MASON RESOURCES ANNOUNCES CLOSING OF THE SALE OF THE LAC GUÉRET PROPERTY TO NOUVEAU MONDE GRAPHITE

Rhea-AI Summary

Mason Resources Inc. closed the sale of the Lac Guéret Property to Nouveau Monde Graphite Inc. in exchange for 6,208,210 common shares of NMG, representing approximately 9.25% of the issued and outstanding common shares of NMG.

Financial Analyst

The transaction between Mason Resources Inc. and Nouveau Monde Graphite Inc. involves a significant exchange of assets for equity, which can have substantial implications for both companies' financial positioning and market valuation. The acquisition of the Lac Guéret Property by NMG in exchange for approximately 9.25% of its issued and outstanding common shares indicates a strategic move to consolidate resources within the graphite mining sector. This property is poised for the Uatnan Mining Project, suggesting potential for future revenue growth and operational expansion for NMG.

For investors, the key focus should be on the valuation of the Lac Guéret Property relative to the equity stake given up. This requires an analysis of the property's proven and probable reserves, the stage of development and the projected costs versus the potential market demand for graphite, which is critical for electric vehicle batteries and other technologies. The deal's impact on Mason's liquidity and diversification of assets should also be considered, as well as the dilutive effect on NMG's existing shareholders.

Market Research Analyst

Graphite is a commodity with increasing importance due to its use in lithium-ion batteries and other high-tech applications. The demand for graphite is expected to rise in tandem with the growth of the electric vehicle industry and renewable energy storage solutions. The acquisition of the Lac Guéret Property positions NMG favorably within the market, potentially increasing its market share and influence over graphite prices.

Analysis of industry trends suggests that companies with control over significant mining assets in strategic minerals like graphite could benefit from long-term contracts and partnerships, especially with battery manufacturers and tech companies. The transaction may also attract investor interest in the sector, reflecting on the stock performance of both Mason and NMG. It is crucial to monitor the subsequent integration of the property into NMG's operations and the realization of expected synergies.

Economist

The sale of a property for development in exchange for equity shares is a transaction that can have ripple effects on the broader economy, particularly in regions dependent on mining and resource extraction. The development of the Uatnan Mining Project could lead to job creation, infrastructure development and increased economic activity in the region. However, it also raises questions about the sustainability of mining practices and the long-term economic impact once the mine is depleted.

From an economic perspective, the deal between Mason and NMG may signal confidence in the commodity markets and the mining sector's growth prospects. It is important to assess how this transaction aligns with economic indicators such as commodity prices, employment rates in the mining sector and overall investment levels in resource development. The strategic importance of graphite in the clean energy transition could also position this deal as a forward-looking investment in a sustainable economy.

TORONTO, Jan. 31, 2024 /PRNewswire/ - Mason Resources Inc. ("Mason") (TSXV: LLG) (OTCQX: MGPHF) is pleased to announce that it closed today the sale of the Lac Guéret Property, targeted for the development of the Uatnan Mining Project, pursuant to the previously announced asset purchase agreement dated January 21, 2024 (the "APA") with Nouveau Monde Graphite Inc. ("NMG") (NYSE: NMG) (TSXV: NOU).

In consideration for the sale of the Lac Guéret Property, Mason received 6,208,210 common shares of NMG, representing approximately 9.25% of the issued and outstanding common shares of NMG.

A copy of the APA is available under Mason's profile on SEDAR+ at www.sedarplus.ca.

About Mason Resources Inc.

Mason Resources Inc. is a Canadian corporation focused on seeking investment opportunities. Mason is the largest shareholder of Black Swan Graphene Inc. ("Black Swan") (TSX.V: SWAN) (OTCQB: BSWGF) focusing on the large-scale production of patented high-performance and low-cost graphene products aimed at several industrial sectors, including concrete and polymers, which are expected to require large volumes of graphene and, in turn, large volumes of graphite. Black Swan aims at leveraging Québec's emerging graphite industry to establish an integrated supply chain. In 2023, Black Swan, Nationwide Engineering Research & Development Ltd., and Arup Group Ltd. announced strategic partnerships and, in 2024, Black Swan announced a commercial agreement with Hubron International Ltd. Black Swan's graphene processing technology was developed over the span of a decade by Thomas Swan & Co. Ltd., a United Kingdom-based global chemicals manufacturer, with a century-long track record.

For more information: www.masonresourcesinc.com and www.blackswangraphene.com.

About Nouveau Monde Graphite

Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in Québec, Canada, for the growing lithium-ion and fuel cell markets. With enviable ESG standards, NMG aspires to become a strategic supplier to the world's leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability.

For more information: www.NMG.com

Mason Resources Inc. on behalf of the Board of Directors
Peter Damouni, President & Chief Executive Officer

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

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SOURCE Mason Resources Inc.

What property did Mason Resources Inc. sell?

Mason Resources Inc. sold the Lac Guéret Property.

What did Mason Resources Inc. receive in exchange for the sale of the Lac Guéret Property?

Mason Resources Inc. received 6,208,210 common shares of NMG, representing approximately 9.25% of the issued and outstanding common shares of NMG.

What is the ticker symbol for Nouveau Monde Graphite Inc. on the NYSE?

The ticker symbol for Nouveau Monde Graphite Inc. on the NYSE is NMG.

Where can a copy of the asset purchase agreement be found?

A copy of the asset purchase agreement is available under Mason Resources Inc.'s profile on SEDAR+ at www.sedarplus.ca.