Mr. Jason Dussault reports

INTELLISTAKE'S ACQUISITION TARGET NANOAI COMMENCES STANDOFF TESTING FOR TARGETED EXPLOSIVE THREAT DETECTION

Intellistake Technologies Corp.'s acquisition target, NanoAi Technologies, has commenced laboratory testing of its standoff detection platform against Targeted Explosive Threat 001 at its Dallas-Richardson op centre. NanoAi is a nanotechnology and artificial intelligence company that has developed a proprietary standoff detection platform for defence, with further applications in law enforcement, border security and critical infrastructure.

Highlights:

• Targeted Explosive Threat 001 detection testing commences at NanoAi's Dallas-Richardson op centre;
• NanoAi has previously demonstrated standoff detection in bench-level testing; Targeted Explosive Threat 001 testing extends that capability to the first targeted explosive;
• Platform architecture designed for standoff detection of explosives, ammunition and narcotics for defence, law enforcement and border security;
• Designed for wearable, drone, robotic, vehicle and fixed deployments, with every sensor geolocated and readings triangulated in real time;
• Op centre established in the Dallas-Richardson technology and defence corridor to house testing and scale engineering, quality and operations;
• Leadership team spanning special operations, global-scale engineering, science and defence logistics in place at the op centre;
• 12-year U.S. Navy SEAL veteran Craig Micklich, NanoAi's founder and chief executive officer, who would join the Intellistake board upon closing;
• $17-million proposed acquisition of NanoAi, developer of standoff threat detection technology designed to identify threats at a distance without physical contact, in Intellistake shares subject to performance-based vesting milestones.

Since the acquisition was announced on Aug. 4, 2026, NanoAi has established a dedicated operations centre in the Dallas-Richardson area of Texas and assembled the leadership team behind its platform, as announced on Oct. 6, 2026. NanoAi has previously demonstrated standoff detection in bench-level testing. Testing at that facility now extends that capability to the first targeted explosive, Targeted Explosive Threat 001, as explosives are the threat category NanoAi is addressing first.

A successful result would demonstrate that NanoAi's platform can identify an explosive at standoff and is expected to support NanoAi's engagement with prospective defence customers. Further details will be provided as testing progresses.

Mr. Micklich, founder, chairman and chief executive officer of NanoAi Technologies, commented: "I served 12 years as a U.S. Navy SEAL. In many situations, the only way to confirm a threat was to approach it. NanoAi is being built to remove that requirement. The platform has proven itself in bench-level testing. Now we take it to the first targeted explosive to validate the accuracy of our hardware and software."

NanoAi's standoff detection platform for defence

Widely used field screening methods, including swab-based screening and ion mobility spectrometry, require physical contact or close proximity to the object being tested. NanoAi's platform is designed to perform standoff detection, removing the requirement for an operator to approach a suspected threat.

NanoAi has developed a proprietary sensor designed to identify specific threat signatures in the air without physical contact with the source. The sensor is designed for wearable, drone, robotic, vehicle and fixed deployments. The platform is also designed to address multiple threat types. In future development, each sensor is road mapped to include geolocation, with readings triangulated across a network and results delivered in real time to operators in the field and to the task force.

Defence is NanoAi's primary vertical. The platform is designed for battlefield protection, with sensors that can be embedded in operator gear or attached to quick-deployment drones, and for border and installation security.

Gentex Corp. Ops-Core Railink development licence

NanoAi holds a licence agreement with Gentex as a development partner for the Ops-Core Railink head-borne platform, announced by Gentex in June, 2025.

Gentex, headquartered in Carbondale, Penn., describes itself as a global leader in personal protection and situational awareness solutions for defence forces, emergency responders and industrial personnel. Its Ops-Core helmet systems are in service with United States and allied forces, and Gentex has supplied U.S. Special Operations Command since that command's activation in 1987.

Railink is Gentex's powered rail system for the Ops-Core helmet platform, designed to allow sensors, displays, augmented reality capability and wireless devices to draw power and share data directly from the helmet. NanoAi was named as one of 10 development partners granted licences to build accessories on that platform, providing a defined integration path for NanoAi's sensing technology. However, no device has been commercialized at this time.

Dallas-Richardson op centre

NanoAi has signed a lease for a dedicated operations center in the Dallas-Richardson area of Texas, as announced on Aug. 19, 2026. The facility is located in an established technology and defence corridor and houses the laboratory testing now under way, while supporting the scaling of NanoAi's engineering, quality and operations teams.

How Intellistake intends to extend the platform

NanoAi provides the detection hardware. Intellistake intends to provide the software to deploy and manage it at scale.

Intellistake's AI and data infrastructure is intended to receive, process and route detection data from NanoAi's sensors to operators and the task force in real time, across a full defence deployment, from individual operators to drones, vehicles and fixed installations.

Jason Dussault, chief executive officer of Intellistake, commented: "Defence is where standoff detection matters most, and it is where NanoAi's platform is being targeted first. NanoAi has developed a wearable sensor designed to detect threats at standoff. Intellistake is acquiring that platform and intends to build the software to deploy it at scale. With the team and the facility in place, we will provide updates as testing progresses and on each subsequent milestone as it is reached."

Market context

Third party market estimates:

• AI and analytics in defence: $13.95-billion (U.S.) in 2026, projected to reach $23.5-billion (U.S.) by 2030;
• Explosive trace detection: $1.85-billion (U.S.) in 2026, projected to reach $2.72-billion (U.S.) by 2031.

These figures are provided as industry context and do not represent a forecast of NanoAi revenue.

Transaction status

The proposed acquisition of NanoAi was announced on Aug. 4, 2026. Upon completion, NanoAi will become a wholly owned subsidiary of Intellistake. Completion remains subject to customary conditions, including completion of satisfactory due diligence (including verifying title to the intellectual property of NanoAi), completion of the audit of financial statements of NanoAi, the company maintaining a minimum cash balance of $2-million and no objection from the Canadian Securities Exchange. Closing is subject to satisfaction of the closing conditions therein. There can be no assurance that the transaction will be completed on the terms currently contemplated, or at all.

The company also announces that it has entered into an agreement with Think Ink Marketing Data & Email Services LLC to provide public relations services in an effort to increase public awareness of the company and its services and securities. Certain services to be provided by Think Ink are anticipated to include investor relations activities under the policies of the CSE and applicable securities laws.

The agreement is for a 12-month term commencing Oct. 7, 2026, with either party having the right to terminate upon 30 days of written notice. The company has budgeted up to $400,000 (U.S.) for the marketing services of Think Ink, which include facilitating the creation and distribution of marketing materials, on-line banner and native/display advertising on platforms such as Google and Taboola, video content distribution on platforms such as YouTube, social media coverage on platforms such as X, TikTok and Meta, and e-mail distribution to subscribers of various newsletters.

Think Ink is a California-based marketing firm established in 1991 that provides its customers with a complete range of marketing services that includes data appending, e-mail marketing and pay-per-click on-line banner/native ads. Think Ink helps its clients to reach a large network of potential investors. No stock options are being granted to Think Ink under the terms of its engagement.

The contact information for Think Ink is Think Ink Marketing Data & Email Services LLC, 3308 W Warner Ave., Santa Ana, Calif., 92704 (phone: 310-760-2616; e-mail: claire@thinkinkmarketing.com). Think Ink and its principals are arm's length to the company.

About NanoAi Technologies

NanoAi Technologies is a defence technology company developing a proprietary standoff sensing platform capable of detecting explosives, ammunition and narcotics across wearable, drone, robotic, vehicle and fixed-mount deployments. Combined with artificial intelligence, swarming capabilities and real-time geolocation, each sensor delivers results simultaneously to operators in the field and the task force.

About Intellistake Technologies Corp.

Intellistake Technologies is an AI infrastructure and technology company developing AI agents, enterprise software and data infrastructure designed to turn real-world information into actionable intelligence, including its Austen AI platform and production AI agent deployments. The proposed acquisition of NanoAi is intended to expand the company's technology platform into AI-enabled defence, advanced sensing, autonomous systems and connected soldier technology.

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