Mr. Sean Homuth reports

KWESST PROVIDES BI-WEEKLY MCTO STATUS UPDATE

Kwesst Micro Systems Inc. has provided a biweekly default status update further to a previous press release, concerning the delay of the filing of its annual financial statements in respect of its year ended Sept. 30, 2023, its management's discussion and analysis relating to its annual financial statements, its Form 20-F, and the chief executive officer and chief financial officer certifications, beyond the prescribed deadline of Dec. 29, 2023.

As previously announced, the company applied to the applicable Canadian securities regulatory authorities for a voluntary management cease trade order. On Jan. 2, 2024, the company was granted the MCTO by the Ontario Securities Commission.

The MCTO will stay in effect until the required documents are filed, and 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 default status reports in the form of news releases until the situation is satisfactorily rectified.

The company confirms that since the date of the announcement: (a) other than as described herein, there have been no changes to the information contained in the announcement that would reasonably be expected to be material to shareholders; (b) there have been no failure by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines as set out in NP 12-203; (c) there has not been any other subsequent specified default by the company following the announcement under NP 12-203; and (d) there is no other material information concerning the affairs of the company that has not been generally disclosed.

The company's management, together with its audit committee, has been working diligently with its auditor to provide all necessary information and complete the required documents. The audit is substantially complete, and the company expects that the required documents will be filed on or about Jan. 16, 2024.

About Kwesst Micro Systems Inc.

Kwesst (Nasdaq: KWE) (Nasdaq: KWESW) (TSX Venture Exchange: KWE) (Frankfurt Stock Exchange: 62U) 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.

We seek Safe Harbor.