Mr. Dan DeSimone reports

POET TECHNOLOGIES ANNOUNCES THE COMPLETION OF THE "3RD PARTY FOUNDRY" 40/100-NM TRANSFER MILESTONE AND CORPORATE UPDATES

Poet Technologies Inc. has completed its third party foundry 40-/100-nanometre transfer milestone. The company also announced $4-million in additional capital raised from institutional and accredited shareholders through the exercise of warrants during the month of January, 2015, and the resignation of Dr. Adam Chowaniec from its board.

Completion of milestone -- third party foundry 40-/100-nanometre transfer

The company completed its third party foundry 40-/100-nanometre transfer milestone, consisting of completing the critical layers of the transistor fabrication process. This flow process will allow the company to generate more complex prototypes and test structures. As the Poet process node size shrinks, this facilitates new industry innovations and furthers development work. This new epitaxial flow process includes new innovations in the Poet prototype fabrication process. These innovations were necessary to continue the optimization work of the 100- and 40-nanometre foundation devices of the company's technology.

Dan DeSimone, chief technical officer, noted, "This is a significant step for our lab-to-fab transition, where this new flow at our third party foundry accelerates and adds repeatability and quality to our manufacturing process, necessary for our next two significant milestones expected at the end of Q1: a 100-nanometre ring oscillator and a 50-gigahertz VCSEL."

Financial position

The current cash position for the company is approximately $17-million as of the end of January, 2015, aided by conversion of existing warrants during January. "The company's ability to continue raising significant capital without cost to the company and without new dilution to the stock demonstrates continued support towards our lab-to-fab transition. This positions the company to continue its pace of technical progress," said Kevin Barnes, chief financial officer. "This capital allows us the flexibility to aggressively pursue our plan working with our third party foundry and other partners in transitioning our technology to external manufacturing environments, aiding our monetization strategy. I am extremely pleased with our very strong financial position," continued Mr. Barnes.

Dr. Chowaniec resigns from the board

Dr. Chowaniec has resigned from the board for personal health reasons.

Poet has benefited tremendously from Dr. Chowaniec's industry experience and his guidance throughout the transformation of the company since first joining the board in April of 2013. He was part of the special strategic committee that helped the company recognize the inherent value of its intellectual property for the semiconductor industry and participated in the creation of what Poet is today -- one of the leading firms offering a new manufacturing paradigm to further the semiconductor industry road map. "On behalf of the company and the board, I would like to thank Adam for his many contributions during his tenure and we wish him well for the future," said Mr. Copetti.

We seek Safe Harbor.