Dr. Rahul Kushwah reports

QSCREEN AI ANNOUNCES $681,000 DEBT SETTLEMENT WITH DIRECTORS AND OFFICERS

QScreen AI Inc. has agreed to settle an aggregate of $681,000 of indebtedness owing to certain directors and officers of the company through the issuance of approximately 9.73 million common shares of the company at a deemed price of seven cents per common share.

The settlement price represents a premium of approximately 180 per cent to the 2.5 cents closing price of the common shares on the Canadian Securities Exchange on Sept. 18, 2026, and a premium of approximately 40 per cent to the five-cent price per unit under the company's non-brokered private placement that closed on Sept. 9, 2026. By agreeing to settle the indebtedness at a price significantly above both benchmarks, the participating directors and officers have reduced the number of common shares issuable pursuant to the debt settlement, thereby limiting dilution to existing shareholders.

The debt settlement eliminates $681,000 of liabilities from the company's balance sheet without requiring any cash expenditure, allowing the company to preserve its cash resources for continuing operations and commercialization initiatives in the United States, Mexico and the European Union.

As certain directors and officers of the company are participating in the debt settlement, the transaction constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively, on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the debt settlement exceeds 25 per cent of the company's market capitalization.

All securities issued pursuant to the debt settlement will be subject to a statutory hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the Canadian Securities Exchange.

About QScreen AI Inc.

QScreen AI is a health technology company building a proprietary artificial intelligence engine with quantum-inspired computing and advanced physiological sensing to clinical and occupational health assessments across correctional facilities, addiction medicine rehabilitation, and industrial work force screening in multiple jurisdictions.

We seek Safe Harbor.