CEO Address to Shareholders

• The CEO’s shareholder letter (8 Apr 2026) announces three new commercial agreements: Club Car, Volvo Trucks ($10 M incremental business), and Chevron Phillips Chemical for Tribograf™ powder.
• A $25.6 million equity raise closed in Oct 2025, led by strategic shareholder Martinrea, funded the near‑completion of a dry‑process graphene mill that will lift annual capacity 25% to ~5,000 t.
• Management projects an additional $50 M of revenue over the next 24 months from these contracts and the expanded product portfolio (including carbon‑black replacement markets).
• Q1 FY2026 showed a transportation‑sector slowdown; however, Q2 is expected to benefit from the new capacity and higher‑margin product mix.
• Insider buying has risen >3× Q1‑2025 levels, indicating confidence from management and key shareholders.

• Revenue uplift: The $10 M Volvo contract plus the Club Car and CPC agreements materially increase the top line beyond prior guidance. A $50 M pipeline represents ~20% of FY2026 projected revenue (≈$250 M), a meaningful boost for a market‑cap‑small company.
• Capacity expansion: Completion of the dry‑process mill unlocks new grades, higher margins and entry into the $27 B carbon‑black replacement market – a strategic shift from pure graphene powders to higher‑value applications.
• Balance sheet: The Oct 2025 equity raise provides ample liquidity (C$30 M cash) and reduces reliance on debt; long‑term debt remains modest at C$9.5 M. No immediate capital‑raising pressure.
• Shareholder confidence: Insider purchases and Martinrea’s continued stake signal alignment of interests, reducing governance risk.
• Overall, the news exceeds prior expectations (previously only capacity expansion was announced) and is likely to be priced in positively by the market.

NanoXplore develops graphene‑enhanced materials for plastics, composites, batteries and lubricants. The flagship initiative is the dry‑process graphene mill, which converts graphite to high‑purity graphene without solvents, enabling lower‑cost, higher‑volume production and new product grades (e.g., carbon‑black replacements).