Mr. Doug Blakeway reports

NANOTECH SECURITY CORP. ANNOUNCES CLOSING OF $13.3 MILLION BOUGHT DEAL FINANCING

Nanotech Security Corp. has closed its previously announced bought deal private placement with a syndicate of underwriters led by Haywood Securities Inc., and including Echelon Wealth Partners Inc., Canaccord Genuity Corp. and GMP Securities LP, pursuant to which the company issued 11,586,870 common shares of the company at a price of $1.15 per share for gross proceeds of $13,324,900.50. The offering included the underwriters exercising their overallotment option for an additional 1,152,087 common shares.

The company intends to use the net proceeds of the offering to simplify and improve Nanotech's capital structure by immediately redeeming the $4.2-million of convertible debentures that bear an interest rate of 12 per cent per annum and are convertible at $1.25, to increase production capacity, strengthen the balance sheet and general corporate initiatives.

About Nanotech Security Corp.

Nanotech Security has been a leading innovator in the design and production of advanced bank note 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. The company's nano-optical products produce intense, high-definition optically variable images and colour-shift optical thin films. Activated by a simple tilt or rotation, with higher resolutions than the best LED displays, they are ideal for authentication of currency, passports and identification cards in addition to distinguishing branded goods from counterfeits.

We seek Safe Harbor.