Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES SPS EQUIPMENT PURCHASE TO FURTHER ENHANCE CAPABILITIES AT NEW FACILITY

California Nanotechnologies Corp. has made a $300,000 (U.S.) down payment for a cutting-edge MSP-5 spark plasma sintering (SPS) machine by Germany-based Dr. Fritsch. California Nanotechnologies will be the first organization in North America to receive this model and, once operational, it is expected to be the largest SPS machine commercially available for production, and R&D (research and development) manufacturing services on the continent. This purchase solidifies California Nanotechnologies' SPS leadership, enabling larger part sizes and expanding processing capacity for new customer opportunities.

"We are ecstatic to announce this down payment as we build on a thesis developed over five years ago that SPS would become a more prevalent technology," stated Eric Eyerman, chief executive officer. "This machine is expected to open new customer applications in key growth areas, such as aerospace, cleantech, renewable energy and industrials. These opportunities were previously beyond our reach due to the part size and throughput limitations of our current machines. Over all, Cal Nano has assembled a unique offering of advanced materials manufacturing capabilities that can scale with customers from R&D projects to commercial production."

The new SPS equipment, which is expected to be delivered in late calendar year 2024, will exert a maximum force of 500 tons and run on an electric current of 85,000 amps. This is around five times the power of California Nanotechnologies's current largest SPS machine in terms of force and approximately nine times in terms of electric current.

Although the full financing structure is yet to be formalized, California Nanotechnologies expects to potentially finance the purchase using a blend of current cash reserves, operational cash flows, vendor financing and support from customers.

In the last 12 months, California Nanotechnologies has undertaken various initiatives to strengthen its manufacturing capabilities and capacity, such as:

• July, 2023: Procured a used cryomill, the third and largest to date, increasing cryomilling capacity multifold in anticipation of heightened customer demand;
• October, 2023: Acquired a piece of equipment that performs additive manufacturing, also known as 3-D printing, in conjunction with SPS technology;
• December, 2023: Purchased a third, smaller SPS system for installation at the Cerritos headquarters;
• February, 2024: Procured another used cryomill, the fourth and largest to date, increasing cryomilling capacity further, along with signing new manufacturing facility lease in Santa Ana;
• March, 2024: Announced a down payment for an MSP-5 SPS system to increase scale, capable of accommodating higher production volumes and larger part sizes.

California Nanotechnologies is developing products with a variety of customers that have the potential to utilize the new SPS capacity once it becomes operational at the new facility. In the fiscal quarter ending Feb. 29, 2024, California Nanotechnologies secured approximately $1-million (U.S.) in purchase orders from customers utilizing its SPS and cryomilling manufacturing capabilities.

About California Nanotechnologies Corp.

California Nanotechnologies 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 the company to help push the boundaries of applied material science by utilizing its unique technical expertise and vision. Headquartered in Greater Los Angeles, Calif., California Nanotechnologies 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.

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