Mr. Dan Blondal reports

NANO ONE PROVIDES SHAREHOLDER UPDATE WITH KEY OBJECTIVES FOR 2024

Nano One Materials Corp. has provided commentary from chief executive officer Dan Blondal on the company's progress toward its long-term objectives.

Highlights:

• Commercialization plan on target and advancing with partners;
• One-Pot process targeting energy storage and EVs (electric vehicles) in North America and globally;
• Collaborative work with partners on track with NMC and LFP;
• Validation of LFP (lithium iron phosphate) proceeding with multiple potential customers targeting offtake agreements.

Dan Blondal, chief executive officer and founder, commented: "In the context of the current capital market conditions for our sector and company, I want to assure our valued shareholders and the broader investment community that Nano One continues to execute successfully on its business plans. Our institutional shareholder base remains confident, supportive and in for the long haul. I have recently spoken to many retail shareholders to spotlight our leadership position, our continual progress and the successful execution of our milestones. We are well capitalized and spending prudently to secure offtakes and long-term value creation for our shareholders. The cornerstone of our long-term planning is built around effective capital sourcing, maintaining flexibility to meet market opportunities and thinking creatively about how we can maximize the company's full potential.

"Our lithium iron phosphate (LFP) team has more piloting and production experience than any outside of Asia. Our pilot plant in Candiac, Que., is commissioned and already producing samples, some at the tonne-scale, for potential offtakers, big and small, all looking for locally sourced LFP for their energy storage, defence, industrial and electric vehicle batteries. We continue to see a large and diverse market opportunity for LFP, and, based on our actions over the last five years, we are well positioned to be a leader in the field.

"Our potential customers and government stakeholders are fully engaged and working with us every day to accelerate the adoption of our One-Pot process. Our collaborators and shareholders at Rio Tinto and Sumitomo Metal Mining are world-class and with us for the long haul to disrupt, drive change and create long-lasting commercial opportunities on the path to net zero. Our scientific and engineering activities are producing a growing portfolio of intellectual property and process technology advancements, not only for nickel, manganese, cobalt (NMC) and LFP materials, but increasingly in recycling and battery metal processing. This is synchronized with piloting, procurement and commercialization initiatives and continuously advancing Nano One's strategic objectives.

"Our One-Pot process makes LFP with less greenhouse gas (GHG), energy, water, waste and physical footprint than incumbent processes. This positions us ideally for North America, Europe and Asia, where the need for localization and environmental stewardship are interwoven with the need for global competitiveness. Our chemical flows heet eliminates waste water and sodium sulphate byproduct; if left unaddressed, it will be a major hindrance to the global adoption of lithium-ion batteries because of the wasteful processes that currently dominate incumbent supply chains.

"One-Pot also enables untapped local sources of Class 1 automotive-approved, readily available and readily scalable critical mineral inputs. This has the strategic benefit of decoupling critical inputs from entrenched but increasingly unreliable supply chains in Asia. Our design-once, build-many growth strategy is gaining critical momentum at a time when the world needs turnkey solutions to address a looming and unprecedented amount of LFP demand. Our full-scale LFP feasibility study could be complete by midyear with engineering, flow sheets, major equipment, permitting and capex [capital expenditure] estimates in place to help fulfill our project financing, capacity expansion, licensing and joint venture ambitions.

"Furthermore, Nano One could potentially benefit from recent decisions in the United States relating to the Inflation Reduction Act (IRA) and foreign entities of concern (FEOC). It is important to know that while Nano One's business strategy does not rely on IRA policy, we are engaged with governments to ensure we are optimally positioned and accessing their financial support. As background, the emerging policies are now geared to leverage global expertise and accelerate the local production of lithium-ion battery cells, while securing critical mineral supply chains for domestic applications and enabling countries with free-trade agreements to participate in the emerging U.S. lithium-battery market. This is particularly important for LFP because it will bring much-needed cell production on line faster. This will in turn require localized cathode production. Enter Nano One with a low-cost, waste-free LFP process whose critical mineral inputs, lithium, iron and phosphorus, can be uniquely sourced from existing and scalable producers with IRA eligibility.

"We also remain engaged with governments in Canada who have helped secure tens of billions of dollars worth of cell manufacturing plants. Governments and industry remain committed to developing an effective, integrated supply chain and supporting innovative, local companies. Based on our publicly disclosed partners and emerging ones, coupled with our past support and ongoing conversations with governments, we believe we could help unlock a new era of integrated supply chains for lithium-ion batteries.

"Simply put, Nano One's vision to change how the world makes battery materials has traction on many fronts, at a critical time in history, when there is a generational opportunity in regions all over the globe, to build economically, logistically and environmentally differentiated lithium-ion battery supply chains.

"Our growth into Quebec in 2022 has accelerated our path to commercialization well ahead of competitive LFP initiatives, and it is enabling growth that could position Nano One, Quebec and Canada as leaders in the emerging LFP market, which is projected to reach tens of billions of dollars over the coming decade."

2023 successful milestones

In 2023, the company made significant gains by completing its first full year of ownership of the Candiac LFP production facility. The team was able to quickly recommission the facility to test and pilot its One-Pot process in full-scale equipment for the production of LFP. These activities have showcased the patented One-Pot process working at commercial scale, attracted the world-class investment and partners as follows, and have positioned Nano One to lead the localized supply of LFP cathode materials for the emerging market in LFP batteries.

Accomplishments include:

• Awarded $10-million in grant funds from SDTC (Sustainable Development Technology Canada);
• Successfully completed evaluations with global OEM (original equipment manufacturer) and expanded collaboration;
• Laid out commercialization plans for LFP and other materials;
• Signed JDA (joint development agreement) with Our Next Energy (ONE) for LFP batteries;
• Demonstrated, derisked and fast-tracked tonne-scale sampling of One-Pot LFP;
• Secured $17-million investment and collaboration with Sumitomo;
• Completed prefeasability study (FEL2) of 12,500-tonne-per-annum line;
• Showcased LCA (life cycle assessment) study with 50 per cent fewer GHGs and 80 per cent less water;
• OEM validates Nano One LFP and kicks off tonne-scale evaluations.

2024 catalysts:

• Progress on strategic partnerships, in Canada and the United States and their free-trade partners;
• Small-scale but important sales of LFP for existing Candiac facility;
• Build a portfolio of offtakes to support future commercial plant demand;
• Growth plans and sight lines to license and joint venture partnerships;
• Feasibility study (FEL3) to support launch of first LFP facility and broader design-once, build-many initiatives;
• Government and financial agreements to support first plant and broader growth plans;
• Business development in energy storage solutions (ESS) and automotive sectors;
• Continued innovation on manufacturing processes, equipment and recycling.

Mr. Blondal said: "I want to thank Nano One shareholders and stakeholders for their support and trust, and for staying tuned in to Nano One; we believe 2024 will be another transformative year, with long-term shareholder value creation and sight lines to production, growth, licensing and revenues coming into increasingly important focus."

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 such as 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 and the governments of Canada and British Columbia.

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