BAM, subsequent to year end, the United States International Trade Commission determined that such imports had not materially injured the development of a domestic industry, resulting in the removal of these duties. While this outcome was a setback, it does not alter the broader direction of policy and the support from the U.S. government, which is currently reviewing whether to maintain or increase existing 301 tariffs on Chinese graphite and assessing whether graphite should be treated as a strategic material subject to tariffs, quotas, or other protections. Demand for high-quality graphite for non-battery applications is continuing to grow, particularly in North America and especially for large and jumbo flake graphite, after China curtailed mining capacity amid elevated inventories of anode material, effectively removing Chinese supply of these flake sizes from the market. The combination of these factors, coupled with market share gains, have increased demand for the Company's production. However, the Company has struggled to meet demand due to ongoing technical issues with the mine and plant. Northern anticipates this will improve with ongoing upgrades to the plant and the start of production from the pit extension in 2026. As it seeks to enhance market visibility and enable transparent, market-driven price discovery for its graphite portfolio, Northern has partnered with Metalshub, a leading digital platform provider for the metals and mining industry, to run online auctions of graphite flake from Lac des Iles when operations resume this year. Through Metalshub's trading platform, Northern plans to launch competitive bidding events for four natural flake graphite grades: 20x50 (jumbo), 50x80 (large), 80x150 (medium), and M100 (fines).

Battery MaterialsIn 2025, Northern advanced its ambition to become a fully integrated, mine-to-battery producer, with the objective of supplying graphite and battery anode material ("BAM") by 2028. Subsequent to year end, the Company signed a term sheet with Obeikan Investment Group to jointly develop and operate a large-scale BAM facility in Yanbu Industrial City, at the Red Sea side of The Kingdom of Saudi Arabia, representing a transformative step in Northern's evolution into a global battery materials producer. The proposed facility, expected to require approximately US$200 million in capital, will have an initial production capacity of 25,000 tonnes per year, scalable over time, and will be funded at the joint venture level, with Obeikan leading the arrangement of local debt financing. The project is expected to accelerate the restart of Northern's Okanjande mine in Namibia while establishing a presence in a strategically important industrial and logistics hub with direct access to key global markets in North America, Europe and Asia. Northern expects to complete a feasibility study in the coming months for the Yanbu facility, which is intended to serve as a blueprint for the Company's planned BAM facilities in Canada and France.

In Canada, Northern entered into a partnership with the BMI Group to evaluate the feasibility of establishing a BAM facility at a former paper mill site in Baie-Comeau. The brownfield site, being developed by BMI as the Norderra multimodal industrial hub, has the potential to be developed more quickly than a greenfield alternative, reducing time to market while supporting Quebec's and Canada's critical minerals strategy. BMI has subsequently become one of the Company's largest shareholders, participating in both tranches of a $2.2 million non-brokered private placement completed in the fourth quarter, the proceeds of which will be used to fund a feasibility study for the Baie-Comeau facility as well as for working capital and corporate expenses. In France, Northern's proposal to build a BAM facility to process graphite from Okanjande was designated a "Strategic Project" under the European Union Critical Raw Materials Act, facilitating access to fast-tracked permitting and funding support.

In parallel, Northern is strengthening its technical and commercial capabilities through targeted partnerships signed in the fourth quarter across the BAM value chain. These included a collaboration with Alkeemia S.p.A. to evaluate advanced graphite purification technology with the potential to reduce cost, complexity and environmental impact, and an R&D partnership with Rain Carbon Canada Inc., supported by Canadian and German government funding, to convert low-value graphite fines into high-performance battery anode material while improving overall process efficiency and sustainability. Subsequent to year-end, Northern and partners Rain Carbon Germany GmbH, H.C. Starck Tungsten GmbH and Friedrich Schiller University Jena launched a three-year research and development program funded largely by the German Federal Ministry for Economic Affairs and Energy to develop an environmentally friendly and secure graphite processing route for Europe's battery industry that combines high quality natural graphite and recycled graphite with advanced processing to enable a more sustainable anode active material that is independent of Chinese supply chains. Graphite based battery anode material is the largest component of lithium-ion batteries by weight and requires processing and upgrading graphite concentrate to exacting material specifications. Northern's integrated strategy is designed to address the lack of processing capacity outside of China by developing a secure, transparent and scalable supply chain of natural graphite anode material for global markets.

Mining OperationsNorthern is advancing its key growth catalyst of adding resources that will enable it to bring on quick, scalable, low capex production from its existing mine and development projects in time to supply growing demand amidst widescale global electrification and the EV revolution.

Lac des Iles Mine, Quebec In 2025, Northern advanced its strategy to extend the life of, and expand production at, its cornerstone Lac des Îles mine by securing $6.2 million in interest-free, repayable government funding to help finance a pit extension expected to support up to eight additional years of production at North America's only producing graphite mine. Subsequent to the announcement at the end of the second quarter, the Company immediately commenced work to prepare LDI for its next phase of operations, including completion of overburden stripping and the advancement of mill maintenance activities to support increased throughput upon restart. In November, the mine and mill were placed on temporary care and maintenance to accelerate critical maintenance and development work ahead of the planned 2026 pit expansion. Key initiatives have included the installation of a new flotation unit and major repairs to the ball mills to help guarantee plant availability. The Company expects to resume mining activities by the end of June, subject to receipt of required permits. Upon restart, Northern anticipates transitioning the LDI mill to a seven-days-per-week, 24 hours/day operation as it targets nameplate capacity of 25,000 tonnes per year, which is expected to reduce unit operating costs and improve margins.

The Lac des Iles pit extension is based on an updated mineral resource estimate completed in January 2024. Measured and Indicated Mineral Resources now total approximately 3.29 million tonnes ("Mt") at an average grade of 6.4% graphitic carbon ("Cg"), containing approximately 213,000 tonnes of Cg. Inferred Mineral Resources total approximately 1.43 Mt at an average grade of 7.4% Cg, containing approximately 106,000 tonnes of Cg. Northern believes that the Lac des Iles property has the potential to produce beyond the current pit extension and the Company is currently reviewing the results of a subsequent drilling program that began in November 2024 and focused on testing additional untested geophysical anomalies and delineating mineralization in an area first drilled in 2023.

Separately, Northern completed a flow-through private placement in March of 2026 for gross proceeds of $2 million and which will be used to complete a drill program on a number of targets around the mine or at its nearby Mousseau exploration project, with the objective of identifying potential new sources of mill feed. On April 2, 2025, Northern and Graphano Energy Ltd. announced an agreement to share technical knowledge and expertise to further the exploration and development of their respective properties in a more consolidated and efficient manner with increased opportunities for success.

Okanjande Mine, NamibiaNorthern is targeting a restart of its Okanjande mine in Namibia in 2027 as the Company prepares it to be able to supply graphite concentrate to the Company's planned Battery Anode Material facility in Yanbu, Kingdom of Saudi Arabia, which is forecast to begin commercial production in 2028. The joint venture agreement with Obeikan Investment Group includes a long-term offtake agreement for up to 50,000 tonnes per year of graphite concentrate from Okanjande and is expected to materially accelerate the restart and potential expansion of the mine. A preliminary economic assessment ("PEA") prepared in accordance with NI 43-101, and filed on SEDAR+ on August 28, 2023, contemplates production of approximately 31,000 tonnes per year over a ten-year mine life. The Company intends to prepare an updated technical report to evaluate the potential to increase production rates in line with anticipated demand from the Yanbu facility. Okanjande is well positioned to supply battery-grade graphite to Northern's planned BAM facilities, with maritime access to Asian, European and North American markets. The project represents a significant opportunity to increase the Company's graphite production at a competitive cost and with a shorter development timeline than many comparable projects. The Company continues to evaluate options to fund the project, which has been on care and maintenance since the third quarter of 2023, through the use of a royalty/stream/debt structure and equity contributed by a strategic partner without having to go to the market at current share prices. In April 2026, the Company retained a contractor to carry out the relocation of large mill components from the previous mill site at Okorusu to the Okanjande mine site. By relocating the plant, Northern expects to reduce operating costs by eliminating the need to transport mineralized material over long distances. The relocation also improves overall project sustainability, reduces greenhouse gas ("GHG") emissions, and significantly enhances the project's expansion potential.

Balance SheetSubsequent to year end, Northern announced that it has successfully restructured its secured debt, stream and royalty financing arrangements with funds managed by Sprott Streaming, significantly strengthening its balance sheet. Under the agreement, all of the senior secured debt held by Sprott Streaming in the principal amount of approximately US$16.0 million, together with all accrued interest, will be satisfied through Northern issuing 12.5 million common shares to Sprott Streaming – making it Northern's largest shareholder - and an amendment to the streaming agreement in respect of the Company's Okanjande project to remove the current 350,000 tonnes of graphite concentrate cap on production and option to then convert the stream to a 1.0% royalty, such that the streaming agreement will now cover all future production from the Okanjande project. This transaction reflects Sprott Streaming's continued support for the Company and aligns both parties around long-term value creation. In February of this year, federal government support for the LDI pit extension increased with an amendment to the financing agreement to increase the government contribution to 90% of eligible costs from 75%, with the higher rate applied retroactively to previously incurred eligible costs.

Closing Remarks"We have entered 2026 in a much stronger position than before, with a restructured balance sheet and a clear path to execute on our key growth catalysts," said Mr. Jacquemin. "In the coming months, we expect to restart Lac des Iles and restore production at higher and more reliable levels, while advancing our plans in Yanbu toward a final feasibility study and investment decision. At the same time, we are laying the groundwork in Namibia to restart Okanjande and establish it as a primary engine of future production growth. Taken together, these milestones position Northern to transition to its next stage of growth and into a fully integrated, mine-to-battery business capable of supplying critical materials to global markets."

About Northern GraphiteNorthern is a Canadian, TSX Venture Exchange listed company that is the only flake graphite producing company in North America. Northern is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Group, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on advancing plans to develop battery anode material plants in Saudi Arabia, Quebec and France.

Northern's graphite assets include the producing Lac des Iles mine in Quebec, where the Company is boosting output to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek graphite project in Ontario and the fully permitted Okanjande graphite mine in Namibia, which is currently on care and maintenance, and represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions.

Qualified PersonGregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "qualified person" as defined under NI 43-101 and has reviewed and approved the content of this news release.

For additional informationPlease visit the Company's website at www.northerngraphite.com/investors/presentation the Company's profile on www.sedarplus.ca our Social Channels listed below or contact the Company at (613) 271-2124.

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Cautionary Note Regarding Non-IFRS Performance MeasuresThis news release includes certain non-IFRS performance measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. The calculation and an explanation of these measures is provided in the Company's Management's Discussion and Analysis and such measures should be read in conjunction with the Company's Management's Discussion and Analysis and financial statements.

Cautionary Note Regarding Forward-Looking StatementsThis news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. 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", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, plans for extending the mine life and output at LDI, bringing the Company's Namibian operations back online, advancing plans for its Yanbu Battery Anode plant to a final investment decision, otherwise developing the capacity to manufacture value added products and raising the financing to complete any or all of these initiatives. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the inability to raise the required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements.

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. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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