Mr. Denis Geoffroy reports

NANO ONE ADVANCES CANDIAC LFP CAPACITY EXPANSION WITH ENGINEERING 85% COMPLETE

Nano One Materials Corp. has provided a further progress update on its lithium-iron-phosphate (LFP) production capacity expansion project at its Candiac facility, which will increase total production capacity to approximately 800 tonnes per annum.

Expansion project update

Further to its March 17, 2026 update, the company is pleased to report that detailed engineering is now 85 per cent complete as of mid-July, 2026, and the expansion project remains on schedule.

Major equipment purchase orders were completed in March, 2026; some equipment has been shipped, with initial deliveries already received at the Candiac facility. Vendors for the balance of smaller equipment have been selected, with final purchase orders expected to be completed by the end of August, 2026. Approximately 95 per cent of the project's equipment, measured by procurement cost -- and 100 per cent of intellectual-property-sensitive equipment -- is being sourced from Canada, the United States and the European Union. The project remains on track with commissioning of the newly expanded production capacity targeted for the first half of 2027.

"Having now attained 85-per-cent completion as of mid-July, we expect to complete the project on time and on budget," stated Denis Geoffroy, chief operating officer of Nano One. "Our currently contracted funding programs, for which we have approximately $24-million left undrawn, together with our working capital, fund this capital project to completion."

Existing production and scale-up at Candiac

The Candiac facility demonstrates the One-Pot process in full-scale, production-intent equipment, derisking adoption and enabling Nano One's design-one-build-many licensing and joint venture model. The expansion integrates and automates an existing full-scale 20-cubic-metre reactor, whose design can be replicated in modular fashion. Alongside this, the lines generate commercial sales and support customer sample qualification, product and process improvement, and raw material validation.

The Candiac facility includes multiple front-end One-Pot production lines feeding shared downstream processing equipment, each designed for a distinct role, with total facility capacity of approximately 800 tonnes per annum once the expansion is commissioned:

• Approximately 200-tonne-per-annum pilot line -- supports sample validation to secure and supply smaller-volume offtakes for defence and energy storage system customers, running smaller batches that reduce cost and enable continuous product and process improvement;
• Approximately 800-tonne-per-annum demonstration line -- commissioning targeted for the first half of 2027, bringing total capacity to approximately 800 tonnes per annum and enabling C-sample product qualification at the larger volumes required for larger customer offtakes.

A product C-sample is required to demonstrate production readiness and generally consists of several one-tonne batches. The objective is to provide comfort to end customers that the material can be produced repeatably at or near production scale, off production-intent equipment and processes, with the quality control and assurance systems in place.

Design one, build many -- licensing and partnerships

Nano One's design-one-build-many model lowers the barrier to technology adoption. A cathode producer can adopt One-Pot technology without the inherent lead times and upfront capital required to build its own demonstration line, and the cell manufacturers it supplies keep working with existing supply chain partners. The licensing model is flexible: customers with a preferred engineering vendor can license the One-Pot technology directly from Nano One and engineer the production line through to a final investment decision, while those seeking a more complete solution can procure the integrated CAM (cathode active material) package developed with Worley.

The CAM package provides a feasibility-level One-Pot production line with prequalified equipment vendors and raw material feedstocks, and Worley's technology solutions team supports project execution and deployment, helping customers derisk their investment. Both paths are backed by the Candiac facility, where customers can run sample validation cycles to secure large-volume offtakes before building a plant of their own, supported by operator training built on Nano One's LFP manufacturing know-how -- reducing start-up cost and risk.

About Nano One Materials Corp.

Nano One is a process technology company changing how cathode active materials (CAMs) are produced for lithium-ion batteries. Nano One's platform is built on a portfolio of patented processes, decades of manufacturing know-how and modular plant designs that enable scalable, cost-competitive and easier-to-permit CAM production with resilient supply chains. The technology eliminates waste water and byproducts while enabling regionally sourced raw materials and reducing exposure to foreign supply chain volatility. Modular plants are designed with fewer steps to reduce capex (capital expenditures), energy and environmental intensity and to accelerate deployment, manufacturing and licensing. Product development and process optimization are based at Nano One's innovation centre in Burnaby, B.C., while piloting, demonstration and commercial production are based in Candiac, Que., supported by a team with more than 15 years of commercial cathode manufacturing experience supplying global cell manufacturers. Strategic collaborations with global partners (including Sumitomo Metal Mining, Rio Tinto and Worley) support Nano One's design-one-build-many growth strategy. Nano One has received funding support from the governments of Canada, the United States, Quebec and British Columbia.

We seek Safe Harbor.