Northern Graphite Provides Update on Lac des Iles Restart Plans

Q3 restart delayed due to mining lease issue, financial constraints and current market conditions Authorization received from MELCCFP to begin mining activities associated with pit expansion Notice of mining lease suspension received from MRNF relating to an outstanding site restoration financial guarantee issue Company intends to contest the MRNF's decision before the Quebec Court Suspension of mining lease will be stayed pending a final decision by the Quebec Court Ottawa, Ontario--(Newsfile Corp. - August 19, 2026) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) ( the " Company " or " Northern ") announces that, while it has received authorization to begin mining activities associated with a planned pit expansion at its cornerstone Lac des Iles (" LDI ") mine in Quebec, the timing of the restart has been affected by issues relating to its mining lease, financial constraints and current market conditions. Mining Lease On August 10, 2026, Northern received a notice from the Ministère des Ressources naturelles et des Forêts (" MRNF ") advising of the suspension of the LDI mining lease in connection with an outstanding payment related to an increase in the amount of the financial guarantee sought by the MRNF from the Company for the restoration of the site upon completion of its mining activities. The Company disagrees with the MRNF's interpretation for calculating the financial guarantee and the applicable deadline for the payment under the Mining Act (Quebec) and its regulations. Northern has 30 days to contest the MRNF's decision, with a deadline of September 9, 2026. The Company intends to contest the decision within the applicable period and the suspension of the mining lease will be stayed until a final determination is made by the Quebec Court. Accordingly, the mining lease will remain in effect until a final judgment is rendered on the issue. The requirement for additional security arose following approval of the Company's updated restoration plan for LDI in November 2025. Under the updated plan, the total financial guarantee was increased by about $1.8 million, from about $8.2 million to about $10.1 million. The Company was requested to pay 50% of the additional security in the form of a $0.9 million cash deposit by February 28, 2026, with a further $0.45 million due in each of November 2026 and November 2027. Northern does not agree with the MRNF's interpretation for calculating the financial guarantee and the applicable deadline for the payment under the Mining Act (Quebec) and its regulations. It also believes the decision to suspend the mining lease is a disproportionate response by the MRNF. The MRNF already holds a surety bond of $8,232,941, or more than 80% of the required guarantee, which the Company believes covers the first two prescribed instalments. Northern also believes it has until November 28, 2027 to pay the final portion of the guarantee in the amount of $1,829,635, under section 113 of the regulations under the Mining Act (Quebec). Northern therefore maintains that it is not in default. "We recognize and take seriously our responsibility to provide financial security for the future restoration of Lac des Iles, and Northern already has provided $8.2 million in security toward those obligations," said Northern Chief Executive Officer Hugues Jacquemin. "However, we do not agree with the interpretation the MRNF has provided in this matter and consider, on the basis of our legal adviser's analysis, that we are not in default, because the final portion of the guarantee should not be payable until November 28, 2027. We intend to contest this decision while continuing to pursue a practical arrangement that protects the environment and preserves the future of the operation." Authorization and Planned Restart Through a separate regulatory process, Northern received authorization from the Ministère de l'Environnement, de la Lutte contre les changements climatique