Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES PROVIDES YEAR END BUSINESS AND OPERATIONAL UPDATE

California Nanotechnologies Corp. is offering a series of corporate and operational updates that highlight the company's growth strategy and manufacturing production expansion.

"This calendar year has been a transformational year for Cal Nano," stated chief executive officer Eric Eyerman. "We saw a significant increase in sales, debt reduction and the closing of our first equity issue in almost a decade. We are entering the 2024 calendar year with a strong pipeline of commercial opportunities, increased capacity, and a more fortified balance sheet. We are excited to execute on our growth plan and appreciative of our hard-working employees and shareholders who have supported us in this journey."

Cal Nano continues to see strong demand and interest for its research and development manufacturing offerings as customers achieve their desired material enhancement results and as awareness of the company's core technologies grows.

Customers such as Ambri, the green steel cleantech company referred to in recent press releases, and a world-leading carbon capture company continue working with Cal Nano to progress its research and development programs while simultaneously exploring pathways to larger work volumes. In addition, the thermoelectric customer which previously worked with Cal Nano in fiscal year 2022 and early fiscal year 2023, is resuming its research and development efforts, and Cal Nano anticipates revenue from this customer again by first quarter fiscal year 2025.

These development programs create the potential for larger commercial contracts as these clients seek to move beyond research and development initiatives. Cal Nano is actively engaged in discussions for more extensive programs with its existing and potential R&D customers, and additional updates will be shared if contracts are finalized.

In response to current and anticipated market demand, Cal Nano has acquired a mid-sized SPS2000 system to expand its spark plasma sintering (SPS) manufacturing capacity. This equipment is scheduled for delivery in late 2024 and will complement other recent equipment purchases. These purchases include an additional cyromill, which is expected to increase cyromilling capacity multifold upon installation, and another piece of equipment that performs additive manufacturing, also known as 3-D printing, in conjunction with SPS technology.

As an SPS equipment distributor, Cal Nano successfully completed two scheduled deliveries, valued at $295,000 (U.S.), to two U.S. universities within the most recent fiscal quarter. As a result of these sales and the company's continued manufacturing execution, third quarter fiscal 2024 is expected to be another record revenue quarter. Cal Nano expects to release its third quarter fiscal 2024 results in mid-January, 2024.

Eric Eyerman (CEO) and Chris Melnyk (director of business development) recently returned from a business development trip in Europe which focused on leveraging partnerships and creating new commercial opportunities. Collaborations with European partners, like Aerosint based in Belgium, help Cal Nano remain at the forefront of materials science and enhance its North American manufacturing offering. In addition, the company is exploring options with European-headquartered multinationals which see benefits to local manufacturing and wish to work with U.S. partners such as Cal Nano.

Lastly, the company believes that making key investments in sales and marketing will help drive the adoption of its nascent technologies. As a result, Cal Nano has started initiatives such as sponsoring a material science podcast and working with new channel partners. One of these channel partners is the American Lightweight Materials Manufacturing Innovation Institute, known as LIFT. LIFT provides the company with access to over 300 companies aligned with advanced manufacturing techniques and a 100,000-square-foot state-of-the-art facility that will be utilized to demonstrate SPS and cryomilling to a broader audience.

About California Nanotechnologies Corp.

At Cal Nano, the company envisions a world in which its advanced technologies are used to help make the most innovative products on this planet and beyond. Global leaders trust Cal Nano to help push the boundaries of applied material science by utilizing its unique technical expertise and vision. Headquartered in Los Angeles, Calif., Cal Nano hosts advanced processing and testing capabilities for materials research and production needs. Customers range from Fortune 500 companies to start-ups with programs spanning aerospace, renewable energy, defence and semiconductors.

We seek Safe Harbor.