Vancouver, British Columbia--(Newsfile Corp. - February 10, 2026) - Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) ("Aegis" or the "Company") is excited to announce that Aegis and its partners, including Quantum eMotion, SEETEL New Energy, and Malahat Energy Systems, have formed working groups to drive integration with BESS, targeting a late Q2 rollout for our new collaborative product. Aegis provides a comprehensive corporate update highlighting major milestones in its strategic energy technology roadmap, ongoing business development activities, and relevant sector growth dynamics for investors and shareholders.

Battery Energy Storage System (BESS) Market & Industry Dynamics

Aegis continues to advance its core Battery Energy Storage Systems ("BESS") offerings into critical infrastructure, defence, industrial, and AI data centre markets at a time of robust sector growth. These macro trends underline growing demand for resilient grid support and mission-critical uptime solutions—a strategic area of focus for Aegis.

Long-Term 2 (LT2) Bid Participation - Ontario Capacity Stream

Aegis, through its subsidiary project company Cordelia BESS Inc., has posted a $500,000 bond and submitted a proposal in response to the Independent Electricity System Operator's ("IESO") Long-Term 2 ("LT2") Request for Proposals — Capacity Stream (C1), expected outcome of LT2 is Q2 2026. The bid contemplates development of a ~90 MWh grid-scale BESS project in Ontario adjacent to an existing substation, subject to the IESO's evaluation, regulatory approvals, and commercial conditions. The LT2 process is designed to secure dispatchable capacity amid forecasted demand growth associated with electrification and industrial activity.

Formation of Homeland Nuclear Energy Inc. - SMR & Micro-Reactor Focus

In a strategic extension of its product portfolio, Aegis announced the official formation of its new wholly-owned subsidiary, Homeland Nuclear Energy Inc., dedicated to the development, integration, and deployment of Small Modular Reactors (SMRs) and Micro Modular Reactors (MMRs) within hybrid energy systems. Homeland Nuclear will focus on:

• Standardized nuclear-to-microgrid integration interfaces;

• Carbon-free power solutions for remote communities, strategic ports, and defence installations;

• Regulatory leadership and safety-oriented deployment pathways.

The launch aligns with emerging global and defence sector interest in scalable baseload nuclear systems that can meet energy security and decarbonization objectives—an area where projected SMR market capacity is forecast to grow materially over the next decade.

Aegis also executed a Memorandum of Understanding ("MOU") with Malahat Energy Systems Inc. and Ontario Tech University to advance research and development of hybrid nuclear energy architectures that integrate SMRs with BESS and intelligent controls. This collaboration positions Aegis at the nexus of next-generation dispatchable energy solutions for mission-critical and industrial use cases.

Partnerships & Confidential Framework Agreements - Key Highlights

Strategic Partnerships & Commercial Expansion

• Aegis is expanding into high-growth critical infrastructure sectors through a strategic partnership with Pixii Americas Inc.
• Under the agreement, Aegis will supply next-generation battery solutions designed for telecom network resilience, uptime, and performance.

Telecommunications Sector Engagement

• Aegis is in active discussions with a top-three Canadian telecommunications operator.
• Discussions focus on deployment opportunities to strengthen network reliability across major markets.
• These engagements reflect strong market demand for integrated, resilient energy solutions that support uninterrupted service delivery.

Joint Steering Committee to Accelerate Quantum-Secure Battery Integration for Critical Infrastructure

Following the previously announced collaboration between Aegis Critical Energy Defence Corp. and Quantum eMotion Corp. (TSXV: QNC) (OTCQB: QNCCF):

• Joint Development Steering Committee has completed its first working session
• Technical architecture to integrate Quantum eMotion's hardware-based QRNG chips into Aegis' next-generation energy storage systems, including QRNG-secured firmware and encrypted BMS is underway
• IP co-ownership and commercialization framework confirmed under Canadian jurisdiction
• Prototype systems targeted for Q1 2026 field trials with Canadian defence, telecom, and utility partners

Organizational Development & Maritime Strategy

• Aegis appointed a Chief Maritime Officer Raoul Jack PEng with 30 plus industry experience most recently Managing Partner of Vard Electro a key supplier to Canada Defence and Maritime industries.
• Role supports expansion into Maritime, Arctic, and mobile energy deployment strategies.
• Focus areas include integrating BESS and hybrid power systems across:

Arctic & Defence Alignment

• Appointment aligns with increased geopolitical focus on the Arctic, driven by:
  • Climate change
  • Shipping access
  • Resource development
  • National security considerations
• Arctic and sub-Arctic regions require ruggedized, modular energy solutions due to:
  • Extreme cold
  • Limited grid access
  • Logistical constraints
  • High reliability requirements
• Aegis is aligning its capabilities with the needs of NATO-aligned governments, supporting energy resilience for:
  • Ports and naval facilities
  • Radar and communications installations
  • Forward operating bases
  • Other defence-critical nodes

U.S. Market Expansion

• Aegis initiated its first operational installation in the United States, marking a major milestone in North American growth.
• In February 2026, Aegis began installing the first unit of a multi-unit deployment program in the Carolinas and later in February scheduled for Indiana installations.
• Aegis's modular BESS solutions address challenges related to:
  • Grid reliability
  • Peak demand constraints
  • Operational uptime requirements
• Management views this as a foundational reference project for future U.S. opportunities in
• life sciences
• Data centres
• Advanced manufacturing
• Critical infrastructure sectors

Investor & Shareholder Outlook

• Aegis's strategy spans:
  • BESS deployments
  • Nuclear-hybrid innovations
  • Global partnerships
• defence, data centres, industrial hubs, and remote infrastructure.

Strategic Technology Partnerships

• Aegis continues collaboration with:
  • Ontario Tech University
  • SEETEL New Energy
  • SuperQ
  • Quantum eMotion Corp.
  • University of Alberta
  • Seaspan
  • Northwest Mettech
  • Pixii Americas Inc.
• Joint development efforts target:
  • Quantum-secured energy storage
  • Defence-grade power systems
  • Integration with SMRs and MMRs
  • Cyber-resilient, quantum-safe energy platforms

Spin-Out of Hydrogen Storage Asset

• Aegis entered into an Arrangement Agreement and Plan of Arrangement (Feb 3, 2026) with its wholly-owned subsidiary Greentech Hydrogen Innovations Corp.
• Patent-pending hydrogen storage and distribution system (Application No. 18/839,337) will be transferred to Spinco via the Arrangement.
• Spinco will become a reporting issuer in BC, Alberta, and Ontario upon completion.
• Board believes the Arrangement will:

• Streamline reorganization of the hydrogen asset
• Allow Aegis to focus on sales and strategic partnerships
• Support commercialization of quantum-secured energy storage and defence systems

Highlights:

On February 2, 2026, Aegis and Subco entered into a debt settlement agreement whereby Subco agreed to settle $83,314.39 of debt for the total consideration of 4,165,719 common shares of Subco ("Subco Shares") at a deemed price of $0.02 per Subco Share. As a result of the debt settlement, Subco has a total of 4,165,819 Subco Shares issued and outstanding, all of which are owned by Aegis.

Pursuant to the Arrangement, Aegis shall distribute 3,749,319 Subco Shares (the "Spin-Out Shares") to the shareholders of Aegis (the "Aegis Shareholders") on a pro rata basis in a manner whereby Spinco will issue 3,749,319 Spin-Out Shares to the Aegis Shareholders, subject to rounding down of the fractional shares and subject to the exercise of the rights of dissent such that the Aegis Shareholders (other than dissenting shareholders) will become holders of the Spin-Out Shares, with Aegis holding the balance of 416,500 Subco Shares.

Upon completion of the Arrangement, (i) the Asset held by Subco, which is the Company's pre-existing wholly-owned subsidiary, will become the Asset of Spinco, (ii) Spinco will become a reporting issuer in the Provinces of British Columbia, Alberta and Ontario, (iii) each Aegis Shareholder will continue to be a shareholder of the Company, (iv) all Aegis Shareholders will have become shareholders of Spinco, and (v) Aegis will retain its working capital for its assets, and subject to meeting the continuous listing requirements will remain listed on the Canadian Securities Exchange (the "CSE") and continue to trade under the trading symbol, QESS, as a technology company.

Required Approvals:

The Arrangement is subject to the approvals of the Supreme Court of British Columbia (the "Court"), the Aegis Shareholders at the annual general and special meeting to be scheduled for April 7, 2026 (the "Meeting"), and the CSE.

Details of the Arrangement will be provided in a management information circular that will be mailed to all Aegis Shareholders prior to the Meeting. At the Meeting, the Aegis Shareholders will be asked to vote on a special resolution approving the Arrangement, among other resolutions.

The Arrangement Agreement will be posted on the Company profiles on SEDAR+, the CSE and the OTCQB.

Share Distribution Record Date:

The Share Distribution Record Date will be determined by the board of directors of the Company and will be announced in advance by way of a news release following required approvals. No outstanding warrants or options of the Company will be exchanged for warrants or options of Spinco.

The Company will provide further updates to confirm the mailing of the Meeting materials and voting information.

About the Independent Electricity System Operator (IESO)

The Independent Electricity System Operator (IESO) is the Crown corporation responsible for operating and planning the electricity system and wholesale electricity market in the Province of Ontario. Established under the Electricity Act, 1998, the IESO manages Ontario's bulk electricity system and ensures the reliable supply of electricity across the province.

About Quantum eMotion

Quantum eMotion Corp. (TSXV: QNC) (OTCQB: QNCCF) (FSE: 34Q0) is a Canadian deep-tech company developing quantum-safe cybersecurity solutions based on its patented Quantum Random Number Generator (QRNG) and Entropy-as-a-Service platform, securing data and communications for the quantum era. For more information, visit https://www.quantumemotion.com/

About SEETEL New Energy

SEETEL New Energy Co. Ltd. (TW: 7740) is a Taiwan-based manufacturer and systems integrator specializing in high-performance lithium battery modules and energy-storage systems for global industrial and grid applications.

Learn more at www.homelandnuclearenergy.com

About Ontario Tech University

Ontario Tech University is a leading public research institution with strengths in nuclear engineering, energy systems, cyber security, and applied technology - home to Canada's only fully accredited undergraduate nuclear engineering program and the Centre for Small Modular Reactors. For more information visit https://ontariotechu.ca/

About Pixii Americas Inc.

Pixii Americas Inc leads the way in delivering innovative Battery Energy Storage Systems (BESS), empowering a secure and sustainable energy future. With our North America headquarters in Littleton, Colorado, we combine decades of expertise in power conversion, modular design, and advanced energy management to address the evolving demands of the energy storage sector. Pixii takes pride in adhering to the highest standards of quality and security. www.pixii.com

About Malahat Energy Systems Inc.

MES, an Indigenous-led enterprise affiliated with the Malahat Nation, will play a central role in system development, manufacturing, and Indigenous participation across defence and clean energy. For more information, visit https://malahatbattery.com.

About Aegis Critical Energy Defence Corp.

Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) develops and integrates advanced battery energy storage systems for defence, critical infrastructure, industrial, and AI data centre applications. Through strategic partnerships with Indigenous communities and global technology leaders, Aegis delivers rugged, intelligent, and secure energy systems designed for the next generation of mission-critical operations.

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Aegis Critical Energy Defence Corp.'s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283493