Mr. Ted Carefoot reports

QUANTUM SECURE ANNOUNCES $3 MILLION PRIVATE PLACEMENT FINANCING

Quantum Secure Encryption Corp. has arranged a non-brokered private placement financing of 6,666,667 units at a price of 45 cents per unit for gross proceeds of $3-million.

Each unit under the offering will consist of one common share and one-half of one share purchase warrant, with each warrant entitling the holder to purchase one additional share at a price of 65 cents per share for a period of two years from the date of issue.

All securities issued under the offering, including securities issuable on the exercise thereof, are subject to a hold period expiring four months and one day from the date of issuance. The company may pay finders' fees in relation to this the offering.

The company intends to use the net proceeds of the offering to support the continued commercialization and expansion of the Quantum Secure platform and for general working capital requirements.

"We are raising this capital to support the next phase of QSE's commercial growth," said Ted Carefoot, chief executive officer of Quantum Secure. "Our focus is now on sales execution, expanding our partner channels, converting active opportunities into revenue, and scaling the business across enterprise, government and regulated-industry markets where quantum-readiness is becoming an urgent priority."

About Quantum Secure Encryption Corp.

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

We seek Safe Harbor.