Mr. Matthew Davis of ThreeD reports

THREED CAPITAL INC. ISSUES EARLY WARNING REPORT IN CONNECTION WITH ACQUISITION OF SECURITIES OF QUEBEC INNOVATIVE MATERIALS CORP.

Through the completion of a private placement and securities purchased through the facilities of the Canadian Securities Exchange, ThreeD Capital Inc. and Sheldon Inwentash (the joint actor) acquired ownership and control of an aggregate of 1.5 million common shares and one million common share purchase warrants of Quebec Innovative Materials Corp. As a result of the acquisitions, the percentage ownership held by ThreeD and the joint actor increased above 10 per cent on a partially diluted basis.

Immediately prior to the acquisitions, ThreeD and the joint actor owned and controlled an aggregate of 5.3 million common shares and four million common share purchase warrants of the company, representing approximately 5.7 per cent of all issued and outstanding common shares of Quebec Innovative (or approximately 9.5 per cent on a partially diluted basis, assuming exercise of the warrants held). Of this total, ThreeD held an aggregate of 5.3 million common shares and four million common share purchase warrants, representing approximately 5.7 per cent of the issued and outstanding common shares of Quebec Innovative (or approximately 9.5 per cent on a partially diluted basis, assuming exercise of the warrants held). The joint actor did not hold any securities of the company, representing 0.0 per cent of the issued and outstanding common shares on a non-diluted and partially diluted basis.

Immediately following the acquisitions, ThreeD and the joint actor own and control an aggregate of 6.8 million common shares and five million common share purchase warrants of the company, representing approximately 7.3 per cent of all issued and outstanding common shares of Quebec Innovative (or approximately 12.0 per cent on a partially diluted basis, assuming exercise of the warrants held). Of this total, ThreeD held an aggregate of 5.8 million common shares and four million common share purchase warrants, representing approximately 6.2 per cent of the issued and outstanding common shares of Quebec Innovative (or approximately 10.0 per cent on a partially diluted basis assuming the exercise of the warrants held). The joint actor held one million common shares and one million common share purchase warrants, representing 1.1 per cent of the issued and outstanding common shares of Quebec Innovative (or approximately 2.1 per cent on a partially diluted basis, assuming exercise of the warrants held).

The holdings of securities of the company by ThreeD and the joint actor are managed for investment purposes. ThreeD and the joint actor could increase or decrease their investments in the company at any time, or continue to maintain their current position, depending on market conditions or any other relevant factor.

The subject securities were acquired for total consideration of $45,000, or three cents per subject security.

About ThreeD Capital Inc.

ThreeD is a publicly traded Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resource and disruptive technology sectors. ThreeD's investment strategy is to invest in multiple private and public companies across a variety of sectors globally. ThreeD seeks to invest in early-stage, promising companies, where it may be the lead investor and can additionally provide investees with advisory services and access to the company's ecosystem.