Mr. Sean Homuth reports

KWESST ANNOUNCES CLARIFICATION OF ITS SHARE CONSOLIDATION AND EFFECTIVENESS

Subject to the final approval of the TSX Venture Exchange, Kwesst Micro Systems Inc. will effect a consolidation of the company's issued and outstanding common shares on the basis of 21 preconsolidation shares for each one postconsolidation share.

The consolidation is effective as at 12:01 a.m. Eastern Daylight Time on April 23, 2025, on the Nasdaq Capital Market, and will be effective at 12:01 a.m. Eastern Daylight Time on April 24, 2025, on the TSX-V. While the shares were expected to begin trading on the Nasdaq on a consolidated basis on or around April 23, 2025, due to the discrepancy in the effective date of the consolidation on both markets, trading in the securities of the company will be halted on April 23, 2025, and will resume trading on a consolidated basis on the Nasdaq and the TSX-V at market open on April 24, 2025. The new Cusip number will be 501506802, and the new ISIN will be CA5015068029 for the postconsolidation shares.

The company wishes to clarify that the consolidation will not have any effect on the number of issued and outstanding share purchase warrants of the company which trade on the TSX-V under the symbol KWE.WT.U or on the Nasdaq under the symbol KWESW. However, as a result of the consolidation, the number of shares issuable upon the exercise of each listed warrant will be reduced and the exercise price increased, the whole in accordance with the terms of the indenture and warrant agent agreement, as applicable, governing the listed warrants. Following the consolidation, the exercise of 210 listed warrants will be required to purchase one postconsolidation share, and the exercise price will be $1,050 (U.S.) per share. No fractional shares will be issued upon exercise of any listed warrants. The listed warrants will continue to trade on the TSX-V and the Nasdaq, as applicable, in each case, under their existing Cusip number.

The company believes that the consolidation is in the best interests of shareholders as it will allow the company to ensure continued compliance with Nasdaq's minimum bid price requirements.

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.

We seek Safe Harbor.