Mr. Soroush Nazarpour reports

NANOXPLORE EXPANDS CAPACITY IN QUEBEC PLANT TO ACCOMMODATE HIGHER CUSTOMER VOLUMES AND ANNOUNCES THE NOMINATION OF PIERRE-YVES TERRISSE, VICE-PRESIDENT CORPORATE DEVELOPMENT

Nanoxplore Inc. has increased the production capacity of its St-Clotilde, Que., plant to meet an existing customer's need for increased graphene-enhanced SMC parts in an active program.

This capacity expansion, which is part of its five-year strategic plan and related to the SMC lightweighting initiative, begins immediately. This expansion, in two phases, will contribute $2-million in incremental revenues during calendar 2024 and, once fully scaled up, is expected to contribute $8-million to $10-million annually, beginning in calendar 2025. Moreover, a significant part of the capacity expansion costs will be assumed by the customer. Nanoxplore's customer has committed to purchase the additional equipment required for this program and, consequently, the previously announced SMC lightweighting initiative capex (capital expenditure) of $30-million to $35-million will now be in a range of $25-million to $30-million.

Soroush Nazarpour, president and chief executive officer, said: "Demand is very strong for our graphene-enhanced composite products, up to the level that customers are covering capital costs to access larger production volumes. This expansion is the first step in increasing our graphene-enhanced SMC parts manufacturing capabilities and a big step towards achieving our five-year plan in SMC lightweighting."

The corporation is also pleased to announce the recent appointment of Pierre-Yves Terrisse as vice-president of corporate development.

In his role, Mr. Terrisse will be responsible for Nanoxplore's function and strategy of investor relations, including articulating the corporation's growth plan, business and financial objectives to the investment community. His network of institutional investors and sell-side financial community, combined with his expertise, will reinforce the corporation's profile and strength. Finally, Mr. Terrisse will engage and evaluate M&A (merger and acquisition) opportunities, as well as participate in financing structure.

Mr. Terrisse has more than 25 years of experience in the investment industry in various role spanning from financial analyst to MD investment banking. Mr. Terrisse holds a bachelor of business administration from Universite du Quebec a Montreal.

Mr. Nazarpour, president and chief executive officer, said: "Pierre-Yves's career reflects his ability to play a key role to drive Nanoxplore's recognition in the capital market landscape. His knowledge and understanding of the North American capital market ecosystem will add to the strong executive team we already have in place, and contribute to the firm's success. Two thousand twenty-four will be a busy year for Nanoxplore, with a solid plan for profitable growth as well as continuously look for new business opportunities."

Mr. Terrisse said: "I am delighted to take on this new function and join Nanoxplore's highly dynamic team. I see this new role as an opportunity to contribute to the company's success. Nanoxplore is a leader in graphene production, and I see solid organic and inorganic growth opportunities ahead for the company."

About Nanoxplore Inc.

Nanoxplore is a graphene company, and a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics and other industrial sectors. The corporation is also a silicon-graphene-enhanced lithium-ion battery manufacturer for the electric vehicle and grid storage markets. Nanoxplore is headquartered in Montreal, Que., with manufacturing facilities in Canada, the United States and Europe.

We seek Safe Harbor.