Nouveau Monde Graphite Announces Closing of the Final Tranche of Its Private Placement of Units and of Its Private Placement of Flow-Through Shares for an Aggregate of $793,199.60

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN THE UNITED STATES.

SAINT-MICHEL-DES-SAINTS, Québec, Oct. 02, 2018 -- Nouveau Monde Graphite Inc. (the “Corporation” or “Nouveau Monde”) (TSX Venture Exchange: NOU) (OTCQX: NMGRF) (Frankfurt: NM9) is pleased to announce that it has closed the final tranche of a brokered private placement of an aggregate number of 1,310,666 units (the “Units”) at a price of $0.30 per Unit, for aggregate gross proceeds of $393,200 (the “Offering”).

Each Unit is comprised of one common share in the capital of the Corporation and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder thereof to acquire one common share of the capital of the Corporation (the “Warrant Share”), at a price of $0.40 per Warrant Share, for a period of 24 months following the closing of the Offering.

The net proceeds of the Offering will be used by the Corporation for capital allocations in connection with the demonstration plant in Saint-Michel-des-Saints, for value-added product development, and for working capital and general corporate purposes.

All securities issued pursuant to the Offering are subject to a restricted period ending on February 3, 2019 under applicable Canadian securities legislation. The Corporation expects to be able to file shortly all required documentation to satisfy the conditional acceptance of the TSX Venture Exchange (the “TSXV”).

Flow-Through Shares Private Placement

The Corporation also announces that it has closed the final tranche of its non-brokered private placement (the “FT Shares Offering”) of an aggregate of 1,111,110 flow-through shares (the “FT Shares”) at a price of $0.36 per FT Share, for an aggregate gross proceeds of $399,999.60.

The aggregate gross proceeds of the FT Shares Offering will be used by the Corporation to pay for exploration expenses on its Matawinie property.

All securities issued pursuant to this FT Shares Offering are subject to a restricted period ending on February 3, 2019 under applicable Canadian securities legislation. The Corporation expects to be able to file shortly all required documentation to satisfy the conditional acceptance of the TSXV.

Summary of private placements

The Corporation has now completed the whole of its Offering of an aggregate number of 21,857,001 Units in the capital of the Corporation, at a price of $0.30 per Unit, for aggregate gross proceeds of $6,557,100.30 and the whole of its FT Shares Offering of an aggregate of 6,395,377 FT Shares at a price of $0.36 per FT Share, for an aggregate gross proceeds of $2,302,336.

In the course of the private placements, the Corporation has retained the services of a syndicate led by Eight Capital together with Haywood Securities Inc., Desjardins Securities Inc. and Canaccord Genuity Corp. acting as agents (the “Agents”). In consideration for their services, the Agents received an aggregate cash commission of $61,292.99, advisory fees of $86,500 and an aggregate of 204,305 broker warrants and 621,665 advisory warrants to purchase collectively up to 825,970 common shares in the capital of the Corporation, at a price of $0.30 per common for a period of 24 months following the applicable closing date.

In the course of the private placements, the Corporation also retained the services of Echelon Wealth Partners Inc., which has received an aggregate cash commission of $7,106.40 and an aggregate of 19,740 broker warrants to purchase up to 19,740 common shares in the capital of the Corporation, at a price of $0.40 per common share, until September 28, 2020. Finally, the Corporation has retained the services of EMD Financial Inc., which has received an aggregate cash commission of $38,861.75 and an aggregate of 107,949 broker warrants to purchase up to 107,949 common shares in the capital of the Corporation, at a price of $0.40 per common share, until September 28, 2020.

This press release does not constitute an offer of securities for sale in the United States or to “U.S. persons” (“U.S. persons”), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.

About Nouveau Monde Graphite

In 2015, Nouveau Monde has discovered a major and high-quality graphite deposit on its Matawinie property, located in Saint-Michel-des-Saints, 150 km north of Montreal, Quebec. This discovery led to the completion of a Prefeasibility Study which revealed strong economics with a projected graphite concentrate production level of 52,000 tonnes per year over a 27-year period. In the coming weeks, Nouveau Monde will be distributing its first tonnes of graphite concentrate to interested parties. The demonstration plant has been built for a production capacity of 2,000 tonnes of concentrated flake graphite over a two-year period.

Moreover, in a vertical integration and sustainable development perspective, Nouveau Monde is planning the establishment of a large-scale graphite secondary transformation facility, catering the needs of the booming lithium-ion battery market. With over 60 years of experience in the world of graphite, Nouveau Monde’s team develops its projects with the utmost respect of neighboring communities, while favoring a minimal ecological footprint. Nouveau Monde’s project is privileged by direct access to the workforce and infrastructure needed to operate its mining project, and it can also rely on an abundant, affordable and renewable source of hydroelectricity.

The press release was reviewed by Eric Desaulniers, M.Sc., P.Geo., President and CEO of Nouveau Monde Graphite, a Qualified Person under National Instrument 43-101 guidelines.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements, other than statements of historical fact, contained in this press release including, but not limited to generally, or the “About Corporation Graphite” paragraph which essentially describe the Corporation’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Further information regarding Corporation is available in the SEDAR database (www.sedar.com) and on the Corporation’s website at: www.nouveaumonde.ca