Mr. Dan Blondal reports

NANO ONE SUCCESSFULLY COMPLETES SECOND SDTC PROJECT RECEIVES FINAL CONTRIBUTION OF $803,000

Nano One Materials Corp. has received the final contribution of $803,300 from Sustainable Development Technology Canada (SDTC) and the government of British Columbia's Innovative Clean Energy (ICE) fund. This completes the company's second SDTC project and its success led to a third SDTC-funded project that was previously announced in February, 2023, which is expected to provide an additional $10-million in non-dilutive funding.

Support for Nano One's scaling of advanced battery materials project was awarded by SDTC in May, 2019, and completed in January, 2023, with total government contributions of $8.25-million, with $5.25-million from SDTC and $3-million from the ICE fund, respectively. This final contribution of $803,300 represents a 10 per cent holdback that is awarded once all successful commitments and reporting requirements have been achieved.

"SDTC has been an important contributor to Nano One over the years and has been instrumental in propelling us to where we are today," stated Dan Blondal, Nano One's chief executive officer. "Their funding for this project provided the means to execute our business plans, and aided in securing additional support from the capital markets and from various strategically interested parties. With SDTC and ICE fund support, we grew our team, added to our portfolio of intellectual property, and optimized our processing technology and know-how. We believe we can be cleaner, greener and leaner than the methods used in Asia, while being cost competitive in Canada, North America, Europe and the Indo-Pacific region."

Advancing the scale of the one-pot process

The funded project helped Nano One accelerate significant advances in scaling of its one-pot process for lithium iron phosphate (LFP), specifically in preparation for pilot- and industrial-scale production at its recently acquired facilities in Candiac, Que. The project enabled 10-kilogram (kg) batches of one-pot LFP and greater for third party evaluation, that have since led to trials in the company's Candiac facility that are exceeding 1,000 kg (one tonne).

Through the course of the project, the team was able to reduce reaction times resulting in cost reduction and improved yield. The team also reduced capex (capital expenditures) and opex (operating expenditures) associated with the one-pot process for LFP as compared with existing LFP methods, and they developed a comprehensive techno-economic model for LFP, providing confidence for large-scale piloting and production activities at its Candiac facility.

The project also supported the development of Nano One's innovative metal-to-cathode-active-materials (M2CAM) technology, that simplifies the supply chain and enables the use of metal powders instead of environmentally problematic metal sulphates. M2CAM aims to eliminate waste water and waste sulphate, cost effectively, and this is of increasing strategic interest in North America, Europe and other regions where there are environmental standards coupled with the need for tens of millions of tonnes of CAM production.

Kelli Forster, senior vice-president of People and Culture, stated: "The financial support from SDTC and the ICE fund has enabled us to further attract and retain industry-leading experts with science, engineering and business backgrounds. We have the most experienced LFP production team in North America and, by pairing this with our innovative culture, we are setting the stage to change how the world makes battery materials. I am proud of our team, and I look forward to its continued growth."

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 company has strategic collaborations and partnerships, including automotive OEMs (original equipment manufacturers), 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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