POET Technologies Inc.

If I may be indulged, I'd like to offer my understanding of the milestones and the delays and timelines discussed in the MD&A. I'll try to keep it concise and easy to follow so stick with me.

The equipment mentioned in the MD&A was not named but it was simply stated that it was installed in late 2014 and it was malfunctioning. From that description I think most have come to the conclusion that this malfunctioning equipment is the "new additional sputter tool" mentioned in the Jan 8, 2015 news release. In that release the sputter tool is said to be "nearing completion of internal qualification".

Here's a link to the Jan 8 news release:

http://www.poet-technologies.com/poet-technologies-announces-operational-financial-position-lab-to-fab-transition-and-milestone-updates/

The CIC presentation was on February 4, 2015, less than a month after this news release. So I completely understand the demeanor and confidence that Peter showed during that presentation. As of January 8, the sputter tool still had not been put into service. So to say he knew about the problem and accusing him of being disingenuous during the CIC event is slanderous.

Another point to take from the Jan 8 nr is that the "Deployment of the new tool will drastically reduce prototype fabrication cycle times...". This is consistent with the MD&A statement regarding the malfunctioning equipment saying, "This delayed the team's progress in the last 3 months." Their progress was not halted because they still had other equipment to work on, as well as the 3rd party fab, but they weren't able to advance at the pace they were expecting.

Now, in referrence to the MD&A language around the delay, let me clarify my view on which quarter is which and when are we expecting milestones. It's actually quite simple.

The key is context. Go look at the first page of the MD&A. Read the first paragraph. You'll come accross the statement, "The effective date of this report is April 7, 2015." The paragraph mentioning the delay that has everyone's panties in a bunch is at the bottom of page 2 under a heading that started on page 1, "Business Overview". Everything in the report and certainly these introductory pages is from the viewpoint of April 7, 2015. When the report is referring to the previous year(2014) or quarters(Q1-Q4), it is clear in denoting that.

So when we read in the MD&A of equipment, an "additional sputter tool"(inferred from Jan 8, 2015 nr) that will "drastically reduce prototype fabrication times" has malfunctioned and "delayed the team's progress over the last 3 months", we shouldn't change our frame of reference between reading that "the issue was resolved in the last week of March 2015" and "The team is confident to complete the three milestones over the course of the next quarter."

Why would we think that we are supposed to transport our consciousness and frame of reference back to the end of Q4 2014?

Clearly then, this delay occurred because of an inappropriate installation by a third party, the degree of which wasn't appreciated until after the London presentation since Peter was still confident that the Q1 deadline was possible. Remember, it was less than a month from the Jan 8 news release until the CIC event on Feb 4. The problem was discovered and fixed by the last week of March 2015. Progress on the milestones was slowed as a result but Taylor and his team are confident they can still complete the three milestones over the course of the next quarter. (Q2 for those that despise ambiguity)

I don't think this background information from the MD&A regarding the delay warrants a sell-off as we have so much good news anticipated to be released soon. I think those that sell will very soon realize it was a mistake.

All in my opinion but seems pretty clear to me.

GLTA

Green