Mr. John Karagiannidis reports

QIMC WELCOMES THE ADOPTION OF BILL 17: QUEBEC ESTABLISHES REGULATORY FRAMEWORK FOR CLEAN NATURAL HYDROGEN

Quebec Innovative Materials Corp. has celebrated the adoption, royal assent and coming into force of Bill 17, an act to amend the act respecting natural gas storage and natural gas and oil pipelines to authorize the implementation of a pilot project relating to the exploration for underground reservoirs or certain fluids, or their operation or exploitation, on Friday, June 12, 2026. This legislation establishes a clear regulatory framework for the responsible exploration and development of clean natural hydrogen in Quebec.

A historic day for Quebec's clean energy future

The passage of Bill 17 into law marks a defining moment for Quebec's energy landscape and for Quebec Innovative. For the first time, natural hydrogen -- a clean, naturally occurring gas generated deep within the earth, essentially free of methane and carbon dioxide -- has a formal legal home in Quebec's legislative framework. This is the kind of pro-active, forward-thinking governance that positions Quebec as one of the first movers on the global stage.

Quebec Innovative wishes to extend its deepest and most sincere gratitude to the members of the parliamentary committee of the National Assembly for their pro-activeness, diligence and vision in shepherding this legislation to completion. The cross-party interest demonstrated throughout the committee process -- including the thoughtful and constructive questions posed by opposition members -- reflects the broad recognition that natural clean hydrogen represents a strategic priority for Quebec's economic and environmental future.

"Today is a day of immense pride for our entire team and for every stakeholder who has believed in the extraordinary potential of natural clean hydrogen in Quebec," said John Karagiannidis, president and chief executive officer of Quebec Innovative. "The royal assent of Bill 17 and its immediate coming into force are the result of leadership from the Quebec government. We thank them wholeheartedly for recognizing natural hydrogen as a pillar of Quebec's clean energy transition and for creating an important regulatory foundation for the responsible development of this emerging sector."

Quebec Innovative's role: an industry leader at the table

On June 3, 2026, Quebec Innovative was honoured to appear before the parliamentary committee of the National Assembly of Quebec to testify on Bill 17 -- an invitation that recognized Quebec Innovative's experience and leadership in natural hydrogen exploration. As an early mover in Canada in the development of a science-based model for natural hydrogen exploration, Quebec Innovative brought to the committee its unique technical knowledge, field experience from both Quebec and Nova Scotia, and a proven record of responsible development.

Quebec Innovative's testimony highlighted several critical dimensions of the natural hydrogen opportunity in Quebec: the province's exceptional geological formations conducive to the generation of pure natural hydrogen; the results of gas composition analysis confirming that Quebec's hydrogen resources are essentially free of methane and carbon dioxide; and the transferable expertise Quebec Innovative has developed through its pioneering work in Nova Scotia, where analogous geological conditions have generated encouraging exploration results.

"Being invited to testify before the National Assembly as an industry leader was a privilege we do not take lightly," added Mr. Karagiannidis. "Natural hydrogen offers Quebec a clean, local and geologically renewable energy source. With Bill 17 now law, we are ready to move and to move quickly."

Looking ahead: pilot projects with the Quebec government

Bill 17 establishes, among other things, a formal framework for government-authorized pilot projects. Quebec Innovative looks forward with great enthusiasm to engaging with the Ministere de l'Economie, de l'Innovation et de l'Energie to advance these projects that could help position Quebec among the leading jurisdictions in the emerging natural hydrogen sector.

Quebec Innovative is uniquely positioned to act swiftly, with a 5,000-metre drill permit already in place and precise geological targets identified in the Abitibi-Temiscamingue region.

"We are eager to work with the Quebec government, the communities and municipalities in Temiscamingue on pilot projects that will demonstrate what natural clean hydrogen can do for Quebec," said Mr. Karagiannidis. "Our operational readiness means we can begin translating legislative progress into real-world results almost immediately. Quebec has the geology, the clean energy infrastructure and now the legislative framework. QIMC has the expertise, the permits and the commitment. Together, we can help advance a responsible new clean-energy sector for Quebec."

Honouring our partnership with the Temiscamingue First Nation

Quebec Innovative's approach to natural hydrogen development has always been grounded in respect, partnership and community. Since the earliest stages of natural hydrogen exploration in the Lake Temiscamingue region -- located within the traditional hunting and cultural territory of the Temiscamingue First Nation, an Algonquin (Anishinaabe) community based in Notre-Dame-du-Nord, Que. -- Quebec Innovative has worked side-by-side with TFN members in the field, integrating aboriginal traditional knowledge into project design, environmental monitoring and exploration planning.

This deep and enduring partnership was formalized through a memorandum of understanding signed in October, 2025, between Quebec Innovative, Diagnamed Holdings Corp. and the Temiscamingue First Nation, establishing a framework for continuing collaboration built on mutual respect, environmental stewardship and equitable economic participation for TFN members.

The passage of Bill 17 is a milestone that Quebec Innovative shares proudly with its partners at the Temiscamingue First Nation. As Quebec's natural hydrogen sector enters its next chapter, Quebec Innovative reaffirms its commitment to ensuring that the communities whose traditional lands intersect with this resource are full partners in its responsible development -- benefiting from employment, training, contracting opportunities and meaningful involvement in all stages of exploration and production.

"Our partnership with the Temiscamingue First Nation is not a formality. It is a cornerstone of who we are as a company and how we develop this resource," said Mr. Karagiannidis. "We are honoured to share this legislative milestone with chief and council and the entire TFN community. This journey belongs to all of us."

Advancing the Quebec-Nova Scotia clean natural hydrogen corridor vision

The coming into force of Bill 17 does more than establish a regulatory framework for one province. It advances an important component of Quebec Innovative's broader corporate vision: the potential development of a clean natural hydrogen corridor spanning Quebec and Nova Scotia, covering Eastern Canada, and extending into the northeastern U.S. market.

This corridor concept is grounded in geology. Quebec Innovative pioneered natural hydrogen exploration in Nova Scotia, establishing the scientific and operational blueprint that is being applied with confidence in Quebec. The two provinces represent complementary opportunities within Quebec Innovative's broader Eastern Canada natural hydrogen strategy.

With Quebec now operating under a formal legislative framework and Nova Scotia exploration actively advancing, Quebec Innovative is positioned to evaluate the potential development of hydrogen assets across Eastern Canada into a cohesive supply network. This corridor has the potential to deliver domestically produced, carbon-free natural hydrogen to one of the most energy-intensive and import-dependent regions in North America: the northeastern United States, encompassing markets in New England, New York and beyond -- markets that face mounting pressure to decarbonize their energy mix and reduce reliance on imported fossil fuels.

The potential strategic and economic implications are significant. A Quebec-Nova Scotia hydrogen corridor could represent one of Canada's first integrated natural hydrogen supply chain opportunities -- one that leverages existing clean energy infrastructure, supports indigenous economic participation, creates high-value jobs across Eastern Canada and positions Canadian natural hydrogen as a competitive, clean alternative to conventional energy imports in the U.S. northeast.

"Bill 17 is the final legislative cornerstone of something we have been building toward since day one," said Mr. Karagiannidis. "Our vision has always been larger than a single province or a single project. We are working toward a clean natural hydrogen corridor that stretches from the heart of Quebec through Nova Scotia and into the northeast U.S. -- a corridor powered entirely by geological hydrogen that is essentially free of methane and CO2, rooted in indigenous partnership and backed by world-class science. Today, that vision moves meaningfully closer to execution."

About Quebec Innovative Materials Corp.

Quebec Innovative is a leading North American exploration and development company advancing a portfolio of natural hydrogen and critical mineral projects. The company is advancing its district-scale hydrogen exploration model across Quebec, Ontario, Nova Scotia and Minnesota through the application of its proprietary R2G2 framework.

Quebec Innovative is focused on responsible exploration, technical innovation and the advancement of natural hydrogen opportunities that may contribute to future clean energy development initiatives.

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