Mr. Dave Barnett reports

ZTEST ELECTRONICS INC. ANNOUNCES THE GRANT OF STOCK OPTIONS TO CEO AND DIRECTORS

Ztest Electronics Inc. has granted incentive stock options to purchase an aggregate of 1.2 million common shares of the company to Dave Barnett, the company's president and chief executive officer, and to each of the company's four other directors, in accordance with the terms of the company's stock option plan and subject to the policies of the Canadian Securities Exchange (the CSE).

In conjunction with his appointment as president and chief executive officer, Mr. Barnett was granted options to purchase 600,000 common shares at an exercise price of 45 cents per share, being the closing price of the company's common shares on the CSE on Aug. 21, 2026, the last trading day prior to the date of grant. The options are exercisable for a period of five years from the date of grant, expiring Aug. 24, 2031, and vest as follows:

1. 300,000 options (the time-vested options) vest as to one-third on each of the first, second and third anniversaries of the date of grant;
2. 300,000 options (the performance options) vest in full on the first date that the 30-day volume-weighted average trading price (VWAP) of the company's common shares on the CSE equals or exceeds 67.5 cents per share, representing 150 per cent of the exercise price, at any time prior to the expiry of the options.

The company also granted options to purchase 150,000 common shares to each of its four other directors, at the same exercise price of 45 cents per share and on the same five-year term, vesting as to 50 per cent after six months and the balance after one year.

"This grant, and in particular the performance-based component tied to a sustained increase in our share price for our newly appointed president and CEO, directly aligns management's incentives with the returns we aim to deliver for shareholders," said Bill Johnstone, corporate secretary and a director of the company. "The board believes this structure rewards long-term value creation rather than the passage of time alone."

About Ztest Electronics Inc.

Ztest Electronics, through its wholly owned subsidiary Permatech Electronics Corp., offers electronic manufacturing services (EMS) to a wide range of customers. Permatech's offering includes printed circuit board (PCB) assembly, materials management and testing services. Permatech operates from an ISO 9001:2015-certified facility in North York, Ont., Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the medical, power, computer, telecommunications, wireless, industrial, trucking, wearables and consumer electronics markets. It specializes in servicing customers who are looking for high yield and require high quality and rapid-turnaround on low and mid-volume production of high complexity products.

We seek Safe Harbor.