Mr. Denis Geoffroy reports

NANO ONE COMMENCES CONSTRUCTION FOR CANDIAC EXPANSION, PROVIDES UPDATE ON COMMERCIAL ACTIVITIES

Nano One Materials Corp. has provided an update on its Candiac facility expansion and commercial activities.

Candiac expansion advancing to construction

Detailed engineering for the Candiac facility expansion project was completed at the end of September, 2026. Construction is now under way and expected to be completed in Q1 2027, with commissioning targeted for Q2 2027. Automation improvements to the demonstration line will increase production capacity to approximately 800 tonnes per annum of LFP (lithium-iron-phosphate) cathode material in the first half of 2027. Candiac's existing 200-tonne-per-annum pilot line supports sample validation to secure and supply small-volume offtakes for defence and energy storage system customers. The expanded line will focus on producing LFP cathode materials for commercial sales and demonstrating full-scale One-Pot reactors, fully automated and integrated with material drying, calcining and packaging processes. The expanded capacity will also support tonne-level sample volumes required for customer qualification and offtake agreements as well as the company's development company (DevCo) strategy.

Update on commercial activities

Discussions toward commercial agreements -- spanning joint development, qualification work and supply arrangements -- are continuing into 2027, with an initial agreement now expected in Q1 2027 as shifts in customers' cell programs flow upstream to Nano One.

"The team has been progressing well on the product and with potential customers this year and I am confident the current discussions will result in our first commercial agreement," said Denis Geoffroy, chief operating officer of Nano One. "Shifts in customer timelines and specification requirements are simply the nature of qualification work -- we have run multiple retrofits and product iterations with global Tier 1 companies and I stand behind the material we are producing at our Candiac facility. Our goal remains the same: to lock in multiyear purchase commitments that generate revenue, advance commercialization and create long-term shareholder value."

LFP cell manufacturing outside China continues to be built out -- with raw material supply chains being established concurrently. As the Western LFP gigafactories ramp up production, the specifications they qualify against are also evolving -- cell formats change and product specifications for end customers undergo multiple iterations. The company's product performance advances in 2026 have broadened customer engagement across the defence and energy storage sectors. Nano One is also in active qualification with cell manufacturers and an automotive OEM (original equipment manufacturer), which involves close co-ordination to ensure end customers' requirements are met across all performance criteria.

Product qualification in the cathode industry follows a rigorous protocol, with cell makers testing multiple cathode samples against their performance requirements, the results of which are fed back to the cathode supplier through numerous iterations -- cycles that often span months and are repeated until specification is met. These qualification processes protect everyone in the chain: A cell maker is derisking a multiyear supply decision and every completed cycle deepens the technical relationship with all parties in the supply chain. This in turn supports moving these engagements toward final commercial agreements.

About Nano One Materials Corp.

Nano One is a process technology company changing how cathode active materials (CAMs) are produced for lithium-ion batteries. Nano One's platform is built on a portfolio of patented processes, decades of manufacturing know-how and modular plant designs that enable scalable, cost-competitive and easier-to-permit CAM production with resilient supply chains. The technology eliminates waste water and byproducts while enabling regionally sourced raw materials and reducing exposure to foreign supply chain volatility. Modular plants are designed with fewer steps to reduce capex (capital expenditure), energy and environmental intensity and to accelerate deployment, manufacturing and licensing. Product development and process optimization are based at Nano One's innovation centre in Burnaby, B.C., while piloting, demonstration and commercial production are based in Candiac, Que., supported by a team with more than 15 years of commercial cathode manufacturing experience supplying global cell manufacturers. Strategic collaborations with global partners including Sumitomo Metal Mining, Rio Tinto and Worley support Nano One's design-one-build-many growth strategy. Nano One has received funding support from the governments of Canada, the United States, Quebec and British Columbia.

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