Mr. Kris Denis reports

KWESST ANNOUNCES DELAY IN FILING YEAR-END REPORTING DOCUMENTS

Kwesst Micro Systems Inc. intends to delay the filing of its annual financial statements in respect of its year ended Sept. 30, 2023, its management discussion and analysis relating to its annual financial statements, its Form 20-F, and the chief executive officer and chief financial officer certifications (collectively, the required documents), beyond the prescribed deadline of Dec. 29, 2023.

The company is experiencing minor delays in completing the year-end audit and required documents. The company's auditor, KPMG LLP, has advised Kwesst that it requires additional time to complete its remaining audit and quality procedures, and file documentation. The company's management, together with its audit committee, has been co-operating and will continue to co-operate with its auditors to provide all necessary information and complete the required documents as soon as possible. The company expects that the required documents will be filed the week of Jan. 8, 2024, which is well before the deadline of Jan. 31, 2024, with the Securities and Exchange Commission for filing its Form 20-F.

In the interim, the company has applied to the applicable Canadian securities regulatory authorities for a management cease trade order (MCTO), which provides a mechanism restricting the executive chairman, CEO and CFO from trading in the company securities while allowing the stock to continue trading on the TSX Venture Exchange and the Nasdaq exchange.

There is no certainty that the MCTO will be granted. Until the required documents are filed, the company intends to satisfy the provisions of the alternative information guidelines in accordance with National Policy 12-203 -- Management Cease Trade Orders by issuing biweekly status reports in the form of news releases until the situation is satisfactorily rectified.

The applicable Canadian securities regulatory authorities may issue a general cease trade order against the company for failure to file the required documents within the prescribed time period or if the company fails to file its default status reports during the prescribed time limits.

About Kwesst Micro Systems Inc.

Kwesst develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational 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 stand-alone or integrate seamlessly with original equipment manufacturer products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded Para Ops with application across all segments of the non-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada, with representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

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