Mr. Paul Guedes reports

NANO ONE PROVIDES AN UPDATE ON RECENT CORPORATE DEVELOPMENTS & REPORTS THIRD QUARTER 2025 RESULTS

Nano One Materials Corp. has filed its condensed interim consolidated financial statements and management discussion and analysis (MD&A) for the nine months ending Sept. 30, 2025 (Q3 2025), and is has provided a summary and has provided an update on subsequent events.

Business operational highlights

• Newly installed proprietary agitator in full-scale One-Pot reactor at Candiac boosts throughput capacity by approximately 50 per cent resulting in reduced operating expenses (opex).
• A front-end engineering and design (FEED) study was completed as part of the capacity expansion plan to at least 800 metric tons per year at the Candiac operation.
• Financial investment decision has been made to proceed with detailed engineering and initial procurement activities as part of that capacity expansion plan.

Strategic updates

• Sumitomo Metal Mining confirms Nano One as a key technology partner and advances collaboration toward LFP commercialization.
• Nano One prequalifies multiple sources of lithium carbonate from Rio Tinto for the future production of LFP cathode materials.
• Nano One expands patent portfolio with five new patents for LFP, NMC and LNMO cathodes.

Third quarter 2025 and subsequent results

• The company reported total net assets of $16.5-million and working capital of $16.6-million for the end of the period.
• An at-the-market (ATM) equity offering was launched in September, 2025, which raised net proceeds of $200,000 through to Sept. 30, 2025, with an additional $2.4-million subsequently raised through to Oct. 31, 2025.
• Announced NRCan government funding award of $5.0-million to support Candiac capacity expansion, advance commercialization, to promote diversification and regionalization of battery supply chains in line with G7 priorities.

Q3 2025 -- financial position and results

As at Sept. 30, 2025, the company reported total net assets and working capital of $16.5-million and $16.6-million respectively, with cash and cash equivalents at $17.8-million. The use of cash in operating activities, capital expenditures, and facility lease and other payments for the quarter contributed to the $6.8-million change in total assets in Q3 2025 versus a $2.6-million change for the Q2 2025 period.

Nano One's current Candiac operations and capacity expansion plans explained

Lithium-iron phosphate (LFP) cathode materials production is being piloted and demonstrated at Nano One's facility in Candiac, Que. This facility draws on an existing plant that was retrofitted with the company's patented One-Pot processing technology and a team with decades of commercial LFP manufacturing experience. The facility was upgraded in 2023 with new 2,000-litre pilot-scale One-Pot reactors with a production capacity of 200 tonnes per annum (tpa), which are now being used for process improvement, commercial sales validation and have sufficient capacity to support preliminary commercial sales to the defence and battery energy storage systems (BESS) sectors.

The pilot facility is also serving concurrent activities to further improve Nano One's LFP product, technology and operational know-how for high-volume commercial manufacturing and licensing opportunities in the BESS, automotive and AI data centre market segments.

The facility is also equipped with existing 20,000-litre reactors that are being used in a series of manually fed production runs, which are demonstrating One-Pot enabled LFP cathode material made in full-scale commercial equipment. On Aug. 20, 2025, the company announced the newly installed, high-efficiency agitator has been engineered to enhance mixing dynamics, thermal transfer and reaction time, and is estimated to increase the throughput capacity of the reactor by approximately 50 per cent. It will also improve the consistency and quality of CAM output, while yielding reduced operating expenses (opex).

Results from these operations have led to decisions and plans that are now in motion to add automation that reintegrates the 20,000-litre reactors into the flowsheet, expands production capacity in Candiac and addresses projected increases in customer demand. These plans are described below in the FEED study.

FEED study completed, final investment decision made for Candiac expansion plan

A FEED study was completed in Q3 2025 for capacity expansion at the Nano One Candiac facility and resulted in a prefeasibility-level costing and nameplate capacity estimation.

The company has identified two stages of capacity expansion. The first stage enables demonstration of the technology at commercial scale by integrating and automating some of the site's existing commercial-scale equipment, while expanding capacity to a minimum of 800 tonnes per annum (tpa). The second stage supports anticipated customer ramp-up and future sales by boosting capacity to 1,000-plus tpa (tonnes per annum), which will largely be achieved through investment in feedstock handling, automation and integration with existing equipment.

The company has now made a financial investment decision (FID) to proceed with detailed engineering and procurement activities over Q4 2025 and Q1 2026. This will be followed by additional procurement, installation and commissioning activities commencing in Q2 2026 with a target to complete commissioning in H1 2027. FID for the second phase will be aligned with growth in customer demand.

In parallel with the first and second stages of capacity expansion, the company will continue operating its pilot plant to support preliminary sales activities in the defense and BESS market segments, as well as supporting licensing opportunities. Demonstration in the larger reactors will continue via manually fed production runs, to showcase the same scale of One-Pot reactors that will be used in larger 25,000 tpa plants. Towards the end of the first stage, the large reactors will be temporarily taken offline to automate, recommission and serve anticipated increase in demand and sales.

This expansion plan aligns with the existing government funding programs that support both capital expenditures and operating expenditures through to end of Q2 2027. 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.

Expansion of patent portfolio

On Aug. 20, 2025, the company announced the allowance and/or issuance of five new patents in North America and Asia to its portfolio of intellectual property (IP), bringing its total to 52 granted, one allowed and 54 pending in jurisdictions around the world. Details listed below:

• LFP: United States patent U.S. 12,319,590 B2 issued on June 3, 2025: describes an improved, scalable synthesis method for olivine-structured lithium metal phosphate cathode active materials;
• LFP: Canadian patent CA 3,068,797 allowed on April 3, 2025: describes a synthesis of olivine-structured lithium metal phosphate cathode active materials;
• LFP: Taiwan patent TW I887600 issued on June 21, 2025: describes a method of preparing lithium metal phosphate (LMP) cathode active materials using metal feedstocks;
• Original M2CAM NMC: Korean patent KR 10-2791544 issued on April 1, 2025: describes the M2CAM technology using the One-Pot sulphate-free process for making lithium battery cathode materials;
• LNMO: United States patent U.S. 12,355,063 issued on July 8, 2025: describes a novel battery assembled with high-voltage spinel LNMO cathode material made using the One-Pot process and paired with an electrolyte for high durability.

ATM financing launched

On Sept. 8, 2025, the company launched an at-the-market equity issuance program (ATM program) through entering into an equity distribution agreement with Canaccord Genuity Corp. and Roth Canada Inc. whereby the company may distribute common shares to raise up to $15.0-million from time to time through the agents.

Through to Sept. 30, 2025, the company raised $200,000 through the ATM program, with an additional $2.4-million raised in October, 2025.

Collaboration with Sumitomo Metal Mining

On Sept. 20, 2025, the company reported on its latest progress with Sumitomo Metal Mining (SMM) which confirmed Nano One as a key technology partner in advancing its growth strategy for LFP cathodes. Results from development work and trials, economic modelling, and IP review have been positive, giving SMM a high degree of confidence in Nano One's proprietary One-Pot LFP technology. Nano One and SMM are expanding their collaboration to pursue LFP cathode material production opportunities with targeted strategic customers. SMM is also providing support and collaboration on the Natural Resources Canada (NRCan) project announced on Oct. 29, 2025.

Prequalification of lithium raw materials from Rio Tinto

On Oct. 6, 2025, the company provided an update on its continuing collaboration with Rio Tinto (together, the parties) specific to the prequalification of high-volume battery-grade lithium raw material inputs for Nano One's One-Pot LFP cathode materials production process. Collaboration and prequalification of Rio Tinto's critical minerals and raw materials inputs include lithium carbonate and precommercial lithium carbonate samples from Rio Tinto sites in Argentina.

Nano One conducts qualification of battery-grade raw materials through a rigorous, staged testing protocol at increasing scales from A sample (kilograms) through to C sample (one to 10 tonnes) prior to D samples in a commercial plant setting. By prequalifying raw material inputs, Nano One aims to accelerate customer acceptance of its LFP cathode material product and LFP CAM licensing packages. This will also help derisk supply chains for prospective licensees and fast track A thru C sample qualification programs by as much as one year.

NRCan government funding

On Oct. 29, 2025, the company announced it had been awarded a $5.0-million non-repayable contribution from NRCan under the Energy Innovation Program to scale production of One-Pot LFP cathode materials and accelerate commercialization. The funding supports Nano One's continuing work at the Candiac, Que., and Burnaby, B.C., facilities through to March 31, 2027. It will enable the company to continue developing different product grades of One-Pot LFP to meet performance requirements across various applications.

The funding supports Nano One's scale-up of the Candiac facility from 200 tonnes per annum to a minimum of 800 tpa of cathode material production, with the flexibility to reach 1,000-plus tpa to meet customer demand. This will be complemented with funding from the government of Quebec announced on Dec. 9, 2024, and DPA Title III funding from the U.S. Department of Defense (War) announced on Sept. 26, 2024. This latest tranche of government funding marks continued support toward commercializing One-Pot LFP cathode material production. This is also in line with building localized capacity following government priorities for industrial resilience and supply chain independence. The announcement came as part of the G7 Energy and Environment Ministers meeting where measures were put in place to strengthen supply chains, reduce dependencies and ensure access to the resources essential for clean energy, advanced manufacturing and defence.

About Nano One Materials Corp.

Nano One Materials is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems (ESS), portable electronics and electric vehicles (EVs). The company's patented One-Pot process reduces costs, is easier -- to permit, 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 existing plant and decades of commercial lithium-iron phosphate (LFP) 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 materials 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.

We seek Safe Harbor.