Mr. Rocco Marinaccio reports

CEO ADDRESS TO SHAREHOLDERS

Rocco Marinaccio, president and chief executive officer of Nanoxplore Inc., has provided an address to shareholders.

Dear shareholders,

As I reflect on my first 120 days as chief executive officer of Nanoxplore, I am more confident than ever in the company's trajectory and value creation potential.

Today, Nanoxplore is operating from a position of strength -- supported by improving fundamentals, a solid balance sheet and increasing commercial momentum. This confidence is reinforced by: (1) the actions of our leadership team and board, including recent meaningful insider share purchases; and (2) significant increased liquidity, more than three times greater in calendar Q1 2026 versus Q1 2025.

Since stepping into this role, I have made it a priority to engage directly with our shareholders, customers and employees. The message has been consistent: Nanoxplore's technology is differentiated, our market opportunity is significant, and we are at an inflection point in scaling our business.

Over the past four months, we have translated these opportunities into tangible results.

We secured new agreements with global industry leaders, including Club Car, Volvo Trucks and Chevron Phillips Chemical (CPC). These are not incremental wins -- they are clear validations that graphene is moving from promise to large-scale commercial adoption.

Our partnership with Club Car marks a strategic expansion beyond transportation and into new end markets, in this case recreational. We strongly believe this new market offers significant opportunities for us. We moved decisively to support this growth, rapidly developing a new manufacturing facility in Statesville, N.C., demonstrating our ability to execute with speed and discipline in a business environment that was very volatile due to the political situation at the time.

With Volvo Trucks, we secured an additional $10-million in business, bringing our incremental revenue pipeline to approximately $50-million over the next 24 months. These business awards provide increased confidence in our midterm growth outlook and validate the increasing benefits of graphene-enhanced solutions. We also entered into a multiyear agreement with CPC for our proprietary Tribograf powder, validating the performance of our advanced materials in the oil and gas sector.

With approximately 70,000 wells drilled globally each year and an estimated average of two metric tonnes of Tribograf powder per well, this market represents a significant growth opportunity. As CPC progresses testing with major customers around the world, we believe this partnership positions us to accelerate industry adoption and drive meaningful shareholder value.

At the same time, we continue to push the boundaries of innovation. We are nearing completion of our dry-process graphene module, a key technological milestone that will unlock new product grades and significantly expand our addressable markets, including displacing carbon black, a $27-billion industry. With the imminent launch of the dry-process mill, we will increase our capacity by 25 per cent, bringing our total yearly volume potential to 5,000 metric tonnes.

Internally, we have strengthened our leadership and sharpened our execution. We continue to enhance our innovation capabilities and have implemented clear performance metrics across the organization to drive accountability and results.

We also published our first sustainability report -- an important step in aligning our growth strategy with transparency and responsible business practices.

From a financial standpoint, we took decisive action to strengthen our balance sheet, completing a $25.6-million equity offering in October led by our strategic shareholder Martinrea. This positions us to finance growth and the necessary capacity expansion for the dry process while maintaining financial discipline.

As previously communicated, the revenue in the first quarter of fiscal 2026 was a reflection of the slowdown in the transportation sector. Since then, we have seen a clear and measurable improvement in the second quarter, and we expect this momentum to accelerate through the third and fourth quarters. This is being driven by both new program wins and a reacceleration in demand from our largest transportation customers.

Looking ahead, we see a clear path to improved profitability. We expect continued expansion in adjusted gross margins and EBITDA (earnings before interest, taxes, depreciation and amortization), supported by operating leverage, favourable product mix and disciplined cost management. At the same time, capital expenditures will decline as we complete our current expansion cycle -- further strengthening our financial profile.

We are entering the next phase of Nanoxplore's growth with focus and conviction.

Our priorities are clear:

• Execute with discipline and deliver on our commitments;
• Expand into new markets and applications;
• Convert our growing pipeline into sustained revenue and cash flow generation;
• Drive shareholder value.

Nanoxplore is no longer just building capacity or validating its technology -- we are scaling our business and delivering results.

I want to thank our shareholders for their continued support and engagement. We are committed to maintaining open communication as we execute on the significant opportunities ahead.

Sincerely,

Rocco Marinaccio

President and chief executive officer

About Nanoxplore Inc.

Nanoxplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics and other industrial sectors. The corporation is also a silicon-graphene-enhanced lithium-ion battery manufacturer for the electric vehicle and grid storage markets. Nanoxplore is headquartered in Montreal, Que., with manufacturing facilities in Canada, the United States and Europe.

We seek Safe Harbor.