Mr. Ted Drzazga reports

ZTEST ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OFFERING

Ztest Electronics Inc. has closed the first tranche of its non-brokered private placement announced on Jan. 11, 2018, with the sale of 625,000 working capital units at 85 cents per WC unit for gross proceeds of $531,250. The offering will remain open until the earlier of the sale of the remaining WC units and Feb. 23, 2018.

Each WC unit consists of one common share and one-half of a common share purchase warrant. Each full warrant entitles the holder to acquire an additional common share of the company at $1.10 until the earlier of (i) Jan. 31, 2019; and (ii) in the event that the closing price of the common shares on the Canadian Securities Exchange is at least $2 for 20 consecutive trading days, and the 20th trading day is at least four months from the closing date, the date which is 30 days from the final trading day.

Eligible finders were paid $37,187.50 and issued 43,750 broker warrants. Each broker warrant entitles the holder to acquire one common share of Ztest at 85 cents until Jan. 30, 2019.

All securities issued pursuant to the first tranche of the offering are subject to a statutory hold period expiring on May 31, 2018.

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 materials management, printed circuit board (PCB) assembly, testing and design services. Permatech operates from a 20,000-square-foot, ISO 9001:2008 certified facility in North York, Ont., Canada. The company serves customers in the medical, power, computer, telecommunication, wireless, industrial and consumer electronics markets requiring high-quality, quick-turn, small- and medium-size production runs.