Mr. Jay Adelaar reports

LIBERTY ANNOUNCES EXTENSION TO PRIVATE PLACEMENT

The TSX Venture Exchange has granted an extension until June 15, 2023, for the completion of Liberty Defense Holdings Ltd.'s non-brokered private placement previously announced in the company's March 15, 2023, news release.

The terms of the offering provide for the issuance of up to 15 million units of the company at an issue price of 20 cents per unit, for gross proceeds of up to $3-million. In its discretion, the company may, in the context of the market, increase the size of the offering in accordance with policies of the exchange.

On April 14, 2023, the company completed the first tranche of the offering, resulting in the issuance of 6,707,061 units at an issue price of 20 cents per unit, for gross proceeds of approximately $1,341,412. On May 11, 2023, the company completed the second tranche of the offering, resulting in the issuance of 2.03 million units at an issue price of 20 cents per unit, for gross proceeds of approximately $406,000. The company expects to close a third tranche of the offering in the coming weeks.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to acquire, on payment of 30 cents to the company, one common share of the company, subject to adjustment in certain circumstances, for a period of 24 months from the closing date, provided that if, after four months after the closing date, the volume weighted average closing price of the common shares of the company on the exchange (or such other stock exchange on which the common shares are traded) is equal to or greater than 50 cents for a period of five consecutive trading days, the company may at its option elect to accelerate the expiry of the warrants by providing notice to the holders thereof within 10 calendar days following the end of such five consecutive trading day period, in which case the warrants will expire on the date specified in such notice, which shall be not less than 30 calendar days following delivery of such notice.

The net proceeds from the offering will be used for general corporate, working capital purposes and used to finance manufacturing of units slated for delivery to customers in July of 2023.

Existing shareholders who would like to participate in this private placement may reach out to the company at investors@libertydefense.com to express interest.

In connection with the offering, the company may pay finders' fees in cash or securities, or a combination of both, as permitted by the policies of the exchange. If finders' fees are paid in connection with the offering, it is expected that any cash finders' fee will be equal to 7.0 per cent of the proceeds placed by the applicable finder, and any finder's fee paid in securities will be equal to 7.0 per cent of the number of units placed by the applicable finder. Each finder's warrant will be exercisable for one common share at a price of 30 cents per finder's share for a period of 24 months from the closing date.

About Liberty Defense Holdings Ltd.

Liberty Defense provides multitechnology security solutions for concealed weapons detection in high-volume-foot-traffic areas and locations requiring enhanced security such as airports, stadiums, schools and more. Liberty's Hexwave product, for which the company has secured an exclusive licence from Massachusetts Institute of Technology (MIT) as well as a technology transfer agreement for patents related to active 3-D radar imaging technology, provides discrete, modular and scalable protection to provide layered, standoff detection capability of metallic and non-metallic weapons. Liberty has also recently licensed the millimetre-wave-based, high-definition advanced imaging technology (HD-AIT) body scanner and shoe scanner technologies as part of its technology portfolio. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions.

We seek Safe Harbor.