Mr. Randy Koroll reports

STAR NAVIGATION SYSTEMS GROUP LTD. ANNOUNCES STRATEGIC REGIONAL PARTNERSHIP IN SAUDI ARABIA

Star Navigation Systems Group Ltd. has formed a strategic regional partnership agreement with Faraz Ali Khan and Syed Majid Uddin, acting on behalf of a special-purpose company to be incorporated in Saudi Arabia. The agreement, effective March 7, 2026, establishes a framework for the local commercialization, manufacturing, assembly, integration and support of Star's aviation technologies in Saudi Arabia.

The partnership represents a further step in Star's strategy of working with partners that contribute local market access, funding and operating capabilities, while Star contributes its technology and technical expertise and retains ownership participation in the resulting business.

Saudi operations and commercial framework

The agreement provides for exclusive rights within Saudi Arabia, subject to its terms and existing binding obligations, and contemplates a manufacturing, assembly, engineering and support facility in Riyadh. Star retains ownership of its pre-existing intellectual property. Approved future technology developments under the agreement will be jointly owned by Star and the Saudi company in equal shares.

Under the agreement, Star-A.D.S./Star-ISMS and related technologies will be marketed and branded to reflect Saudi localization and Star's underlying technology contribution, using the designation: "Made in Saudi Arabia. Powered by Star."

This branding will apply as appropriate and legally permissible, unless the parties agree otherwise in writing, supporting Saudi industrial localization while maintaining recognition of Star's technology.

Star will earn 50 per cent of the net profit from the covered Saudi activities, calculated after allowable costs for relevant business expenses. Capitalized set-up costs are deductible through depreciation or amortization under applicable Saudi accounting standards, rather than full upfront recovery. Purchase costs for land and buildings are excluded from the plant set-up capital expenses covered by this mechanism. The agreement has an initial five-year term, with renewal provisions.

The Saudi company will lead financing and local implementation. Star will provide agreed technical, training and operational support, with specified payroll and relocation costs borne by the Saudi company after the initial support period and a designated employee's relocation. Implementation remains dependent on incorporation, secured financing and required approvals by the Saudi company.

Financing aligned with Saudi Vision 2030

The Saudi company intends to seek government grants and industrial incentives for which the project qualifies, together with appropriate financing, in support of Saudi Vision 2030's industrial development and localization objectives. The relevant policy framework includes the National Industrial Development and Logistics Program (NIDLP). Potential support routes to be evaluated include the Standard Incentives Program for the Industrial Sector and project financing from the Saudi Industrial Development Fund (SIDF). SIDF financing is distinct from grant funding. Eligibility, application requirements and availability will need to be established; no government funding approval or award is being announced at this time.

Star's strategy: a disciplined approach to growth

Over the past 2.5 years, management and the company's consultants have worked consistently to identify, develop and negotiate strategic opportunities while operating with very limited financial resources. This work has focused on building relationships that combine Star's technology and expertise with partners' financing, operating capabilities and market access. Star has pursued arrangements that reduce operating expenses borne by the company or that provide reimbursement of agreed expenses by strategic partners, while preserving rights to a portion of net profits or royalties, as applicable under each agreement.

Management's approach has been to use the company's available resources carefully, protect its technology interests and establish a foundation for long-term growth. The focus is on opportunities with defined responsibilities, manageable financing requirements and a clear basis for commercial returns. The Saudi partnership reflects this sustained strategic work and provides a framework for extending Star's technology into a new market while retaining participation in future profits.

Randy Koroll, chief executive officer of Star, says that years of hard and continuous work by the company and its consulting group have resulted in the signing of this opportunity. Star is also engaged in continuing discussions with other companies and groups regarding additional strategic business opportunities, potential strategic investments and entry into new business verticals.

The company continues to develop these relationships and evaluate opportunities for strategic fit, financing requirements, execution risk and potential contribution to long-term company value. Star will announce any material contracts or other material developments arising from these discussions and opportunities as they occur, in accordance with its disclosure obligations.

About Star Navigation Systems Group Ltd.

Star Navigation Systems Group develops and manufactures the Star-ISMS (in-light safety monitoring system), the core component of the company's Star-A.D.S. (aircraft data system) platform. The Star-A.D.S. system provides real-time tracking, performance monitoring, trend analysis and predictive capabilities designed to enhance aviation safety, improve fleet management and reduce operating costs.

Through its MMI division (military and defence), Star also designs and manufactures high-performance, mission-critical flight-deck flat-panel displays for defence and commercial aviation markets around the world.

We seek Safe Harbor.