Mr. Sean Homuth reports

DEFSEC TECHNOLOGIES INC. ANNOUNCES CLOSING OF CDN$5.54 MILLION PRIVATE PLACEMENT

Defsec Technologies Inc. has closed its previously announced private placement for the issuance and sale of 1,951,219 common shares in the capital of the company, no par value per share (or prefinanced warrants) in lieu thereof), at a purchase price of $2.84 ($2.05 (U.S.)) per common share (or prefinanced warrant in lieu thereof) and common share purchase warrants to purchase up to an aggregate of 1,951,219 common shares. Each common warrant is immediately exercisable to acquire one common share at an exercise price of $3.30 per common share for a period of 60 months following the closing of the offering. Each prefinanced warrant is immediately exercisable to acquire one common share at a nominal exercise price of 0.1 cent per common share.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The aggregate gross proceeds from the offering were approximately $5.54-million (approximately $4.0-million (U.S.)), before deducting placement agent fees and other offering expenses. Defsec intends to use the aggregate net proceeds of the offering for business and market development, intellectual property protection and registrations, and general working capital purposes.

As compensation for services rendered, the company: (i) paid to H.C. Wainwright & Co., at the closing of the offering, a cash fee equal to 7.5 per cent of the aggregate gross proceeds of the offering; and (ii) issued to H.C. Wainwright & Co., or its designees, such number of common share purchase warrants to purchase a number of common shares equal to 7.5 per cent of the sum of common shares and prefinanced warrants sold in the offering. Each placement agent warrant will be immediately exercisable to acquire one common share at an exercise price of $3.55 per common share for a period of 60 months following the closing of the offering.

About Defsec Technologies Inc.

Defsec 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 Defsec 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 less lethal product line branded Para Shot with application across all segments of the less lethal market, including law enforcement. The company is headquartered in Ottawa, Canada.

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