Nanalysis Provides Corporate Update - October 20, 2022

Preliminary Q3 Revenue Expected to be at least $6.8 million

Presenting at LD Micro Conference on Oct. 25th

Nanalysis Scientific Corp. ("the Company", TSXV: NSCI OTCQX: NSCIF FRA: 1N1 ), a leader in portable NMR machines and MRI technology for healthcare and industrial applications, provides a corporate update on operations.

"We have seen a strong return to our growth trajectory in our core NMR business," said Sean Krakiwsky, Founder and CEO of Nanalysis. "We believe we have overcome the issues that limited our growth in the second quarter and have resumed progress with our new sales initiatives. Additionally, we continue the expedited phase-in portion of the CATSA service contract which we expect to have material billings in the fourth quarter and will continue to ramp to the full run rate into 2023. Overall, we continue to invest in our strategic initiatives while managing our cash resources diligently.

Financial Highlights (unaudited):

• The Company looks to report gross revenues for the third quarter ended September 30, 2022, of at least $6.8 million , representing an increase of over 100% year over year.

Recent operational highlights during the third quarter of 2022 include:

• Benchtop NMR: Both the 100MHz and 60MHz delivered strong results in terms of sales, shipped units, and average sales price. This includes shipping a record number of 20 100MHz units in Q3 2022.
• MRI / Medical Imaging: Nanalysis continues to be active in medical imaging and was awarded a contract win of C$1.1 million for a custom MRI system from customer based in France .
• K'Prime 3 ^rd Party Equipment Sales: This business continues to be steady.
• Security Service/CATSA: We continue to execute successfully on the phase-in period of this contract and expect to "go live" in Alberta airports on November 1, 2022 . We expect billings for this service in the fourth quarter of this year.
• High Field NMR/Quad Systems : The company continues to move towards a full high-field NMR product launch with Quad Systems. There have been delays in the completion of the full suite of modules, but revenue generation has begun related to specific component sales. We expect meaningful revenue to commence at Quad in the fourth quarter of 2022, with full product roll out and material revenue to start in 2023.

Nanalysis CEO Sean Krakiwsky will be presenting at the LD Micro Conference in Los Angeles on Tuesday, Oct. 25 ^th at 2:00pm PT in Track 2. The presentation can be accessed virtually and will be live streamed at https://me22.mysequire.com/ . Mr. Krakiwsky will be available in person for one-on-one meetings on Tuesday, Oct. 25 ^th and Wednesday, Oct. 26 ^th . Those who plan to attend in person can register here: https://www.meetmax.com/sched/event_86249/conference_home.html .

When : Oct. 25 ^th at 2pm PT Track 2

To access Virtually: https://me22.mysequire.com/

Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', OTC and the Frankfurt exchange under the ticker symbol '1N1'. The company's business is what we term "MRI and NMR for industry". The company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis began selling a 100MHz device in 2020. The Company's 100MHz device is the most powerful and most advanced compact NMR device ever brought to market.

Nanalysis devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.

With the recent acquisition of K'Prime, the company maintains a North American sales and service company of over 40 individuals who cover scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications.

Additionally, the Company has a 43% ownership in Quad Systems AG ("Quad Systems"), with an option to purchase the remaining shares. Quad Systems is a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "expected", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Nanalysis Scientific Corp.