Nano Nuclear Energy Inc. (NNE) Business

Business

Nuclear
Safety Regulation. The commercial use of nuclear technology is regulated in all countries, and approval from national regulatory
bodies is required for the design, construction, and operation of nuclear plants, including our proposed microreactors. Nuclear safety
regulators primarily consider the safety and robustness of designs of nuclear plants against applicable internal hazards (e.g., component
failures and fires) and external hazards (e.g., earthquakes and weather loads such as snow, rain and wind), and also consider the environmental
impacts of construction and operations (e.g., water use and preservation of historical sites and animal and plant species) of nuclear
plants. Nuclear safety regulation must be addressed on a country-by-country basis, although regulators may collaborate when a design
is deployed in multiple countries.

Our
microreactor licensing strategy includes two primary goals: (1) obtain regulatory approval using the most efficient licensing pathway
by engaging the regulator early and developing a complete and high-quality application; and (2) maintain a standard design for our microreactor
in as many markets as possible by pursuing NRC Standard Design Certification that can be completely referenced in customer license applications.

Nuclear
Safety Regulatory Approval in the United States. For a nuclear plant to be constructed and operated in the United States, an applicant
must develop and submit either a construction permit application followed by an operating license application in accordance with 10 CFR
Part 50 or submit a combined license application in accordance with 10 CFR Part 52. An applicant utilizing either licensing pathway can
incorporate by reference a design certification thus limiting the scope of its license application to site-specific information and operational
programs. A customer desiring to construct and operate one of our microreactors can increase the efficiency of NRC regulatory approval
by incorporating by reference the NRC standard design certification for one of our microreactors into its application. In accordance
with our licensing strategy, we expect to obtain NRC approval and certification of our standard microreactor design for incorporation
by reference into prospective customer license applications. The design certification process ensures that NRC review of the design is
final and that prospective customers that use our NRC standard design certification without modification will only need to support NRC
review of site-specific design features (e.g., physical security systems, water intake structures, on-site emergency plan), operational
programs (e.g., maintenance, emergency preparedness), and environmental impacts. Through design finality, the NRC will not re-review
our microreactor design.

Nuclear
Safety Regulatory Approval Internationally. We are evaluating plans for pursuing international markets and engaging with international
regulators with respect to our proposed microreactors. If we pursue markets outside of the U.S., we will assess all international regulatory
requirements which may be applicable to our business.

Other
Regulations. In addition to nuclear safety regulations, we are also subject to such other nuclear regulatory controls as nuclear
material safeguards and non-proliferation restrictions, and liability insurance regimes (e.g., Price-Andersen Act, the 1960 Paris Convention,
the 1963 Vienna Convention, and the 1997 Convention on Supplementary Compensation). We only plan to sell our microreactors in jurisdictions
where nuclear liability is exclusively channeled to the plant operator.

Customers
purchasing our microreactors must also obtain the permits, licenses, and insurance required for the jurisdiction where the facility will
be located. In the U.S., a nuclear plant developer must obtain an NRC construction permit and operating license issued pursuant to 10
CFR Part 50 or a combined construction and operating license issued pursuant to 10 CFR Part 52. Other U.S. federal permits or licenses
required for a nuclear plant may include those issued by the Army Corps of Engineers; the Federal Aviation Administration; the U.S. Department
of Transportation; and the U.S. Environmental Protection Agency. State or local regulators may also require permits or licenses for a
nuclear plant, including a National Pollutant Discharge Elimination System (NPDES) Permit for Storm Water Discharges from Construction
Activities and to Construct a Sanitary Wastewater, Wastewater Treatment facility; Section 401 Water Quality Certification; Well Permits;
Solid Waste Handling Permit; and appropriate building permits.

Export
Controls. Our microreactor business is subject to, and complies with, stringent U.S. import and export control laws, including the
Export Administration Regulations (EAR) regulations from the Bureau of Industry and Security which is part of the U.S. Department of
Commerce, and regulations issued by the DOE. The regulations exist to advance the national security and foreign policy interests of the
U.S. and to further its nonproliferation policies. Nuclear technology, also known as technical data, is controlled by 10 CFR Part 810,
under the regulations of the DOE. Nuclear hardware and codes specifically designed or modified for use in a nuclear reactor are controlled
by the NRC under 10 CFR Part 110. We will work to ensure that strict internal control and measures are implemented to comply with export
control regulations. Appendix A to 10 CFR Part 810 provides a list of countries that are considered Generally Authorized meaning they
are considered to be non-sensitive. Countries not on this list are required to be specifically authorized prior to sharing any nuclear
technology. Under Part 110, the NRC regulates the export or import of nuclear hardware, material and code, following the same sensitive
countries versus non sensitive countries’ regulatory structure embedded in 10 CFR Part 810.

Fuel
Processing and Transportation Businesses

Nuclear
Safety Regulation. The commercial nuclear fuel industry is heavily regulated in the United States and regulatory approval is required
for the design, safety systems and operation of a nuclear fuel facility such as our proposed fuel processing facility. Nuclear safety
regulators from the NRC consider safety related impacts to the facility from external events (e.g., wildfires, impacts from nearby facilities),
natural phenomena hazards (e.g., seismic events, wind, snow, floods), fire protection, environmental conditions and dynamic effects associated
with operations, chemical protection, emergency response, criticality control, and instrumentation and control. The facility license
application must identify items relied on for safety in order to limit potential radiation and chemical related impacts to workers, the
public, and the environment.

A
nuclear fuel facility must also consider the impacts of the facility on the environment. An environmental report will be prepared which
describes the impact of constructing the facility on the environment; adverse environmental impacts that cannot be avoided; alternatives
to the proposed facility construction; the relationship between short-term uses and enhancement of long-term productivity; and irreversible
commitments of resources. The NRC will consider environmental impacts in its licensing decision making process. The NRC will need to
make an environmental related finding of no significant impact (FONSI) prior to issuance of a license for the fuel facility.

Our regulatory licensing strategy is to design nuclear fuel cycle processing facilities
using proven technology, processes and safety systems and engage the NRC early in the license application development process. Our intent
is to produce a high-quality application that can be reviewed and approved by the NRC in the minimum amount of time.

On
the fuel transportation side, we are evaluating the availability and use of comprehensive nuclear material packaging. The use of NRC
certified transportation packages under applicable federal rules and meeting the appropriate Department of Transportation regulatory
requirements for radioactive materials are necessary for nuclear fuel shipments within the United States. Additionally, international
shipping requirements which follow IAEA regulations (and those of the recipient country), are needed for any international transport
of nuclear fuel.

Nuclear Safety Regulatory
Approval in the United States. In order for a nuclear fuel cycle facility to be constructed and operated, a license application (under
10 CFR Part 70) and supporting documentation needs to be prepared and submitted for review and approval by NRC. The safety basis for
the facility is documented in an integrated safety analysis (ISA). An ISA is a systematic examination of the facility’s processes,
equipment, structures, and personnel activities to ensure that all relevant hazards that could result in unacceptable consequences have
been adequately evaluated and appropriate protective measures have been identified. NRC fuel cycle facilities are similar to chemical
processing plants and ISA techniques that have been applied in the chemical industry are generally applicable to a nuclear fuel facility.
A document that contains a summary of the ISA will be submitted to the NRC with the license application.

The
license application submitted to the NRC will also include (a) an overview of the site and processes; (b) the licensees organization,
(c) the ISA methodology to be used, (d) a radiation protection program, (e) a nuclear criticality safety program; (f) a chemical process
safety program; (g) a fire safety program; (h) an emergency management plan; (i) an environmental protection description; (j) a decommissioning
plan; (k) a management measures program; (l) a fundamental nuclear material control and accounting plan; and (m) a physical protection
plan.

An environmental report detailing the
potential impacts of the facility (and alternatives) will also be prepared and submitted to the NRC for review. We expect that the NRC
will complete its review of our license application and environmental report within 12 to 18 months. We believe that the NRC review time
can be minimized by submitting a high-quality application for a facility using proven technology and following guidance documents prepared
by the NRC. Communication with the NRC both during the pre-application period and during the review will help facilitate a successful
licensing review.

After obtaining a license from the NRC,
we will construct the facilities in an expeditious manner. After construction is completed, it is expected that the NRC will perform an
operational readiness review of the facilities and grant NANO an authorization to operate.

To
transport the fuel within the United States, NRC certified transportation packages will be used. If necessary, the package certificate
of compliance will be amended by the package certificate holder in order to add our fabricated fuel as an authorized content for the
transportation package. The certificate of compliance amendment request, if needed, will follow the appropriate regulatory requirements
in the United States that are contained in 10 CFR Part 71.

Nuclear
Safety Regulatory Approval Internationally. Since the fuel facility is being licensed to produce our fuel in the United States by
the NRC, no international regulatory approvals will be needed.

Shipping of the fuel will occur in the
United State using NRC certified transportation packages and following the appropriate regulatory requirements that are necessary for
fuel shipments. For international shipments, additional shipping approvals will be needed depending on the country that the fuel will
be shipped to. International shipping requirements will be addressed by following DOT and IAEA transportation requirements for transport
of nuclear fuel and the recipient’s country’s requirements.

Other Regulation. In addition
to nuclear safety regulations, our fuel processing and transportation businesses are subject to other nuclear regulatory controls such
as special nuclear material safeguards, security and non-proliferation restrictions. Other U.S. federal and state permits such as air
quality, liquid effluent controls, and building permits will be required depending on the fuel facility design (types and quantity of
waste materials produced) and the state in which the facility will be located which has not yet been determined.

Export controls. Exports related
to our fuel processing facilities and products are controlled by the NRC under applicable federal regulations. Nuclear fuel processing
plant equipment and components are under NRC’s export licensing authority as per Appendix O to 10 CFR Part 110. This includes items
that are considered especially designed for the fabrication of nuclear fuel including equipment that: (a) directly processes or controls
the production flow of nuclear material; (b) seal the nuclear material with cladding; (c) check the integrity of cladding; (d) check the
finished treatment of the sealed fuel; or (e) is used for assembling reactor fuel elements. This section of the regulations also includes
equipment or systems of equipment specifically designed or prepared for use in a fuel processing plant. Additionally, 10 CFR 110.9a states
that the export control of special nuclear material is also controlled by the NRC.

Many
types of controls are required to ensure compliance with NRC export control regulations. For example, 10 CFR 110.28 lists embargoed destinations
for exporting nuclear materials and technology. An application to the NRC for a specific license to export special nuclear material will
be required. The specific license is issued on a case-by-case basis to a single specified person or entity which submits and is legally
responsible for the proposed export transactions as described on NRC Form 7 application submitted to the NRC.

Human
Capital Resources

As of December 16, 2025, we had 36 full
time employees and 26 independent contractors with an aggregate of 100 advanced degrees, including 32 master’s degrees in engineering,
science, business, taxation and philosophy, 11 PhDs and three JDs (Juris Doctors - Doctor of Law). We have employment agreements with
two of our executive officers, including Mr. Jay Jiang Yu, our founder, President, Secretary and Treasurer, and Chairman of the Board,
and Dr. Florent Heidet, our Chief Technology Officer and Head of Reactor Development. We also have utilized independent contractor relationships
with two of our senior executive officers, including Mr. Jaisun Garcha, our Chief Financial Officer, and Mr. James Walker, our Chief Executive
Officer. We intend to enter into formal employment agreements with our other senior executive officers in the future. See “ITEM
1. Business - Arrangements with Our Executive Officers.”

The following table provides a breakdown
of our staff by function as of December 16, 2025.

(1) There was an increase of headcounts
for a total of five staff, or approximately 31% of the total research and development personnel in the research and development department
in 2025 compared to the same period in 2024. The above-mentioned increases were due to the recruitment of new staff for our research and
development.

(2) There was an increase of
headcounts for a total of ten staff, or approximately 48% of the business operation personnel in the business operation department
in 2025 compared to the same period in 2024. The above-mentioned increases were due to the recruitment of new staff for our business
operations.

Our
workforce operates under a hybrid model that integrates both in-office and remote work arrangements. Our management team places significant
focus and attention on matters concerning our human capital assets, particularly on the specific industry and technical knowledge that
are required to implement our nuclear energy-focused business plan. Accordingly, we regularly review staff development and succession
plans for each of our functions to identify and develop our pipeline of talent.

We
believe we offer our staff competitive compensation packages and an environment that encourages self-development and, as a result, have
generally been able to attract and retain qualified personnel and maintain a stable core management team. Our staff are not represented
by a labor organization or covered by a collective bargaining agreement. We believe that we maintain a good working relationship with
our staff and to date, we have not experienced any labor disputes.

Description
of Properties

Our
corporate headquarters is located at 10 Times Square, 30th Floor, New York, New York 10018, covering approximately 7,800 square feet.
We lease this space for $33,605 per month whereby the monthly lease rent will increase by 2.5% on an annual basis. The lease is effective
on April 1, 2024 and has a term ending on July 31, 2031.

In August 2024, we purchased a 1.64-acre
land package in the historic Heritage Center Industrial Park in Oak Ridge, Tennessee for $1.7 million. The purchase includes a 14,000
sq. ft., 2-story building to house our Nuclear Technology Branch. Situated in a world-class location for innovative nuclear technology
research and development, this facility will serve as the central hub for our advanced nuclear technology design and engineering capabilities.
The Nuclear Technology Branch is near the Oak Ridge National Laboratory, the Spallation Neutron Source, the National Transportation
Research Center, and The University of Tennessee’s Center of Excellence in Engineering.

In January 2025, we entered into a lease
for a facility of approximately 6,800 sq. ft. in Westchester County, New York, where we have established a purpose-built facility to assemble
and demonstrate the operation and viability of several non-nuclear parts and components of our nuclear microreactors in development. We
lease this space for $17,000 per month whereby the monthly lease rent will increase by 2.5% on an annual basis. The lease is effective
on January 1, 2025 and has a term ending on December 30, 2030.

In July 2025, we purchased a 2.75-acre
land package in Oak Brook, Illinois for $3.5 million. The purchase included a 23,537 sq. ft. building to serve as a regional demonstration
and office facility to support the development of our KRONOS MMR™ Microreactor Energy System.

We
believe the above-mentioned facilities and offices are adequate and suitable for our current needs and that, should it be needed, suitable
additional or alternative space will be available to accommodate any such expansion of our operations.

Corporate
History and Corporate Structure

We
were incorporated under the laws of the State of Nevada on February 8, 2022. We are primarily engaged in the design and development of
mobile, easily deployable microreactors, the development of a commercial CAT II facility for fuel processing, and the creation of a commercial
transportation technology and business, with the capacity to move fuel enriched up to 19.75% U235 across North America.

HALEU
Energy Fuel Inc. (which we refer to herein as HALEU Energy), incorporated on August 30, 2022 under the laws of Nevada, is our wholly-owned
subsidiary. Through HALEU Energy, we are seeking to develop a domestic HALEU fuel processing facility to supply the next generation of
advanced nuclear reactors.

American
Uranium Inc. (which we refer to herein as American Uranium), incorporated on February 9, 2022 under the laws of Nevada, is our wholly-owned
subsidiary. Through American Uranium, we are engaged in the acquisition, exploration and development of uranium mineral resource properties
in the U.S. and internationally. American Uranium has not commenced operation as of the date of this Report.

Advanced
Fuel Transportation Inc. (which we refer to herein as Advanced Fuel Transportation), incorporated on June 21, 2023 under the laws of
Nevada, is our wholly owned subsidiary. Through Advanced Fuel Transportation, we plan to manufacture a licensed high-capacity HALEU transportation
system and produce a governmentally licensed and permitted high-capacity HALEU transportation system, capable of moving commercial quantities
of HALEU fuel around North America. Advanced Fuel Transportation has not commenced operation as of the date of this Report.

Nano Nuclear Space Inc. (which we refer to herein as Nano Nuclear Space), incorporated
on July 24, 2024 under the laws of Nevada, is our wholly-owned subsidiary. Through Nano Nuclear Space, we are seeking to explore the potential
commercial applications of our developing micronuclear reactor technology in space, including the ALIP technology.

Kronos
MMR Inc. (which we refer to herein as Kronos MMR), incorporated on December 20, 2024 under the laws of Nevada, is our wholly-owned subsidiary.
Through Kronos MMR, we are seeking to operate the newly acquired MMR Business for the MMR® Energy System to complement our own ZEUS™
and ODIN™ microreactors in development.

Loki MMR Inc. (which we refer to
herein as Loki MMR), incorporated on December 31, 2024 under the laws of Nevada, is our wholly-owned subsidiary. Through Loki MMR,
we are seeking to operate our newly acquired Pylon Business related to the Pylon reactor development.

Global First Power Ltd. is a Canadian
corporation which we acquired from the USNC bankruptcy estate in October 2025 as described elsewhere in this Report. Subsequently, we
renamed this entity True North Nuclear Ltd. as part of the rebranding of our Canadian KRONOS business.

Available
Information

Our website is www.nanonuclearenergy.com.
Access to copies of our SEC filings, corporate governance information, and other items that may be material or of interest to our investors
is available via our website under “Financial Information”. The contents of our website are not incorporated by reference
into this Report or in any other report or document we file with the SEC, and any references to our website are intended to be inactive
textual references only. All information that we have filed with the SEC can also be accessed through the SEC’s website at www.sec.gov.