Northern Graphite Corporation announced it has completed a financing consisting of $1 million in secured debt and $2 million in royalty financing provided by funds managed by Sprott Resource Streaming and Royalty Corp. The financing was completed through amendments to the Company's senior secured credit agreement and royalty agreement entered into with Sprott in April 2022 in connection with the financing for the Company's acquisitions of the Lac des Iles graphite mine ("LDI") in Quebec and the Okanjande graphite mine in Namibia. Under the amendments to the senior secured credit agreement, the Company has obtained a senior secured loan from Sprott in the amount of $1 million, in addition to the $12 million senior secured loan previously made by Sprott to the Company in April 2022.

In addition, the Company has exercised options under the agreement to capitalize the cash interest payments due on the loan up until December 31, 2023 and add it to the principal amount of the loan, which will result in the principal amount of the loan being approximately $14.6 million after giving effect to the capitalization of the interest. The Company has paid an interest payment option fee to Sprott in the amount of $50,000 for the capitalization of interest up to June 30, 2023 and will pay Sprott an additional interest payment option fee for the capitalization of the interest up to December 31, 2023 in an amount equal to 10% of the accrued and unpaid interest due on such date for the period between June 30, 2023 and December 31, 2023. The principal amount of the loan bears interest at 9% plus the greater of an adjusted three-month term SOFR and 1% and matures on April 29, 2026.