Mr. John Karagiannidis reports

QIMC REPORTS RECORD 23.5% NATURAL HYDROGEN WITHIN THE FIRST 300 METRES OF ONGOING DDH-26-05 AND OBSERVATIONS CONSISTENT WITH FREE GAS AT BENNETT HILL AT 164 METRES

Quebec Innovative Materials Corp. has released the strongest natural hydrogen results ever reported by the company from the first approximately 300 metres of continuing diamond drill hole DDH-26-05 at its Bennett Hill natural hydrogen project in Nova Scotia. These results represent only the initial portion of the hole. Hydrogen concentrations of up to 23.5 per cent H2, together with drilling observations consistent with free gas entering the borehole within a major structural zone, represent a significant new milestone for the company's natural hydrogen exploration program. Achieving these record concentrations within only the first 300 metres of an active drill hole -- compared with the company's previous record of 24.3 per cent H2 at 707 metres in DDH-26-04 -- further validates Quebec Innovative's evolving geological model for a large-scale, structurally controlled natural hydrogen district and further refines the company's geological interpretation of Bennett Hill, which indicates the characteristics required to move toward a pilot-scale production project as a pathway to commercial development.

The combination of record hydrogen concentrations, observations consistent with free gas entering the borehole and the continued validation of the company's structural geological model represents an important milestone in advancing Bennett Hill from exploration toward pilot production development.

Chief executive officer commentary

"DDH-26-05 has delivered the two things every natural hydrogen developer wants to see: concentrations and free gas, and it delivered them in the first 300 metres," said John Karagiannidis, president and chief executive officer of Quebec Innovative. "Hydrogen concentrations of 23.5 per cent within only the first 300 metres fundamentally strengthen our confidence that Bennett Hill hosts one of Canada's most significant emerging natural hydrogen systems. Our record hole DDH-26-04 needed 707 metres to reach 24.3 per cent. DDH-26-05 has come within striking distance of that record at less than a quarter of the depth, and, at 164 metres, the system did something remarkable: It came to us. Free gas flowed into the hole, our rig analyzers picked up hydrogen in the open air and the strongest readings of the hole bracket that structure on both sides. Shallow, clean, high-concentration hydrogen is precisely what our pilot production pathway model calls for. With roughly 74 per cent of our readings above 1 per cent hydrogen and methane at zero across the board, Bennett Hill continues to look like exactly what we believe it is: the cornerstone of a district-scale clean hydrogen system."

Summary of results: zero to 300 metres, DDH-26-05

IsoJar mud-gas hydrogen readings (Eagle II analyzer) were collected at nominal three-metre intervals from 32 m to 305 m, with multiple replicate measurements per depth (192 valid readings across 91 sampled depths). Significant results include the following.

Rather than representing a single isolated high-concentration interval, the data define an approximately 54-metre corridor (143 to 197 m) of sustained per-cent-level hydrogen concentrations culminating in a record 23.5 per cent H2 at 170 metres. The profile also highlights a second double-digit hydrogen interval at 260 to 263 metres and the interval where drilling observations were consistent with free gas entering the borehole. Collectively, these results illustrate the continuity and intensity of hydrogen concentrations through the first 300 metres of DDH-26-05 and provide further support for the company's interpretation of a structurally controlled natural hydrogen system at Bennett Hill.

Free gas at 164 metres

At approximately 164 metres, DDH-26-05 intersected a mud seam (164.7 to 165.1 m, with approximately 40 centimetres of lost core) within a competent siltstone package. As the drill advanced through this interval, rig-mounted gas monitoring equipment detected elevated hydrogen concentrations in the ambient air at the rig -- an observation the company interprets as a free gas flow from the formation into the borehole. Immediately beyond it, at 167 metres, the drill encountered an open void with complete loss of water return. Further voids were encountered at 257 m and 296 m.

The geochemistry underlines the significance of this structure: The two strongest readings of the hole -- 20.8 per cent H2 at 158 m and 23.5 per cent H2 at 170 m -- sit directly above and below the free gas intersection, defining a gas-charged structural zone at the heart of an approximately 54-metre per-cent-level hydrogen corridor.

Mud-gas geochemistry demonstrates that hydrogen is present in the fractured rock. Free gas deliverability is one of the central assumptions of the pilot production pathway model the company began evaluating in July, 2026, and DDH-26-05 has provided the first direct drilling evidence in support of that assumption -- at a depth shallow enough to be reached by simple, low-cost wells.

Geology of the first 300 metres: the structural plumbing predicted by reactivated rift and graben geostructure

Logging of DDH-26-05 (collared at an azimuth of 155 degrees and a dip of minus 70 degrees, NQ core, 100-per-cent core recovery through the reported interval) confirms the architecture predicted by the company's R2G2 targeting framework:

• 35.0 to 143.5 m -- graphitic fault breccia: a more-than-108-metre-thick graphitic fault zone hosting numerous discrete fault gouge intervals, interpreted as a long-lived, reactivated structural conduit -- the primary hydrogen migration pathway. Hydrogen readings through this zone ran consistently at 1 to 4.2 per cent H2.
• 143.5 to 175.2 m -- siltstone hosting the free gas intersection: competent, thinly bedded siltstone containing the 164.7- to 165.1-metre mud seam and the 167-metre void, bracketed by the 20.8-per-cent and 23.5-per-cent H2 peaks -- a gas-charged conduit and potential trap geometry.
• 176.0 to 251.8 m -- granitized siltstone, syenitic intrusions and graphitic silica-granitic breccias: sustained per-cent-level hydrogen (peaks of 17.6 per cent, 16.0 per cent and 8.0 per cent H2) through an interval of granitization, syenite dikes and hydrothermal breccias associated with the Cobequid-Chedabucto fault zone.
• 251.8 to 300-plus m -- green siltstone: a second double-digit hydrogen zone (13.9 per cent H2 at 263 m) with an associated void at 257 m, and readings of 2.1 to 3.5 per cent H2 continuing toward 300 m.

Building on record hole DDH-26-04

DDH-26-05 is the second hole at Bennett Hill, located approximately 15 kilometres from the company's Eatonville Road drill area (DDH-26-01 to DDH-26-03). The first Bennett Hill hole, DDH-26-04, was completed to 818 metres and returned a peak mud-gas reading of 24.3 per cent H2 at 707 metres -- the highest single hydrogen reading recorded across Quebec Innovative's 2026 Advocate area program - with 104 of 284 IsoJar readings (approximately 37 per cent) at or above 1 per cent H2. Over the upper interval comparable with today's results, DDH-26-04 peaked at 16.0 per cent H2 at 236 metres.

DDH-26-05 has exceeded that benchmark on every measure over the first 300 metres: substantially higher hydrogen concentrations within the upper 300 metres (23.5 per cent versus 16.0 per cent), a higher hit rate (approximately 74 per cent versus 37 per cent of readings at or above 1 per cent H2), a free gas intersection and open gas-charged structure confirmed by drilling voids. In the company's interpretation, two consecutive holes with intensifying hydrogen -- 700 metres apart on the same structure -- support a laterally extensive, structurally controlled and vertically persistent hydrogen system at Bennett Hill. DDH-26-05 is planned to a total depth of 900 metres to test the depth continuation of this system below the horizon that produced the 24.3-per-cent record in DDH-26-04. Collectively, the geological observations, sustained hydrogen concentrations and observations consistent with free gas entering the borehole continue to strengthen the company's confidence in Bennett Hill as an emerging district-scale natural hydrogen system.

Importance for the pilot production pathway

On July 20, 2026, the company announced the beginning of a technical evaluation of a pathway toward pilot-scale characterization and clean energy generation of the Advocate area hydrogen system. The results reported today advance that pathway on four fronts: (i) the free gas intersection at 164 metres provides the first direct evidence of mobile, free-phase gas -- the fundamental prerequisite for pilot testing; (ii) 23.5 per cent H2 at 170 metres demonstrates that high-concentration hydrogen exists at depths reachable by simple, low-cost pilot wells; (iii) a second consecutive hydrogen-bearing hole at Bennett Hill, stronger than the first over the equivalent interval, supports resource continuity; and (iv) the confirmation of the predicted fault breccia architecture continues to validate the R2G2 targeting framework as a repeatable exploration and development tool across the company's 43-kilometre district-scale corridor.

About Quebec Innovative Materials Corp.

Quebec Innovative is a North American exploration and development company advancing a portfolio of natural hydrogen and critical mineral projects, with properties in Quebec, Ontario and Nova Scotia, and Minnesota (United States). The company applies its proprietary R2G2 exploration framework, developed in collaboration with INRS, and is focused on responsible exploration, technical innovation and the advancement of natural hydrogen opportunities that may contribute to future clean energy development. The company's exploration in the Advocate area involves no hydraulic fracturing and no reservoir stimulation.

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