Dr. Rahul Kushwah reports

QSCREEN AI APPOINTS FORMER UNION PACIFIC VICE PRESIDENT AS STRATEGIC ADVISOR TO DRIVE EXPANSION INTO NORTH AMERICAN RAIL AND TRANSPORTATION MARKETS

QScreen AI Inc. has appointed Jose Humberto (Beto) Vargas Garcia as strategic adviser. Mr. Vargas spent over 25 years in senior commercial roles across North American rail and most recently as vice-president at Union Pacific, leading a commercial portfolio of $2.8-billion (U.S.) with average annual growth of 9 per cent, where he sat on the board of directors of Ferromex and chaired its operations committee. He was introduced to the company during the Canada-Mexico trade mission earlier this year. The company also announces a change of auditor, described below.

The problem Mr. Vargas is here to solve

Every Class I railway in North America runs mandatory drug and alcohol testing under Federal Railroad Administration (FRA) regulations. The testing has one fundamental problem: It detects past use, not present impairment. Their legal teams know this and it has been an issue in the industry since cannabis legalization. The drug screening market size was valued at $9.76-billion (U.S.) in 2025 and is likely to cross $40.18-billion (U.S.) by 2035, expanding at a CAGR (compound annual growth rate) of more than 15.2 per cent during the forecast period. In 2026 itself, the industry size of drug screening is assessed at $11.1-billion (U.S.).

The QAI platform reads physiological signals from a standard camera, including PERCLOS (percentage of eye closure), blink rate, head movement and pupil reactivity, and identifies the probable substance a person has consumed in real time. No sample is required and therefore there are no lab visits and no wait times. The system generates a documented, time-stamped output before each shift begins, directly meeting the requirements of the transportation industry.

Mr. Vargas has deep relationships across the North American rail ecosystem and understands exactly which stakeholders need to be engaged, making this appointment a meaningful milestone for the company.

About Mr. Vargas

Mr. Vargas spent the last five years as vice-president at Union Pacific, running commercial operations and sitting on the Ferromex board, where he led the operations committee. Before that, Mr. Vargas spent eight years at Werner Enterprises as intermodal and commercial director, where he managed a cross-border portfolio of over $500-million (U.S.). Earlier, he spent seven years at Ferromex, where he reached associate vice-president of intermodal and launched the InterPacifico service. From 2019 to 2023, he served as president of the Asociacion Mexicana de Transporte Intermodal, the principal rail industry body in Mexico. He has spent 25 years in rooms where the decisions about rail safety, work force compliance and commercial partnerships get made.

Dr. Rahul Kushwah, chief operating officer of QScreen AI, stated: "The rail sector has a drug-testing problem that has not been solved in eight years. Beto spent the last five of those years running commercial operations at Union Pacific and sitting on the Ferromex board. He does not need to explain QScreen to the people who matter in this industry as he has been in business with them for decades. This appointment gives us invaluable and unprecedented access to decision makers."

Where the company stands

QScreen AI has completed its QAI platform, the only system that identifies probable substance consumed in real time from a standard camera while simultaneously running 13 validated clinical instruments (including CIWA-Ar, COWS and C-SSRS), in under seven minutes with no hardware and no IT (information technology) project. The company holds a granted U.S. patent on physiological impairment detection.

The company is pursuing its first signed evaluation agreements across three markets:

• U.S. correctional health -- approximately 4,800 facilities processing 7.9 million jail admissions annually; Global Frontier Advisors LP, led by Lieutenant-General Michael S. Groen (retired), former director of the Pentagon's Joint Artificial Intelligence Center, is advancing discussions with target facilities; GFA was engaged by the company in February, 2026;
• National Defence and Department of Defense -- approximately 4,800 U.S. military sites around the world; GFA advancing engagement across personnel readiness and work force health;
• Rail and transportation -- approximately 130,000 federally regulated safety-sensitive rail workers across North American Class I railways subject to FRA mandatory impairment testing; Mr. Vargas leading commercial engagement.

Change of auditor

The company announces that it has changed its auditors from Kreston GTA LLP to Bassi & Karimjee LLP. The former auditor resigned effective April 13, 2026. The successor auditor was appointed on April 13, 2026, until the next annual shareholder meeting.

There were no reservations or modified opinions in the former auditor's reports during its tenure. There are no reportable events (including disagreements, consultations or unresolved issues) as defined in NI 51-102 between the company and the former auditor. The board of directors and audit committee approved both the resignation and the appointment. The notice of change of auditor and required letters have been filed on SEDAR+.

About QScreen AI Inc.

QScreen AI is an emerging provider of rapid health screening and remote patient care solutions globally. The company's Smarthealth AI stations are powered by a proprietary artificial intelligence and use multispectral cameras to analyze physiological data patterns and predict a variety of health issues, including 19 physiological vital parameters, impairment by drugs or alcohol, fatigue, and various mental illnesses. QScreen AI's proprietary remote patient care platform empowers medical professionals with a suite of AI-powered tools to improve patient health outcomes.

We seek Safe Harbor.