Mr. Paul Guedes reports

NANO ONE PROVIDES QUARTERLY PROGRESS UPDATE AND REPORTS Q2 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 six months ended June 30, 2023 (Q2 2023), and has provided certain highlights from Q2 2023.

Q2 2023 highlights and headlines

• Working capital of $30.0-million; cash of $34.4-million;
• Completion of phase two of co-development agreement with CBMM;
• Joint development agreement with Our Next Energy (ONE);
• Advancement of commercial plans for LFP;
• Six new patents issued and allowed in Canada, United States and Japan;
• Proceeds of about $3.0-million from the exercise of stock options.

Corporate milestones for Q2 2023

Joint development agreement with Our Next Energy (ONE)

On June 14, 2023, the company announced signing a joint development agreement (JDA) with ONE to collaborate on the validation, qualification and production of a North American supply of lithium-iron-phosphate (LFP) cathode active materials (CAM). The LFP CAM will be produced at Nano One's 200 tpa (tonne per annum) pilot facility in Candiac, Que., for validation in ONE's production LFP cells used in its Aries and Gemini batteries, with the goal of a binding offtake agreement and expansion into future production facilities.

Successful completion of phase two of co-development agreement with CBMM

On May 17, 2023, the company announced the successful completion of phase two of the co-development work with CBMM, the world's leading supplier of niobium products and technology. Phase two successfully utilized CBMM's Niobium product to make coated nanocrystal high nickel (Ni greater than 90 per cent) NMC cathode active material. Enhanced durability was displayed using Nano One's proprietary One-Pot process and Metal to Cathode Active Material (M2CAM) technology.

This achievement opens new doors of opportunity for the two companies to market and cross-collaborate with their existing customer bases to create market pull both for Nano One's patented technology and develop a new market for CBMM's sustainable, high-quality product. This also adds a secure and resilient supply chain partner to Nano's list of qualified automotive supply chain.

Advancement of commercial plans for LFP

On July 20, 2023, further to an update provided on April 24, 2023, the company provided an update on its commercial plans which are aimed at jump-starting the commercialization of its One-Pot process. 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 will be recommissioned initially at 200 tons per annum (tpa) in Q3 2023, ramping up in steps to 2,000 tpa in 2024 and 10,000 tpa thereafter in a new and adjacent facility.

Nano One also has engineering work under way for a separate 100 tpa NMC and LNMO pilot facility. Having piloting capabilities for LFP, NMC and LNMO will enable Nano One to prototype, validate, design and pilot a new generation of CAM and accelerate the commercial adoption of its One-Pot and sulphate-free M2CAM processes in pursuit of production, joint venture and licensing opportunities.

The company reported that its lithium iron phosphate (LFP) trials, One-Pot reactors, sampling and pilot production plans are being expedited as previously outlined, and that initial engineering plans for its first full-scale commercial plant are nearing completion. Nano began successfully producing tonne-sized batches in Q2 2023 using the existing commercial scale equipment. In parallel Nano is installing smaller modular One-Pot reactors, engineered and built in Quebec with the aim of conducting smaller trials, evaluating new reactor designs and fast-tracking plans.

Six new patents issued and allowed in Canada, United States and Japan

Nano One also announced significant progress on key technologies with six 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 continuing support from government of Canada programs, Nano One continues to extend the Canadian IP landscape and its own protections, all while growing economic activity.

Q2 2023 financial position and results

• Working capital of $30.0-million; cash of $34.4-million;
• Total assets of $52.6-million (Q1 2023 -- $56.9-million);
• Total liabilities of $7.4-million (Q1 2023 -- $7.5-million) with no long-term debt;
• Net use of cash and cash equivalents of $5.7-million;
• Proceeds from exercises of stock options about $3.0-million;
• Total investment (capitalized and expensed) on at its Candiac plant including equipment, retrofitting, engineering and expansion totalled $3.4-million ($4.3-million year to date).

For a more detailed discussion of Nano One's interim Q2 2023 results, please refer to the company's financial statements, and MD&A which are available on SEDAR.

About 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. The technology is applicable to electric vehicle, energy storage, consumer electronic and next-generation batteries in the global push for a zero-emission future. Nano One's One-Pot process, its coated nanocrystal materials and its metal-to-cathode active material (M2CAM) technologies address fundamental performance needs and supply chain constraints while reducing costs and carbon footprint. Nano One has received funding from various government programs, and the current Scaling of Advanced Battery Materials Project is supported by Sustainable Development Technology Canada (SDTC) and the Innovative Clean Energy (ICE) Fund of the province of British Columbia.

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