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Molo Graphite ProjectMADAGASCAR

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The only project with graphite.

Forward looking statements

Safe Harbour: This presentation contains statements that may constitute “forward looking statements” within the meaning ofapplicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on such forwardlooking statements. Any statement in this presentation that is not a statement at a historical fact constitutes a “forward lookingstatement”. Furthermore, when the Company uses the words “may”, “expect”, “anticipate”, “plan”, “forecast”, “projections”,“estimate" or similar words, the Company intended to identify certain forward looking statements. Forward looking statements arerelated to the timing of the completion of the updated and revised Feasibility Study, the results of the revised Feasibility Study,funding of the development of the Molo Project, implementation and commencement of the build-out of the Molo Project,commencement of production at the Molo Project, commencement of procurement for mine infrastructure, the procurement ofequipment to construct a mine, value engineering, continued product test results and product analysis, and the permit application.

Other forward looking statements relate to growth of the lithium-ion market, graphite demand in the future, electric vehicleprojections and other market demands for graphite. These are based on current expectations, estimates and assumptions thatinvolve a number of known and unknown risks, uncertainties and other factors that could cause actual results to vary and in someinstances to differ materially from those anticipated by the Company and described in the forward looking statements contained inthis presentation. These risks include, but are not limited to access to sufficient capital, dependence on ore mineral project,governmental and political risks in Madagascar, legal and accounting risks, compliance with various regulators, potential loss of keypersonnel, no certainty as to commercial production of the Molo mine, inherent changes in mineral exploration and development,delays, external market factors, negative operating cash flows, lack of demand for graphite, cost overruns, permitting issues,fluctuations in the price of graphite, labour issues, title disputes and fluctuations in currency. Criteria of these risks and other risksare outlined in the companies Form 10–K for the fiscal year ending June 30, 2016 available at SEDAR.com, which investors are highlyencouraged to review. No assurance can be given that any of the events anticipated by the forward looking statements will transpireor occur or, if any of them do so, what benefits the Company will derive there from.

The forward looking statements contained in this presentation are made as at the date of this presentation and the Company doesnot undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of newinformation, future events or otherwise, except as may be required by applicable securities laws.

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IT’S ESSENTIAL.

IT’S COMPLICATED.

IT’S A HUGE OPPORTUNITY.

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Flake graphite market = ~500,000 tpa

#1 #3#2BATTERIES

CONSUMER ELECTRONICS (GRAPHITE FOILS)

Majority of demand still tied to traditional steel market

16% 10%

REFRACTORIES

Experiencing largest growth Experiencing fastest growth 4

65%

Robust electric vehicle projections

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Source: Bloomberg New Energy Finance 2017

Graphite the most required input for

Gigafactories

6 Source: Benchmark mineral Intelligence

The Gigafactory 1 is expected to require over 42,000 tonnes of graphite anode material, 28,000 tonnes of lithium hydroxide and 5,000 tonnes of cobalt every year at a 35GWh capacity of new cell production.

Tesla plans to build 3 additional Gigafactories post-2020. These are in addition to 15 megafactories being built globally by competitors.

Tesla Gigafactory 1 in Nevada

42,000 tonnes of graphite anode material required every year at capacity

Paradigm shift beginning

7 Source: Volvo; Wall Street Journal 2017

Volvo becomes the first major car manufacturer to go all electric and abandon conventional car engines by 2019.

The amount of graphite required in energy storage

systems dwarf that of EVs

8 Source: Tesla, Bloomberg 2017

Tesla to build ‘world’s biggest battery’ in Australia (100MW)

• 1 tonne of graphite anode material is required for every 1MW of storage

• Ideally located in the southern, arid region of Madagascar

• $Billion+ mining projects established in-country, codifying mining laws

• Democratic government views mining as key growth engine and one of the pillars of Madagascar's Action Plan

• Ambatovy is a significant contributor to GDP of Madagascar

$+8 Billion AmbatovyNickel & Cobalt Project(Sherritt, Sumitomo, KORES)

Africa

Fort Dauphin Shipping Port (Taolagnaro)

MOLOGraphite Project

Sakoa Coal Project $400M (e)

Rio Tinto $1 Billion Mineral Sands Project

Shipping Ports: Tulear & Soalara

WTR Mineral Sands $200M (e)

Sherritt/GlencoreLimestone

Molo Graphite Project Fotadrevo, Madagascar

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Annual Production Graphite: 17,000 t/year

Life of mine: 30 years

CAPEX (excluding Working Capital): $18.4M

OPEX (Ex-plant): $433/T

OPEX (CIF): $688/T

Average Head Grade: 8.1 %

Average Selling Price: US$1014/t

NPV: 8% discount US$25.5MIRR: 22%Payback: 4.8 years

Post-tax

*Please refer to the Company’s technical report entitled “2017 Updated Molo Feasibility Study” under the Company’s profile at

www.sedar.com for certain other details and assumptions relating to the above mineral resource and reserve estimates and data

verification procedures.

Updated Feasibility Study (2017) - Phase 1

2017

3% of market

Current price based on Molo flake size distribution

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Low cost of entry into market

MOLO

DIFFERENTIATORS

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What sets us apart from other projects.

Modular construction - GAME CHANGER

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Lowest CAPEX of any competing project

$18.4 million (USD)

Actual representation of the Molo mine

actual estimated

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$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

MOLO Focus Mason NouveauMonde

Northern Kibaran Magnis Syrah

CAPEX($USD)

Source: SEDAR.com and respective company’s news releases

• Lowest quartile OPEX on an all-in, CIF basis

• Competitive with Chinese flake pricing

Low operating costs

PHASE 1 (detailed engineering)

Ex-plant: $433/T

CIF Rotterdam: $688/T

OPEX Port d'Ehola at Fort Dauphin

Source: 2017 Molo FS15

The larger the flake size,

and higher the purity,

the higher the price.

Graphite pricing

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Source: 2017 Molo Feasibility Study

large/jumbo flake

78.9% medium/large/jumbo flake

21.1% small/fine flake

Molo Distribution

Grade

Mesh Size % Distribution % Carbon (t)

+48 (jumbo flake) 23.6 96.9

+65 (coarse flake) 14.6 97.1

+80 (large flake) 8.2 97.0

+100 (medium-large flake) 6.9 97.2

+150 (medium flake) 15.5 97.3

+200 (medium-small flake) 10.1 98.1

-200 (small / fine flake) 21.1 97.5Molo pilot plant produced 13 tonnes of

at SGS Canada Inc.

Excellent flake size distribution and purity that is well above the global average.

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• Up to 98% carbon (C) purity achieved with simple flotation

• Excellent thermal expansion (>500x) for graphite foil applications

• Easily upgraded to 99.97% C (battery grade)

• Verified by end users for ALL top demand markets for graphite

A very high-quality graphite concentrate

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EU

China

India

South Korea

Japan

Molo Deposit Madagascar

MOLO IS LOCATED WITHIN THE HUB OF TOP PURCHASING AND PROCESSING MARKETS FOR FLAKE GRAPHITE.

Location

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Size

20*Please refer to the Company’s technical report entitled “Molo Feasibility Study” dated February 6, 2015 available under the

Company’s profile at www.sedar.com for a discussion in respect of certain key assumptions, parameters and methods in respect to the

mineral resource disclosure.

• 23.62 Mt) Measured @ 6.32%,

• 76.75 Mt Indicated @ 6.25% C

• 40.91 Mt Inferred @ 5.78% C

RESOURCES; above a 2% C cut-off RESERVES; above a 4.5% C cut-off

• 14.17 Mt Proven @ 7.00% C,

• 8.37 Mt Probable @ 6.25% C

• 22.44 Mt Proven & Probable @ 7.02% C

A huge resource.

100.37 million tonnes (MT) measured & indicated

Combined Measured & Indicated resource @ 6.3% C, above a 2% C cut-off

40.91 MT inferred

Inferred resource @ 5.8% C, above a 2% C cut-off

Japan

20-40 km 12-15 km

5-10 km

40-60 km

40-60 km

Scalability

MOLO DEPOSIT

• 300m x 1500m• 328 x 1640 yards

ADDITIONAL GRAPHITE TRENDS

Open along strike and at depth.

Mineralization consistent throughout.

• Over 300 line kms (186 miles) of continuous graphite identified

• Immediately at surface

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IMMEDIATELY AT SURFACE

• Minimal overburden

• Negligible waste-to-ore ratio (0.81:1)

• Very low environmental and social liabilities

Ease of extraction

Surface graphite visible from the air

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Strong management and operations team

Robin BorleySenior Vice President, Mine Development Pr.Tech Eng

• Former Director of Mine Operations for DRA Global

• 25+ years experience building and operating mines internationally (incl. Madagascar)

Johann de BruinSenior Consultant, Operational Readiness PrEng

• Retired Managing Director of DRA Global Africas

• 30+ years of mining operations experience in Africa, Australia and Canada

Oliver PetersSr. Consultant, Process Engineering PrEng

• Head process engineer at SGS Minerals Canada (Lakefield)

• Former process engineer at DRA Global

• 25+ years of process engineering experience in Africa and Canada

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Dean ComandNon-Executive Director, P.Eng

• Former VP of Operations for Sherritt’s Madagascar AmbatovyProject

• Mechanical engineering expertise with extensive Madagascar mining operations experience

Craig ScherbaPresident and Chief Executive Officer P.Geo.

• Discovered both the graphite and vanadium deposits as former head of exploration in Madagascar

• Former managing partner of Taiga Consultants Ltd. that developed Nevsun Resources’ gold/copper/zinc Bisha project in Eritrea

• Extensive African experience, including Madagascar

Brent NykoliationSenior Vice President, Corporate Development BCom

• Over 16 years of management experience, having held senior marketing and strategic development positions with several Fortune 500 corporations in Canada

• Serves as director of Red Pine Exploration Inc., a publically-listed Canadian gold exploration company

Marc JohnsonChief Financial Officer CFA, CPA, BCom

• Over 19 years experience in financial management positions, including 9 years at public corporations as CFO

• 10 years in capital markets in mining investment banking as an equity research mining analyst

Fast-tracking to mine development

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Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

20182017Jun Jul Aug Sept Oct Nov Dec

Phase 1 (17,000 T/yr)

Financing

Construction

Co

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Commercial Production

Phase 2 (~50,000 T/yr)

2019Jan Feb Mar Apr May Jun Jul

Financing

Construction

Co

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Co

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Front End Engineering & Design (FEED) Study

Detailed Engineering

Procurement

Ass

emb

ly &

FA

T

Transport &

Assembly

Site Preparation

Fabrication

Based on Market Conditions

A second strategic resource - Vanadium

• Located 10kms from the Molo Graphite Project

• One of the world’s largest vanadium deposits

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The Green Giant Vanadium Project

Fotadrevo

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Manga Zone

Jaky Zone

Fotadrevo

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Mainty Zone

Sedimentary-hosted

• Unique among vanadium deposits (<5% in occurrence)

• Ideal to produce high-purity V2O5 for the vanadium redox battery (VRB) market

• No magnetic metals associated with the vanadium

• Targeting to be a lower-cost producer for electrolyte for VRBs

The future will be battery powered.

The best battery will win.

Vanadium makes the best batteries.

The Vanadium Redox Battery is the leading energy storage technology.

The two raw materials in a VRB are vanadium and flake graphite.

Two Strategic Materials. One Source.

NextSource has both.

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Our growth plan

Where we are going.

As a materials company, we will apply our unique modular mine model across other projects and commodities.

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Dundee Resources 19%

VR Capital Group 10%

JP Morgan Asset Management 8%

Investors Group/Mackenzie Financial 5%

AGF Mutual Fund Group 3%

DRA Global 1%

Management 7%

Strong institutional shareholders

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