Mr. Randy Koroll reports

STAR NAVIGATION SINS EXCLUSIVE MONITORING AND DATA SERVICES AGREEMENT WITH VALUM ENERGY LTD.

Star Navigation Systems Group Ltd. has signed an agreement with Valum Energy Ltd. to serve as the exclusive provider of monitoring, tracking and related data services for deployments of Valum's Hydrotor generator and technologies covered by the agreement.

Advancing Hydrotor commercialization with Valum Energy

Star's agreement with Valum follows a restructuring of the commercial rights associated with its previously announced agreement with Aquagreen Energy Systems Inc. Those rights were consolidated within a separate licensing entity that granted commercialization rights to Valum. Star will now provide the associated services directly to Valum rather than Aquagreen. The underlying Hydrotor technology remains unchanged.

As Valum prepares to launch its first commercial pilot generator in Canada, Star will provide exclusive monitoring, tracking and data services to support performance evaluation, continuing operations, and the protection of confidential technology information. The agreement advances Star's expansion into the energy infrastructure vertical.

Star's monitoring system to support Canadian commercial pilot program

Star's first monitoring and diagnostics prototype was built and successfully tested in Europe in February, 2026, establishing a technical foundation for integration with the Hydrotor generator and technologies. This milestone supports the next stage of engineering and deployment work for the Canadian commercial pilot program.

Valum is preparing the commercial pilot program for evaluation and validation by telecommunications and data centre companies.

"Over the past two and a half years, Star has been working to restructure its business and put its growth strategy into practice. We are encouraged to see that work taking shape through this new energy infrastructure vertical and our strategic partnerships with Aero Intelligence Corp. and the Saudi group," said Randy Koroll, chief executive officer of Star Navigation Systems Group.

"For the Canadian commercial pilot program, we have progressed from building and testing our monitoring prototype to preparing for deployment. Reliable operating data can support customer adoption, and our exclusive services role creates an opportunity to grow alongside Valum's deployments and develop an ongoing monitoring, tracking, and data services business."

Valum EnergyValum Energy Ltd. is an Ontario company focused on commercializing Hydrotor Technologies, encompassing energy generation and cooling applications. Under its technology licence, Valum holds exclusive commercialization rights in Canada and non-exclusive rights outside Canada for the licensed Hydrotor technologies. Its authorized activities include manufacturing, assembly, installation, operation, energy sales and related services. Valum also holds the exclusive business-development rights in India.

"I am deeply excited to see the technology we developed move toward its first commercial generator launch in Canada," said Madalin Bratu, inventor of Hydrotor Technologies and chief technology officer of Valum Energy. "This commercial pilot program is an opportunity to demonstrate the Hydrotor generator and technologies in a practical setting and build confidence through measured performance. Star's system can help us understand how the generator operates in the field while supporting controlled access to sensitive technical data. That visibility is an important part of protecting the technology as we work toward wider commercialization."

Expanding energy applications and driving growth

Upon validation, the Canadian commercial pilot program is expected to provide a foundation for broader deployment of the Hydrotor generator and technologies across telecommunications, data centres, and industrial facilities, with potential applications in community energy supply. Star's monitoring technology is expected to support performance tracking, maintenance and deployment decisions as installations expand.

"Valum's commercial progress has the potential to create value for both companies," said Gugni Gill Panaich, chair of Valum Energy, which also serves as a director of Star Navigation Systems Group. "Each additional deployment offers Star an opportunity to expand its exclusive monitoring, tracking and data services business and build recurring revenue. Seeing Valum advance toward commercialization while opening a new avenue for Star's growth and long-term shareholder value is especially meaningful to me.

"I am deeply grateful to the Star team for developing and testing the monitoring prototype, and to the entire Valum team, including inventor Madalin Bratu, whose tireless work over the years has brought us to this launch phase. Their dedication has advanced our shared ambition to deliver benefits to businesses and communities worldwide."

Following validation, Valum expects to advance commercial deployment planning, with expansion co-ordinated around customer requirements, manufacturing capacity and applicable approvals.

Star's management team is also in discussions regarding additional strategic partnerships and investment opportunities. Further developments will be disclosed at the appropriate time should these opportunities materialize.

About Star Navigation Systems Group Ltd.

Star develops monitoring, diagnostics and data analytics technologies. The company is pursuing applications of its capabilities in aviation and adjacent sectors, including energy infrastructure. It has developed and manufactures the STAR-ISMS (in-flight 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 worldwide.

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