Matawinie Graphite Project · Market Opportunity Lithium-ion batteries (“LiBs”) are at the...

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Private and confidential – © Nouveau Monde Graphite inc.

Matawinie Graphite Project

High Purity Flake Graphite Deposit in North America

BENCHMARK WORLD TOUR 2017

April 24th 2017

TORONTO


Private and confidential – © Nouveau Monde Graphite inc.2

DisclaimerThe information set out in this presentation (the “Presentation”) has been produced by Nouveau Monde Mining Enterprises Inc. (the “Corporation” or “Nouveau Monde”) as of August 1,

2016 and is being made available to recipients for information purposes only. It does not constitute, nor is it intended to be an offer to sell, or an invitation to subscribe for, or purchase, any

securities in the Corporation. The information set out in this Presentation has not been independently verified and may be subject to updating, completion, revision and amendment. The

Presentation does not purport to summarize all the conditions, risks and other attributes of an investment in the Corporation.

The Presentation and its contents are strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. By receiving this Presentation you

acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Corporation and that you will conduct your own analysis and be solely

responsible for forming your own view of the potential future performance of the Corporation’s business. The distribution of the Presentation may in certain jurisdictions be restricted by

law. Persons into whose possession the Presentation may come are required by the Corporation to inform themselves about and to comply with all applicable laws and regulations in force in

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should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or

misstatements contained herein, and, accordingly, none of Nouveau Monde or any of its directors, officers or employees accepts any responsibility for the information, statements, matters,

facts or opinions stated herein, or any liability whatsoever arising directly or indirectly from the use of or any act or omission undertaken in reliance on the Presentation.

Forward-Looking Information – This Presentation contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is

not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as

“plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such

words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to

known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from

those expressed or implied by such forward-looking information. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially

from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such

forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly,

readers should not place undue reliance on forward-looking information

Cautionary Statements Regarding Mineral Resource Estimate – These tables use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that

while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Mineral Resources that are not

Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Mineral

Resources represent material that is considered too speculative to be included in economic evaluations. Environmental, permitting, legal, title, taxation, socio-political, marketing, or other

relevant issues may materially affect the estimate of Mineral Resources. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher

category, or that Mineral Resources may be converted to Mineral Reserves.

The content of this Presentation is not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own professional advisors for any such matters and

advice. Neither this Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act

as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any securities of the Corporation.

The Corporation has not been and will not be registered under the United States Investment Company Act of 1940, as amended, or the US Securities Act of 1933, as amended. This

Presentation is subject to Quebec law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of the Quebec courts.

Qualified Person – Eric Desaulniers, M.Sc., P.Geo., President and CEO of Nouveau Monde and a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”) guidelines, has

reviewed and approved the technical content of this Presentation.



Nouveau Monde: Exploring the ‘New World’Nouveau Monde started exploration in 2012 with advance geophysics technology

exploring about 10,000 km² of untapped territories in the same geological setting as the

only significant mine in North America, owned by Imerys Graphite & Carbon

Matawinie : The only major North American

graphite discovery since 2001!3



Executive Summary

Market Opportunity

▪ Lithium-ion batteries (“LiBs”) are at the center of a global environmental revolution, driven by

a growing shift to electric vehicles and energy storage. Large LiB manufacturers are investing

heavily into battery gigafactories in China and North America, leading to significant anticipated

growth for battery raw materials

▪ With up to 150kg of graphite required for the LiB in an electric vehicle, new sources of graphite

are in demand, specifically in North America where there is currently limited supply

▪ The only significant graphite mine in North America owned by Imerys Graphite & Carbon is

expected to be depleted around 2020, opening market share in the traditional graphite market

About Nouveau Monde

▪ Discovered a world class graphite deposit in Québec, Canada (“Matawinie Project”)

▪ Currently advancing the Matawinie Project to capitalize on growing demand for battery grade

graphite material in North America

▪ Nouveau Monde’s competitive advantages include:

− Quality: high purity graphite and large flake distribution, two critical economic attributes

− Location: strong economics due to local infrastructure and proximity to customers



Management and DirectorsSENIOR MANAGEMENT

ERIC DESAULNIERS, MSc, P. Geo

Founder, President, Chief Executive Officer, Director

▪ 11 years of experience as a Professional Geologist

with a Masters degree in Geophysics

▪ Executed geoscientific mandates for multiple

international companies such as Aramco, Shell,

NASA, BRGM and GSC

▪ 7 years as an Infantry Officer with Canadian Forces

CHARLES-OLIVIER TARTE, CPA, CMA

Chief Financial Officer

▪ Financial Controller from 2011 to 2016 for Imerys

Graphite & Carbon; the only currently producing

graphite mine in North America.

▪ Responsible of the financial management of 3 sites

and 2 corporations (Canada & USA): Open pit mining

site, value-added processing plant and sales office.

BOARD OF DIRECTORS

MICHEL DELSAER, Executive Director

▪ Over 45 years of experience in coordination, planning,

control and management of major projects in all fields.

PIERRE RENAUD, Lawyer, MPA

▪ Former President of the Bureau d’Audience Publique

en Environnement (BAPE) from 2007 to 2012

MARC PRUD’HOMME

▪ Owner of the Auberge du Lac Taureau and respected

business administrator based in St-Michel-des-Saints.

GUY BOURASSA

▪ President & CEO of Nemaska Lithium Inc

(TSX:NMX) since January 2008

JEAN-PHILIPPE AUBÉ, CPA, CA

YANNICK BEAULIEU, CPA, CA, MBA

NATHALIE JODOIN, Ing., Lawyer

▪ Mettalurgical engineer, Québec bar member and

currently a Patent Attorney with ROBIC

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Technical TeamALAIN MERCIER, Ing., PMP – Project Manager

▪ Over 25 years of experience in the industrial and

manufacturing sectors

▪ Led development and execution phase of numerous

large mining projects for companies such as Glencore,

Sheritt International and Stornoway Diamonds

SERGE BUREAU, MSc, Eng. – Mining Development

▪ Geological Engineer with 30 years of experience in

mining, including 25 years in operating companies

▪ Held managerial positions including Manager

Mining Engineering and Geology at Barrick Gold

Corporation where he brought projects from

exploration to production

ZHENGLI (Andrew) TAN – MSc Eng - Technical Director

▪ Over 20 years of experience in Graphite & Carbon

industry

▪ Former General Manager of a Value-Added graphite

plant in China for SGL Group

▪ Developed a commercial scale high temperature

graphite purification plant

ANTOINE CLOUTIER, P. Geo – Chief Geologist

▪ Professional Geologist with 13 years of experience

in the mining industry

▪ Discovered the Nouveau Monde graphite

mineralization (named it Matawinie “Tony” block)

after two years of exploration

ARMANDO FARHATE, B.Eng, MBA – Market Leader

▪ Former COO for Nationale de Grafite in Brazil in

charge of 3 graphite mining and processing plants

▪ Former Natural Graphite Product Director at Imerys

Graphite & Carbon in charge of Lac-des-Iles Mine

and the Value-added processing plant in Terrebonne

MATRIX ADVISORS – Corporate Development

▪ New York City based firm founded in 2009 by

Richard S. Fuld, Jr. offering strategic, financial and

corporate development services

▪ Responsible for establishing connections with major

financial partners and potential graphite offtakers



Corporate Structure

STOCK INFORMATION

TSX.V (Canada): NOU

OTC Pink (U.S.): NMGRF

FSE (Germany): NM9

Share Price (6-mo range): $0.20-$0.38

Market Value (6-mo range): $14-$28M

CAPITAL STRUCTURE

Common Shares 85M

Warrants 25M

Options 8M

Fully Diluted 118M

Debt $0

INSTITUTIONAL SHAREHOLDERS

Strong Institutional Support (collectively holding above 20% of shares)

Largest association of credit unions in North America

Major Québec Government fund to invest in Québec mineral exploration companies

Québec’s largest central labor body

Second biggest pension fund in Canada

*All currency in Canadian Dollars (CAD). Market data and financial data as of Jan 11th 2017.



Current Graphite Market

China and the steelmaking industry have long dominated the global graphite market

Global Production by Geography Graphite End-Uses

~70% of graphite supply comes from China Steel industry → largest consumer of graphite

Global annual graphite consumption:

1.1 million tonsTypical mine production: ~10,000-20,000 tpy

67%

15%9%

2%7%

China India Brazil Canada Other

Refractories

35%

Batteries

25%

Lubricants,

Crucibles

10%

Foundry

7%

Pencils

4%

Other

19%

Current North American market

Consumption : 80k tpy

Production : 20k tpy

For LiB : historically not significant

Source: VSA Capital; Benchmark Minerals; INO.com (“What Tesla Needs to Know About the Graphite Sector”, September 2015).

8



Nevada

Gigafactory

Only producing graphite

mine in North America

Matawinie

Graphite Project

1

1

2

11

Matawinie Project Location – Québec, Canada Nouveau Monde is well positioned to supply the emerging North American lithium-ion battery market

1

23

1 24

8

7

1111

105 6

9

Nevada

Gigafactory

Michigan Battery Plant

2

5

4

Michigan Battery Plant

3

Nevada Battery Plant

Michigan

Battery

Plant

6 7

Texas Plant

Tennessee

Plant

111

8

North Carolina Battery Plant

9

Ontario Plant

Indiana Plant

10

Short term local demand of 140,000 tpy

of flake graphite for LiB alone

9



Imerys Graphite & Carbon – Lac-des-Îles Mine

1. Source: Graphite & Graphene Conference, F. Corti, Berlin, Dec 2014.

Proven track record of producing and

selling high quality graphite concentrate

since 1989

▪ The Lac-des-Îles mine is owned and operated by Imerys

− Imerys is a major industrial French conglomerate with a market value

over US$4 billion

▪ Nouveau Monde’s Matawinie project is 120km from the depleting Lac-des-

Îles mine, presenting an opportunity for Nouveau Monde

Imerys disclosed that Lac-des-Îles mine is

nearly depleted, with enough ore through

20201

Opportunity for Nouveau Monde to gain

market share

With output varying between 20,000 to

25,000 tons per year, it represents 25% to

30% of North American supply

Nouveau Monde is designing its operation to

produce 50,000 tons per year to enable the

capacity to deliver large quantities

Imerys Nouveau Monde

Nouveau Monde flake graphite has the same

physical properties of that product known and

tested by customers

10

Extrait du Journal La Presse

du 25 avril 2016

Article du Journal Le Courant des Hautes

Laurentides du 19 septembre 2016



Unique Geological Feature Ideally Located

Town of St-Michel-des-Saints, with an

industrial history, is located 5 km from

potential mine sites with skilled labor &

all needed infrastructure

20,000 m2 industrial

complex currently

vacant (on ‘care

and maintenance’)

Only 150km north of

Montreal with all-year

access to public roads.

St-Michel-des-Saints is

strategically located for

low transportation cost

to end-users in North

America

Many options are available to minimize Capex and Opex and maximize economics

No need for

campsite, access to

low cost green

hydroelectricity

Proximity to infrastructures and potential customers provides strong

advantages for building operations with a low environmental footprint

11



Typical Cross Section – West Zone

▪ Mineralized thick layer sub-vertical steeply dipping East

▪ Grade very consistent throughout deposit

110 m depth

Graphite deposit is

directly at surface with

0.94:1 strip ratio for

entire mine life

E W

12



Large and Quality Graphite Deposit at Surface

South Zone Resource EstimateIndicated: 26.3M tons @ 3.73 % Cg

Inferred: 19.2M tons @ 3.67 % Cg

1.7M t of Graphite Content

13

March 2017 In-Pit West Zone

Resource Estimate: Indicated: 32.9M tons @ 4.5 % Cg

Inferred: 0.2M tons @ 4.84 % Cg

1.5M t of Graphite Content



▪ On June 22, 2016 Nouveau Monde

released its Preliminary Economic

Assessment, demonstrating a high

quality graphite deposit with

strong mining economic

fundamentals.

▪ On December 5 2016 Nouveau

Monde released a conceptual study

for value added products (SPG &

MG) achieving a 99.99% purity.

▪ Nouveau Monde is also pursuing

other value-added graphite

product in the

expandable/expanded graphite &

graphene/graphene oxide segment.

Robust Project economics - Mining project

*Nouveau Monde results based on NI 43-101 Preliminary Economic Assessment for the West Zone ** Nouveau Monde results based on conceptual study. Financial figures Non N1 43-101 compliant. See press release dated December 5 2016 for more details

Matawinie

Project

Highlights

Pre-tax NPV (8% discount rate) $404M

After-tax NPV (8% discount rate) $237M

Pre-tax IRR 31.2%

After-tax IRR 24.7%

Life of Mine (LOM) 25.7 years

Capex (includes 15% contingency) $145M

Average selling price/tonne $1,492 USD

Opex/tonne of Finished product $660

Tonnes of graphite / year 49,921

Cg average grade (LOM) 4.48%

Cg purity (finished product) >97.1%

Strip ratio (LOM) 0.94:1

PEA*

NI 43-101

Compliant

Conceptual

study on SG**

Non NI 43-101

Compliant

All $ in CAD unless indicated otherwise

$148M

$102M

24.4%

20.8%

-

$95M

$3,750 USD

$1,425

20,000

-

>99.99%

-

– NPV & IRR computed on a standalone basis

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Targeted improvement for the Q3 2017 - PFS

Many parameters of the PEA were targeted to improve economics in the PFS, example of the sensitivity to few items is below:

Non NI 43-101

Compliant

15



Graphite Concentrate Products

Flake graphite is sold at different prices based primarily on flake size and purity

ProcessGraphite

OreCrushing Grinding

(ball mill)

First Flotation

Grinding (polishing mill)

Second Flotation

4.5% Cg 85-90% CgPurity:

Jumbo Flakes(+50 mesh)

Quantity:

*Price Range

($USD per Ton):

Large Flakes(+80 mesh)

Medium Flakes(+100 mesh)

Fine Flakes(-100 mesh)

17%

Products

$2,308

31%

$1,526

12%

$1,358

40%

$1,198

Average Price per Tonne: $1,492 USD

*Source: Benchmark Mineral Intelligence; prices based on the previous 60-month average.

Estimated Annual Revenue: ~$95M CADx 49,921 Tonnes per Year =

>98% Cg

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Potential Premium on Value-Added Processes

Jumbo Flakes(+50 mesh)

Large Flakes(+80 mesh)

Medium Flakes(+100 mesh)

Fine Flakes(-100 mesh)

Products

“TMR estimates that the cost difference in purifying a 95% Cg concentrate

to >99.9% Cg, versus taking a 98% Cg concentrate to >99.9% Cg could be

as much as $2-3,000/t of concentrate, using thermal processes.”

Shaping

MicronizationHeat and Acid

Treatment

Products:

Purification to >99.9% Cg

$3,000 - $15,000 USD / tonnePrice Range

Expandable

Graphite

Purified Graphite

Concentrate

Purified Micronized

Graphite

Spherical

Graphite

17



Recent and Upcoming MilestonesNouveau Monde is working to derisk the Matawinie Project as it continues to

deliver on milestones

Phase 2

Phase 2

2015 2017 2018 2019 2020

Completed Coming H1 H2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Discovery

Drilling and initial resource estimate

Preliminary Economic Assessment

Drilling and resource estimate update

Value added process development

Pre-feasibility and Feasibility Studies

Impact & Benefit Study and Permitting

Project Financing

Detailed engineering

Construction

Demonstration plant 1000 tpy production

Strategic partnership and offtake

PFS FS

Impact Permitting

2016

Metallurgical optimization and pilot

Baseline environmental study

Commissioning & Production

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Nouveau Monde Summary

Nouveau Monde is well positioned for the coming battery revolution in North America

Attractive Growth Opportunity → Multiple New Graphite Mines Needed

Large Resource

High Purity Graphite

High Percentage of Premium Large Flakes

Favorable Mining Jurisdiction

Strong Local Infrastructure & Project Location

Low Environmental Impact → Aiming to Build a Carbon-Neutral Operation

Support from Solid Institutional Shareholder Base

✓

✓

✓

✓

✓

✓

✓

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Contact Information

Head Office

410 rue St-Nicolas, Suite 236

Montréal, QC

H2Y 2P5 CANADA

Contact

Eric Desaulniers, President and CEO

Mobile: 1-819-923-0333

Email: [email protected]

TSX.V – NOU

OTCQB – NMGRF

FSE – NM9

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mailto:[email protected]

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