Northern Graphite Corporation announce the completion of a Preliminary Economic Assessment ("PEA") for the restart of its Okanjande/Okorusu graphite operation in Namibia. The report, which will be filed on Sedar shortly, concludes that Northern can bring the project back into production by mid 2023 at an average production level of almost 31,000 tonnes per annum of graphite concentrate with a C1 production cost of USD 775/tonne. The capital required to initiate production is USD 15.1 million which includes the installation of a new, two-stage grinding circuit, additional regrind equipment in the flotation plant, and a new tailings storage facility.

The PEA indicates very robust project economics as reflected in Table 1, with a Post Tax IRR of 62%, a Post Tax NPV of USD 65 million, and a payback of under 2 years based on a 10 year project life and a weighted average graphite price of USD 1,500/tonne. The graphite price is based on a concentrate containing11% +50 mesh XL flake, 48% +80 mesh large flake, 24% +100 mesh medium flake and 16% +150 mesh small flake, and having an average carbon content of 96%. The level of accuracy for some of the key inputs are generally of a higher level than normally associated with a PEA as only "Measured and Indicated" resources are included and major capital and operating cost items such as large equipment prices and mining and trucking costs are based on fixed prices obtained in early June 2022.

Resource: The Okanjande deposit hosts a hard rock resource of 24,200,000t of ore with 1,287,000t of contained graphite in the measured and indicated categories and 7,200,000t of ore with 359,000t of contained graphite in the inferred category (@3.1%TGC cut-off grade and $1,200/t Graphite price). This presents the opportunity to build a large new processing plant at the mine site with the capability of producing 100,000-150,000tpy of graphite concentrate. This will significantly reduce operational costs due to the elimination of ore transport requirements and the introduction of economies of scale.

The Company plans to initiate a PEA on this development scenario in the coming months. Exploration: There is ample evidence of more resources in the region. These need to be quantified by exploration and drilling.

Processing: Investigate Rutile recovery from the graphite flotation tails and existing TSF facility. Taxes, Royalties and Other Interests: There are approximately USD 50 million in tax loss carry forwards relating to previous operations that could potentially be used to reduce taxable income. This issue requires further investigation by the Company's tax advisors.

Northern's Namibian operations consist of the Okanjande graphite deposit and the Okorusu processing plant located 70km away. Refurbishment of the Okorusu plant is well underway. The first 20 employees were engaged during June and have been active cleaning the site, stripping equipment, renovating offices and equipping the maintenance workshop.

CREO has been appointed as the EPCM contractor, detailed engineering for the new grinding circuits has begun, and long delivery equipment items ordered. Further administration personnel are scheduled to join during July.