FOR IMMEDIATE RELEASE                                                                                                                            5 July 2021

Nanoco Group PLC

("Nanoco, the "Group", or the "Company")

Development Agreement

Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials emanating from its technology platform, today announces that it has signed a Development Agreement (the 'Agreement') for a project (the 'Project') with a very significant Asian chemical company.

The Project builds on recently completed feasibility work relating to the development of a potential new nano-material for the customer and the continued supply of a previously developed material. If the new nano-material is successfully developed, it will be suitable for use in electronic devices across a number of sensing applications and end markets.

The first phase of the Project will complete in the second half of calendar year 2021. The Agreement outlines two further phases that are contingent on the success of the first phase and have the potential to run through to the end of FY22.

The total value of work for this new customer in the current financial year increases the Board's revenue expectations for FY21 by approximately 10% and, if realised, the subsequent phases will have a similar impact in FY22. Subsequent scale up or commercial production is contingent on the successful completion of all three phases of the Project and would arise after FY22.

Brian Tenner, Nanoco's CEO, commented:

"This is an important expansion of our portfolio of products for use in infra-red sensing applications. Nanoco now offers a growing range of materials covering an increasing breadth of operational wavelengths for sensors in a multitude of potential end user applications.

"Our new customer is a very significant player in electronics supply chains globally. They further diversify our customer base and add additional routes to market with their own extensive customer list. This additional reach into leading global technology companies creates further momentum for Nanoco in commercialising our nano-materials for use in sensing applications.

"Market interest in sensing applications continues to grow and Nanoco's IP-backed platform technology remains a robust foundation for our work in these fields of use. With other Nanoco customers outlining their product road maps, we can see clear routes to commercialising our technology and to exploiting our Runcorn production facility in the short to medium term."

- Ends -

For further information, please contact:

Nanoco Group PLC:                                                                                                             +44 (0) 161 603 7900

Brian Tenner, CEO

Liam Gray, UK FD and & Company Secretary

Caroline Watson, Investor Relations Manager

cwatson@nanocotechnologies.com

Peel Hunt:

Edward Knight                                                                                                                      +44 (0) 20 7418 8900

Nick Prowting

MHP Communications:                                                                                                      +44 (0) 203 128 8788

Reg Hoare

Giles Robinson

Pete Lambie

nanoco@mhpc.com

The person responsible for arranging for the release of this announcement on behalf of Nanoco is Liam Gray, Company Secretary.

MAR

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain.

FORWARD LOOKING STATEMENTS

This announcement (including information incorporated by reference in this announcement) and other information published by Nanoco may contain statements about Nanoco that are or may be deemed to be forward looking statements.  Such statements are prospective in nature.  All statements other than historical statements of facts may be forward looking statements.  Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or "considers" or other similar words may be forward looking statements.

Forward looking statements inherently contain risks and uncertainties as they relate to events or circumstances in the future.  Important factors such as business or economic cycles, the terms and conditions of Nanoco's financing arrangements, tax rates, or increased competition may cause Nanoco's actual financial results, performance or achievements to differ materially from any forward looking statements.  Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof.  Nanoco disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.

Notes for editors:

About Nanoco Group plc

Nanoco (LSE: NANO) harnesses the power of nano-materials. Nano-materials are materials with dimensions typically in the range 1 - 100 nm. Nano-materials have a range of useful properties, including optical and electronic. Quantum dots are a subclass of nano-material that have size-dependent optical and electronic properties. The Group produces quantum dots. Within the sphere of quantum dots, the Group exploits different characteristics of the quantum dots to target different performance criteria that are attractive to specific markets or end-user applications such as the Display and Electronics markets. One of the interesting properties of quantum dots is photoluminescence: the emission of longer wavelength light upon excitation by light of a shorter wavelength. The colour of light emitted depends on the particle size. Nanoco's CFQD^® quantum dots are free of cadmium and other toxic heavy metals and can be tuned to emit light at different wavelengths across the visible and infrared spectrum, rendering them useful for a wide range of applications including displays, lighting and biological imaging.

Nanoco was founded in 2001 and is headquartered in Manchester, UK, with a US subsidiary, Nanoco Inc., in Concord, MA. Nanoco continues to build out a world-class, patent-protected IP portfolio generated both by its own innovation engine, as well as through acquisition.

Nanoco is listed on the Main Market of the London Stock Exchange and trades under the ticker symbol NANO. For further information please visit: www.nanocotechnologies.com.