Mr. Alex Holmes reports

NANO ONE REPORTS Q2 2026 RESULTS AND HIGHLIGHTS NON-DILUTIVE FUNDING AND POLICY TAILWINDS

Nano One Materials Corp. has filed its condensed interim consolidated financial statements and management discussion and analysis (MD&A) for the three and six months ended June 30, 2026, and provided a summary and an update on subsequent events. For an overview of the company's objectives for 2026, please read the 2026 corporate objectives.

Q2 2026 -- financial position and non-dilutive financing

As at June 30, 2026, the company reported total net assets and working capital of $18.2-million and $17.6-million respectively, with cash of $19.3-million. Cumulatively since the beginning of 2024, Nano One has secured over $63-million in non-dilutive capital across government grants and loans, sale-leaseback proceeds and land sale proceeds. Government funding of $12.3-million received in the first half of 2026 limited the net use of cash for the six-month period to $4.3-million, and as at August, 2026, the company had approximately $20-million in undrawn government funding available for use in precommercial activities under existing grant agreements and programs. Subsequent to the quarter, the company received grant proceeds of $1-million from Natural Resources Canada in July, 2026.

Candiac facility expansion and licensing alignment

As announced on July 23, 2026, detailed engineering for the demonstration line expansion was 85 per cent complete as of mid-July 2026, with the project on schedule and on budget. Purchase orders for major equipment were completed in March, 2026, with initial deliveries received at the Candiac facility, and purchase orders for the remaining smaller equipment are expected to be completed by the end of August, 2026. Approximately 95 per cent of equipment by value -- and 100 per cent of intellectual-property-sensitive equipment -- is sourced from Canada, the United States and the European Union. The Candiac facility comprises multiple front-end One-Pot production lines feeding shared downstream processing equipment, with total facility capacity of approximately 800 tonnes per annum once the expansion is commissioned, targeted for the first half of 2027. The expanded capacity will enable large-volume sampling to support larger customer contracts, plant design licensing and joint venture opportunities. This complements the One-Pot LFP (lithium-iron-phosphate) CAM (cathode active material) package completed with Worley Chemetics in June, 2026, now being marketed as a ready-to-license design under the company's Design One Build Many growth strategy.

"Government partnerships have been foundational to Nano One's commercialization, and we are grateful for the continued backing of NRCan, Investissement Quebec, the U.S. Department of Defense and the other agencies supporting this work," said Alex Holmes, chief executive officer of Nano One. "The policy environment across Canada, the United States and allied jurisdictions is increasingly aligned with what we are building -- diversified, regionally resilient supply for critical battery materials. By leveraging our Candiac LFP cathode manufacturing facility and operational know-how, we're uniquely positioned to meet that demand. Licensing our process IP under Design One Build Many lets us scale capital light -- derisking growth while maximizing value for shareholders."

Policy and market tailwinds

Across Canada, the United States and allied jurisdictions, governments are adopting policy that recognizes the vulnerability of the battery materials supply chain and favours localization. Recent developments include:

• Critical minerals momentum across the G7 and allies: The Global Critical Minerals Action Plan, adopted under Canada's 2025 G7 presidency, pledged to catalyze public and private investment in minerals, including through innovation and licensing. At the June, 2026, G7 leaders meeting under France's presidency, leaders reaffirmed the urgency of diversifying critical minerals supply chains and strengthening mid-stream and downstream industries, while NATO (North Atlantic Treaty Organization) defence-spending commitments and dual-purpose defence-civilian strategies support localized supply chain ambitions.
• Supply chain concentration risk: China placed export restrictions in 2025 on its LFP processing technologies, equipment and product. The International Energy Agency's Global Critical Minerals Outlook 2026 noted that LFP batteries represent over half of the global electric car battery market and over 90 per cent of the battery energy storage market, and that new restrictions on LFP cathode materials could impede efforts to develop LFP production outside China.
• U.S. policy support for localized battery materials: The 2025 U.S. National Defense Authorization Act prohibits batteries and battery components procured from prohibited foreign entities for the U.S. military starting in 2028, while the 45X manufacturing tax credit, maintained at $35 per kilowatt-hour, supports localized cathode active material production.
• Canadian industrial strategies: Canada's Defence Industrial Strategy, launched in February, 2026, recognizes the importance of critical minerals, dual-use military and civilian applications, and domestic suppliers, and Canada's Auto Strategy aims to expand EV (electric vehicle) production and position Canada as a global leader in clean vehicle technologies.

In the United States, planned LFP capacity increased from about 180 gigawatt-hours to nearly 290 gigawatt-hours in 2025, which will require a supply of more than 600,000 tonnes per annum of LFP CAM. Nano One's One-Pot technology is designed for this environment -- cost competitive, easier to permit and supported by regionally sourced input materials.

For a more detailed discussion of Nano One's Q2 2026 interim quarterly results, please refer to the company's financial statements, and MD&A, which are available on SEDAR+.

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 expenditure), 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.

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