XTPL S.A.

Legal Proceedings Report • Nov 16, 2022

Title:

The Company completes the third stage of the technological phase underthe agreement with Nano Dimension Ltd.

Legal basis:

Article 17(1) MAR - inside information

Content of the Report:

With reference to Current Report No. 3/2022 of 10 January 2022concerning a cooperation agreement ["Agreement"] signed with NanoDimension Ltd. ["Nano Dimension", "Client"] and Current Reports No.10/2022 of 11 April 2022 and No. 22/2022 of 13 July 2022, the ManagementBoard of XTPL S.A. ["Issuer", "Company", "XTPL"] reports that on 15November 2022 the third stage of development as part of thetechnological phase of the activities specified in the Agreement wascompleted and approved by the Client. The Agreement relates todeveloping a new generation conductive nanoink for industrialapplications in the Client's products designed for the production ofPCBs.

Under the Agreement, completion of the third stage of the technologicalphase and the Client's approval of the work triggers the payment of thethird tranche. The related revenue will be recognized in Q4 2022 andwill significantly influence the financial results for that period. Thismeans that the Issuer enters the next stage of work under thetechnological phase defined in the Agreement, aimed at creating adedicated nanoink formulation. The Agreement between the Issuer and NanoDimension provides for four main stages in the technological phase.

The Issuer's Management Board has decided that the completion of thethird stage of the technological phase is inside information due to itssignificant value in the context of the Company's current business andits future development. Establishment of the Issuer's cooperation andperformance of the Agreement with the industrial partner in the nanoinksbusiness line is also testament to the continued commercializationpotential of the XTPL technology, which in the longer perspective maysupport its implementation on the production lines of global players inthe market of modern electronics.

The cooperation also confirms the Issuer's ability to generate revenuesfrom the sale of products customized to the needs of individual clients,based on an advanced, proprietary technology of producing nanomaterialsdedicated to the next generation electronics industry.

Accordingly, in the Management Board's opinion, the information onachievement of the stated milestone under the Agreement meets thecriteria of inside information within the meaning of Article 7(1) MAR.