Mr. Sean Homuth reports

KWESST MICRO SYSTEMS INC. ANNOUNCES PRICING OF UNITED STATES PUBLIC OFFERING

Kwesst Micro Systems Inc. has priced its underwritten public offering of 1,538,500 common shares (or prefinanced warrants in lieu thereof) at a public offering price of 65 cents per share, for gross proceeds of approximately $1-million, before deducting underwriting discounts, commissions and offering expenses. All of the common shares and prefinanced warrants are being offered by the company. The offering is expected to close on or about April 9, 2024, subject to satisfaction of customary closing conditions.

ThinkEquity is acting as sole book-running manager for the offering.

The company intends to use the net proceeds from the offering primarily for working capital requirements, general corporate purposes and the advancement of its business objectives.

The securities will be offered and sold pursuant to a prospectus supplement to the company's shelf registration statement on Form F-3 (file No. 333-277196), including a base prospectus, filed with the U.S. Securities and Exchange Commission on Feb. 20, 2024, and declared effective on March 4, 2024. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its EDGAR website. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State St., 41st floor, New York, N.Y., 10004.

The offering remains subject to the final approval of the TSX Venture Exchange.

About Kwesst Micro Systems Inc.

Kwesst (Nasdaq: KWE) and (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 operations in Guelph, Ont., Canada, and Youngsville, N.C., United States, as well as representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

We seek Safe Harbor.