California Nanotechnologies arranges $750,000 placement

Mr. Eric Eyerman reports CALIFORNIA NANOTECHNOLOGIES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT California Nanotechnologies Corp. intends to complete a non-brokered private placement of up to 2.5 million units of the company at a price of 30 cents per unit for total gross proceeds to the company of up to $750,000. The offering is subject to an overallotment option allowing the company to increase the units sold by an additional one million units for additional proceeds of $300,000, if fully exercised. Each unit will comprise one common share in the capital of the company and one common share purchase warrant. Each warrant shall be exercisable to acquire one additional common share at an exercise price of 30 U.S. cents for 18 months from the closing of the offering. The company intends to use the net proceeds raised from the offering for general working capital and corporate purposes. The offering is subject to the receipt of all necessary regulatory and other approvals, including the receipt of approval from the TSX Venture Exchange. Finders' fees may be payable in connection with the offering. Certain insiders of the company may acquire securities under the offering, with the expected insider participation being up to 20 per cent of the offering. Any such participation by offering insiders will be considered to be a related party transaction as defined under the policies of the TSX-V and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company anticipates relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related party transactions under sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as neither the fair market value of the securities to be acquired by the offering insiders, nor the consideration to be paid by such offering insiders is anticipated to exceed 25 per cent of the company's market capitalization. About California Nanotechnologies Corp. At Cal Nano, we envision a world in which the company's advanced technologies are used to help make the most innovative products on this planet and beyond. With the company's unique expertise in processing metallurgic powders into parts, global leaders trust the company to help push the boundaries of applied material science. Headquartered in Greater Los Angeles, Calif., Cal Nano hosts advanced processing and testing machinery and capabilities across two manufacturing facilities for materials research and production needs. The company's customers range from Fortune 500 companies to startups with programs spanning aerospace, renewable energy, defence and semiconductors. We seek Safe Harbor.