NextSource Materials Inc. announced the signing of a non-binding Memorandum of Understanding ("MoU") with South Korea's POSCO International ("POSCO") for strategic collaboration that could involve an equity investment into the Company as well as a long-term offtake agreement for spheronized and purified graphite ("SPG") and the Company's other graphite products. The MoU envisages the potential for a definitive offtake agreement for 30,000 tonnes per annum ("tpa") of SuperFlake®? graphite concentrate and 10,000 to 15,000 tpa of SPG over a ten year period, to be supplied to POSCO Future M, a POSCO Group subsidiary that is responsible for EV battery businesses and supplies all of South Korea's major battery cell manufacturers with finished cathode and anode materials.

Prior to executing a definitive agreement, certain customary technical and economic studies will need to be completed.