Mr. Doug Blakeway reports

NANOTECH UPDATES POST YEAR-END MATTERS, RETAINS MARKET MAKER, FILES AIF, GRANTS EQUITY COMP

Nanotech Security Corp. has filed its annual information form (AIF) for the year ended Sept. 30, 2016, with the Canadian securities regulatory authorities on the System for Electronic Analysis and Retrieval (SEDAR). An electronic copy of the AIF may be obtained on the company's website or on the company's SEDAR profile.

The company granted 489,000 restricted share units, of which 411,00 are to directors and officers. The company has also granted an aggregate of 411,000 share purchase options to directors and officers. The options are for five years at $1.48 and brings the total options granted to 4.9 per cent of outstanding shares.

The company also announces that, subject to regulatory approval, it has retained Mackie Research Capital Corp. to provide market-making services in accordance with TSX Venture Exchange policies. Mackie will trade shares of the company on the TSX-V with the objective of maintaining a reasonable market and improving the liquidity of the company's common shares.

Under terms of the agreement, Mackie will receive compensation of $3,000 per month, payable quarterly in advance. The agreement is for a one-year term, after which it may be terminated by either party with 60 days notice. There are no performance factors contained in the agreement, and Mackie will not receive shares or options as compensation. Mackie and the company are unrelated and unaffiliated entities, but Mackie may provide investment banking services to the company, and Mackie and/or its client may have an interest, directly or indirectly, in the securities of the company.

About Mackie Research Capital

Mackie is one of Canada's largest independent full-service investment firms and proudly traces its roots back to 1921. Mackie is privately owned by many of its 300 employees. As a fully integrated national investment dealer, Mackie offers a full complement of capital markets and wealth management services to private clients, institutions and growth companies.

About Nanotech Security

Nanotech Security has been a leading innovator in the design and production of advanced banknote and commercial branding authentication products. Nanotech's KolourOptik and Plasmogram products are nanotechnology-based optical imaging product platforms originally inspired by the unique optical properties of the iridescent wings of the Blue Morpho butterfly.