Mr. Doug Blakeway reports

NANOTECH ANNOUNCES COMPLETION OF FORTRESS OPTICAL ACQUISITION

Nanotech Security Corp., further to its news releases of Aug. 26, 2014, and Sept. 12, 2014, has now completed the acquisition of 100 per cent of Fortress Optical Features Ltd. from an affiliate of Fortress Paper Ltd. In conjunction with the completion of this acquisition, Nanotech has converted the 6,184,953 subscription receipts issued Sept. 12, 2014, for proceeds of $9.3-million into 6,184,953 common shares and 3,092,477 share purchase warrants. The acquisition of Fortress Optical Features will serve as a platform to accelerate commercialization of Nanotech's technology by integrating it into Fortress Optical's product line by adding KolourOptik images to the OTF threads. The acquisition includes Fortress Optical Features' state-of-the-art building and vacuum metal deposition equipment, located near Ottawa.

Nanotech believes the transaction combines complementary businesses that can leverage Fortress Optical's established banknote customer relationships to accelerate market adoption of KolourOptik technology by currency producers around the world. To date, Fortress Optical's technology, which derives from research and development done by the Bank of Canada, has been used by 11 international currencies.