Nouveau Monde and Traxys Group Ink 25,000 Tonne Flake Graphite Concentrate Offtake and Joint Marketing Agreement

SAINT-MICHEL-DES-SAINTS, Feb. 14, 2019 - Nouveau Monde Graphite ("Nouveau Monde" or "NMG") (TSX Venture Exchange: NOU) and the Traxys Group ("Traxys") are pleased to announce they have entered into an Offtake and Joint Marketing Agreement for flake graphite concentrate to be produced at Nouveau Monde’s Saint-Michel-des-Saints operation. Traxys is a global commodity trading and logistics company with operations in North and South America, Europe, Africa, the Far East and greater China and India.

Highlights:

• Binding Offtake and Joint Marketing Agreement signed with Traxys.
• For each of the first two years, Traxys will market, for customer product prequalification purposes, 200 tonnes of flake graphite concentrate (400 tonnes in total) from NMG’s currently operating Phase 1 Flake Graphite Demonstration Plant (the Demo Term).
• Thereafter, 25,000 tonnes of flake graphite product will be sold through Traxys by Nouveau Monde for each of the first 5 years of NMG’s commercial production (the Full-Scale Term).
• Traxys will have the exclusive right to market, distribute and resell the flake graphite products to Traxys’ customer base.

Offtake and Joint Marketing Agreement

"This Offtake and Joint Marketing Agreement represents a major milestone achievement for our company," said Eric Desaulniers, President and CEO of Nouveau Monde. "This agreement significantly de-risks our firm’s projected cash-flow schedule as well as our shareholders’ equity. Moreover, our partnership with Traxys, which possesses a readily available and extensive sales network of first-class clients for natural graphite products, allows Nouveau Monde to quickly access a sophisticated customer base with its quality products and build a solid reputation as a reliable supplier. The experience to be gained by NMG through this arrangement can be leveraged into other markets and provide valuable proof points to other customers. Finally, our agreement supports and validates NMG’s strategy of staging our project development, first producing tonnes of flake graphite concentrate and then onto value-added graphite products. With each step we move closer to our goal of becoming North America’s premier graphite producer."

Traxys Senior Vice President Dennis Gates added: “As a global commodities trader, we are thrilled to expand our presence in the graphite market to better serve our clients, and we believe NMG offers the right product, at the right time, at the right place. During our extensive due diligence of Nouveau Monde’s Saint-Michel-des-Saints operation, we were impressed by the quality of the products and the team’s knowledge and experience. We firmly believe that such a large quality asset in North America is both needed and welcome to serve the world’s increasing demand for quality graphite.”

Under the agreement, Traxys will market, for each of the years 2019 and 2020, being the Demo Term, 200 tonnes of graphite flake concentrate made available by Nouveau Monde. These first deliveries will allow customers to qualify the products and enable Traxys to proceed to commercial sales agreements with end-users for the Full-Scale Production Term.

Following the Demo Term, Traxys will distribute 25,000 tonnes of flake graphite products each year, for a term of 5 years beginning at the start of full commercial production. Volume will be adjusted annually depending on demand and production capacity.

Traxys shall be entitled to receive from NMG a marketing fee for its services, established at market conditions.

About Nouveau Monde Graphite

In 2015, Nouveau Monde Graphite discovered a major and high-quality graphite deposit on its Matawinie property, located in Saint-Michel-des-Saints, 150 km North of Montréal. This discovery led to the completion of a Feasibility Study, the results of which were announced on October 24, 2018. The Feasibility Study revealed strong economics with projected graphite concentrate production level of 100,000 tonnes per year over a 25.5-year period. NMG will operate its demonstration plant until 2020. During this period, NMG expects the production of 2,000 tonnes of concentrated flake graphite to qualify its products with North American and international clients.

Moreover, in a vertical integration and sustainable development perspective, Nouveau Monde is planning the establishment of a large-scale graphite secondary transformation facility, catering the needs of the booming lithium-ion battery market. With over 60 years of experience in the world of graphite, NMG’s team will develop its project with the utmost respect for neighboring communities, while favoring a minimal ecological footprint. NMG’ is privileged to have direct access to the workforce and infrastructure needed to operate its mining project, and it can also rely on an abundant, affordable and renewable source of hydroelectricity.

About Traxys

Traxys is a physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management and trading activities are conducted by over 450 employees, in over 20 offices worldwide, and its annual turnover is in excess of USD 7 billion. Headquartered in Luxembourg, Traxys is engaged in the sourcing, trading, marketing and distribution of non-ferrous metals, ferro-alloys, minerals, industrial raw materials and energy. The Group serves a broad base of industrial customers and offers a full range of commercial and financial services. Traxys, a privately held company, is owned by Traxys’ management team, the Carlyle Group (NASDAQ: CG), and affiliates of Louis M. Bacon, the founder, Chairman, Chief Executive Officer and principal investment manager of Moore Capital Management, LP.

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