Dr. Rahul Kushwah reports

DEEPSPATIAL CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT FOR GROSS TOTAL PROCEEDS OF $1.038 MILLION AND ANNOUNCES CONVERSION OF DEBENTURES

Deepspatial Inc. has closed the final tranche of its previously announced private placement, bringing the total to $1,038,000. As part of the final tranche, the company issued 3.06 million units at a price of five cents per unit to investors for gross proceeds of $153,000. Each unit consists of one common share of the company and one common share purchase warrant, whereby each warrant entitles the holder to purchase one additional common share for a period of two years from closing at an exercise price of 10 cents per share. If, following four months and a day after the closing date, the volume-weighted average price of the common shares on the Canadian Securities Exchange is equal to or greater than 20 cents for any 10 consecutive trading days, the company may, upon providing written notice to the holders of warrants, accelerate the expiry date of the warrants to the date that is 30 days following the date of such written notice.

In connection with the second and third tranche closings of the private placement, the company has paid finders' fee totalling $29,300 which was settled by the issuance of units resulting in the issuance of an additional 586,000 units.

Net proceeds will be used for general operations (working capital), including business development and technology upgrades. All securities issued in connection with the private placement are subject to a statutory hold period expiring four months and one day from the date of issuance of the securities.

The company is also pleased to announce that the majority of the debentureholders that participated in the company's convertible debenture financing which was completed in October, 2022, and March, 2023, for total proceeds of $675,250 have elected to convert the debenture to units at a conversion price of 15 cents per unit, with each unit comprising one common share and one-half of one warrant, with each whole warrant exercisable into a common share at an exercise price of 30 cents per share. The holders of principal amount $482,000 of convertible debentures have completed the conversion into units.

About Deepspatial Inc.

Deepspatial is an outcome based artificial intelligence company, enabling organizations to enhance their decision-making capabilities by leveraging the power of data and artificial intelligence.

We seek Safe Harbor.