Mr. John Karagiannidis reports

QIMC EXPANDS PHASE 1 WINTER HYDROGEN DRILLING PROGRAM IN NOVA SCOTIA TO OVER 5,000 METRES FOLLOWING NEW INRS GEOPHYSICAL ADVANCES

Quebec Innovative Materials Corp. has significantly expanded its phase 1 winter natural hydrogen drilling program in the Advocate-Cumberland basin corridor of Nova Scotia. Supported by major geophysical advances from the Institut National de la Recherche Scientifique (INRS), Quebec Innovative will now undertake as a first phase more than 5,000 metres of drilling during the winter season marking the company's largest hydrogen-focused drill program to date.

Over recent months, Prof. Marc Richer-Lafleche and the INRS geoscience team have substantially completed detailed gravimetry, tomography, lidar (light detection and ranging) structural mapping and integrated modelling, significantly refining the structural interpretation of the basin. These advances have identified new priority drill targets and improved subsurface fault-mapping resolution, enabling Quebec Innovative to expand and optimize its phase 1 drilling.

"As the first mover and pioneer of natural hydrogen exploration in Nova Scotia, Quebec Innovative continues to advance the science and set the pace for the industry," said John Karagiannidis, president and chief executive officer of Quebec Innovative. "The geophysical advances delivered by INRS -- integrating gravimetry, tomography and lidar -- have greatly strengthened our confidence in the subsurface model. As a result, we are expanding our phase 1 winter drilling program to over 5,000 metres, reinforcing Quebec Innovative's position as the leading technical operator in the Advocate corridor at a time when regional and global interest in natural hydrogen is accelerating."

Houston Reuters Energy Live Conference -- Quebec Innovative presence

Quebec Innovative is also pleased to announce that it will be attending the Reuters Energy Live Conference in Houston on Dec. 8 and Dec. 9, where the company will host a dedicated booth within the conference's hydrogen and emerging-energy section. As the first mover in natural hydrogen exploration in North America, Quebec Innovative's presence at this premier global energy event will allow the company to showcase its technical leadership, engage directly with international industry participants and highlight Quebec Innovative's multijurisdiction natural hydrogen portfolio across Nova Scotia, Quebec, Ontario and Minnesota to a global audience.

Sale of River Valley silica project

Quebec Innovative is also pleased to announce it has executed a definitive agreement to sell its 100-per-cent interest in the River Valley silica project -- a high-purity quartz property located approximately 65 kilometres northeast of Sudbury, Ont. -- to Sila Mining Corp. Quebec Innovative continues to retain 100-per-cent ownership of its high-grade Charlevoix silica project in Quebec.

Under the terms of the agreement, Quebec Innovative will receive:

• Six million common shares of Sila Mining Corp. (deemed price: 20 cents per share);
• Cash consideration of up to $500,000;
• A 2-per-cent gross sales royalty on all silica products produced from the project;
• The right to nominate one director to Sila's board of directors.

Closing of the transaction is expected on or before Jan. 16, 2026, subject to customary conditions and regulatory approvals. Sila currently has approximately 18 million shares outstanding, of which Quebec Innovative holds six million, providing Quebec Innovative with meaningful equity exposure as well as continuing role as adviser as the project advances.

Sila is also completing a concurrent $1-million financing at 20 cents per share, with participation from insiders and management, underscoring their confidence in the growth potential of the River Valley high-purity silica asset.

Strategic context: River Valley as a high-purity silica (HPQ) growth and consolidator platform

The transaction ensures the River Valley asset will continue advancing under a dedicated, technically focused development strategy. Sila is positioning River Valley to become a foundational North American supplier and consolidator of high-purity silica (HPQ) projects -- a critical material for:

• Semiconductors (silicon wafers);
• Solar photovoltaics (polysilicon feedstock);
• Advanced glass, optics and electronics;
• Silicon-enhanced battery anodes.

Historical results confirm high-grade quartz averaging 98.74 per cent SiO2 (silicon dioxide), placing River Valley within the range suitable for cost-effective upgrading into HPQ and ultra HPQ products. Given that global HPQ supply is highly concentrated among a small number of producers, River Valley represents a strategic, scalable and secure domestic alternative aligned with Canadian and United States critical minerals policies.

River Valley resource expansion strategy

Historical resource parameters outline:

• Quartz volume: 442,000 cubic metres;
• Tonnage: 1.06 Mt (million tonnes);
• Purity: 98.74 per cent SiO2.

This represents only the near-surface portion of the system. Geological indicators suggest strong potential for expansion at depth and along strike, which Sila is addressing through a staged 12-hole drilling program designed to:

• Establish mineralized continuity;
• Validate structural controls;
• Identify expansion zones.

Next steps and critical metals consolidator road map for Sila

Over the next 12 to 18 months, Sila plans to:

1. Execute and expand the staged drilling program;
2. Initiate metallurgical testing to define pathways to HPQ and ultra HPQ;
3. Engage semiconductor, solar, battery and advanced materials partners;
4. Advance River Valley as a cornerstone critical minerals asset.

"This transaction crystallizes significant value for Quebec Innovative while giving our shareholders exposure to one of the most strategically important silica assets in Canada," added Mr. Karagiannidis. "Sila's integrated technical approach and plans to further act as the consolidator in the critical minerals space, combined with our advisory involvement, ensures River Valley continues advancing rapidly."

About Quebec Innovative Materials Corp.

Quebec Innovative Materials is a mineral exploration and development company dedicated to exploring and harnessing the potential of North America's abundant resources. With properties in Ontario, Quebec, Nova Scotia and Minnesota (United States), Quebec Innovative is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits. Quebec Innovative is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, the company aims to unlock the full potential of these materials to drive forward clean energy solutions to power the AI and carbon-neutral economy and contribute to a more sustainable future.

We seek Safe Harbor.