NanoXplore Inc. provided an operational update on its new commercial graphene facility in Montreal (Ville St-Laurent), Province of Quebec, including: Project Construction Update; Capital Expenditures ("CapEx") Update; Operating Expenditures ("OpEx") Update; and Graphene Commercial Update. NanoXplore's new graphene production facility (located at 4500 Thimens Blvd, Montreal (Ville St-Laurent), Province of Quebec) is currently housed within an existing 70,000 square foot building. All major equipment has been delivered and secured in their physical location within the facility. Mechanical and electrical connections of the equipment are ongoing and are expected to be completed by early February. Hydro-Québec has provided all power requirements for the commercial production of its 4,000 metric tons/year capability graphene production facility. The new graphene facility will be a fully automated production plant that will enable a connected and flexible manufacturing system. The facility will also become NanoXplore's new Corporate Headquarters on January 20, 2020. Extensive renovations have been made to house all existing and future Corporate and Carbon Technology employees. In parallel with additions to its Production team, key Corporate positions have also been filled to help facilitate growth, including but not limited to the placement of a Global IT Director and a Global HR Director. NanoXplore confirmed that the CapEx associated with the building-out of the graphene production facility remains below the original scheduled budget. This includes, but is not limited to, all costs associated with the purchase and delivery of equipment, building modifications, auxiliary equipment, spare parts, and automation. Commissioning of the plant will begin in early February 2020 with the ramp-up period of production to start from April 2020. The Corporation previously announced that the new graphene facility layout has been fully optimized. This optimization will allow NanoXplore to build its 4,000 metric tons/year of graphene production line in a much smaller footprint than originally designed. This will enable the Corporation to use the remaining space for other purposes, such as warehousing, compounding and mixing, and the addition of another graphene production line. In conjunction with the installation of the equipment, The company expects to receive its first delivery of small-mesh natural flake graphite at the end of January 2020 for the commissioning of the plant. The Corporation has also been successful in solidifying the technical design of its 4,000 metric tons/year proprietary graphene batch-production process. This production module can now be easily replicated for any future expansion project. These decisions were taken in order to minimize the cost involved in the engineering of any future production lines and to avoid any potential risk from further scale-up activities. This standardization of the production line will result in a quicker turn-around in future graphene line additions and will enable NanoXplore to address market demands quickly. NanoXplore's Sales team continues to make significant strides as graphene becomes a viable solution for high-volume commercial applications. The Corporation's focus is to replace current carbon-based additives within the thermoset and thermoplastic market by offering standardized products and solutions in powder and masterbatch formats. Focus of the Corporation's efforts will now shift to obtaining purchase orders for its graphene products within the next six months. NanoXplore continues to engage with large original equipment manufacturers (OEMs) and potential partners within various industries, such as industrial products, automotive, wires and cables, pipe, packaging, and sporting goods, to provide a more-enhanced solution to that of traditional additives. NanoXplore's ability to provide industrial volume of graphene at an affordable cost is the key that unlocks the development of the graphene market, resulting in a market shift from a technology-push to a market-pull. This shift is already underway and will help the successful commercialization efforts done by the Corporation.