Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES RECORD QUARTERLY REVENUE FOR Q3/F2019

California Nanotechnologies Corp. had revenues of $230,918 (U.S.) for the third quarter of fiscal 2019 ending Nov. 30, 2018. This is an increase of 46 per cent compared with Q3/F2018 and represents a record quarterly revenue for the company. In the nine months ending Nov. 30, 2018, revenues increased by 67 per cent to $588,637 (U.S.), compared with $351,650 (U.S.) during the same period last year. In the third quarter, the company reported net income of $31,482 (U.S.) and operating cash flow of $62,795 (U.S.). "In only three quarters Cal Nano has now surpassed its revenue for the entire last fiscal year and has recorded its fourth consecutive quarter of positive cash flow, which is a great milestone for the company," said interim chief executive officer Eric Eyerman. Full results are posted on SEDAR.

The company would like to announce it has received a purchase contract valued at $63,000 from a customer in the energy conversion technology industry. The program involves a variety of specialty iron-based materials with additives for improved material properties in the company's large spark plasma sintering system. "This begins the next phase of the program with this customer and includes sintering over 100 samples over approximately the next six months," said SPS manager Brian Weinstein.

The company is also pleased to note that Indiana University has recently placed an order for a spark plasma sintering furnace, which will be installed by Cal Nano this spring. This is a 250 kN, 5,000-amp system and will be installed in the intelligent systems engineering department at the university. The company will also be performing a research and development SPS system installation at Savannah River Nuclear Solutions LLC early next year.

The company continues to progress in its extensive program with the major chip manufacturer customer. The company is currently performing testing and analysis of the prototype parts produced with its large spark plasma sintering system.

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