Mr. Dan Blondal reports

NANO ONE AWARDED C$5 MILLION FROM THE GOVERNMENT OF CANADA TO SUPPORT CAPACITY EXPANSION AT ITS CANDIAC FACILITY AND ADVANCE ONE-POT LFP COMMERCIALIZATION

Nano One Materials Corp. has been awarded a $5-million non-repayable contribution from Natural Resources Canada under the energy innovation program to scale production of One-Pot lithium iron phosphate cathode active material and accelerate commercialization.

"The government of Canada is proud to support Nano One as they scale up their made-in-Canada battery innovation. At a time where the global demand for batteries is surging, their work could not be more important. We are showing the world how to build cleaner, more secure and more sustainable supply chains. This patented technology, developed here at home, is helping position Canada as a global leader in the next generation of battery materials -- proving that Canada can power the world," said Tim Hodgson, Minister of Energy and Natural Resources.

The funding supports Nano One's continuing work at its Candiac, Que., and Burnaby, B.C., facilities through March 31, 2027. It will enable the company to continue developing different product grades of One-Pot LFP to meet performance requirements across energy storage systems, defence, electric vehicles and other applications. Sumitomo Metal Mining is a project partner under this NRCan award and will contribute technical expertise as in-kind support.

The Candiac facility remains Nano One's launch pad for growth and a critical bridge between customer validation, first revenues and demonstrating the technology in production intent equipment to support future licensing opportunities. As a demonstration facility, Candiac will also support service revenues generated from licensee operator training, continuous process improvements and product enhancement.

"This investment strengthens our path to commercialization and reinforces Canada's position as a leader in clean technology manufacturing," said Dan Blondal, chief executive officer of Nano One. "We're grateful to the government of Canada for its continued support across multiple programs, including this NRCan contribution, which helps us derisk scale-up, advance customer validation and create long-term value for our shareholders on our path to commercial operations."

Strengthening North America's battery supply chains

The project builds on existing funding support from the U.S. Department of Defence, Next Generation Manufacturing Canada, Investissement Quebec and Technoclimat. It aligns with G7 efforts to build resilient and diversified supply chains for critical minerals and battery materials -- reducing reliance on single-country sources and reinforcing North American energy security.

The funding supports the next phase of Nano One's scale-up at its Candiac facility from 200 tonnes per year to a minimum of 800 tonnes per year with the flexibility to reach 1,000-plus tonnes per year to meet customer demand. It marks continued progress toward commercializing One-Pot LFP production and building localized capacity in line with government priorities for industrial resilience and supply chain independence.

The $5-million contribution covers eligible operating and capital expenditures for scale-up, product development and commercialization activities at both facilities -- helping position Canada as a strategic and secure supplier of LFP to its allies and partners.

About Nano One Materials Corp.

Nano One is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems, portable electronics and electric vehicles. The company's patented One-Pot process reduces costs, is easier to permit, and lowers energy intensity, environmental footprint and reliance on problematic supply chains. The company is supporting the drive toward energy security, supply chain resilience, industrial competitiveness and increased performance through process innovation. Production is being piloted and demonstrated in Candiac, Que., drawing on the existing plant and decades of commercial lithium-iron-phosphate manufacturing experience. Strategic collaborations and partnerships with international companies like Sumitomo Metal Mining, Rio Tinto and Worley are supporting a design-one-build-many licensing growth strategy -- delivering cost-competitive, easier-to-permit and faster-to-market battery material production solutions worldwide. Nano One has received funding from the government of Canada, the government of the United States, the government of Quebec and the government of British Columbia.

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