Mr. Jason Dussault reports

INTELLISTAKE'S ACQUISITION TARGET NANOAI PROVES EXPLOSIVE THREAT DETECTION IN UNDER ONE SECOND AT A 10FT STANDOFF DISTANCE

Intellistake Technologies Corp.'s acquisition target, NanoAi Technologies, has detected Targeted Explosive Threat 001 at standoff and without physical contact in laboratory testing at its Dallas-Richardson Op Center.

Highlights:

• Detected at standoff, without contact: Targeted Explosive Threat 001 registered at standoff, with no physical contact, in laboratory testing at NanoAi's Dallas-Richardson op centre.
• 0.80 second, on camera: Following a 30-second clean-air baseline, the sensor registered the threat 0.80 second after it was placed at standoff; the test was recorded on video.
• From bench to target: NanoAi had previously demonstrated standoff detection in bench-level testing; Targeted Explosive Threat 001 is the first targeted explosive against which the platform has been tested, and explosives are the threat category NanoAi is addressing first.
• Detecting what no human sense can perceive: NanoAi's proprietary sensing technology is designed to detect explosives, ammunition and narcotics at standoff distances, in real time and without physical contact, across wearable, helmet-mounted, drone, robotic, vehicle and fixed platforms, for defence, law enforcement and border security.
• Gentex Railink integration work under way: As announced on Oct. 13, 2026, NanoAi has taken physical possession of Gentex Corp.'s full Ops-Core Railink Power and Data Arc rail system and has commenced hands-on development work, with the intention of integrating its sensing technology into the Railink platform over the coming months.
• Transaction: $17-million proposed acquisition of NanoAi in Intellistake shares, subject to performance-based vesting milestones; 12-year U.S. Navy SEAL veteran Craig Micklich, NanoAi founder, chairman and chief executive officer, would join the Intellistake board upon closing.

The sensor registered the threat in 0.80 second. The test was recorded on video. 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.

The test: 30 seconds of clean air, then 0.80 second to detection

In the test, the sensor read the surrounding air for 30 seconds to establish a clean-air baseline. Targeted Explosive Threat 001 was then placed at a 10-foot standoff distance from the sensor. The sensor registered the threat 0.80 second later. No person or equipment touched the target during the test.

Mr. Micklich, founder, chairman and chief executive officer of NanoAi Technologies, commented: "When testing began, I said we were taking the platform to the first targeted explosive to validate the accuracy of our hardware and software. This test shows the sensor reading the air, registering the threat and alerting the operator in under a second, at standoff. We recorded it so people can see it for themselves."

The result was obtained in a controlled laboratory setting against a single targeted explosive, the objective the company set when testing began. Explosives are the threat category NanoAi is addressing first. NanoAi had previously demonstrated standoff detection in bench-level testing; Targeted Explosive Threat 001 is the first targeted explosive the platform has been tested against, and this is the first result reported from the testing program.

Since the acquisition was announced on Aug. 4, 2026, NanoAi has established a dedicated operations centre in the Dallas-Richardson area of Texas, assembled the leadership team behind its platform, commenced laboratory testing against Targeted Explosive Threat 001 and taken physical possession of Gentex's Ops-Core Railink system for hands-on development work.

Detecting what no human sense can perceive: NanoAi's standoff detection platform

In many field settings, the only way to confirm a threat has been to approach it. 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. Today's result demonstrates that capability against the first targeted explosive.

NanoAi has developed a proprietary sensor designed to identify specific threat signatures in the air without physical contact with the source. NanoAi describes this as olfaction at nanoscale: identifying threats that cannot be seen, in real time, without physical contact. The sensor is designed for wearable, helmet-mounted, drone, robotic, vehicle and fixed deployments, and the platform is 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.

Defense 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.

Inside the Gentex Ops-Core Railink ecosystem

NanoAi holds a licence agreement with Gentex as a licensed development collaborator for the Ops-Core Railink head-borne platform, announced by Gentex in June, 2025. NanoAi was named as one of 10 development collaborators granted licences to build accessories on that platform, providing a defined integration path for NanoAi's sensing technology. Gentex's 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.

NanoAi has taken physical possession of Gentex's full Railink Power and Data ARC rail system and has commenced hands-on development work. Over the coming months, NanoAi intends to work directly alongside Gentex's engineering team to integrate its sensing technology into the Railink platform, advancing toward a connected, threat-detection-enabled head-borne system. NanoAi's technology is in active development and has not yet been commercially deployed.

Jason Dussault, chief executive officer of Intellistake, commented: "When testing began, we said we would provide updates as it progressed and on each milestone as it is reached. This is the first: Targeted Explosive Threat 001 detected at standoff in under a second, with no physical contact, on camera. In defence, the requirement to approach a suspected threat is the problem NanoAi was built to remove, and today the platform did that in the laboratory with an explosive threat."

Next in the testing program

The next test in the program is intended to extend detection to additional targeted threats. NanoAi also intends to continue testing in the wearable, helmet-mounted, drone, robotic, vehicle and fixed deployments for which the sensor is designed. Results will be reported as each milestone is reached.

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.

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.

We seek Safe Harbor.