Further advancement of its business plan, strong market conditions and continued confidence and support from The Pallinghurst Group, its largest investor, have enabled Nouveau Monde Graphite Inc. (TSX-V: NOU) (OTCQX: NMGRF) (Frankfurt: NM9) to secure $16.5M from the exercise of previously-issued warrants. As of today, management is of the view that the Company is sufficiently funded for this year’s further development of its mining and value-added projects with a cash position as of February 1 of $34M. In addition, the Company expects to raise an incremental amount of up to $5.75M in February, assuming the successful closing of the private placement announced on January 13, 2021.

Proceeds were received from the exercise of warrants originally issued to Pallinghurst Graphite International Limited. Pallinghurst transferred those warrants to its shareholders, on January 29, 2021, with the objective to offer the direct opportunity to invest further in Nouveau Monde through the exercise of those warrants – and at the same time strengthening the Company’s balance sheet. As of today, the Company has received signed exercise forms from all of the transferee warrant-holders, which include Messrs. Arne H. Frandsen and Chris Shepherd, who are directors of the Company.

Arne H. Frandsen, Chairman of Nouveau Monde and Managing Partner of The Pallinghurst Group, commented: “Today’s $16.5M investment is the fifth equity investment Pallinghurst and its investors have made into Nouveau Monde since 2019. It should be seen as a manifestation of our firm commitment and trust in the Company, its business plan, management team as well as Québec as the logical place for the North American battery materials hub.”

Eric Desaulniers, President and Chief Executive Officer of Nouveau Monde, added: “Pallinghurst’s confidence in our value proposition and unwavering support for our business strategy are testaments to the alignment of our respective visions for a cleaner future powered by sustainably and ethically sourced minerals to be used in EVs and renewable energy storage. Today’s equity investment will support the funding required, as we move forward on a number of deliverables in the coming months. This includes the ramp up of our engineering and preparation for the Matawinie mine construction as well as the initial production of purified graphite-based materials at our Bécancour facility. With a strengthened balance sheet, we can continue to support the disciplined execution of our activities and strategy.”

Today’s announcement covers the exercise of 75,000,000 warrants, with each such warrant being exercisable for one common share of the Company, for net proceeds of $16,500,000. On January 22, 2021, Pallinghurst filed a Form 45-102F1 disclosing its intention to distribute the warrants to its shareholders on a pro-rata basis. Following the transfer of the warrants, Pallinghurst, as of today, beneficially owns 55,495,667 common shares of the Company representing 15.2% of the issued and outstanding common shares, and holds a $15-million convertible bond. Assuming the conversion in whole of the convertible bond, Pallinghurst would own 130,495,667 common shares representing 29.7% of the issued and outstanding common shares.

The proceeds of the warrant exercise will be used for the Bécancour value added graphite project development, the Matawinie mine and concentrator detailed engineering, and corporate general and administrative expenses.

About Nouveau Monde

Nouveau Monde is striving to become a key element in the sustainable energy revolution. The Company is working towards developing a fully-integrated source of green battery anode material in Québec, Canada. Targeting full-scale commercial operations by 2023, the Company is developing advanced carbon-neutral graphite-based material solutions for the growing lithium-ion and fuel cell markets. With low-cost operations and high ESG standards, Nouveau Monde aspires to become a strategic supplier to the world’s leading battery and auto manufacturers, ensuring robust and reliable advanced material, while guaranteeing supply chain traceability.