Mr. Ted Carefoot reports

QSE UPSIZES PRIVATE PLACEMENT FINANCING BY 83% TO $5.5 MILLION

Quantum Secure Encryption Corp. has upsized its previously announced non-brokered private placement financing due to strong investor demand. The financing will now consist of 12,222,222 units at a price of 45 cents per unit being an increase in gross proceeds from $3-million to $5.5-million.

Each unit under the offering will continue to consist of one common share and one-half of one share purchase warrant, with each warrant entitling the holder to purchase one additional share at a price of 65 cents per share for a period of two years from the date of issue.

All securities issued under the offering, including securities issuable on the exercise thereof, are subject to a hold period expiring four months and one day from the date of issuance. The company may pay finders' fees in relation to this the offering.

The company intends to use the net proceeds of the offering to support the continued commercialization and expansion of the QSE platform and for general working capital requirements.

About Quantum Secure Encryption Corp.

Quantum Secure is a Canadian technology company specializing in postquantum data security, encryption and secure data infrastructure. Built around quantum-delivered entropy and zero-knowledge architecture, QSE's solutions help protect sensitive data from current cyber threats and future quantum-enabled attacks. QSE serves organizations across commercial, enterprise and public-sector environments requiring long-term data confidentiality and resilience.

We seek Safe Harbor.