Item 8.01 Other Events.

Quantum Energy, Inc. ("Quantum" or the "Corporation") has entered into a Letter of Intent (the "Acquisition") to acquire the majority of the outstanding shares of common stock of Inductance Energy, Inc. ("Inductance") The Letter of Intent contemplates that, Quantum will purchase the shares over a period of time for a purchase price of $2.10 to $5.50 per share. The price being set upon mutual agreement from time to time. The transaction is expected to close on or before July 12, 2022.

The completion of the Acquisition is subject to a number of conditions precedent, including, but not limited to: (i) the entering into of a definitive agreement by Quantum and Inductance (the "Definitive Agreement"); (ii) completion of satisfactory due diligence by each of Quantum and Inductance; (iii) the approval of the Acquisition by each of Quantum and Inductance's respective board of directors and shareholders, if required; (iv) the absence of any material change or change in a material fact which might reasonably be expected to have a material adverse effect on the financial and operational conditions or the assets of each of the parties to the Definitive Agreement; and (v) certain other conditions typical in a transaction of this nature.

Inductance is a licensee of Magnetic Propulsion technologies and its many applications in industrial, commercial and consumer products.

Quantum Energy, Inc. is focused on the acquisition of Rare Earth Real Estate, and Establishing Urban Mining Sites, (including used magnets, fly ash and fly bottom ash), conventional mining and the refining or processing of those waste streams and Rare Earth Oxides for manufacturing of value-added end-products, which are Magnets & Magnetic Assemblies and Energy Harvesting devices.

The refining of rare earth minerals into usable finished products from rare earth oxides (processed rare earth) is well known and has been successfully demonstrated for many decades. There are several known process paths using magnetic, chemical, and other means to extract the desired rare earth elements from mined hard rock, sedimentary formations, clays, coal and coal waste streams.

Urban mining is a relatively new term that involves the identification, securitization, and reprocessing of known materials that contain rare earth, that can be recycled and reprocessed into value-added products. An Urban mining site can include any source of used magnets, fly ash, fly bottom ash, or mining tailings.

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