NanoXplore : Q3-2024 Interim Management’s Discussion and Analysis

NanoXplore Inc.

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

For the three and nine-month periods ended March 31, 2024 and 2023

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

________________________________________________________________________________________

[Unless specified otherwise, all amounts are expressed in Canadian dollars]

This interim Management's discussion and analysis ("MD&A") provides a review of NanoXplore Inc.'s operations, performance and financial position for the three and nine-month periods ended March 31, 2024 and 2023 and should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and nine-month periods ended March 31, 2024 and 2023. The purpose of this document is to provide information on our activities. The information contained herein is dated as of May 14, 2024, date on which the MD&A was approved by the Corporation's board of directors. You will find more information about us on NanoXplore's website at www.nanoxplore.ca and on SEDAR+ at https://www.sedarplus.ca, including all press releases.

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to the preparation of interim financial statements including IAS 34, Interim Financial Reporting. The Corporation has consistently applied the accounting policies used in the preparation of its IFRS financial statements, including the comparative figures. We occasionally refer to non-IFRS financial measures in the MD&A. See the Non-IFRS measures section for more information. The terms "we", "our", "us", ''NanoXplore'' or the "Corporation" mean NanoXplore Inc. and its subsidiaries, unless otherwise indicated.

"Q3-2024" and "Q3-2023" refer to the three-month periods ended March 31, 2024 and 2023 respectively, and "YTD 2024" and "YTD 2023" refer to the nine-month periods ended March 31, 2024 and 2023 respectively.

1. FORWARD-LOOKING STATEMENTS

This MD&A contains certain forward-looking statements within the meaning of applicable Canadian securities laws with respect to the Corporation. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The Corporation considers the assumptions on which these forward- looking statements are based to be reasonable, but it advises the reader that these assumptions with regard to future events, many of which are beyond the Corporation's control, could prove incorrect as they are subject to risks and uncertainties inherent in the Corporation's activities. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information of future events, except when required by the regulatory authorities.

This MD&A contains forward-looking statements. When used in this MD&A, the words ''may'', ''would'', ''could'', ''will'', ''intend'', ''plan'', ''anticipate'', ''believe'', ''seek'', ''propose'', ''estimate'', ''project'', ''expect'' and similar expressions are intended to identify forward-looking statements. In particular, this MD&A contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect NanoXplore's then current views with respect to future events based on certain facts and assumptions and are subject to certain risks and uncertainties, including without limitation changes in the risk factors described under the section "Risks and Uncertainties" of this MD&A. The forward-looking statements are based on certain key expectations and assumptions made by NanoXplore, including expectations and assumptions concerning availability of capital resources, business performance, market conditions and customer demand. Although NanoXplore believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that they will prove to be correct.

Many factors could cause NanoXplore's actual results, performance or achievements to vary from those described in this MD&A, including without limitation those listed above, those described under the section "Risks and Uncertainties" of this MD&A as well as the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this MD&A as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements should not be unduly relied upon. NanoXplore does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this MD&A are expressly qualified by these cautionary statements. Forward-looking statements contained in this MD&A about prospective results of operations, financial position or cash flows are based on assumptions about future events, including economic conditions and proposed courses of action, based on NanoXplore's management's assessment of the relevant information currently available. Readers are cautioned that outlook information contained in this MD&A should not be used for the purposes other than for which it is disclosed herein or therein, as the case may be.

1

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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2. BUSINESS OVERVIEW

CORPORATION OVERVIEW

NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon- graphene-enhancedLi-ion battery manufacturer for the Electric Vehicle and grid storage markets. The Corporation was formed by amalgamation under the Canada Business Corporations Act by Certificate of Amalgamation dated September 21, 2017 and is headquartered at 4500 Thimens Blvd, Montreal, QC, Canada.

NanoXplore is listed on the Toronto Stock Exchange ("TSX") and traded under "GRA" and is also listed on the OTCQX and traded under "NNXPF".

The Corporation has the following subsidiaries:

Subsidiaries	Reporting segment
NanoXplore Switzerland Holding SA ("NanoXplore Switzerland"), based in Switzerland, with an	Advanced materials,
equity interest of 100% [2023 - 100%]. NanoXplore Switzerland holds 100% of CEBO Injections SA	plastics and
("CEBO")	composite products
NanoXplore Holdings USA, Inc. ("NanoXplore Holdings USA"), based in the United States, with an	Advanced materials,
equity interest of 100% [2023 - 100%]. NanoXplore Holdings USA holds 100% of NanoXplore USA,	plastics and
Inc. [2023 - 100%] and RMC Advanced Technologies Inc. [2023 - nil].	composite products
Sigma Industries Inc. ("Sigma"), based in Canada, with an equity interest of 100% [2023 - 100%].	Advanced materials,
Sigma has two active wholly owned subsidiaries; Faroex Ltd., based in Manitoba, and Rene	plastics and
Composite Materials Ltd., based in Quebec. Rene Composite Materials Ltd. owns no subsidiary	composite
[2023 - one active wholly owned subsidiary; RMC Advanced Technologies Inc., based in the United
States, that is now owned by NanoXplore Holdings USA, Inc.]
Canuck Compounders Inc. ("Canuck"), based in Canada, with an equity interest of 100%	Advanced materials,
[2023 - 100%]	plastics and
	composite products
VoltaXplore Inc. ("VoltaXplore"), based in Canada, with an equity interest of 100% [2023 - 100%]	Battery cells

REPORTING SEGMENTS

The Corporation has two reportable segments based on products:

• Advanced materials, plastics and composite products:
  Provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors.
• Battery cells:
  Provides silicon-graphene-enhancedLi-ion battery for the Electric Vehicle and grid storage markets. There are no revenues yet generated from this segment.

Corresponding operations and activities are managed accordingly by the Corporation's Chief Operating Decision Maker. Segmented operating, financial information and labelled key performance indicators are available and used to manage these business segments, review performance and allocate resources.

2

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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KEY FINANCIAL HIGHLIGHTS

• Record Total revenues of $33,867,747 in Q3-2024 compared to $31,580,560 in Q3-2023, representing a 7% increase;
• Record Gross margin on revenues from customers of 20.9% in Q3-2024 compared to 18.3% in Q3-2023 and of 20.1% for YTD 2024 compared to 16.1% for YTD 2023;
• Record Adjusted EBITDA(1) of $1,259,990 in Q3-2024 compared to $469,975 in Q3-2023 for the advanced materials, plastics and composite products segment;
• Adjusted EBITDA of -$688,022 in Q3-2024 compared to-$18,270 in Q3-2023 for the battery cells segment (VoltaXplore initiative);
• Overall Adjusted EBITDA in Q3-2024 of $571,968 compared to $451,705 in Q3-2023 and overall adjusted EBITDA of $30,830 for YTD 2024 compared to -$1,384,027 for YTD 2023;
• Total liquidity of $40,149,612 as at March 31, 2024, including cash and cash equivalents of $29,794,612;
• Total long-term debt of $5,515,205 as at March 31, 2024, down by $2,360,683 compared to June 30, 2023.

BUSINESS HIGHLIGHTS

During the nine-month period ended March 31, 2024, the Corporation continued to focus on developing markets for its graphene products and developing down stream pre-mixed additives and products that facilitate such introduction. The Corporation has been successful in the integration of GrapheneBlack in multiple streams of products, both internally and externally. The Corporation continues its engagement with many potential customers who are currently validating GrapheneBlack and GrapheneBlack improved masterbatches, concentrates, and products.

5-year strategic and investment plan update

The Corporation has begun executing on its 5-year strategic and investment plan that was announced last year. The plan represents an increase in the production capacity of graphene, battery materials and graphene enhanced masterbatch, compound and composite products.

As part as its 5-year strategic and investment plan:

1- The Corporation, via VoltaXplore, has agreed on commercial terms for the supply of Li-ion battery cells with a well-known commercial vehicle OEM. Battery cells will be produced in VoltaXplore's gigafactory. The agreement is for 1 GWh per year for a duration of 10 years following a pricing formula that passes through raw material cost to the customer.

2- The Corporation has been awarded three programs from two existing customers, one large commercial vehicle OEM and one industrial equipment manufacturer, to supply exterior parts of vehicles. These components are used in both internal combustion engines and electric vehicles. Production for the first program will begin in 2024 while the start of production for the other two programs is planned for 2026. These programs generally last for a period of 10 years. The Corporation estimates that these programs will generate $24M in annual sales at mature volumes along with a one-time tooling revenue of $10M. The Corporation has already secured the related manufacturing equipment to fulfill these orders and the expansion of the North Carolina facility is ongoing.

3- The Corporation has been asked by one of our customers to expand its Saint-Clotilde-de-Beauce facility to allow for an expansion of a graphene-enhanced part we currently supply. This expansion, which is part of the lightweighting initiative, will be mostly paid by our customer. Consequently, the previously announced SMC lightweighting initiative capex of $30M to $35M will now be in a range of $25M to $30M.

4- Following further engineering and updated quoting of the equipment related to the Corporation's 5-year strategic and investment plan, required capital for execution of the plan reduced from originally announced $170M to around $140M. The Corporation is planning to finance the required capital mostly through a long-term credit facility and government support.

1. Adjusted EBITDA is a non-IFRS measure and that reconciliation can be found in the section "Overall Results"

3

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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Successful commissioning of graphene-enhanced silicon and anode active material pilot lines

During the nine-month period ended March 31, 2024, the Corporation successfully completed the commissioning of two anode material pilot lines, achieving remarkable energy density and product validation.

1- The SiG™ pilot line has a capacity of 100 tons per year. SiG™ is a graphene enhanced silicon additive for anode materials in Li-ion batteries. Its addition results in enhanced energy density and charging speed.

2- The SG-X™ pilot line, featuring three coated spherical purified graphite (CSPG) anode materials, has a capacity of 200 tons per year. SG-X™ is a graphite-based anode material with different carbon and graphene coatings used as anode active material for Li-ion batteries.

R&D Improvement: Large-Scale dry process for manufacturing of graphene

The Corporation achieved graphite exfoliation with the successful development of a novel dry graphene manufacturing process. The novel dry graphene manufacturing process has several benefits compared to the traditional liquid exfoliation methods. In terms of capital expenditures, the dry manufacturing process delivers nearly 50% reduction versus the liquid exfoliation process. According to the Corporation's current estimation, a net 8 000 metric tons capacity requires only $20M in capital expenditures, with a quarter of the current square footage required as opposed to the liquid exfoliation process. NanoXplore has secured key suppliers, ensuring a robust supply chain for the main equipment. Equipment procurement is streamlined with off-the-shelf solutions, with an estimated lead time of 8-12 months. The Corporation is planning to start purchasing the equipment during the 2024 calendar year.

The novel dry graphene manufacturing process could bring NanoXplore within cost parity with traditional carbon additives such as carbon black. The cost reduction results primarily from using low grade waste graphite (which is derived from graphite anode production process) as feedstock. Furthermore, it is highly scalable and operates on a continuous basis, streamlining production efficiency. Superior processability and long-term performance of dry-processed graphene offers a more attractive proposition and will expand the Corporation's total addressable market and accelerates commercial adoption of graphene.

With granted patents already secured, this proprietary technology boosts some key physical properties in polymers by 20% compared to existing products for applications with over 20-yr longevity requirements. The technology finds potential applications in batteries and lightweight composites, enhancing its appeal in cutting-edge industries. This new manufacturing process also opens doors to a myriad of applications, including plastic pipes, geosynthetics, recycled plastics, concrete, drilling fluids, and insulation foams, among others.

The new dry manufacturing process marks a paradigm shift, substantially reducing the environmental footprint associated with traditional graphite exfoliation methods and addresses environmental concerns associated with water usage, as well as eliminating washing and drying steps that contribute to increased costs and environmental impact.

Total liquidity

As at March 31, 2024, the Corporation had total liquidity of $40,149,612 including cash and cash equivalents and availability under the Corporation's credit facility.

Long-term debt

The total long-term debt decreased from $7,875,888 as at June 30, 2023 to $5,515,205 as at March 31, 2024 for a variation of $2,360,683. Repayments amounted to $2,456,836 during the nine-month period ended March 31, 2024.

4

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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3. OVERALL RESULTS

HIGHLIGHTS

The following table sets out certain highlights of the Corporation's performance for the three and nine-month periods ended March 31, 2024 and 2023. Refer to the Corporation's unaudited condensed interim consolidated financial statements for the three and nine-month periods ended March 31, 2024 and 2023 for a detailed account of the Corporation's performance for the results presented in the tables below.

In summary:

			Q3-2024		Q3-2023		Variation		YTD 2024		YTD 2023		Variation
			$		$	$	%		$		$	$	%
	Revenues		33,867,747		31,580,560	2,287,187	7%		91,866,802		90,538,207	1,328,595	1%
	Operating loss		(3,064,485)		(2,095,609)	(968,876)	(46%)		(9,628,455)		(9,619,937)	(8,518)	(0%)
	Loss		(3,089,430)		(2,447,604)	(641,826)	(26%)		(9,243,896)		(10,794,625)	1,550,729	14%
	Loss per share		(0.02)		(0.01)				(0.05)		(0.07)
	(Basic and diluted)
	Non-IFRS Measure *		571,968		451,705	120,263	27%		30,830		(1,384,027)	1,414,857	102%
	Adjusted EBITDA
By reporting segment:
			Q3-2024		Q3-2023		Variation		YTD 2024			YTD 2023	Variation
			$		$	$	%		$			$	$	%
	From Advanced materials, plastics and composite products
	Revenues		33,866,162		31,580,560	2,285,602	7%		91,839,059			90,538,207	1,300,852	1%
	Non-IFRS Measure *		1,259,990		469,975	790,015	168%		1,829,870			(1,365,757)	3,195,627	234%
	Adjusted EBITDA
	From Battery cells
	Revenues		1,585		-	1,585	N/A		27,743			-	27,743	N/A
	Non-IFRS Measure*		(688,022)						(1,799,040)
	Adjusted EBITDA			(18,270)	(669,752)	N/A				(18,270)	(1,780,770)	N/A

Results of operations may include certain unusual and other items which have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Corporation results. In addition to IFRS measures, management uses non-IFRS measures in the Corporation's disclosures that it believes provide the most appropriate basis on which to evaluate the Corporation's results.

• NON-IFRSMEASURES

This MD&A was prepared using results and financial information determined under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA".

5

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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The following table provides a reconciliation of IFRS "Loss" to Non-IFRS "Adjusted EBITDA" for the three and nine-month periods ended March 31, 2024 and 2023.

		Q3-2024		Q3-2023		YTD 2024		YTD 2023
		$		$		$		$
Loss		(3,089,430)		(2,447,604)		(9,243,896)		(10,794,625)
Current and deferred income tax expenses (recovery)		89,655		21,316		(253,644)		201,074
Net interest revenues		(64,710)		(83,705)		(112,655)		(86,266)
Share of loss of a joint venture		-		414,384		-		1,059,880
Gain on disposal of property, plant and equipment		-		-		(18,260)		-
Foreign exchange		121,556		124,908		175,374		1,055,009
Share-based compensation expenses		531,292		247,138		1,058,770		844,862
Non-operational items (1)		190,000		40,000		270,000		116,000
Depreciation and amortization		2,793,605		2,135,268		8,155,141		6,220,039
Adjusted EBITDA		571,968		451,705		30,830		(1,384,027)
- From Advanced materials, plastics and composite		1,259,990		469,975		1,829,870		(1,365,757)
products
- From Battery cells		(688,022)		(18,270)		(1,799,040)		(18,270)

The following table provides a reconciliation of IFRS "Loss" to Non-IFRS "Adjusted EBITDA" for the three-month periods ended March 31, 2024 (Q3-2024), December 31, 2023 (Q2-2024) and September 30, 2023 (Q1-2024).

	Q3-2024	Q2-2024	Q1-2024
	$	$	$
Loss	(3,089,430)	(2,428,388)	(3,726,078)
Current and deferred income tax recovery	89,655	(116,870)	(226,429)
Net interest revenues	(64,710)	(18,032)	(29,913)
Gain on disposal of property, plant and equipment	-	-	(18,260)
Foreign exchange	121,556	(518,778)	572,596
Share-based compensation expenses	531,292	225,416	302,062
Non-operational items (1)	190,000	40,000	40,000
Depreciation and amortization	2,793,605	2,723,846	2,637,690
Adjusted EBITDA	571,968	(92,806)	(448,332)
- From Advanced materials, plastics and composite products	1,259,990	416,000	170,654
- From Battery cells	(688,022)	(508,806)	(618,986)

1. Non-operationalitems consist of professional fees mainly due to prospectuses related fees.

RESULTS OF OPERATIONS VARIANCE ANALYSIS - THREE-MONTH PERIODS

Revenues
		Q3-2023	Variation		Q2-2024	Variation
	Q3-2024
	$	$	$	%	$	$	%
Revenues from customers	33,617,106	31,125,291	2,491,815	8%	28,559,390	5,057,716	18%
Other income	250,641	455,269	(204,628)	(45%)	503,634	(252,993)	(50%)
Total revenues	33,867,747	31,580,560	2,287,187	7%	29,063,024	4,804,723	17%

All revenues are coming from the segment of advanced materials, plastics and composite products, except for $1,585 of other income [Q3-2023 - Nil] from the battery cells segment.

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INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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Revenues from customers increased from $28,559,390 in Q2-2024 to $33,617,106 in Q3-2024. This increase is mainly due to a positive product mix, higher volume and higher tooling revenues.

Revenues from customers increased from $31,125,291 in Q3-2023 to $33,617,106 in Q3-2024. This increase is mainly due to higher tooling revenues.

Other income decreased from $455,269 in Q3-2023 to $250,641 in Q3-2024. It amounted to $503,634 in Q2-2024. The variation is mainly in grants received for R&D programs.

Adjusted EBITDA

1. From Advanced materials, plastics and composite products

The adjusted EBITDA improved from $469,975 in Q3-2023 to $1,259,990 in Q3-2024. The variation is explained as follows:

• Gross margin on revenues from customers increased by $1,331,868 compared to the last year period due to favourable product mix, improved productivity and cost control;
• Partially offset by:
  o Lower other income of $204,628 as explained above; and
  o Higher administrative expenses (SG&A and R&D) of $497,988 mainly due to additional headcounts and higher wages, including higher accrued variable compensation.

1. From Battery cells

The adjusted EBITDA passed from -$18,270 in Q3-2023 to -$688,022 in Q3-2024. The variation is explained by the administrative expenses (G&A and R&D) of $689,607 due to the acquisition of the Martinrea share in VoltaXplore.

Loss

The loss increased from $2,447,604 in Q3-2023 to $3,089,430 in Q3-2024. The variation is mainly explained as follows:

• Higher depreciation and amortization of $658,337 mainly due to the acquisition of the Martinrea share in VoltaXplore;
• Higher share-based compensation expenses of $284,154;
• Lower interest revenue of $146,961;
• Partially offset by an increase in adjusted EBITDA of $120,263 as explained above.

Foreign exchange

		Q3-2024		Q3-2023		Variation	Q2-2024	Variation
		$		$	$	%	$	$	%
Foreign exchange from		(500,999)		1,315,219	1,816,218	138%	739,620	1,240,619	168%
operations
Foreign exchange on derivative		622,555		(1,190,311)	(1,812,866)	(152%)	(1,258,398)	(1,880,953)	(149%)
contracts
Total foreign exchange		121,556		124,908	3,352	3%	(518,778)	(640,334)	(123%)

The Corporation had a positive impact on foreign exchange from operations of $500,999 in Q3-2024 compared to a negative impact of $1,315,219 in Q3-2023 and a negative impact of $739,620 in Q2-2024. This is due to fluctuation of the US rate at the end of each quarter.

The foreign exchange on derivative contracts is a non-realized loss of $622,555 in Q3-2024 compared to a non-realized gain $1,190,311 in Q3-2023 and a non-realized gain of $1,258,398 in Q2-2024. The variation is due to the fluctuation of the US rate between the quarters and the level of coverage.

7

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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RESULTS OF OPERATIONS VARIANCE ANALYSIS - SIX-MONTH PERIODS
Revenues
		YTD 2023	Variation
	YTD 2024
	$	$	$	%
Revenues from customers	90,883,248	89,689,827	1,193,421	1%
Other income	983,554	848,380	135,174	16%
Total revenues	91,866,802	90,538,207	1,328,595	1%

All revenues are coming from the segment of advanced materials, plastics and composite products, except for $27,743 of other income [YTD 2023 - Nil] from the battery cells segment.

Revenues from customers increased from $89,689,827 in the last year period to $90,883,248 in the current period. This increase is mainly due to higher tooling revenues partially offset by lower volume.

Other income increased from $848,380 in the last year period to $983,554 in the current period. The variation is in grants received for R&D programs.

Adjusted EBITDA

1. From Advanced materials, plastics and composite products

The adjusted EBITDA improved from -$1,365,757 in the last year period to $1,829,870 in the current period. The variation is explained as follows:

• Gross margin on revenues from customers increased by $3,778,598 compared to the last year period due to favourable product mix, improved productivity and cost control;
• Higher other income of $135,174 as described above; and
• Partially offset by higher administrative expenses (SG&A and R&D) of $829,896 mainly due to higher wages, including higher accrued variable compensation.

1. From Battery cells

The adjusted EBITDA passed from -18,270 in the last year period to -$1,799,040 in the current period. The variation is explained by the administrative expenses (G&A and R&D) of $1,822,929 due to the acquisition of the Martinrea share in VoltaXplore.

Loss

The loss decreased from $10,794,625 in the last year period to $9,243,896 in the current period. The variation is mainly explained as follows:

• An increase in adjusted EBITDA of $1,414,857 as explained above;
• Foreign exchange loss of $175,374 in the current period compared to $1,055,009 in the last year period;
• Share loss of a joint venture of $1,059,880 in the last year period compared to nil in the current period as VoltaXplore is now consolidated in the Corporation's result;
• Current and deferred income tax recovery of $253,644 in the current period compared to an expense of $201,074 in the last year period;
• Partially offset by:
  o Higher depreciation and amortization of $1,935,102 due mainly to the acquisition of VoltaXplore.

8

INTERIM MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

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Foreign exchange		YTD 2023	Variation
	YTD 2024
	$	$	$	%
Foreign exchange from operations	(99,888)	(136,980)	37,092	(27%)
Foreign exchange on derivative contracts	275,262	1,191,989	(916,727)	77%
Total foreign exchange	175,374	1,055,009	(879,635)	83%

The Corporation had a positive impact on foreign exchange from operations of $99,888 in the current period compared to $136,980 in the last year period. This is due to fluctuation of the US rate at the end of each quarter.

The foreign exchange on derivative contracts is a non-realized loss of $275,262 in the current period compared to $1,191,989 in the last year period. The variation is due to the fluctuation of the US rate between the quarters and the level of coverage.

FINANCIAL OUTLOOK

The Corporation expects total revenues of $130 million for the year ending June 30, 2024.

SUMMARY OF QUARTERLY RESULT

The table below presents selected financial data for the eight most recently reported quarters. This unaudited quarterly information has been prepared in accordance with IFRS.

			Revenues	Loss	Basic and diluted
			loss per share
		$	$	$
Q3-2024	March 31, 2024		33,867,747	(3,089,430)	(0.02)	Note 1
Q2-2024	December 31, 2023	29,063,024	(2,428,388)	(0.01)	Note 2
Q1-2024	September 30, 2023	28,936,031	(3,726,078)	(0.02)	Note 3
Q4-2023	June 30, 2023	33,318,964	(2,003,549)	(0.01)	Note 4
Q3-2023	March 31, 2023	31,580,560	(2,447,604)	(0.01)
Q2-2023	December 31, 2022	31,725,122	(2,422,949)	(0.01)	Note 5
Q1-2023	September 30, 2022	27,232,525	(5,924,072)	(0.04)	Note 6
Q4-2022	June 30, 2022	28,280,476	(2,708,675)	(0.02)

Note 1 The revenues were higher due to higher tooling revenues. Loss is higher mainly due to higher share-based compensation and negative impact of foreign exchange on derivative contracts.

Note 2 Loss is lower mainly due to a positive impact of foreign exchange on derivative contracts.

Note 3 The revenues were lower due to lower volume. Loss is higher mainly due to lower revenues and a negative impact of foreign exchange on derivative contracts.

Note 4 The revenues were higher due to positive product mix, including graphene enhanced product, and higher volume.

Note 5 The revenues were higher due to higher volume and price increases. Loss was lower due to higher margins and positive foreign exchange on derivative contracts.

Note 6 The loss was higher due to a negative impact of foreign exchange on derivative contracts, lower margin and higher administrative expenses.

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