Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES POSITIVE Q1/FY2023 RESULTS

California Nanotechnologies Corp. had revenues of $329,179 (U.S.) for the quarter ending May 31, 2022. This is an increase of 60 per cent from the previous year. Net income for the quarter was $50,270 (U.S.) and EBITDA was $104,005 (U.S.). Full financial statements are available at SEDAR.

Highlights from the first quarter:

• Company announces $329,000 revenue for first quarter of the fiscal year 2023.
• California Nanotech delivers prototype components for next-generation liquid metal battery company.

The quarter included sales of approximately $104,000 of prototype components to its customer developing a cutting-edge energy-from-waste-heat device described in previous press releases. The customer is, as expected, adjusting some parameters in its prototype device. California Nanotech is now in discussions with the customer about components with adjusted compositions for delivery later in 2022.

The quarter also included significant revenue from a spark plasma sintering customer that is developing cutting-edge large-scale liquid metal battery storage for applications such as wind farms, Ambri Inc. California Nanotech is using its SPS processing technology to improve the efficiency of a key component in Ambri's new technology batteries. This is another example that leverages California Nanotech's expertise and experience with nano-material metals and ceramics for commercial opportunities. While Ambri's product is still in development, this development presents California Nanotech with an opportunity for a material commercial revenue stream over the long term.

Ambri's chief technical officer stated: "California Nanotechnologies has been a powerful partner, helping us develop next-generation components for our high temperature liquid metal batteries. Their team is professional, rapidly executing on new requests with full autonomy and they have extensive knowledge with high temperature materials processing techniques. This has allowed us to achieve rapid cycles of learning to maximize our rate of progress and they are poised to help us transition to commercial production. We've greatly valued our partnership with California Nanotechnologies."

California Nanotech chief executive officer Eric Eyerman was recently interviewed by Paul Andreola of Smallcap Discoveries. During the interview Mr. Eyerman spoke about California Nanotech's technologies and capabilities. The video can be viewed on-line at Smallcap Discoverie's YouTube channel.

Mr. Eyerman has been asked by the vehicle technologies office to speak about the potential applications of SPS technology at the electric drive tech team's monthly industry round table on Aug. 18, 2022. This monthly meeting is attended by members from several United States national labs working on electric vehicle technologies, the EV program director from the Department of Energy and several vehicle original equipment manufacturers.

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