Mr. Stephen Matier reports

CONFERENCE BOARD OF CANADA REPORT CONFIRMS ECONOMIC POTENTIAL OF COMMERCIAL SPACE LAUNCH INNOVATOR, MARITIME LAUNCH SERVICES

Maritime Launch Services Inc. says the Conference Board of Canada (CBOC) expects significant and lasting economic benefits for Nova Scotians and all Canadians as a direct result of investment and innovation in the global space sector. Specifically, the CBOC's recently released economic impact study of Maritime Launch Services' Spaceport Nova Scotia initiative expects North America's first commercial spaceport will benefit multiple sectors across Canada, including: construction, transportation, tourism, and professional, scientific and technical services. Spaceport Nova Scotia is currently under construction near Canso, N.S.

"The report's findings state that the construction phase of Spaceport Nova Scotia alone will generate a total economic benefit impact for the Nova Scotia economy of $143-million," said Stephen Matier, president and chief executive officer, Maritime Launch Services. "For Canada, the construction phase of Spaceport Nova Scotia will contribute $171-million to the federal GDP [gross domestic product], while boosting federal employment with over 1,600 year-round jobs, including nearly 750 of which would be in Nova Scotia."

Mr. Matier was quick to point out that these findings are only related to building Spaceport Nova Scotia, and that once the spaceport is in operation and servicing the high-demand global satellite industry, the estimates will literally skyrocket.

The Conference Board of Canada report findings confirm Mr. Matier's positive outlook. Once Spaceport Nova Scotia fully ramps up its operations, the Conference Board of Canada projects it will add around $300-million to Canada's GDP annually, boost revenue to governments by more than $100-million, and create close to 1,000 annual full-year jobs across Canada.

The Canadian government has committed its support for the global space sector, as it has recently made significant investments and policy decisions to facilitate Canadian space innovation to compete on the global stage. In January of this year, the government of Canada gathered at the Canadian Space Agency to announce plans to modernize existing launch regulations to support the commercial space sector, and to make way for Canadian space sector growth, including Canada's first commercial spaceport.

"We have always known there is a massive global market for commercial space launch, and Canada can lead the way while benefiting the growth of our local and national economies along with our skilled work force and technical space-sector expertise," said Mr. Matier. "While this report is specific to the benefits of our initiative in Nova Scotia, Canadian companies in the space technology sector, such as satellite manufacturers and software developers, will also see the significant economic benefits from Spaceport Nova Scotia."

The Conference Board of Canada's economic impact study of Spaceport Nova Scotia, titled Launching Canada's Space Sector, was released on Tuesday, May 16.

Approval of convertible debentures and related terms

On May 5, 2023, the company agreed with holders of its outstanding convertible debentures to extend the term of the convertible debentures by one year to May 7, 2024. Concurrently with the extension, the debentureholders elected to satisfy the accrued 4 per cent interest up to and including May 7, 2023, through the issuance of an aggregate of 4,149,151 common shares of the company at an issue price of 14.75 cents per common share, in accordance with the terms of the convertible debentures. Under the terms of the extension, the interest rate will increase from 4 per cent to 9 per cent starting May 8, 2023.

Subject to regulatory approval, the extension provides that the debentureholders or the company, upon satisfaction of the conditions specified in the convertible debentures, will have until the new maturity date to convert the principal and interest payable thereunder into common shares at an issue price of 14.75 cents per common share, and increases the total number of common shares issuable under the convertible debentures by 4,576,271 to cover the interest payable over the extended term.

In accordance with NEO Exchange rules, these changes have been approved and confirmed by the company's board of directors and by an instrument in writing signed by holders of more than 50 per cent of the common shares of the company that would have been eligible to vote thereon at a meeting of the shareholders called for such purpose. The company is making this disclosure as a condition of an exemption under rules of the exchange from having the extension approved at a meeting of shareholders.

Additionally, as part of the extension, the company amended its negative covenants in the convertible debentures to limit the company's ability to enter into additional debt arrangements without the consent of the majority of the debentureholders. The company did not announce the extension 21 days in advance because the terms of the extension remained subject to negotiation until May 5, 2023. The amending agreements are available under the company's profile on SEDAR.

About Maritime Launch Services Inc.

Maritime Launch Services is a Canadian-owned commercial space company based in Nova Scotia. Maritime Launch is developing Spaceport Nova Scotia, a launch site that will provide satellite delivery services to clients in support of the growing commercial space transportation industry over a wide range of inclinations. Spaceport Nova Scotia will allow small- and medium-sized launch vehicles to place their satellites into low-Earth orbit. Spaceport Nova Scotia is Canada's first commercial orbital launch complex.

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