G6 Materials Shares CEO Update Letter

a high-tech company with expertise in advanced materials and developing innovative composites for a wide range of industrial uses, is pleased to issue the following update letter from its interim President & Chief Executive Officer (“CEO”), Mr. Kevin Cornish, MBA, CPA, CPHR:

Valued past, current and future shareholders,

It is my great privilege to introduce myself. My name is Kevin Cornish, and I started my time with G6 Materials Corp. (“G6” or the “Company”) in May of 2023 as the Chief Financial Officer during the Company’s corporate restructuring. Over the last six months, I have evaluated G6’s strengths and weaknesses and the strategic opportunities for the road ahead. Having taken over the role of Chief Executive Officer in late October, it has been a busy time planning for the Company’s future. That being said, I intend to maintain regular communication through G6’s website, social media, news releases, and monthly email updates.

Long-Term Strategy

As many of you may recall, G6 was founded on fantastic research and development (“R&D”) principles, forming the foundation of the Company and its future. Over the next 6-24 months, we plan for G6 to transform years of R&D into a long-term commercialization strategy. Yes, this means we will aim to commercialize our R&D and revolutionize target industries through advanced materials. We plan to transition to a longer-term plan while maintaining a short-term focus on current revenue-generating divisions and evaluating current opportunities across select industries. G6 will not abandon its foundation in R&D; however, the Company's primary focus will no longer be R&D. Rather, G6 will focus on the commercialization of its portfolio of intellectual property created over the years. Many long-term investors have been asking for the Company to evolve this way, and the board of directors and I have been listening.

The commercialization of R&D into a long-term competitive strategy for the Company is expected to be accomplished through our knowledge of composite materials, conductive epoxies, and resins. The best opportunity that we have in front of us is to focus on marine drones. We will pursue this opportunity under a new robotics division, which will anchor our long-term strategy for the foreseeable future.

Short-Term Plan

Our short-term plan will capitalize on opportunities that leverage current technologies within our IP portfolio and additional opportunities that we see in the marketplace. This is expected to include evaluating applications in precious metal recovery and ways to improve the performance of the next generation of lithium-ion batteries. These short-term focus areas will complement the longer-term strategy while effectively utilizing our current capacity and resources. The goal is for our short-term plan and long-term strategy to support each other, and we will continually evaluate them for their efficiency, effectiveness, ability to add value to the Company, and ultimately create shareholder wealth.

Cost Optimization

Since May, we have completed a corporate restructuring that reduced expenses by hundreds of thousands of dollars annually and streamlined G6’s personnel. We continue to refine our leaner structure and have already seen the benefits of these changes in our Q1 financial results, which showed that our operating expenses decreased by 34% percent over the same period of the previous year. We intend to continuously improve financially and operationally, quarterly, year after year. This initiative will take some time, but we expect to make more changes in early 2024 with more near-term benefits.

Financial Goals

A forecast has been prepared using assumptions (all of which are supportable and reflect the Company’s planned courses of action for the period covered) as to the most probable set of economic conditions. Accordingly, we aim to increase revenue to $3 million by May 31, 2025, with the earlier goal of achieving $2.2 million in revenue by the end of 2024. G6 also aims to improve its financial reporting over the next 24 months with respect to segment and division-based disclosures. These targets are reasonable and achievable based on the growth opportunities in front of us today. Please note that achieving revenue of $3 million in fiscal 2025 is expected to make G6 cash flow neutral.

To achieve the latter goals, we will focus on G6’s “Graphene Supermarket” and “Breathe⁺” product lines with the expectation of enhancing the Company’s cash position in the near term. We plan to increase our revenue in both segments by transitioning to a B2B model from our mostly B2C model currently. We also plan to introduce our graphene-enhanced air filters to new markets and evaluate other opportunities for product-market diversification worldwide. Focusing on existing customers and strengthening current relationships will be a primary objective, as well as adding new customers, while robotics-based revenue materializes over the long term.

Conclusion

As with any new corporate strategy, it takes time to see results. However, any significant opportunities that G6 considers will be evaluated for a minimum of three months on a qualitative and quantitative basis to ensure that key performance indicators, inputs, and outputs match those of our short-term plan and long-term strategy. If you have any comments or questions about the contents of this letter, please feel free to email me at [email protected].

Sincerely,

Kevin Cornish, Interim President & CEO

G6 Materials Corp.