Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES Q1 2024 RESULTS

California Nanotechnologies Corp. had record quarterly revenues of $509,288 (U.S.) for the quarter ending May 31, 2023. This represents an increase of 55% compared to the same period last year. Net income for the quarter was US$35,467, compared to US$50,270 in the same period last year, while EBITDA was US$100,942, compared to US$104,805 in the same period last year. Net income and EBITDA remained relatively stable despite implementation of a higher cost structure to support future revenue growth, offset by increased contribution margin from more revenue in the quarter. The financial statements are available on SEDAR at www.sedar.com and on the Company's website.

"We are off to a strong start this year as we execute on a growing backdrop of activity for our advanced material technologies," stated CEO Eric Eyerman. "This was evidenced by our record revenue quarter, contract wins with a leading green steel cleantech company, and a growing base of existing customers. Additionally, our quoting activity for Spark Plasma Sintering (SPS) equipment remains robust, supporting our growth plan for the rest of the year."

The Q1/FY2024 revenue increase was due to ongoing R&D manufacturing programs with repeat customers, contributions from the new green steel cleantech company, and the Company's first SPS equipment delivery to Stony Brook University, valued at US$124,500. Gross margin for the quarter was affected by this first equipment delivery, as equipment sales provide lower gross margins than manufacturing contracts.

Cal Nano expects continued revenue growth in subsequent quarters from contracted manufacturing revenues and increasing SPS equipment quotes. As a result, Q2/FY2024 is expected to be another record-breaking revenue quarter, driven exclusively by contributions from manufacturing. Cal Nano aims to prioritize long-term revenue generation from manufacturing contracts, as they are more scalable, offer a higher gross margin, and improve predictability.

In recognition of the growing market, the Company's CEO, Eric Eyerman visited several partners, including Idaho National Lab and Pennsylvania State University, which host some of the largest-sized SPS equipment in North America. These partners play a crucial role in developing the SPS ecosystem by providing resources to help commercialize the technology, which aligns with Cal Nano's shared goal. The visits resulted in an understanding among researchers that the U.S. is witnessing an unprecedented level of interest in SPS technology and recognize the growing necessity for a commercial partner like Cal Nano. This stems from the limitations and incentives of research institutes, creating a need for a bridge to achieve commercial-scale production, a role that Cal Nano aims to fulfill.

Lastly, Cal Nano continues to evaluate options for increasing its manufacturing capacity. This includes finding and securing a location for the recently purchased cryomill, and potentially acquiring a larger-sized SPS manufacturing system.

About California Nanotechnologies Corp.At Cal Nano, we envision a world in which our advanced technologies are used to help make the most innovative products on this planet and beyond. Global leaders trust us to help push the boundaries of applied material science by utilizing our unique technical expertise and vision. Headquartered in Los Angeles, California, Cal Nano hosts advanced processing and testing capabilities for materials research and production needs. Customers range from Fortune 500 companies to startups with programs spanning aerospace, renewable energy, defense, and semiconductors.

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