Nouveau Monde Graphite Inc. and General Motors Holdings LLC have agreed to sign a supply agreement upon closing of the Tranche 1 Investment, in which NMG will provide 18,000 tonnes per annum (?tpa?) of its expected Phase-2 active anode material output to GM upon reaching full production for an initial term of six years. In complement to the Supply Agreement, NMG and GM entered into a subscription agreement in which GM commits an aggregate USD 150 million equity investment in NMG, subject to certain closing conditions, to develop what is projected to be the first fully integrated natural graphite active anode material project of its kind in North America; a local, carbon-neutral, reliable, sizeable, and ESG-driven source of natural graphite for the electric vehicle (?EV?) and lithium-ion battery market. With a confirmed multiyear supply commitment from GM supplemented with the Tranche 1 Investment, NMG has now the means and technical parameters in hand to advance engineering of the Company?s Phase-2 Bécancour Battery Material Plant.

This plant is planned to be built within the same industrial park as GM and POSCO Future M?s Cathode Active Material processing facility, the CAD 600-million Ultium CAM plant currently in construction. The Supply Agreement provides for supply of a volume of 18,000 tpa, once NMG reaches full production, of active anode material by NMG to GM for an initial 6-year term from the commencement of the Company?s Phase-2 production. The sales will be based on an agreed upon price formula linked to future prevailing market prices as well as a pricing mechanism to satisfy project financing ratios and ensure stable procurement for GM.

The Supply Agreement is subject to conditions precedent which are standard for a project of this nature. The Supply Agreement contains standard termination rights for an agreement of this nature.