Mr. Peter Copetti reports

POET TECHNOLOGIES ANNOUNCES THE SIGNING OF A COLLABORATION AGREEMENT WITH BAE SYSTEMS AND CORPORATE UPDATES

Poet Technologies Inc. has signed a collaboration agreement with BAE Systems Microelectronics. It has also provided corporate updates, in particular the formation of a technology road map advisory board.

Collaboration agreement with BAE

Poet Technologies signed a contract with BAE Systems, under which BAE Systems will provide non-exclusive third party foundry services in support of the company's "lab to fab" transition plan. The current phase of the work will be performed between March, 2015, and August, 2015. Key objectives of the collaboration include process transfer, prototype builds and design enablement kit development. Using BAE Systems' ISO-certified manufacturing facility will improve the quality, process control and analytical capacity of prototype builds. The result will be both a more manufacturable process and improved optimization of the device structures included in the Poet technology.

Initial phases of the program will be performed using three-inch wafers, but from the onset the program will work toward the objective of achieving the full process flow on six-inch wafers. Virtually all production gallium arsenide-based processes are currently manufactured using six-inch wafers. The company believes that using BAE Systems' manufacturing and test capabilities will help the company to build devices that dramatically demonstrate the disruptive nature of the technology.

"The Poet technology incorporates silicon processes into gallium arsenide-integrated circuits, producing multifunction chips such as photonics and electronics that will provide enhanced commercial and military products," said Dr. P.C. Chao, technical director at BAE Systems. "Working with BAE Systems will enable the acceleration and maturation of the Poet fabrication process for a faster prototype demonstration and a smoother transition to manufacturing."

Daniel DeSimone, Poet's chief technology officer, noted: "Our agreement with BAE Systems is a significant step in our 'lab to fab' transition. BAE Systems has a long history of high-quality manufacturing with III-V materials, and brings process development expertise and manufacturing discipline to the relationship. We have collaborated with BAE Systems numerous times over the last two years, most recently to successfully transfer our most critical process loop into their facility. Encouraged by this record, we are excited to be extending this collaboration to develop the full flow on three-inch and later six-inch wafers."

Formation of technology road map advisory board

The company announces the formation of a technology roadmap advisory board, comprising Dr. Geoff Taylor, Ajit Manocha and Tony Blevins. This advisory board collectively has extensive expertise in the semiconductor industry, supply chain management and operations, consumer products, and key technology markets, with over 100 years of combined experience.

This advisory board will act as advisers to the board of directors and the executive team, with a primary focus on optimizing and accelerating the company's "lab to fab" transition and commercialization plans. "The company is looking forward to leveraging the newly formed advisory board's semiconductor market expertise and execution record," said Peter Copetti, executive co-chairman and interim chief executive officer.

Further updates

The company intends to provide a full financial update with the filing of annual audited financial statements, and management discussion and analysis, which will be issued in April. Further details of the aforementioned third party services contract will be provided at that time.

Option grant

The board approved the grant of 500,000 stock options to Mr. DeSimone pursuant to the company's stock option plan. Pursuant to TSX Venture Exchange policies, and based on market price, the exercise price of the options was at $1.65 per share and expire on March 30, 2020. The options will vest and be exercisable on the basis of 25 per cent six months after the date of issue and 25 per cent every six months thereafter. Dr. Taylor, Poet's chief scientist, noted, "Dan has been instrumental in recent successes, and has advanced our engineering discipline and process methodology, benefiting our process IP development and prototype milestone activities."

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