Northern Graphite Reports Second Quarter 2024 Results

• Strict cost control measures implemented to preserve working capital and strengthen balance sheet
• Higher production at Lac des Iles cornerstone mine will boost operating profit
• Near-record graphite sales thanks to push for new markets

Ottawa, Ontario–(Newsfile Corp. – August 29, 2024) – Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the “Company” or “Northern“) is pleased to provide operating overview and financial highlights for the three- and six-month periods ended June 30, 2024. The Company’s financial statements and management’s discussion and analysis for the period have been filed on SEDAR+ and posted on the Company’s website.

“In the second quarter, we took decisive actions to manage our cash position to alleviate pressure on our working capital and give us greater flexibility to pursue our growth catalysts, including strict measures to reduce overhead costs and the sale of inventory associated with the acquisition of Lac des Iles (“LDI”) mine in 2022, and these efforts are paying off,” Northern said. General Manager Hugues Jacquemin“At the same time, we increased our operating revenues by ramping up production at LDI and achieving near-record sales volumes to industrial customers for the third consecutive quarter, including sales into new geographies. However, the commodity and financial markets remain difficult and in the second quarter the Company was unable to meet all financial covenants for its senior secured loan and royalty financing, including making required interest and royalty payments. All defaults have been waived by the lender and royalty holder and discussions are ongoing to amend the terms of our senior secured loan and royalty financing. While the current environment is challenging, the long-term outlook for our strategy to sell into the EV battery sector remains strong and we continue to implement measures to enable the Company to weather the prevailing environment and see us through until the graphite markets recover.”