Slide 1: Molo Graphite Project
Molo Graphite Project !"#"quot;%&"' ()*+!"#$ ,-./*01+231)+++++++++++++++++++++++4-5,)31*6 TSX : NEXT OTCQB : NSRCF
Slide 2: Qualified person & forward looking statements
Qualified person & forward looking statements !-6 &-534 %0)*-758 96$*.68 9-*:3;*<1 5<; &=> .? @*A1%.B-0* !51*-35C:8 3: 1)* DB5C3?3*; ,*-:.< 2). -*E3*2*; 5<; 5,,-.E*; 1)* 1*0)<305C 3<?.-F513.< ,-.E3;*; 3< 1)3: ,-*:*<1513.<6 %5?* G5-7.B-H ()3: ,-*:*<1513.< 0.<153<: :151*F*<1: 1)51 F5I 0.<:131B1* J?.-2
Slide 3: Flake graphite market = ~650,000 tonnes per annum
Flake graphite market = ~650,000 TONNES PER ANNUM (Tpa) )(0)&:'1)*(+ %&''()*(+ ,)&-.*'(/01*2+ !" !$ !# 3;945444/'67 3"#45444/'67 3895444/'67 Majority of demand tied Experiencing largest growth Fastest growing segment to traditional steel market !"#$%&'()"*+,--.(/&0%123$+ 3 3 © NextSource Materials I
Slide 4: The graphite market is opaque
The graphite market is opaque. Lots of misinformation. Need to do your homework. 4 © NextSource Materials Inc.
Slide 5: We have done our homework
We have done our homework Management has had extensive face-to-face interaction with global traders and end-buyers in order to fully understand the graphite market. Refmin China Ltd. Panasonic Posco Chemtech Imerys SGL Carbon USA Hans Capital Hitachi Chem Seah Holdings Sibelco Superior Graphite Guan
Slide 6: Molo flake graphite project in Fotadrevo, Madagascar
Molo flake graphite project in Fotadrevo, Madagascar Mozambique Madagascar NO STRANGER TO MINING. $+8 Billion Ambatovy Nickel & Cobalt Project (Sherritt, Sumitomo, KORES) Shipping Ports: ! Tulear & Soalara ! Rio Tinto $1 Billion Mineral MOLO Sands Project ! Graphite Project Fort Dauphin Shipping Por
Slide 7: Ideally located to key demand markets
Ideally located to key demand markets !"#:1(;"amp;3 56 <3=30 71,03 809,3 MOLO IS LOCATED WITHIN THE HUB OF TOP PURCHASING AND PROCESSING MARKETS FOR FLAKE GRAPHITE. >"-"(?&="*,:( >393@3*%3$ 7 7 © NextSource Materials Inc.
Slide 8: Molo graphite project
Molo graphite project We are seeking US$24M to enter production within 1 year. Construction-ready with first mover advantage. T Feasibility stage project with positive economics T 40-year Mining & Environmental permits in place for a large area T Detailed Engineering and Front End Engineering and De
Slide 9: A very large resource
A very large resource 100.37 million tonnes (MT) measured & indicated Combined Measured & Indicated resource @ 6.3% C, above a 2% C cut-off 40.91 MT inferred Inferred resource @ 5.8% C, above a 2% C cut-off RESOURCES; above a 2% C cut-off RESERVES; above a 4.5% C cut-off T 23.62 Mt) Measured @ 6.32%
Slide 10: Low cost and easy extraction
Low cost and easy extraction T Graphite immediately at surface T Negligible waste-to-ore ratio (0.53:1) T Low population density T Low environmental impact 10 10 © NextSource Materials Inc.
Slide 11: Low environmental impact
Low environmental impact All technical studies were undertaken/completed in accordance and partnership with: T Equator Principles T World Bank & IFC requirements T South African and Malagasy environmental consultancy firms, T GCS Water and Environment Ltd. T AGETIPA (set up by World Bank) ! !"#$%&'(
Slide 12: Extensive community involvement & acceptance
Extensive community involvement & acceptance Engaged in a multitude of community outreach programs. T Training on how to improve agricultural yields T Distribution and training of agricultural equipment selected by communities T Training on how to effectively use organic fertilizers T Establishment
Slide 13: Phased buildout plan
Phased buildout plan A phased buildout using a modular design Phase 3 allows for easy expansion as market demand requires. T Expansion T Supply refractory industry Phase 2 T Supply expandable industry T Supply Li-ion industry T 45,000 tpa total production T Value-add processing T Adds 2 additional m
Slide 14: Lowest CAPEX of any competing project
Lowest CAPEX of any competing project US %24M is the total CAPEX, including 3 months working capital, for Phase 1 (17,000 tpa) US %60M is the total CAPEX, including 3 months working capital, for Phase 1 & 2 (45,000 tpa) Source: 2019 Molo FS 14 14 © NextSource Materials Inc.
Slide 15: Competitive with lowest quartile operating costs
Competitive with lowest quartile operating costs Phase 1 OPEX: $566/T FOB Mada Port Phase 2 OPEX: $515/T FOB Mada Port T Lowest quartile OPEX T Competitive with Chinese pricing F"$:(9G51"-3 3:(E"$:(?3#=1,0 15 15 © NextSource Materials Inc.
Slide 16: All-modular build approach
All-modular build approach &<=>7?/@A6@ABAC=7=DEC/EF/=GA/ 7??HIEJ>?7@/KE?E/IDCAL MHIEC=G/N>D?J/=DIA T !"#$%&'"()*+$,*+-./0),+1/*2&$.+-&$,#+"/&2#'/,"+3$%.'4$#/.+42..),#&5+"2--&5',6+1$7/.+89:+3'.1" !"#$%&'(()*+,(-"."(/! T !,#'.)+-&$,#+'"+;<+1/*2&)"+ T 8/,"#.24#)*+/33="(/.)+>?+1/,#("@+A $#+4/,#.$4#)*+-.
Slide 17: Feasibility Study Results - Phases 1 & 2
Feasibility Study Results - Phases 1 & 2 T Assumes expansion from 17,000 T/yr to 45,000 T/yr in third year of production T 30 year mine life T Assumes NO gearing Pre-tax Post-tax NPV: 8% discount US$237.1M US$184.3M IRR: 43.1% 36.2% Payback: 3.4 years 3.8 years Year 1-3 Year 3 Onward Annual Producti
Slide 18: Commissioning within 10 months from CAPEX financing
Commissioning within 10 months from CAPEX financing Phase 1 timeline* ABAB ABAC H%: ?&% <30 >3$ >3I <#-I !&=: J"K +D=A/-@A6/O/ +A<=E@7?/-A@ID==DCR :76AP/)7DBA :&-(U/0DC7C<DCR +D=A/-@A67@7=DEC #Q/QABDRC/:EI6?A=DEC QABDRC QA=7D?AJ/07N@D<7=DEC/QABDRC -@E<>@AIAC=/O/07N@D<7=DEC &BBAIN?S &BBAIN?S 07<=E@S/
Slide 19: Molo has been verified for all demand markets
Molo has been verified for all demand markets T 98% carbon (C) purity achieved with simple flotation T Excellent thermal expansion (>500x) for graphite foil applications T Easily upgraded to 99.97% C (battery grade) T Verified by end users for ALL top demand markets for graphite 19 19 © NextSource M
Slide 20: Graphite pricing explained
VEIN 99% JUMBO FLAKE (90-99%) Graphite pricing explained 98% 32 97% 50 96% 95% LARGE FLAKE 94% LM"(N3%:"$*(3:(=-3I'(N-3+&(+*V( 309(N-3+&(-T)*'W O%3$P"0(%"0:&0:Q 80 They can move together Two main parameters determine price: mesh size and carbon content. FLAKE or independent of one another. (85-97%)
Slide 21: A very high-quality concentrate
A very high-quality concentrate T G;+#/,,)"+/3+3&$K)+6.$-('#)+-./*24)*+',+32&&="4amp;)+-'&/#+-&$,# T E&1/"#+<LM+'"+-.)1'21+&$.6)+>NOL1)"(@+I+721%/+>NPO1)"(@+3&$K) T QRM8=QOM8+$4(')0)*+B'#(+"'1-&)+3&/#$#'/, QDB=@DN>=DEC Grade ;8L;X ?7@RAYZ>INE/F?7[A Mesh Size % Distribution % Carbon (t) +48 (jumbo flak
Slide 22: Off-Takes in place for Phase 1 and Phase 2
Off-Takes in place for Phase 1 and Phase 2 1) Primary graphite supplier to Japan’s #1 EV anode producer Terms T 2,000 tonnes Phase 1 T +18,000 in Phase 2 T 10-year period T FOB China pricing (floating) T FOB Madagascar port delivery 2) Finalizing offtake with major European steel maker and trader Te
Slide 23: Vertical integration strategy
Vertical integration strategy NEWS RELEASE – Toronto, April 9, 2020 NextSource Materials Signs Letter of Intent with Japanese Offtake Partner and Prominent Graphite Anode OEM Processor to Collaborate on Battery Anode Plant AR 23 © NextSource Materials Inc.
Slide 24: Lithium ion battery construction
Lithium ion battery construction !"#$%&'((5-&%:quot;0,%(7"2="0&0:(J&M*S(T2&$,%3050&$@I L&%10"-"@,&* 24 24 © NextSource Materials Inc.
Slide 25: Graphite leading the demand for battery minerals
Graphite leading the demand for battery minerals 25 25 © NextSource Materials Inc.
Slide 26: Value-add steps in natural graphite processing
Value-add steps in natural graphite processing T 100% of all anode material is processed in China, creating a supply security “choke point” T USA imports 100% of all graphite feedstock and anode material Coating Coated SG 4X 8]X Purification SG Spherical Purified \ Graphite 4X "44X Spheroidization D
Slide 27: Battery anode facility collaboration & plan
Battery anode facility collaboration & plan T 3-way collaboration on construction and operation of battery anode plant to produce spheronized and purified graphite (SG) for OEMs with; T Japanese offtake partner who supplies all Japanese OEMs (except Nissan) T Leading Chinese-based graphite SG proces
Slide 28: Partnered with heavy hitters in OEM anode processing & sales
Partnered with heavy hitters in OEM anode processing & sales PARTNER !U@=+%>M'&= >=!+%"V=% :;<=> ?:78@8AB "@>#=+W%$X 9'>&=%%U@$+U9 PARTNER 28 28 © NextSource Materials Inc.
Slide 29: Project timeline with funding partners in anode plan
Project timeline* with funding partners in anode plan Phase 1 Phase 2 US $25m CAPEX +US $43.5m CAPEX 17,000 tpa +28,000 tpa Verification of product for refractory and LiB markets ABAB ABAC ABAA ABAR ABA4 SPG Plant +US $20m CAPEX *Timeline is subject to change and entirely 20,000 tpa of SPG based on
Slide 30: NextSource also 100% owns Green Giant vanadium deposit
NextSource also 100% owns Green Giant vanadium deposit One of the largest delineated vanadium deposits in the world T Separate from graphite resource T Sedimentary deposit (i.e. NO magnetite) T At surface T Expandable as delineated over 50km trend Vanadium flow batteries competitive for grid-scale e
Slide 31: Strong mine operations team with extensive African experience
Strong mine operations team with extensive African experience :@7DR/+<GA@N7 1?D`A@/-A=A@B Famp;*,9&0:(309(71,&N(5Y&%#:,K&(HNN,%&$((FUV&"U !$U(7"0*#-:30:.(Fquot;%&**(50@,0&&$,0@((F$50@ T ?,*%"K&9(P":1(:1&(@$3=1,:&(309(K3039,#2(9&="*,:*(3*(N"$2&$( T Z&39(=quot;%&**(&0@,0&&$(3:(!V!(>,0&$3-*(730393(O[3+&N,&-9
Slide 32: The only project with graphite.
The only project with graphite. RA