Vancouver, British Columbia--(Newsfile Corp. - February 3, 2026) - QSE - Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8) (the "Company" or "QSE") is pleased to announce that it has entered into a three-year agreement supporting three Brazilian government end-clients for the deployment of QSE's secure enterprise access platform.

This agreement marks a meaningful step forward in QSE's international expansion strategy, establishing an initial commercial footprint in South America while creating a scalable foundation for broader adoption of QSE's post-quantum security services over time.

Investor Highlights

• New region expansion: Establishes QSE's initial commercial presence in South America, beginning with Brazil

• Public-sector validation: Engagement spans three Brazilian government end-clients

• Three-year term: Multi-year structure supports long-duration rollout and expansion

• Initial scale + growth trajectory: ~4,500 seats in Year 1, with expectations for significant growth over the contract term

• Platform upside: Creates a bridge for adoption of additional post-quantum security solutions across the QSE portfolio

Contract Scope and Initial Economics

The initial phase of the agreement includes approximately 4,500 user seats/licenses in Year 1, representing an initial contract value of approximately US$150,000 for the 3 year term, with clear potential for expansion over the full term.

QSE expects the deployment footprint to expand over the three-year term as additional users, departments, and use cases are onboarded across the participating government organizations.

This agreement reflects growing demand from public-sector organizations for modern, scalable identity infrastructure that is encryption-ready today and positioned for post-quantum security requirements as they emerge.

Initial Deployment Focus: Enterprise Single Sign-On (SSO)

The current contract scope is focused on QSE's Single Sign-On (SSO) services, delivering centralized secure authentication across government systems and user environments.

By standardizing secure access at the identity layer, QSE is establishing a scalable foundation that can be broadened into deeper cryptographic and quantum-resilient capabilities over time.

Expansion Path: Seats and Services Over a Three-Year Rollout

While the agreement begins with 4,500 seats in Year 1, the structure provides a clear pathway for the deployment to expand significantly over the full three-year term, subject to continued rollout, adoption, and client requirements.

This structure supports QSE's land-and-expand commercialization model, where growth is driven by:

• Seat expansion as adoption widens across participating organizations, and

• Service expansion as additional platform modules are introduced

Bridging Opportunity for QSE's Post-Quantum Platform Services

In parallel with the SSO rollout, QSE and the government end-clients are engaged in discussions regarding potential expansion into additional QSE platform services, including:

• Quantum Preparedness Assessments (QPA)

• qREK on-demand entropy key services

• QSE.API integrations to enable secure enterprise workflows and broader platform adoption

These services represent incremental, modular opportunities to expand contract value over time as requirements evolve and quantum-readiness initiatives accelerate.

Management Commentary

"Entering Brazil with three government clients under a three-year agreement is a strong step forward in our international growth strategy and a clear validation of QSE's secure access platform in the public sector," said Ted Carefoot, CEO of QSE.

"Starting with an initial 4,500-seat deployment gives us an immediate foundation, and we see a clear trajectory to expand well beyond that - both through seat growth and through the adoption of additional QSE services, including quantum preparedness, entropy delivery, and our broader post-quantum security capabilities."

About QSE - Quantum Secure Encryption Corp.

QSE - Quantum Secure Encryption Corp. is a Canadian technology company specializing in post-quantum data security, encryption, and secure data infrastructure. Built around quantum-delivered entropy and zero-knowledge architecture, QSE's solutions help protect sensitive data from current cyber threats and future quantum-enabled attacks. QSE serves organizations across commercial, enterprise, and public-sector environments requiring long-term data confidentiality and resilience.

For more information on QSE's quantum security solutions, visit www.qse.group or contact sales@qse.group.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets, and more specifically, the use of proceeds of the Offering. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks and are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, those risks and assumptions described in the Company's latest management discussion and analysis, a copy of which is available under the Company's profile on SEDAR at www.sedarplus.ca. While Scope considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions, continued satisfaction of Canadian Securities Exchange requirements, product safety and recalls, regulatory compliance and risks associated with the Company's business. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.

The Canadian Securities Exchange has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

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