HPQ Signs LOI to Evaluate Development of a Canadian-Based Electric Propulsion Platform for North American Markets

• HPQ signed an LOI with LN Innov’ and Novacium SAS to evaluate a Canadian-based platform integrating advanced batteries, electric motors and propulsion systems for North American drone and defense markets.
• HPQ has direct exposure to the proposed platform through their 36.8% equity interest in Novacium SAS and exclusive North American commercialization rights.
• More than 20 customers have tested LN Innov electric propulsion systems, and more than a dozen have subsequently placed commercial orders.
• LN Innov is presently scaling up its manufacturing capacity to reach up to 20,000 drone motors per month in France by the end of Q3 2026.
• Novacium’s advanced battery technologies are currently being evaluated by French drone manufacturers introduced through LN Innov for potential integration into future drone platforms.

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: 8PY1), a technology company specializing in advanced materials innovation and next-generation industrial processes, today announced that it signed a Letter of Intent (“LOI”) with LN Innov’ (“LN Innov”), a French developer and manufacturer of high-performance electric propulsion systems, and Novacium SAS (“Novacium”) on June 16 2026, during the 2026 edition of the Eurosatory exhibition in Paris, France.

HPQ holds a 36.8% equity interest in Novacium and exclusive North American commercialization rights to its technologies.

“As drones become increasingly critical across commercial, industrial and defense applications, governments and industry are recognizing that batteries and electric propulsion systems have become strategic technologies,” said Bernard Tourillon, President and CEO of HPQ Silicon. “Today, much of that supply chain remains concentrated in Asia, creating vulnerabilities that many jurisdictions are actively working to reduce. Through our partnership with Novacium and this new collaboration with LN Innov, we have an opportunity to evaluate the adaptation of an industrial model currently being deployed in Europe for North American markets, combining advanced battery technologies with proven electric propulsion expertise. For HPQ, this represents another step in our broader strategy of identifying innovative technologies with demonstrated market potential and positioning the Company to assess potential commercialization opportunities across North America.”

Scope of the LOI

The LOI establishes a framework for HPQ, Novacium and LN Innov to evaluate, over the next 190 days, the feasibility of establishing a Canadian-based platform integrating Novacium’s battery technologies, to be sold under the HPQ ENDURA+ brand and LN Innov’s electric propulsion systems for drone, robotics and defense markets across North America.

The parties have already completed preliminary technical reviews that supported the decision to enter into this LOI. The evaluation contemplated under the LOI will focus primarily on industrialization, manufacturing, supply-chain requirements, certification pathways, target applications, business structure and potential commercialization strategies for North American markets.

The LOI is non-binding, does not grant exclusivity and does not include financial commitments, payment obligations or minimum purchase requirements. Any future collaboration would remain subject to further evaluation and the negotiation of definitive agreements.

Any future collaboration would remain subject to further evaluation and the negotiation of definitive agreements.

There can be no assurance that the evaluation activities contemplated by the LOI will result in the execution of a definitive agreement or any commercial arrangement between the parties.

LN Innov’ Sovereign High-Performance Electric Propulsion Platform

Electric motors are at the heart of every autonomous platform, directly influencing performance, efficiency and thrust-to-weight ratio. LN Innov’ develops and manufactures high-performance propulsion systems for a broad range of applications, including FPV drones, interception systems, surveillance platforms and payload-delivery drones.

More than 20 customers operating in the drone, robotics and defense sectors have tested LN Innov’s electric motors under operating conditions, and more than a dozen customers have subsequently placed commercial orders.

These activities support LN Innov’s ongoing efforts to expand its production capacity in France, with the objective of scaling its manufacturing capability to up to 20,000 drone motors per month by the end of Q3 2026. The parties intend to evaluate whether elements of this industrial model could be adapted for North American markets.

“We are still at the beginning of this adventure, but the market signals are encouraging,” said Nathalie Mazeau, President of LN Innov’. “Having more than 20 customers test our motors and seeing more than a dozen subsequently place orders provides valuable feedback regarding the performance of our technology. This Letter of Intent creates an opportunity to explore how our industrial and technological expertise, combined with Novacium’s advanced battery technologies and HPQ’s North American presence, could contribute to the development of an electric propulsion ecosystem in North America.”

Novacium’s High-Performance Drone Battery Platform

As drone adoption continues to expand across commercial, industrial and defense applications, operators seek battery solutions that balance energy density, reliability, safety and manufacturability.

Novacium is developing silicon-enhanced battery technologies intended for drone and autonomous-system applications. As part of its ongoing development activities, Novacium has produced battery configurations designed to meet operating requirements commonly used in current drone platforms, including systems delivering approximately 15 Ah capacity, 21.3 V nominal voltage and energy densities near 205 Wh/kg.

Novacium’s advanced silicon-enhanced battery technologies are being developed to meet these requirements while providing a pathway toward future higher-energy-density solutions.

Novacium’s battery technologies are currently being evaluated by industrial and defense-sector participants to assess their suitability for integration into future drone and autonomous-system platforms.

The proposed collaboration with LN Innov provides an opportunity to evaluate the integration of Novacium’s advanced battery technologies, marketed under the HPQ ENDURA+ brand, into complete electric propulsion systems for drone, robotics and autonomous-system applications in North America.

“One of the most important developments in our battery program is that manufacturers are evaluating our technologies against defined operational requirements,” said Jed Kraiem, COO of Novacium. “The collaboration with LN Innov creates an opportunity to assess how advanced battery technologies and high-performance electric propulsion systems can be combined into integrated solutions for drone, robotics and autonomous-system applications.”