Mr. Paul Guedes reports

NANO ONE PROVIDES QUARTERLY PROGRESS UPDATE AND REPORTS Q3 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 nine months ended Sept. 30, 2023 (Q3 2023), and has provided the following highlights from Q3 2023.

Corporate milestones and developments for Q3 2023

Strategic investment and collaboration agreement with Sumitomo Metal Mining

On Oct. 5, 2023, Nano One and Sumitomo Metal Mining Co. Ltd. (SMM) closed a transaction whereby the companies agreed to a strategic equity investment in Nano One by SMM of approximately $17-million and entered into a collaboration agreement under which the companies will work together to accelerate the commercial production of lithium iron phosphate (LFP), cathode active materials (CAM) and nickel-rich CAM chemistries, such as lithium nickel manganese cobalt oxide (NMC). SMM is a leading vertically integrated miner, refiner and producer of CAM.

Nano One issued a total of 5,498,355 common shares, representing approximately 5 per cent of the current issued and outstanding shares of Nano One, at $3.07 per share ($16,879,950) in a non-brokered private placement.

Nano One intends to use the proceeds principally toward the conversion of its existing Candiac LFP manufacturing facility to a one-pot production-scale pilot plant, nickel and manganese-rich engineering, and piloting activities, and for working capital purposes.

Prefeasibility study of one-pot LFP production lines completed

On Oct. 23, 2023, the company announced the completion of its front-end loading (FEL) 2 prefeasibility study with Hatch Ltd., which estimates that the capacity for a one-pot LFP production line is 12,500 tonnes per annum (tpa) and that two such lines (25,000 tpa) could be built within a 167,000-square-foot building, making it more efficient in size, footprint and capital cost than other commercial methods of making LFP.

Nano One is actively exploring site locations for its expansion plans, including but not limited to its existing site in Candiac, Que., and is engaged with governments in various jurisdictions where access to financial incentives and technology attraction programs could further increase shareholder value and stakeholder interests.

LFP from commercial-size reactors and customer samples delivered

On Sept. 14, 2023, the company announced that recent one-pot trials in the existing reactors at the Candiac plant have produced LFP at commercial scale with performance results consistent to lab scale. Nano One has leapfrogged to full commercial-size reactors and its LFP can be shipped to select customers for evaluation.

With Nano One's existing commercial reactors, it has continued to optimize trials in the existing commercial-scale reactors, reproducing lab and development results. This demonstrates the one-pot process can scale to commercial volumes and advances the derisking of the technology at commercial scale. This rapid advancement allows commercial-scale LFP samples to be sent to qualified customers, for thorough evaluation and validation for the purposes of entering binding offtake agreements.

Q3 2023 financial position and results:

• Cash position at quarter-end of $26-million, plus approximately $17-million subsequently raised through a strategic equity investment by SMM resulting in a cash position post-SMM investment of $43-million;
• Working capital at quarter-end of $22.-million ($39-million post-SMM investment);
• Total assets of $46-million (pre-SMM investment) at quarter-end;
• Total liabilities of $7.4-million with no long-term debt at quarter-end;
• Net use of cash and cash equivalents of $8.4-million for the quarter ($13.4-million year to date);
• Total gross investment (capitalized and expensed) before allocations of government funding at its Candiac plant, including equipment, retrofitting, engineering and expansion, totalled $8.6-million (year to date).

Annual budgeting planning activities are under way, with a base shelf prospectus to be filed following standard company governance practices to finance expansion plans.

For a more detailed discussion of Nano One's interim Q3 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. With strategic collaborations and partnerships, including automotive original equipment manufacturers and strategic industry supply chain companies like Sumitomo Metal Mining, 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 licence, 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 (Sustainable Development Technology Canada) and the governments of Canada and British Columbia.

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