Mr. Paul Guedes reports

NANO ONE PROVIDES QUARTERLY PROGRESS UPDATE AND REPORTS Q1 2023 RESULTS

Nano One Materials Corp. has filed its condensed interim consolidated financial statements, and management's discussion and analysis (MD&A) as at and for the three months ended March 31, 2023 (Q1 2023), and has provided highlights from Q1 2023.

Q1 2023 highlights and headlines

• Working capital of about $35.7 million; cash of about $40.1-million;
• Completion of cathode evaluation project and expansion of collaboration with automotive OEM (original equipment manufacturer);
• New program financing from SDTC;
• Three new patents issued and allowed in Taiwan, Korea and the United States;
• Proceeds of about $3.7-million from the exercise of warrants;
• Advancement of commercial plans for LFP and other cathode materials.

Corporate milestones for Q1 2023

New program financing from SDTC

On Feb. 13, 2023, the company announced an award of up to $10-million in non-dilutive, non-repayable contributions from Sustainable Development Technology Canada (SDTC). These funds will support the conversion of Nano One's recent high-value acquisition of the JMBM Canada LFP facility in Candiac, Que., Canada (November, 2022), to the patented one-pot process for industrial-scale pilot production of LFP and includes financial support for the design, construction and operation of a multicathode piloting hub (MCPH) to help customize and advance Nano One's one-pot and metal-direct-to-CAM (M2CAM) processes for the industrial scale pilot production of next-gen LFP, NMC and LNM cathode active materials (CAM).

Completion of cathode evaluation project and expansion of collaboration with automotive OEM

On Feb. 21, 2023, the company announced the successful completion of the evaluation and benchmarking of its process, cathode materials and techno-economic modelling, under a cathode evaluation agreement with a global automotive manufacturer. Success has led the parties to a new cathode evaluation agreement that adds LFP to the program and expands their collaboration to target performance, cost and environmental specifications of cathode materials to meet the needs of the OEM.

Advancement of commercial plans for LFP and other cathode materials

On April 24, 2023, the company provided an update regarding its commercial plans which are aimed at jump-starting the commercialization of its one-pot process starting at 200 tonnes per annum (tpa) in 2023, expanding in steps to 2,000 tpa, 10,000 tpa and hundreds of thousands of tonnes per annum. To expedite commercial sampling, offtake and first revenues, the company's Candiac facility in Quebec is being retrofitted with its new one-pot reactors and technology and will be commissioned initially at 200 tpa (tonnes per annum) in Q3 2023, ramping up to as much as 2,000 tpa.

Nano One's technology, manufacturing hub and plans represent a game-changing opportunity to secure sustainable and clean battery supply chains in North America. Nano One will launch LFP in North America, followed by Europe and the Indo-Pacific region, giving it access to exponential revenue growth, to power hundreds of gigawatt hours of battery storage and millions of electric vehicles.

Q1 2023 financial position and results

• Total assets of about $56.9-million (Q4 2022 -- about $56.1-million);
• Total liabilities of about $7.5-million (Q4 2022 -- about $2.6-million) with no debt;
• Positive net cash flows of about $625.000 during the quarter;
• Proceeds from government programs, interest income, and exercises of stock options and warrants of about $7.6-million, which more than offset the use of cash during the quarter;
• Capitalized investments in equipment, facilities and construction activity of about $1.1-million in addition to net investments in research and operational expenses of about $1.9-million.

Given recent banking uncertainty the company wants to reassure its shareholders that its treasury is diversified amongst several Canadian chartered banks and large financial institutions, and the company's conservative and diversified approach to treasury management reflects the paramount priority of safety and security.

About Nano One Materials Corp.

Nano One Materials is a clean technology company with a patented, scalable and low-carbon-intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials with strategic collaborations and partnerships, including automotive OEMs and strategic industry supply chain companies like BASF, Umicore and Rio Tinto. Nano One's technology is applicable to electric vehicles, energy storage and consumer electronics, reducing costs and carbon intensity while improving environmental impact. The company aims to pilot and demonstrate its technology as turnkey production solutions for license, joint venture and independent production opportunities, leveraging Canadian talent and critical minerals for emerging markets in North America, Europe and the Indo-Pacific region. Nano One has received funding from SDTC and the governments of Canada and British Columbia.

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