Mr. Denis Geoffroy reports

NANO ONE TO RECEIVE ADDITIONAL C$4.3M FROM THE GOVERNMENT OF CANADA TO ADVANCE BATTERY MATERIAL PRODUCTION FOR ENERGY SECURITY & DEFENCE

Nano One Materials Corp. has received an additional $4.3-million non-repayable contribution from Natural Resources Canada (NRCan) under the energy innovation program. The additional funds will primarily reimburse eligible expenses for the installation of a distributed control system (DCS) and a manufacturing execution system (MES), as well as continuing third party engineering work to advance the company's 25,000-tonne-per-annum (tpa) production capacity One-Pot plant design.

"Quebec is an essential centre for battery innovation and advanced manufacturing. Projects like this help move new technologies closer to commercialization while reinforcing the province's role in Canada's growing clean technology sector. This is just one example of how Quebec is supporting our country to become a clean energy superpower," stated Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources.

"Nano One is grateful to the government of Canada for its ongoing support and increased funding," said Nano One's chief operating officer, Denis Geoffroy. "The DCS and MES software systems will add agility and precision to the production plant and speed up automotive certification and product traceability. The engineering work is essential to project execution and plant operating efficiencies. This investment strengthens our production and technology licensing offering and supports our path to commercialization. It also continues to build long-term shareholder value and reinforces Nano One's position as a leader in materials processing for Canada."

Amended project scope

The $4.3-million contribution from NRCan's energy innovation program supports amendments to the scope of work for the company's NRCan contribution agreement previously announced on Oct. 29, 2025, bringing the total award to $9.3-million. The original scope includes operating and capital expenditures for scale-up, product development and commercialization activities at the company's facilities in Candiac, Que., and Burnaby, B.C. The enhanced scope adds three areas of additional work, with eligible and reimbursable expenses dating back to April 1, 2025:

1. A distributed control system (DCS) plant software to enable all equipment and production to be managed from a single control centre while improving operations reliability, process efficiency and safety. The new system will improve resilience to cybersecurity threats and will enable remote support system capability and training for future plants;
2. A manufacturing execution system (MES) software that is superimposed on the DCS to monitor, track, document and control all stages of production on the factory floor-bridging the gap between enterprise resource planning (ERP) and real-time machine operations to optimize efficiency, quality and traceability. It provides real-time data for better decision-making, manages resources, schedules production, ensures quality control and creates a complete record of product, which is crucial for compliance with the automotive industry requirements such as IATF. These upgrades will implement Industry 4.0 capability in Candiac and enable faster product improvement;
3. Advancing a feasibility study for a large-scale commercial plant addressing domestic demand in automotive and battery energy storage systems (BESS) markets. The study will integrate the modular design developed through the Nano One Worley Alliance and operational learnings from the Candiac demonstration plant.

Since October, 2025, Nano One has secured $12.31-million in support from NRCan for work that enables the company to advance capacity expansion at its Candiac facility, qualify inputs from suppliers, meet product specifications for clients, train licensees and support future plant development. The financing also supports the development of new generations of LFP to meet enhanced performance requirements across energy storage systems, defence, electric vehicles and other applications. Sumitomo Metal Mining is a project partner under this NRCan contribution agreement and is contributing technical expertise as in-kind support.

The Candiac facility remains Nano One's launch pad for growth and provides an important bridge between customer validation, first revenues and demonstrating the technology in production-grade 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.

Strengthening North America's battery supply chains

The full project scope supports Nano One's scale-up at its Candiac facility from 200 tpa to a minimum of 800 tpa with the flexibility to reach 1,000-plus tpa 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 project builds on existing funding support from the U.S. Department of Defense, Next Generation Manufacturing Canada (NGen), Investissement Quebec (MEIE) and Technoclimat (MELCCFP). 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 -- helping position Canada as a future supplier of LFP cathode materials.

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 (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.