Mr. Jason Dussault reports

INTELLISTAKE CEO ISSUES CORPORATE UPDATE AND LETTER TO SHAREHOLDERS ON PROGRESS TOWARD CLOSING THE NANOAI ACQUISITION

Intellistake Technologies Corp. has provided the following letter to shareholders from chief executive officer Jason Dussault, with an update on the company's proposed acquisition of NanoAi Technologies Inc., as first announced in the company's news release dated Aug. 4, 2026.

Highlights:

• Closing status: Based on progress by Intellistake and NanoAi in satisfying the closing conditions set out in the definitive agreement, it is expected that the transaction will close during November, 2026.
• Standoff detection on camera: NanoAi's sensor registered Targeted Explosive Threat 001 at a 10-foot standoff in 0.80 second, without physical contact, in laboratory testing recorded on video.
• More than 2,000 successful tests: More than 2,000 successful standoff detection tests have been conducted against Threat 001 since testing began on Oct. 8, 2026.
• A second explosive, the same sensor: NanoAi has since detected Targeted Explosive Threat 002, a different explosive, at standoff using the same sensor. Testing of a third explosive is under way.
• Gentex Railink: NanoAi has taken possession of Gentex's full Ops-Core Railink Power and Data Arc rail system and commenced hands-on development work.
• Board: On closing, NanoAi founder Craig Micklich, a 12-year U.S. Navy Seal veteran, and a second NanoAi nominee will join the Intellistake board.

Letter to shareholders

Dear shareholders,

Every operator who has walked toward a suspected device has wanted the same thing: to know before contact. Since we announced our agreement to acquire NanoAi 12 weeks ago, that has moved from ambition to on-camera results, with two different explosives detected at standoff by the same sensor. This letter sets out exactly where closing stands.

Where closing stands

Closing depends on the satisfaction of waiver of closing conditions set out in the definitive agreement for the transaction. Intellistake and NanoAi have been diligently working toward the satisfaction of these conditions. Based on progress, the plan is to close the transaction during this month.

What has been built while closing work continues

We have not waited for closing to start building. Since August, NanoAi, with Intellistake's support, has delivered the following, each reported in a news release at the time:

• Aug. 11: We published an overview of the peer-reviewed science behind NanoAi's detection process, published in Scientific Reports, part of the Nature Portfolio.
• Aug. 19: NanoAi signed a lease for its dedicated op centre in the Dallas-Richardson technology and defence corridor.
• Oct. 6: NanoAi's Navy Seal-led leadership team was put in place at the op centre, and we released the NanoAi founder video.
• Oct. 8: Laboratory testing began against Targeted Explosive Threat 001.
• Oct. 12 to 14: Craig and I met prospective defence customers at AUSA 2026 in Washington, D.C.
• Oct. 13: NanoAi took possession of Gentex's full Ops-Core Railink Power and Data Arc rail system and began hands-on development work toward integration.
• Oct. 15: NanoAi's sensor registered Threat 001 at a 10-foot standoff in 0.80 second, without physical contact. The test was recorded on camera and can be viewed on-line.
• Oct. 22: After more than 2,000 successful standoff tests against Threat 001, NanoAi moved to a second explosive, Threat 002, ahead of its own testing road map.
• Oct. 27: We relaunched the Intellistake website and expanded our brand around standoff threat detection.
• Oct. 29: The same sensor detected Threat 002 at standoff, with no change to the hardware. Threats 001 and 002 are the first two entries in NanoAi's developing threat library, and testing of a third explosive is under way.

That is 12 weeks of work, carried out in parallel with the closing process.

The lab is where defence technology earns its credibility, and these are the results NanoAi set out to prove first. The next step is carrying them forward: integration work on the Gentex Railink platform, further threats added to the library and continued conversations with the prospective defence customers we met at AUSA. We will report each milestone as it is reached.

Our corporate evolution

Intellistake began as an AI (artificial intelligence) software development company. NanoAi is a natural business line addition as we expand into defence software and hardware. NanoAi brings standoff detection of explosives, ammunition and narcotics, without physical contact. Intellistake brings the software and data layer that turn sensor readings into decisions. Together, the aim is one platform that can be mounted wherever the threat moves: on operators, on vehicles, at fixed sites and on unmanned systems.

When the transaction closes, Mr. Micklich will join our board. Mr. Micklich spent 12 years as a U.S. Navy Seal before building NanoAi, and he knows the operator problem first-hand.

I know many of you have been waiting to see this one cross the line, and I want you to know that patience has not been wasted. What arrives at closing is not the company we announced in August. It is further along, better proven and better positioned than it was on the day we signed.

We are close. When we get there, Intellistake will bring together a sensor that detects what no human sense can perceive and the intelligence layer that turns that detection into a decision, before anyone is in harm's way. I have never been more confident in where this company is going, and I look forward to sharing the next chapter with you.

Thank you for believing in what we are building.

Jason Dussault

Chief executive officer

Intellistake Technologies Corp.

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. 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.

The proposed acquisition of NanoAi was announced on Aug. 4, 2026. Upon completion, NanoAi would become a wholly owned subsidiary of Intellistake while continuing to hold its existing licence and development relationship with Gentex. Completion remains subject to the conditions described in the company's Aug. 4, 2026, news release, and there can be no assurance that the transaction will be completed on the terms currently contemplated, or at all.

We seek Safe Harbor.