QIMC Expands Phase 1 Winter Hydrogen Drilling Program in Nova Scotia to Over 5,000 Metres Following New INRS Geophysical Advances

Rhea-AI Summary

Québec Innovative Materials (OTCQB: QIMCF) is expanding its Phase 1 winter natural hydrogen drilling program in the Advocate–Cumberland Basin corridor of Nova Scotia to more than 5,000 metres after new INRS geophysical work (gravimetry, tomography, LiDAR, integrated modeling) identified additional priority targets and improved fault mapping.

QIMC also executed a definitive agreement to sell its 100% interest in the River Valley Silica project to Sila Mining, receiving 6,000,000 Sila shares (C$0.20 deemed), up to C$500,000 cash, a 2% gross-sales royalty, and the right to nominate one director; closing expected on or before Jan 16, 2026. QIMC retains 100% of Charlevoix Silica.

Positive

• Phase 1 drilling expanded to over 5,000 metres
• INRS delivered integrated gravimetry, tomography, and LiDAR improving target resolution
• Consideration: 6,000,000 Sila shares plus up to C$500,000 cash and a 2% royalty
• QIMC holds 6M of ~18M Sila shares (meaningful equity exposure)

Negative

• Sale transfers 100% ownership of River Valley silica to Sila, reducing QIMC's direct silica holdings
• Transaction closing subject to customary conditions and regulatory approvals by Jan 16, 2026

News Market Reaction

-1.71%

1 alert

-1.71% News Effect

On the day this news was published, QIMCF declined 1.71%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Phase 1 drilling: more than 5,000 metres Sila share consideration: 6,000,000 shares Deemed share price: C$0.20 per share +5 more

8 metrics

Phase 1 drilling more than 5,000 metres Winter natural hydrogen drilling program in Nova Scotia

Sila share consideration 6,000,000 shares Common shares of Sila Mining Corp. at deemed C$0.20 per share

Deemed share price C$0.20 per share Consideration for Sila Mining Corp. shares to QIMC

Cash consideration up to C$500,000 Cash component for sale of River Valley Silica Project

Gross-sales royalty 2% Royalty on all silica products from River Valley

Sila shares outstanding approximately 18 million Sila Mining Corp. shares outstanding before concurrent financing

Concurrent financing C$1 million at C$0.20 Financing by Sila Mining Corp. with insider participation

Quartz purity 98.74% SiO2 Historical average purity at River Valley high-purity silica project

Market Reality Check

Price: $0.5433 Vol: Volume 103,657 is roughly...

normal vol

$0.5433 Last Close

Volume Volume 103,657 is roughly in line with the 20-day average of 101,273 (relative 1.02x). normal

Technical Price at $0.37 is trading above the $0.18 200-day moving average.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Drilling & asset sale	Positive	-1.7%	Expanded Nova Scotia hydrogen drilling and sale of River Valley Silica project.
Nov 26	U.S. exploration awards	Positive	+13.6%	Minnesota RGRAs awarded to advance next‑generation natural hydrogen exploration.
Nov 24	Nova Scotia staking rush	Positive	+7.3%	Regional claim rush and drill‑ready targets in Nova Scotia’s Cumberland Basin.
Nov 12	Hydrogen system data	Positive	+10.4%	New high hydrogen and radon data confirming a deep natural hydrogen system.
Nov 06	Strategic board & options	Positive	+1.3%	Creation of AI Data Center Advisory Board and disclosure of new equity incentives.

Pattern Detected

Shares have usually risen on operational and exploration updates, with only one negative reaction among recent news events.

Recent Company History

This announcement adds to a steady run of operational updates in late 2025. Recent releases highlighted winter drilling at West Advocate with strong hydrogen and radon-thoron readings, claim staking momentum in Nova Scotia, and new RGRAs in Minnesota expanding QIMC’s hydrogen footprint. Management also formed an AI Data Center Strategic Advisory Board and tied hydrogen development to data-center strategy. Today’s expanded Nova Scotia drilling and River Valley sale continue that theme of portfolio build-out and asset optimization.

Market Pulse Summary

This announcement combines an expanded winter drilling campaign of over 5,000 metres in Nova Scotia ...

Analysis

This announcement combines an expanded winter drilling campaign of over 5,000 metres in Nova Scotia with a structured sale of the River Valley Silica Project for equity, cash, and a 2% royalty. It reinforces QIMC’s focus on natural hydrogen while keeping exposure to high‑purity silica through Sila Mining. Investors may watch upcoming drilling results, progress on Sila’s C$1 million financing, and how River Valley’s development advances under the new operator.

Key Terms

gravimetry, tomography, lidar, gross-sales royalty, +2 more

6 terms

gravimetry technical

"completed detailed gravimetry, tomography, LiDAR structural mapping, and integrated"

A laboratory method that determines how much of a substance is present by separating it from a sample and weighing the collected material, similar to sifting sand from soil and measuring the pile left behind. For investors, gravimetry matters because it underpins quality control and regulatory testing—accurate measurements affect product purity, yield, labeling, compliance costs and the reliability of manufacturing claims, all of which can influence financial performance and risk.

tomography technical

"completed detailed gravimetry, tomography, LiDAR structural mapping, and integrated"

Tomography is a medical imaging technique that creates detailed cross‑sectional pictures of the inside of the body by scanning from different angles and assembling those slices into a layered image, like slicing a loaf of bread to see each interior layer. Investors care because these images drive diagnosis, treatment choices and the demand for scanners, software and related services, so advances or wider adoption can affect sales, reimbursement and long‑term medical spending.

lidar technical

"detailed gravimetry, tomography, LiDAR structural mapping, and integrated modeling"

Lidar, which stands for Light Detection and Ranging, is a technology that uses laser beams to create detailed, three-dimensional maps of the environment. It works like a sophisticated eye that measures distances by bouncing light off objects, helping machines see and understand their surroundings. For investors, lidar is important because it enables advancements in autonomous vehicles, robotics, and mapping, which can drive innovation and growth in related industries.

gross-sales royalty financial

"A 2% gross-sales royalty on all silica products produced from the project"

A gross-sales royalty is a contract obligation to pay a fixed percentage of total sales revenue to a rights holder, calculated before deducting costs or expenses. It matters to investors because it reduces top-line cash available to the business regardless of profit margins—like paying a toll on every dollar of sales—so it can materially affect reported revenue retention, operating cash flow and valuation compared with royalties based on net profits.

metallurgical testing technical

"Initiate metallurgical testing to define pathways to HPQ and ultra-HPQ"

Metallurgical testing is the laboratory and pilot-plant work that checks how metal-bearing rock or material behaves during extraction and processing — for example how much metal can be recovered, what chemicals or equipment are needed, and how costly or complex the process will be. For investors it’s like a recipe test: reliable results reduce uncertainty about how much usable metal a project can produce, the likely costs, and the timeline to generate revenue.

soil gas technical

"Phase 2 program will include extensive soil gas sampling with over 1,000 samples"

Soil gas is the mixture of gases that occupy the tiny air spaces within soil, like the air trapped in a sponge. It can include natural gases such as methane or radon and chemicals from leaking underground storage, industrial spills, or biodegradation. For investors, soil gas matters because abnormal levels can signal contamination, trigger cleanup orders, reduce property value, delay deals, or create regulatory and liability costs that affect a company’s finances.

AI-generated analysis. Not financial advice.

Montreal, Quebec--(Newsfile Corp. - December 3, 2025) - Québec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) ("QIMC" or the "Company") is pleased to announce a significant expansion of its Phase 1 winter natural hydrogen drilling program in the Advocate–Cumberland Basin corridor of Nova Scotia. Supported by major geophysical advances from the Institut National de la Recherche Scientifique ("INRS"), QIMC will now undertake as a 1^st phase more than 5,000 metres of drilling during the winter season marking the Company's largest hydrogen-focused drill program to date.

Over recent months, Professor Marc Richer-Laflèche and the INRS geoscience team have substantially completed detailed gravimetry, tomography, LiDAR structural mapping, and integrated modeling, significantly refining the structural interpretation of the Basin. These advances have identified new priority drill targets and improved subsurface fault-mapping resolution, enabling QIMC to expand and optimize its Phase 1 drilling.

"As the first mover and pioneer of natural hydrogen exploration in Nova Scotia, QIMC continues to advance the science and set the pace for the industry," said John Karagiannidis, President & CEO of QIMC. "The geophysical advances delivered by INRS—integrating gravimetry, tomography, and LiDAR—have greatly strengthened our confidence in the subsurface model. As a result, we are expanding our Phase 1 winter drilling program to over 5,000 metres, reinforcing QIMC's position as the leading technical operator in the Advocate corridor at a time when regional and global interest in natural hydrogen is accelerating."

Houston Reuters Energy Live Conference – QIMC Presence

QIMC is also pleased to announce that it will be attending the Reuters Energy Live Conference in Houston on December 8th and 9th, where the Company will host a dedicated booth within the conference's hydrogen and emerging-energy section. As the first mover in natural hydrogen exploration in North America, QIMC's presence at this premier global energy event will allow the Company to showcase its technical leadership, engage directly with international industry participants, and highlight QIMC's multi-jurisdiction natural hydrogen portfolio across Nova Scotia, Québec, Ontario, and Minnesota to a global audience.

Sale of River Valley Silica project

QIMC is also pleased to announce it has executed a definitive agreement to sell its 100% interest in the River Valley Silica Project—a high-purity quartz property located approximately 65 km northeast of Sudbury, Ontario—to Sila Mining Corp. QIMC continues to retain 100% ownership of its high-grade Charlevoix Silica Project in Québec.

Under the terms of the agreement, QIMC will receive:

• 6,000,000 common shares of Sila Mining Corp. (deemed price: C$0.20 per share)

• Cash consideration of up to C$500,000

• A 2% gross-sales royalty on all silica products produced from the project

• The right to nominate one director to Sila's Board of Directors

Closing of the transaction is expected on or before January 16, 2026, subject to customary conditions and regulatory approvals. Sila currently has approximately 18 million shares outstanding, of which QIMC holds 6 million, providing QIMC with meaningful equity exposure as well as ongoing role as advisor as the project advances.

Sila is also completing a concurrent $1 million financing at $0.20 per share, with participation from insiders and management, underscoring their confidence in the growth potential of the River Valley high-purity silica asset.

Strategic Context: River Valley as a High-Purity Silica (HPQ) Growth and Consolidator Platform

The transaction ensures the River Valley asset will continue advancing under a dedicated, technically focused development strategy. Sila is positioning River Valley to become a foundational North American supplier and consolidator of high-purity silica (HPQ) projects—a critical material for:

• Semiconductors (silicon wafers)

• Solar photovoltaics (polysilicon feedstock)

• Advanced glass, optics, and electronics

• Silicon-enhanced battery anodes

Historical results confirm high-grade quartz averaging 98.74% SiO₂, placing River Valley within the range suitable for cost-effective upgrading into HPQ and ultra-HPQ products. Given that global HPQ supply is highly concentrated among a small number of producers, River Valley represents a strategic, scalable, and secure domestic alternative aligned with Canadian and U.S. critical-minerals policies.

River Valley Resource Expansion Strategy

Historical resource parameters outline:

• Quartz volume: 442,000 m³

• Tonnage: 1.06 Mt

• Purity: 98.74% SiO₂

This represents only the near-surface portion of the system. Geological indicators suggest strong potential for expansion at depth and along strike, which Sila is addressing through a staged 12-hole drilling program designed to:

• Establish mineralized continuity

• Validate structural controls

• Identify expansion zones

Next Steps & Critical metals consolidator Roadmap for Sila

Over the next 12-18 months, Sila plans to:

1. Execute and expand the staged drilling program

2. Initiate metallurgical testing to define pathways to HPQ and ultra-HPQ

3. Engage semiconductor, solar, battery, and advanced-materials partners

4. Advance River Valley as a cornerstone critical-minerals asset

"This transaction crystallizes significant value for QIMC while giving our shareholders exposure to one of the most strategically important silica assets in Canada," added Karagiannidis. "Sila's integrated technical approach and plans to further act as the consolidator in the critical minerals space, combined with our advisory involvement, ensures River Valley continues advancing rapidly."

About Québec Innovative Materials Corp. (QIMC)

Quebec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) is a mineral exploration and development company dedicated to exploring and harnessing the potential of North America's abundant resources. With properties in Ontario, Quebec, Nova Scotia and Minnesota (US), QIMC is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits. QIMC is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, we aim to unlock the full potential of these materials to drive forward clean energy solutions to power the AI and carbon-neutral economy and contribute to a more sustainable future.

For more information please contact:

QUÉBEC INNOVATIVE MATERIALS CORP.
John Karagiannidis
Chief Executive Officer

Email: info@qimaterials.com
Tel: +1 514-726-7058

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the CSE policies) accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.

Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Québec Innovative Materials' actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Although Québec Innovative Materials believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature, forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions in Canada and abroad; adverse industry events; future legislative and regulatory developments in the natural resources sector, in particular as regards the regulation of white (natural) hydrogen exploration, development and exploitation; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; natural resources industry and markets in Canada and generally; the ability of Québec Innovative Materials to implement its business strategies; competition; and other assumptions, risks and uncertainties.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.

Cautionary Statements This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. These statements are based on expectations, estimates, and projections as of the date of this release. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from current expectations. Readers are cautioned not to place undue reliance on these statements, as no assurance can be provided regarding future outcomes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276668

FAQ

What change did QIMC announce for its Nova Scotia hydrogen drilling program (QIMCF) on Dec 3, 2025?

QIMC announced expanding its Phase 1 winter natural hydrogen drilling to more than 5,000 metres after new INRS geophysical advances.

Which INRS methods supported QIMC's expanded drill targets (QIMCF)?

INRS applied gravimetry, tomography, LiDAR structural mapping, and integrated modelling to refine subsurface targets.

What is QIMC receiving for the River Valley Silica sale (QIMCF)?

QIMC will receive 6,000,000 Sila shares (C$0.20 deemed), up to C$500,000 cash, a 2% gross-sales royalty, and a board nomination right.

When is the River Valley Silica transaction expected to close for QIMC (QIMCF)?

Closing is expected on or before January 16, 2026, subject to customary conditions and regulatory approvals.

How large is River Valley's historical near-surface silica resource cited in the announcement (QIMCF)?

Historical parameters list 1.06 Mt tonnage with 98.74% SiO2 purity and a quartz volume of 442,000 m3.

Does QIMC retain any silica assets after the River Valley sale (QIMCF)?

Yes; QIMC retains 100% ownership of the high-grade Charlevoix Silica Project in Québec.