Mr. David Luxton reports

KWESST PROVIDES UPDATE ON KEY REVENUE OPPORTUNITIES

Kwesst Micro Systems Inc. today provided an updated view of the status of contracts in progress as well as key opportunities being pursued. The information contained herein is also available in an updated investor presentation, posted under the "investor" tab on the company's website.

Significant progress has been made in the company's effort to ramp up and commercialize the compelling technology and solutions developed since it's founding in 2017 (all figures herein are in Canadian dollars unless otherwise indicated).

• Award of a $136-million five-year contract with joint venture partners Thales Canada and Modis Canada forsoftware systems engineering work for the Canadian Department of National Defence (DND). The contract component for Kwesst is valued at a minimum of $4-million annually over the initial five-year contract followed by five, one-year option years.
• Signing of a teaming agreement with a global prime defense contractor and tender submission for a similar contract with option years for digital command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) for the army of a NATO nation. Outcome expected summer/fall, 2023.
• A pending contract to upgrade digitization of an armored vehicle fleet. A near-term opportunity that includes Kwesst's Battlefield Laser Defense System (BLDS), subject to customer approval.
• Other major opportunities progressing to teaming agreement and contract negotiations with prime defense contractors and/or end-users, including new digital command and control on the move (C2OTM) systems for North America and overseas military customers. Subject to completion of teaming agreement.
• Several additional digitization opportunities with metro police agencies to TAK-enable personnel and equipment for critical incident management. Subject to customer approval.
• Initial sub-$100,000 contract for G7 Capital police force to TAK-enable surveillance equipment (in progress). As press released March 24, 2023. Work in progress.
• Initial $500,000 laser defence contract for overseas Special Forces NATO country (about to ship initial order, received Nov. 2, 2022).
• Next-generation digitization for mounted/dismounted vehicle systems with General Dynamics Mission Systems-Canada (continuing since 2022).
• Initial $500,000 contract for digitization of Ground Search And Rescue (GSAR) for national public safety agency (in progress). As press released July 7, 2022.

Completed to date

• Phantom delivery to General Dynamics Land Systems for protype armored vehicle submission to United States military customer (completed). As press released Nov. 12, 2021.
• A $1-million U.S. Marine Corps contract to demonstrate/evaluate 81 million mortars with digital fire control (successfully completed, 2021/2022). As press released March 16, 2021.

"The company continues to make solid progress towards the commercialization of the compelling technology we have developed to date," said David Luxton, executive chairman "The DSEF contract win has materially changed our opportunity set which I expect will continue to expand. This is strong validation of the market value of what we've developed, and we are firmly on the path towards full commercialization."

About Kwesst Micro Systems Inc.

Kwesst develops and commercializes breakthrough, next-generation tactical systems that meet the requirements of security forces and personal defence for overmatch capability against adversaries. The company's current portfolio of unique proprietary offerings includes its unique non-lethal PARA OPS system, with application across all segments of the non-lethal market, including law enforcement and personal defence. Kwesst is also engaged in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCS (tactical and situational control system) for real-time awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other Kwesst products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate on their own or integrate seamlessly with OEM (original equipment manufacturer) products and battlefield management systems, and all come integrated with ATAK. The company is headquartered in Ottawa, Canada, with operations in Stafford, Va., and representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

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