NextSource Materials completes feasibility study for Molo expansion to 150k tpa

TORONTO, ON / ACCESS Newswire / July 27, 2026 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or "the Company") is pleased to announce the positive results of an updated Technical Feasibility Study ("FS") for a Phase 2 mine expansion of its Molo Graphite Mine Project in southern Madagascar (the "Molo Mine"). The FS considered a staged expansion beyond the existing Phase 1 mining and processing operation to reach a total capacity of 150,000 tonnes per annum ("tpa") of flake graphite concentrate over a 37-year life of mine ("LOM"). The FS estimates Phase 2 expansion capital costs of US$290.8 million, and financed in stages, with a pre-tax Net Present Value ("NPV") (8% discount rate) of US$402.5 million and a nominal pre-tax Internal Rate of Return ("IRR") of 21.0% (real pre-tax IRR of 18.5%).

The FS builds on the findings from previous technical reports and prior studies and assumes the construction of three new 50,000 tpa processing modules in two stages, adjacent to the current Phase 1 processing plant, and using the same fully modular construction approach. The fully modular approach is expected to greatly reduce build time, associated costs and development risks in relation to conventional mine construction. The FS includes the procurement of all mining equipment, and the full costs of off-site modular fabrication and assembly, factory acceptance testing, module disassembly, shipping, plant infrastructure construction, on-site module re-assembly, commissioning, project contingencies, and working capital.

The capital and operating costs estimates are prepared in line with a Class 3 estimate as per the American Association of Cost Engineers ("AACE") classification and a target accuracy of -15 to +25% at an 80% confidence level. Hanré Rossouw, President and CEO of NextSource, commented, "The updated and optimized