NextSource Materials Inc. Files Updated Feasibility Study on SEDAR and New Corporate Presentation on Website

TORONTO, ONTARIO--(Marketwired - July 19, 2017) - NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRC) ("NextSource" or "the Company") announces that it has filed its Updated National Instrument 43-101 Technical Report - Feasibility Study ("updated Feasibility Study") for its Molo Graphite Project located near the village of Fotadrevo in the Province of Toliara, Madagascar on SEDAR (www.sedar.com). The Updated Feasibility Study titled, "Molo Feasibility Study National Instrument 43-101 Technical Report" is also available on NextSource's website at www.nextsourcematerials.com.

Results from the updated Feasibility Study were previously announced on June 1, 2017 and highlighted the following:

• The updated Feasibility Study results verify positive economics for Phase 1 of the Molo mine, which will utilize a unique, fully-modular build approach taking into account current-day flake graphite prices

• A build cost of US$18.4 million confirms that the Molo Project will have the lowest capital mine cost (CAPEX) of any new and competing graphite project

• Phase 1 will consist of a fully operational and sustainable graphite mine with a permanent processing plant capable of producing approximately 17,000 tonnes per annum ("tpa") of high-quality SuperFlake?,,? graphite concentrate per year with a mine life of 30 years

• Project Operating costs (OPEX) include all-in costs for freight and insurance (CIF) to ship Molo SuperFlake?,,? concentrate to international European port (Rotterdam) and verifies Molo OPEX as one of the lowest in the industry on a full-cost, CIF basis

• Phase 1 build time of 9 months

• Phase 1 will realize a pre-tax internal rate of return (IRR) of 25.2%, a post-tax IRR of 21.6%

• Based on the positive results of the updated Feasibility Study, the Company will be initiating an economic analysis for eventual Phase 2 expansion that will incorporate its unique modular approach to produce approximately 50,000 tpa of finished SuperFlake?,,? graphite concentrate

NEW CORPORATE PRESENTATION

The Company has posted a new corporate presentation on its website that contains current information on the activities regarding its 100%-owned Molo Graphite Project in southern Madagascar.

QUALIFIED PERSONS

The updated Feasibility Study was prepared in accordance with National Instrument (NI) 43-101 standards by Mr. Johann de Bruin, PrEng. of Erudite Strategies (Pty) and is the Qualified Person who verified the technical data using industry acceptable standards and signed off on the relevant sections in the NI 43-101 report filed on SEDAR. Mr. de Bruin, independent of the Company, is the qualified person who has reviewed and approved the technical information contained in the updated Feasibility Study titled, "Molo Feasibility Study National Instrument 43-101 Technical Report."

ABOUT NEXTSOURCE MATERIALS INC.

NextSource Materials Inc. is a mine development company based in Toronto, Canada, that is developing its 100%-owned Molo Graphite Project in southern Madagascar. The Molo Graphite Project is a feasibility-stage project and ranks as one of the largest-known and highest quality flake graphite deposits in the world.

Please see the updated Feasibility Study titled, "Molo Feasibility Study National Instrument 43-101 Technical Report." prepared by Erudite Strategies (Pty)" for certain other details and assumptions relating to the mineral resource and reserve estimates and data verification procedures.

To learn more about NextSource's 100%-owned, feasibility-stage Molo Graphite Project in Madagascar, please visit the Company's website at www.nextsourcematerials.com.

Safe Harbour: This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are related to the results of the updated Feasibility Study, the results of the previous 2015 Molo Feasibility Study, the updated 2017 Molo 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 of equipment to construct a mine, value engineering, any and all product test results and product analysis, and the permit application. These are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.