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High Purity Flake Graphite Deposit in North America Investor Presentation – November 2018 MATAWINIE GRAPHITE PROJECT WWW.NOUVEAUMONDE.CA :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9
High Purity Flake Graphite Depositin North America
Investor Presentation – November 2018
MATAWINIE GRAPHITE PROJECT
WWW.NOUVEAUMONDE.CA :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9
CAUTIONARY STATEMENTS
Cautionary Statements Regarding Forward Looking InformationThis presentation contains "forward-looking information" within the meaning of the applicable securities legislation. All information containedherein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can beidentified notably 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 thatcertain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information issubject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance orachievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but notlimited to: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv)the risk associated with exploration, development and operations of graphite; (v) the risk associated with establishing title to mineral properties andassets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in graphite prices; (viii) the risks associated with uninsurable risksarising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experiencedpersonnel and financing; * (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risksassociated with changes in the mining regulatory regime governing the Company; (xii) the risks associated with the various environmentalregulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks;;(xvi) the risk of litigation; and (xvii) risk management.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including butnot limited to, continued exploration activities, no material adverse change in graphite prices, exploration and development plans to proceed inaccordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such otherassumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results todiffer 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 futureevents could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided forthe purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for otherpurposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the dateof this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicablesecurities laws.
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SERVING TOMORROW’S ECONOMYWITH THE SUSTAINABLE DEVELOPMENT OF OUR NATURAL RESOURCES
▪ Reliable, low cost player in thetraditional graphite market
▪ Innovation in the value-addedgraphite markets
▪ Walking the talk : aiming at beingthe world’s first all-electric open-pit mine
Our mission is to produce, transform and distribute differenttypes of natural graphite flakes, in a profitable and sustainableway, while meeting the growing needs of the industrialmarkets motivated by the revolution of renewable energy andelectric vehicles.
NMG PRESENTATION
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COMPANY OVERVIEWSUCCESSFUL TRANSITION FROM EXPLORATION TO DEVELOPMENT / NEAR-TERM PRODUCTION
• NMG started exploration in 2012, utilizing advanced geophysics technology. The Tony Block Deposit was discovered in 2015.
• Explored over 10,000 km of untapped territories
o Only new discovery of graphite in North America since Lac Guéret deposit (Mason Graphite) in 2001
• Same geological setting as the only significant graphite mine in N.A. (the one owned by Imerys Graphite & Carbon)
✓ Summer 2018:To commission Demo Plant✓ Sept 2018:2,000t production starts✓ Q4 2018:Bankable Feasibility Study (BFS)❑ H2 2018: Marketing & Sales Agreement❑ Q1 2019: Start Spherical Graphite (SG) plant construction❑ Q1 2019: IBA filing for permit ❑ H1 2019: BFS update including value-added❑ Summer 2019: Commissioning Demo SG plant❑ Q1 2020: Project Financing❑ Q2 2020: Mine & Concentrator Construction Starts
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NMG’S MATAWINIE PROJECT STRATEGICALLY LOCATED
NORTH AMERICA’S GRAPHITE TRIANGLE
IMERYS(Euronext: NK, Market Cap: ~€5B)
Imerys disclosed that Lac-des-Îles mine isnearly depleted, with enough ore through
2020(Source : Graphite and Graphene Conference, F. Corti, Berlin, Dec
2014)
Major industrial French conglomerate with a market value of around 5B euros
With output varying between 20K to 25K tons per year, it represents 25% to 30% of North
American demand
Proven track record of producing and sellinghigh quality graphite concentrate since 1989
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AN EXCEPTIONAL TEAM
TO GRAPHITE EXPERTS
ERIC DESAULNIERS, MSc, P. GeoFounder, President, Chief Executive Officer (CEO), Director• 12 years of experience as a Professional Geologist with a Masters degree
in Geophysics• Executed mandates for international companies such as Aramco, Shell,
NASA, BRGM and GSC• 7 years as an Infantry Officer with Canadian Forces
CHARLES-OLIVIER TARTE, CPA, CMAChief Financial Officer (CFO)• Financial Controller from 2011 to 2016 for Imerys Graphite & Carbon • Responsible of the financial management of 3 sites and 2 corporations
(Canada & USA): Open pit mining site, value-added processing plant and sales office.
KARL TRUDEAU Chief Operating Officer (COO)• Natural graphite operations leader and Mine site manager at Lac-des-
Iles from 2011 to 2017 for Imerys Graphite & Carbon• Experience worldwide developing mineral deposits into producing assets
TRISTAN C. MENARDExecutive Vice-President (EVP), Capital Markets• Formerly Portfolio Manager and Associate at Jarislowsky Fraser, a firm
managing over $40 billions in assets for private and institutional clients.• Holds the Chartered Investment Manager designation
ZHENGLI (Andrew) TANMSc 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
ARMANDO FARHATEB.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
PATRICE BOULANGERIng, MBA – Director• 20 years of experience in R&D and Sales in the graphite business with
SGL Carbon
BENOIT BRIEREPlant Manager• 25 years operation and customer service experience in graphite at Lac-
des-Iles Imerys mine
FROM SENIOR MANAGEMENT
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GLOBAL PRODUCTION PER LOCATION
67%
15%
9%
2%
7%
China India Brazil Canada Other
A LANDSCAPE DOMINATED BY CHINA AND THE REFRACTORIESMARKET OVERVIEW
~70% of the offer comes from China
Global yearly consumption: 1,1 million tons
Typical mine production: ~10k-20k tpy
The steel industry is the #1 buyer
Current North American Market StatusConsumed: 80k tpy vs Produced : 20k tpy
For LiB expected growth : 150k tpy
Refractories35%
Batteries25%
Lubricants and crucibles
10%
Metallurgy7%
Pencils4%
Others19%
MAIN USES FOR GRAPHITE
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GRAPHITE PRICING (SEP 2018)Lithium Ion Battery (LiB) market has a significant impact since Sept 2017
Source: Benchmark Mineral Intelligence
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LI-ION BATTERY MEGAFACTORIESIN CONSTRUCTION
An increased graphite demand of 530,000 tpy by 2023
of 1,323,000 tpy by 2028
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Capacity 2028: 1102.5 GWh
NORTH-AMERICAN LI-ION BATTERY MARKET
EXPECTED SHORT TERM DEMAND OF 150,000 TPY
NE
TX
AL
TENC
IN
MI
ON
QC
= Offer
= Demand
Production capacity: 52k tpaUntil: 2045
Production capacity: ~ 20k tpa
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All $ in CAD unless indicated otherwise*NMG results based on NI 43-101 Pre-Feasibility Study for the West Zone
ROBUST PROJECT ECONOMICSMINING PROJECT (NO VALUE-ADDED PROCESSING)
**(source: https://mwne.ws/2ArUOQR)
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Economic Highlights Feasibility study (2018) Prefeasibility study (2017) Variation
Yearly graphite concentrate production 100,000 tonnes 52,000 tonnes +92%
Pre-tax NPV (8%) 1,287 M $ 499 M $ +158%
Post-tax NPV (8%) 751 M $ 297 M $ +153%
Pre-tax IRR 40.6 % 32.4 % +25%
Post-tax IRR 32.2 % 25.9 % +24%
Life of mine 25.5 years 27 years -6%
Pre-tax Payback 2.6 years 2.6 years 0%
Post-tax Payback 2.2 years 2.3 years -4%
CAPEX 276 M $(incl. 12.4% - 31 M $ contingency)
181 M $(incl. 12.5% - 22 M $ contingency)
+52%
First 5 years average sales price 1,532 $ US / tonnes 1,429 $ US / tonnes +7%
Life of mine average sales price 1,730 $ US / tonnes 1 429 $ US / tonnes +21%
OPEX 499 $ / tonnes 539 $ / tonnes -7%
SENSITIVITY ANALYSIS
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0
200
400
600
800
1000
-30 -20 -10 0 10 20 30
Aft
er-
Tax
NP
V @
8%
(M
CA
D)
RELATIVE VARIATION (%)
CAPEX OPEX PRICE
10,0
20,0
30,0
40,0
50,0
-30 -20 -10 0 10 20 30
Aft
er-
Tax
IRR
(%
)
RELATIVE VARIATION (%)
CAPEX OPEX PRICE
12
COMPARABLES & PRODUCT
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NMG ROW NA
0
500
1 000
C1 Cost Curve per tonne
0
750
1 500
EBIDTA Curve per tonne
NMG ROW NA
ProductsNMG
DistributionTarget market
Jumbo
(+48 mesh)15%
Expandable , Fuel Cell
& Traditional
Large
(+80 mesh)33% Traditional
Medium
(+150 mesh)28% Battery & Traditional
Fines
(-150 mesh)24% Battery & Traditional
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▪ Based on NMG internal studies of 12
graphite Feasibility Studies
▪ NMG expect to be in first decile
EBIDTA per tonnes
▪ NMG is ready to tackle all markets
ProductsJumbo Flakes
(+50 mesh)
Large Flakes
(+80 mesh)
Medium Flakes
(+100 mesh)
Fine Flakes
(-100 mesh)
VALUE-ADDED TARGETED MARKETSPRICE RANGE OF PRODUCTS
Purification to >99,9% Cg
Micronization
ShapingElectrochemical
Treatment
Price Range
ExpandableGraphite
Purified Graphite Concentrate
Purified MicronizedGraphite
Spherical GraphiteProducts :
$3,000 - $15,000 USD / ton
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NOUVEAU MONDE GRAPHITE’S
MATAWINIE PROJECT
LOCATION ADVANTAGES
Many options available to minimize Capex and Opex and maximize
economics
Town of St-Michel-des-Saints, with an industrial history, is located 5 km from potential mine sites with skilled labor
& all needed infrastructure
Only 150km north of Montreal with
all-year access to public
roads.
St-Michel-des-Saintsis strategically located
for low transportation cost to end-users in North America
20,000 m2 industrial complex currently leased for Phase 1 Demonstration Plant
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
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MATAWINIE GRAPHITE PROJECTLARGE & QUALITY RESOURCE AT SURFACE
June 2018West Zone
Resource Estimate• Indicated : 95.8M tons @ 4.28% Cg*
• Inferred : 14M tons @ 4.19% Cg
• 4.69M tons of Graphite Content
South Zone
Resource Estimate• Indicated : 26.3M tons @ 3.73% Cg
• Inferred : 19.2M tons @ 3.67% Cg
• 1.7M tons of Graphite Content
* Cut-off Grade
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MATAWINIE GRAPHITE PROJECTGENERAL SITE LAYOUT
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MATAWINIE GRAPHITE PROJECTPROCESS FLOWSHEET
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ProductsJumbo Flakes
(+50 mesh)
Large Flakes
(+80 mesh)
Medium Flakes
(+150 mesh)
Fine Flakes
(-150 mesh)
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DEMONSTRATION PLANT – 1000 tpy 2019-2020
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De-risking the marketing & processing of our graphite products
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FIRST ALL-ELECTRIC OPEN-PIT MINE
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HYDRO QUÉBEC PARTNERSHIP
A WORLD LEADER IN BATTERY MATERIALS
▪ Research center of the state owned power utilitycompany Hydro-Québec (HQ)
▪ Over 800 patents especially in Li-ion, Li-Sulfur andLi-Air battery technologies
▪ 70 employees including 27 researchers
▪ $20M revenues yearly sourced externallyreinvested in R&D
▪ HQ is lead by Dr Karim Zaghib, named one of themost influential scientific minds in the world’ byClarivate Analytics for 3 years in a row
PARTNERSHIP AT A GLANCE▪ Licensing agreement on all HQ existing
technologies used for LiB anode materialproduction.
▪ Exclusive R&D collaboration to develop new IP ona 50/50 basis and industrialization.
▪ HQ to assist NMG in setting up a small-scale process inits demonstration plant in Saint-Michel-des-Saints,starting by the end of 2018.
▪ The success of this small-scale process will lead NMG toeventually building an anode material fabrication plantwith a capacity of up to 100k tons per year. The anodematerial fabrication plant would be in addition to andcomplementary to NMG’s mining project.
AGREEMENT HIGHLIGHTS
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✓ Summer 2018: Commission Demo concentrate plant✓ September 2018: 2,000t production starts✓ Q4 2018: Bankable Feasibility Study (BFS)❑ H2 2018: Marketing and sales agreement (off-take)❑ Q1 2019: Start Spherical Graphite (SG) plant construction❑ Q1 2019: IBA filing for permit❑ H1 2019: BFS update including value-added❑ Summer 2019: Commissioning Demo SG plant❑ Q1 2020: Project Financing❑ Q2 2020: Mine & Concentrator Construction Starts
RECENT AND UPCOMING MILESTONES2018-2019
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CORPORATE STRUCTURE
*All currency in Canadian Dollars (CAD). Market data and financial data as of Oct 1st 2018.
52-Week Price Chart ($0.25 - 0.54 CAD)
TSXV:NOU OTCQX:NMGRF FSE:NM9
Share Price (CAD) as of Sept 25, 2018 $0.28
Market Cap (CAD) as of Sept 25, 2018 $43M
Shares Outstanding as of Sept 25, 2018 172M
Warrants 53M
Options / broker warrants 14M
Fully Diluted Shares 239M
Cash / Debt (CAD) as of Oct 1st 2018 ~$5M / $0
Management & Insiders Ownership ~25%
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INSTITUTIONAL SHAREHOLDERS
Strong Institutional Support(collectively holding about 30% 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
Largest pension fund in Canada
Québec government development fund
Investment Management and Technical Research for Institutional and Professional Investors based
in Switzerland
Registered portfolio manager and exempt market dealer across
Canada
Worldwide well established and innovative specialist in the sector of precious metals and commodities
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Head Office331 BrassardSt-Michel-des-Saints, QCJ0K 3B0 Canada
Montreal Office410 St. Nicolas Street, Suite 236Montreal, QCH2Y 2P5 Canada
TSXV – NOU
OTCQX – NMGRF
FSE – NM9
CONTACT INFORMATION
ContactEric Desaulniers, President and CEOMobile: 1-819-923-0333Email: [email protected]
Tristan C. Menard, Executive Vice-President, Capital MarketsMobile: 1-514-296-6339Email: [email protected]
