Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES Q3/FY2023 REVENUE AND PROVIDES CORPORATE UPDATES

California Nanotechnologies Corp. (Cal Nano) had approximate revenues of $390,000 (U.S.) for the quarter ending Nov. 30, 2022. This represents the second-highest quarterly revenue in the company's history and brings total revenue for the nine months ended Nov. 30, 2022, to approximately $1-million (U.S.).

The stronger revenue this quarter is particularly attributable to Cal Nano's new relationship with the sustainability-focused biotech company mentioned in the company's Q2/fiscal year 2023 news release. The cryomilling work done for this company contributed approximately $160,000 (U.S.) in revenue for the quarter. "We expect to receive additional orders and a continuous flow of cryomilling work from this customer in 2023. This would be the first ongoing revenue stream for Cal Nano using our proprietary cryomilling technology," stated Eric Eyerman, chief executive officer of Cal Nano. Other important contributors to revenue were related to SPS (spark plasma sintering) services provided to companies such as Ambri and businesses in the advanced materials and aerospace/defence industries. Cal Nano has been in continuing discussions with its thermoelectric customer referred to in recent press releases. After having completed its prototype devices, additional revisions are required before the product goes into commercial production. Research and development work with the customer is expected to continue and expansion to commercial volumes has been pushed out from its early 2023 expectation. Additionally, Cal Nano has been engaged by two non-government-related companies in the aerospace industry to provide SPS services. Further information will be provided as the projects progress.

Cal Nano would like to announce its second SPS system distribution sale of approximately $145,000 (U.S.) to the University of California Irvine (UCI). This is an SPS lab unit that Cal Nano will be installing in the new materials research facility at UCI. This unit is expected to ship in Q2/FY2023. Cal Nano's first SPS system sale is still expected to ship in early 2023.

The company is pleased to announce that to pursue growth, it has recruited a business development and sales consultant. This individual has experience and technical knowledge of both SPS and cryomilling and will be focusing on the company's strategic goals, which include driving new sales, infiltrating new markets and improving the commercialization processes at Cal Nano. "We continue to be very optimistic in our outlook. We are seeing more opportunities than we have even seen in the past and interest continues to build across all industries around our core technologies. We are hopeful for continued progress and growth heading into the next fiscal year," continued Mr. Eyerman, CEO of Cal Nano.

About California Nanotechnologies Inc.

Cal Nano is the sole North American provider for commercial SPS and cryomilling services. Cryomilling is used to produce nanomaterials and advanced powder systems. SPS is used for turning powders into solid parts using a pulsed current and high pressure. With multiple systems in-house, Cal Nano is able to manufacture parts from advanced materials in multiple sizes and shapes at production scale. Due to SPS's 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.

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