Dr. Francis Bellido reports

QUANTUM EMOTION ANNOUNCES ACQUISITION OF JET LAB TECHNOLOGIES ASSETS TO DELIVER FULL-STACK QUANTUM-RESILIENT SECURITY

Quantum Emotion Corp. has entered into an agreement to acquire key technology assets through the acquisition of 100 per cent of the issued and outstanding shares of SKV Technology Inc., a California-based cybersecurity company. The assets include the SecureKey platform developed and commercialized by Jet Lab Technologies Inc. and held by SKV.

The acquisition strengthens Quantum Emotion's secure software and cryptographic enforcement strategy by combining the SecureKey platform with Quantum Emotion's QRNG-powered Sentry-Q orchestration layer -- creating a full-stack, quantum-resilient cybersecurity architecture spanning cloud, network, end point and chip.

Strategic architecture: from entropy to enforcement

Quantum-grade entropy and policy -- Sentry-Q

Quantum Emotion's Sentry-Q platform:

• Generates QRNG-based entropy and master keys;
• Orchestrates secure point-to-point encrypted communication;
• Defines authentication, key rotation, PQC and hybrid ciphersuites, and revocation policies.

Software-based, hardware-anchored enforcement -- SecureKey

SecureKey is a high-assurance cryptographic software platform engineered to deliver hardware-grade security protections across cloud, network and embedded environments.

SecureKey:

• Implements and accelerates Sentry-Q secure channels directly on devices;
• Protects keys through hardened software controls integrated with hardware boundaries, preventing extraction and tampering;
• Provides TLS/IPsec/VPN/session off-load and acceleration;
• Establishes end-to-end secure tunnels at the edge, and in devices, SoCs, NICs and controllers.

Combined value: Sentry-Q plus SecureKey

Together, the integrated architecture is designed to deliver:

• End-to-end quantum-safe security from cloud to network to end point to chip;
• Policy-driven P2P communication with enforcement anchored at the device boundary;
• Rapid PQC migration through orchestration plus firmware-level acceleration;
• Immediate applicability across artificial intelligence data centres, energy systems, defence, industrial Internet of Things, blockchain and critical infrastructure.

Dr. Francis Bellido, chief executive officerO of Quantum Emotion, stated: "Sentry-Q orchestrates quantum-grade entropy and security policy at the cloud layer. SecureKey enforces that trust at the execution boundary through hardened cryptographic software integrated with hardware environments. Together, Sentry-Q plus SecureKey deliver full-stack quantum-resilient security -- from QRNG-generated entropy to end point enforcement -- dramatically reducing key exposure risks while accelerating postquantum migration."

Jason Thomas, founder of SKV and Jet Lab, added: "SecureKey was built to eliminate persistent key exposure and to bring hardware-grade protection into deployable software environments. By integrating SecureKey with QEM's QRNG-driven Sentry-Q platform, we can deliver a uniquely powerful architecture that combines quantum-grade entropy with execution-bound enforcement. This integration positions QEM to address critical infrastructure, cloud, defence and regulated markets with a truly next-generation security stack."

Zero-exposure keys -- eliminating the No. 1 cause of breaches

Among the acquired assets is a patent-pending memory-less cryptographic architecture designed to eliminate persistent key storage -- addressing what industry research identifies as the primary cause of cybersecurity breaches: stolen keys and credentials.

Key differentiators include:

• Zero-exposure keys -- memory-less cryptography engineered to eliminate persistent key storage and extraction risk;
• Hardware-grade security in software -- government-level protection delivered in pure software across cloud and edge environments;
• NIST-validated encryption components, with a clear path toward FIPS certification and government adoption;
• Deployable cryptographic enforcement without requiring proprietary hardware modules.

Significant market demand

Critical infrastructure and cloud security represent a global market exceeding $150-billion (U.S.) (Gartner -- worldwide security and risk management spending forecast) and accelerating, driven by:

• Mandatory modernization initiatives;
• Cloud and hybrid-cloud adoption;
• Increasing regulatory requirements for quantum readiness;
• Nation-state and advanced persistent cyber threats.

The transaction significantly expands Quantum Emotion's addressable market by adding deployable, revenue-ready cryptographic enforcement software to its QRNG and entropy-based foundation.

Proven, ready-to-scale products

The acquired assets include production-ready technologies:

• A deployable cryptographic library;
• VPN and firewall implementations;
• Drop-in integrations compatible with enterprise, cloud and network platforms.

These solutions are deployable today, and are designed for seamless integration with Quantum Emotion's entropy and orchestration stack.

Background on Mr. Thomas

Jason Thomas, founder of SKV and Jet Lab and lead technologist of Jet Lab, is a cybersecurity architect with extensive experience in applied cryptography, secure networking and software-based key protection frameworks.

At Jet Lab, Mr. Thomas led the development of SecureKey, focusing on memory-less cryptography, hardened software enforcement, encrypted networking stacks and scalable key life cycle management suitable for enterprise, industrial and government environments.

Mr. Thomas will be joining Quantum Emotion in an executive development role, where he will support strategic product integration, commercialization initiatives and expansion of SecureKey within Quantum Emotion's broader quantum-resilient cybersecurity road map. His addition strengthens Quantum Emotion's executive team with deep cryptographic engineering and secure systems expertise.

Transaction terms and regulatory matters

Pursuant to the agreement, Quantum Emotion will acquire the specified assets held by SKV by purchasing 100 per cent of the equity of SKV. In consideration, Quantum Emotion will make milestone-based earnout payments of up to $7-million (Canadian), payable at Quantum Emotion's election in cash, common shares of the company or a combination thereof. Quantum Emotion will also pay royalties of up to $15-million (Canadian), subject to specified sales thresholds, on products incorporating the SecureKey technology for a term of up to five years.

The earnout payments will be contingent upon the achievement of defined technical and integration milestones centred on the successful realization of the combined Sentry-Q plus SecureKey full-stack quantum-resilient security architecture.

The consideration shares issuable under the transaction will be subject to a statutory hold period of four months and one day in Canada in accordance with applicable securities laws, and will be issued subject to an exemption from registration under the U.S. Securities Act of 1933, as amended.

The transaction is an arm's-length expedited acquisition under the policies of the TSX Venture Exchange. Closing is expected to occur on or about March 2, 2026, subject to customary conditions, including final acceptance of the TSX-V.

About Quantum Emotion Corp.

The company's mission is to address the growing demand for affordable hardware and software security for connected devices. As a result of its patented quantum random number generator, Quantum Emotion has become a pioneering force in classical and quantum cybersecurity solutions. This security solution exploits quantum mechanics' built-in unpredictability and promises to provide enhanced protection for high-value assets and critical systems.

The company intends to target highly valued financial services, health care, blockchain applications, cloud-based information technology security infrastructure, classified government Krown technologies and communication systems, secure device keying (Internet of Things, automotive and consumer electronics), and quantum cryptography.

We seek Safe Harbor.