Mr. Ted Carefoot reports

QSE CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT OF $6 MILLION

Quantum Secure Encryption Corp. has closed the second and final tranche of its previously announced non-brokered private placement financing (see news release dated July 10, 2026, July 24, 2026, and July 31, 2026) by issuing 1,499,877 units at a price of 45 cents per unit for total proceeds of $674,944.65. Under the entire offering, the company issued a total of 13,333,333 units at a price of 45 cents per unit for total proceeds of $5,999,999.85.

Each unit consists of one common share and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one additional share at an exercise price of 65 cents for a period of two years from the date of issue.

All securities issued will be subject to a statutory hold period of four months plus one day from closing and the hold period contemplated in Canadian Securities Exchange (the CSE) policies.

In connection with the second tranche of the offering, the company paid finders a cash fee totalling $13,800 and issued finders a total of 30,667 warrants. Under the entire offering, the company paid finders a total of $123,560.53 and issued a total of 237,844 finders' warrants. Each finder's warrant entitles the holder to acquire one additional share at an exercise price of 65 cents for a period of two years from the date of issue.

The aggregate net proceeds of the offering will be used for the continued commercialization and expansion of the QSE platform and for general working capital purposes.

About Quantum Secure Encryption Corp.

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

We seek Safe Harbor.