Mr. Paul Guedes reports

NANO ONE ADVANCES ITS COMMERCIAL LFP PLANS AT QUEBEC FACILITY, SECURES SIX NEW PATENTS

Nano One Materials Corp.'s lithium iron phosphate (LFP) trials, One-Pot reactors, sampling and pilot production plans are being expedited as previously outlined, and initial engineering plans for its first full-scale commercial plant are nearing completion. Additionally, the company is pleased to report on six new patents that significantly enhance its global portfolio of intellectual property.

Highlights

Nano One's LFP plans in Quebec are on time and on budget:

• Tonne scale trials in existing reactors are demonstrating scalability of the One-Pot process.
• New One-Pot reactors have arrived and are on target for commissioning in Q3 2023.
• Commercial LFP evaluations to begin in Q4, leading to potential offtake and first revenues.
• Trials and engineering informing design and operation of first full scale LFP commercial plant.
• 6 new patents significantly extend IP protection, launching total to 33 globally.

"We are doing One-Pot LFP trials in Nano One's Candiac facility," said Nano One's Chief Commercialization Officer Mr. Denis Geoffroy, "and we have been producing tonne sized batches successfully in the existing commercial scale equipment for a few months now. In parallel we are installing smaller modular One-Pot reactors, engineered and built in Quebec, so that we can also do smaller trials, evaluate new reactor designs and fast track our plans. We are on budget, on time and on target to have our first 200 tonnes of capacity commissioned by the end of Q3 producing samples for third party commercial evaluation, with volumes up to 2000 tonnes, to follow in 2024. Each milestone increases project certainty, instills confidence in our future customers, and advances our commercialization journey."

The supply of critical minerals and raw material inputs are being trialed in large scale batches, providing Nano One with greater certainty of feedstock quality and full scale operating conditions and the new reactors will be automated with feeding and dosing systems to ensure consistent quality and reproducibility of LFP samples.

Learnings and offtake agreements from these trials are also expected to shape expansion plans and revenue projections for the existing plant up to 2,000 tonnes per annum (tpa). This extends to the adjacent future commercial plant and initiatives beyond Candiac to scale further to hundreds of thousands of tonnes.

Nano One aims to demonstrate scalability and production for third party qualification with the goal of securing offtake agreements and first revenues with its partners, that could clear a path for rapid commercial scale-up. The trials will also facilitate further learnings on equipment, engineering, quality systems and operational excellence.Figure 1. Two new reactors with capacity of 200 tpa

Additional Patents

Nano One is also pleased to announce significant progress on key technologies with 6 new patents that are approved for issuance, or have issued, in Canada, United States and Japan, bringing its global total to 33. In large part to ongoing support from Government of Canada programs, Nano One continues to extend the Canadian IP landscape and its own protections, all while growing economic activity, as summarized below:High nickel cathode materials for improved battery performance,Nano One's proprietary process of cathode manufacturing,One-Pot sulfate free process for formation of LFP cathode materials, and;The manganese stabilization technology which is particularly important in spinel based cathode materials such as high voltage spinel (HVS).

"Innovation is at the core of everything we do at Nano One," said Nano One CTO Dr. Stephen Campbell, "and with the issuance of so many additional patents, each central to our value proposition, our hard-working team continues to demonstrate its technology leadership and has added significant value to Nano One's portfolio of intellectual property, trusted shareholders, government supporters and valued strategic partners."

Background on Nano One's First Commercial Plant

Nano One is executing on the plans for its first commercial plant as layed out in its news release dated April 24, 2023. As previously disclosed, Nano One intends to build its first commercial plant adjacent to the existing pilot facility at its Candiac site, with preliminary estimates indicating production line capacity of approximately 10,000 tpa, representing a five-fold increase over the pilot facility. A detailed engineering study is nearing completion and will inform Nano One's plans for additional production lines, as the LFP market grows and as local infrastructure can support it.

This first commercial plant could enable significant revenue growth during Nano One's initial years of commercial operations while also enabling demonstration of its technology to the market, potential licensors, joint ventures, and investors, at a scale that can be replicated in much larger plants to server automotive, industrial and renewable energy storage markets.

The pilot and first commercial plant will also serve as a "centre of excellence" to train future plant operators, to facilitate continuous improvement and to offer Nano One's customers, partners and licensees access to experienced implementation teams, engineering, procurement, construction and operation to de-risk investments and ensure a secure and stable supply of LFP.

About Nano One(TM)

Nano One Materials Corp. (Nano One) 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 turn-key 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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