Strategic Elements Ltd. re-confirm the development focus and schedule for the Energy InkTM. Development remains focused on power management for skin patch devices and the investigation of potential R&D pathways for larger-scale energy ink systems. As previously forecast, results are expected to be available in Q1, 20231, A significant escalation in power per square centimetre was achieved from a rudimentary, very simple power management system during Q4, 20221. Power management systems were proven to have the potential to dramatically increase the performance of an Energy Ink power solution. Electronic Skin Patches are currently a large USD 10 billion market and remain the Company's near-term focus. These products provide sports, health and other information from devices attached to the human body and currently use rigid alkaline batteries or those with lithium materials. The market for skin patches is forecast to grow to USD 27 billion by 20333. Larger Scale Energy Ink Systems It is accepted that the imperative for more innovative, renewable energy creation and power sources will continue to grow. Printed graphene-oxide-based cells that generate energy from airborne water molecules could potentially directly power a device, complement a battery by extending device life or providing energy for battery storage. The Energy InkTM is still in early development, and the fundamental upper limit
of aspects such as maximum power output, duration and energy density remains unknown. Significantly, the team continues to identify multiple avenues that increase performance. Development success has opened a potential R&D pathway for larger-scale Energy Ink systems. The Company is investigating the potential R&D pathway for larger-scale systems through Energy Ink packs with multiple cells or significantly larger cell sizes. As previously announced, further information is expected in Q1, 20231.