Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES RECORD QUARTERLY REVENUE

California Nanotechnologies Corp. (Cal Nano) achieved record revenue in the quarter ending Feb. 28, 2022 (Q4 F2022), of approximately $470,000 (U.S.). This quarterly revenue is far in excess of revenue in any previously reported quarter.

During the quarter, the company delivered the bulk of an order from its thermo-electrics customer, as outlined in previous press releases. In addition, the company also continued to successfully meet product demand by other customers in the normal course of business.

Thermo-electrics is a green technology which involves the production of electricity using waste heat from other processes. Thermo-electrics is a large and well-established industry, where a key performance measurement is the efficiency of the process which converts waste heat to electricity.

Cal Nano's customer is working on a new thermo-electric generator with improved efficiency. In order to enhance the efficiency of the device, the customer has engaged Cal Nano, as perhaps the only provider of third party commercial spark plasma sintering (SPS) services in North America, to provide SPS services for parts in its prototype device.

Cal Nano is pleased to report that the parts it produced met the performance guidelines established by the customer. The customer is now expected to complete its prototype device and test it in the market. Successful test results will likely result in expansion of the program. There are risks attached to the performance of the prototype and Cal Nano's future role as a supplier to the customer. However, plans are already under way for continuing to support the customer with additional development for enhancing the current product and exploring new opportunities.

Cal Nano needed to add staff to execute the work in Q3 and for a period operated its SPS facility on a two-shift operation. Nonetheless, the company expects to see a very visible impact on its EBITDA (earnings before interest, taxes, depreciation and amortization) in the quarter. Cal Nano expects the record revenue in Q4/full-year 2022 to also result in record annual EBITDA.

Cal Nano is the sole North American provider for commercial SPS services. With multiple systems in-house, Cal Nano is able to manufacture parts from advanced materials in multiple sizes and shapes at production scale. SPS is used for turning powders into solid parts using an DC pulsed current and high pressure. Due to its unique method of heating, it is superior for sintering advanced and nanomaterials that will go into the next generation of enhanced products in the aerospace, green energy and defence industries.

About California Nanotechnologies Inc.

Cal Nano is a provider of sophisticated nanotechnology solutions to complex metallurgical and ceramic customer applications. Its two core technologies are cryomilling and spark plasma sintering. Customer solutions using these technologies are offered by very few companies in North America, none of which have Cal Nano's expertise and know-how. The company's technologies allow metals and other materials to take on enhanced performance characteristics which can be tailored for each customer's specific application. The company's customers include leading aerospace manufacturers, U.S. national labs, multinational defence companies and energy corporations.

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