Nouveau Monde Graphite Inc. announced the initial closing of the previously announced transactions contemplated under the investment agreement dated May 15, 2022 between NMG and Mason Graphite Inc., with a view towards the development and operation of Mason Graphite's Lac Guéret property, based in Québec, Canada. Pursuant to the Investment Agreement, NMG has entered into an option and joint venture agreement with Mason Graphite, pursuant to which the parties will collaborate to advance the Property, with a view to form a joint venture, and pursuant to which Mason Graphite will grant an option to NMG to acquire a 51% interest in the Property and other related assets (the “Option”) to be exercisable by NMG, the whole subject to the conditions set forth in the Option and JV Agreement. The entering into of the Option and JV Agreement, the granting of the Option and the formation of the Joint Venture, among other things, have been approved by 99.0% of Mason Graphite's common shares represented in person (or virtually) or by proxy at the special meeting of shareholders of Mason Graphite held on July 14, 2022.

Concurrently with the execution of the Option and JV Agreement, NMG and Mason Graphite have completed the private placement of 5.0 million common shares of Mason Graphite (the “Initial Shares”) to NMG at a price of $0.50 per Initial Share for gross proceeds to Mason Graphite of $2.5 million. Mason Graphite intends to use the net proceeds from the sale of the Initial Shares to fund agreed expenses on the Property pursuant to the Option and JV Agreement. The Initial Shares will be subject to a four-month hold period pursuant to applicable securities laws.