Northern Graphite Comments on US Department of Commerce Preliminary Decision to Place Tariffs of up to 721% on China Graphite AAM

Ottawa, May 21, 2025 - Northern Graphite Corp. (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") is pleased to comment on a U.S. Department of Commerce ("Commerce") preliminary decision to impose tariffs of up to 721% on natural and artificial graphite active anode material (AAM) from China.

"While still preliminary, this marks an important development for North American producers and for Northern Graphite in particular. As the only current producer of natural graphite in North America - and with plans to build a battery materials facility in Canada - we are positioned to help meet the growing demand for secure, local and sustainable anode material supply," said Northern Chief Executive Officer Hugues Jacquemin. "The U.S. Department of Commerce's decision sets the stage for meaningful anti-subsidy duties on Chinese graphite active anode material and marks a major step toward leveling the playing field and creating local demand."

The decision is the result of an investigation by Commerce to assess whether the Chinese government is subsidizing the production and supply of graphite AAM to the United States. Commerce is due to issue a second preliminary decision in July on an antidumping investigation into Chinese graphite imports. A final determination for both investigations will be issued around December 5, 2025.

AAM is produced by upgrading graphite mine concentrates for use in lithium ion batteries and it is their largest component. Approximately 90% of this upgrading is currently done in China, spurring other regions to take actions like implementing tariffs and strategic raw materials acts to help establish the industry in the West and build independent supply chains.

"On May 20, 2025, the U.S. Department of Commerce announced its preliminary affirmative determination in the countervailing duty (CVD) investigation of active anode material from the People's Republic of China (China). Commerce is also conducting concurrent antidumping duty (AD) investigation of active anode material from China," Commerce stated on its website.

The antidumping and countervailing duty cases were initiated by the American Active Anode Material Producers (AAAMP) alongside other North American AAM industry petitioners with Commerce and the International Trade Commission (ITC) in December 2024.

About Northern Graphite

Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on developing advanced anode materials to improve the cycle life and increase the charging rate of lithium ion batteries.

Northern's graphite assets include the producing Lac des Iles mine in Quebec where the Company plans to increase production to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek project in Ontario, the Mousseau Project in Quebec and the fully permitted Okanjande graphite mine in Namibia that is currently on care and maintenance. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions.

For additional information

Please visit the Company's website at https://www.northerngraphite.com/home/, the Company's profile on www.sedarplus.ca our Social Channels listed below or contact the Company at (613) 271-2124.

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Cautionary Note Regarding Forward-Looking Statements

This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, the Company's plans to extend the mine life of its LDI mine, develop its Baie-Comeau Battery Anode Material facility, intentions to restart the Okanjande mine in Namibia and development plans for its other projects including Bissett Creek. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations and the inability to raise required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements.

Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252900