XTPL S.A.

Business and Financial Review • Dec 13, 2023

Title:Company completes fourth stage of technology phase underagreement with Nano Dimension Ltd.

Legal basis:Article 17 (1) MAR

Content of the Report:

The Management Board of XTPL S.A. [_quot;Issuer_quot;, _quot;Company_quot;, _quot;XTPL_quot;], withreference to current report No. 3/2022 dated January 10, 2022 regardingthe conclusion of a cooperation agreement [_quot;Agreement_quot;] with NanoDimension Ltd. [_quot;Nano Dimension_quot;, _quot;Customer_quot;] and current reports No.10/2022 dated April 11, 2022, and No. 22/2022 dated July 13, 2022, andNo. 35/2022 dated November 15, 2022, and No. 14/2023 dated March 30,2023, informs that on December 13, 2023, the fourth, and final, stage ofdevelopment work within the technological phase of the activitiesspecified in the Agreement was completed and accepted by XTPL'sCustomer. Revenue from work closing the final stage of the technologicalphase of the contract will be recognized in the fourth quarter of 2023in the amount corresponding to the completed work and will affectfinancial results in this period.

In addition, the parties agreed to continue jointly defining the nextphases of commercial cooperation, including orders directed at workrelated to scale-up of production of a special formulation of conductiveink for industrial applications in the Customer's products directed atPCB production and testing at the Customer's end users.

The Issuer's Management Board considered the above as confidentialinformation due to its significant value for the current scale ofoperations, as well as for the future development of the Company. Thecommencement of cooperation and execution of the Issuer's Agreement withan industrial partner for the nanotube business line also confirms thefurther commercialization potential of XTPL technology, which in thelong run may support its implementation into the production lines ofmore global players in the modern electronics market.

The ongoing cooperation also confirms the Issuer's ability to generaterevenue from the sale of customized products for the needs of aparticular customer, based on advanced proprietary technology for theproduction of nanomaterials dedicated to the next-generation electronicsindustry.

For the reasons described above, in the opinion of the Issuer'sManagement Board, information concerning the implementation of a part ofthe Agreement in question meets the criteria for confidentialinformation within the meaning of Article 7 (1) MAR.