Northern Graphite Corporation has reached a binding debt restructuring agreement with Sprott Resource Streaming and Royalty Corp. to remove approximately US$22.5 million of senior secured debt and accrued interest from its balance sheet while issuing 12,500,000 common shares to make the firm its largest shareholder.

Under the terms of the debt agreement, the restructuring eliminates an overhang weighing on Northern Graphite Corporation and increases Sprott Streaming's ownership to 9.9% of basic shares outstanding. However, the transaction coincides with a delay in restarting the Lac des Iles mine in Quebec beyond the third quarter of 2026. The temporary shutdown left the company with no sales or revenue during the second quarter, contributing to a net loss of $3.0 million, or $0.02 per share, compared to a net loss of $1.0 million, or $0.01 per share, in the prior year's period. Cash and equivalents declined to $0.2 million as of June 30, 2026, down from $1.1 million at March 31, 2026.

"In the second quarter Northern reached a transformative restructuring agreement of its senior secured debt with Sprott Streaming which will remove approximately US$22.5 million of debt and accrued interest from our balance sheet and eliminate an overhang that has weighed on the Company's ability to execute on strategic objectives. The agreement will also make Sprott Streaming our largest shareholder, underscoring its confidence in our growth plans," said Chief Executive Officer Hugues Jacquemin. "However, the restart of our Lac des Iles mine is taking longer than anticipated and the lack of revenue is placing additional pressure on our financial position." — Hugues Jacquemin, Chief Executive Officer

No active mining or processing occurred at Lac des Iles during the second quarter as Northern Graphite Corporation awaited authorization for its Phase I pit expansion plan, which Quebec environmental authorities subsequently granted on July 9. Critical plant maintenance remains well advanced to support the planned 2026 pit expansion.

Subsequent to the quarter end, the company received notice on August 10 that its LDI mining lease had been suspended over an outstanding payment relating to financial guarantees for site restoration. Northern Graphite Corporation is contesting the decision before the Quebec Court, which keeps the lease in effect pending a final judgment.

Internationally, Northern Graphite Corporation completed the relocation of its processing plant from Okorusu to the Okanjande mine site in Namibia. The company owns the fully permitted Okanjande graphite mine in Namibia, which is currently on care and maintenance. Construction at Okanjande is forecast to begin in the first quarter of 2027, with a mine restart planned for the first quarter of 2028. Downstream, Northern Graphite Corporation forecasts that construction of its Battery Anode Material facility in Yanbu Industrial City, Saudi Arabia, will begin in the first half of 2027, with first production scheduled for 2028.

"Northern is navigating a challenging near-term environment and we recognize that the path forward, particularly at Lac des Iles, will require disciplined decisions around capital, operating economics and market demand," said Mr. Jacquemin . "The strategic need for secure graphite supply outside China has not diminished, and with an improving capital structure, established assets and growing technical and commercial relationships, we believe Northern remains well positioned to participate as these markets develop." — Hugues Jacquemin, Chief Executive Officer

Read the full announcement: Northern Graphite Announces Second Quarter 2026 Results and Provides Corporate Update