Mr. Bill Frain reports

LIBERTY DEFENSE RECEIVES CONTRACT MODIFICATION AWARD FROM TSA FOR DEVELOPMENT OF AIT SCREENING UPGRADES

Liberty Defense Holdings Ltd. has received additional funding from the Transportation Security Administration (TSA) to incorporate additional design efficiencies into the development of a high-definition advanced imaging technology (HD-AIT) upgrade kit for testing on an advanced imaging technology (AIT) passenger screening system.

The HD-AIT next-generation people screening technology platform for threat detection uses high-definition imaging and artificial intelligence, resulting in greater threat detection with a lower false alarm rate for a better passenger experience. The HD-AIT upgrade kit being developed is designed to enhance the capabilities of an existing AIT unit using open architecture, allowing the use of third party hardware and software components. Per the TSA, open architecture is a technology-design approach for software and hardware that uses widely accepted standards to ensure interoperability across tools and platforms regardless of the technology designer, manufacturer or supplier.

The TSA, an agency of the U.S. Department of Homeland Security, is responsible for airline passenger security screening conducted at airports in the United States. TSA's on-person screening program aims to detect a growing range of threats, with fewer false alarms and less physical contact with travellers. In addition to enhanced detection, the HD-AIT body scanners are anticipated to help improve passenger experience and move people through the checkpoint more seamlessly.

"We continue to work closely with TSA on this critical initiative to help develop the next generation of passenger screening," says Liberty chief executive officer Bill Frain. "The upgrade kit will provide future state capability at the checkpoint, with the focus on detecting more threats and providing an overall better experience for the travelling public."

Liberty previously licensed millimetre-wave-based, high-definition advanced imaging technology (HD-AIT) body scanner and shoe screener technologies in March of 2021. Both technologies were developed by researchers at the Pacific Northwest National Laboratory (PNNL), funded by U.S. Department of Homeland Security Science and Technology Directorate (DHS S&T) on behalf of the Transportation Security Administration mission. Liberty is now developing the technology in-house with its experienced team of engineers.

In addition, pursuant to the company's omnibus long-term incentive plan, and subject to regulatory approval, Liberty granted a total of 75,000 stock options and 1,590,975 restricted share units (RSUs) to certain directors and officers of the company, effective Oct. 16, 2023. Each option is exercisable for one common share in the capital of the company at an exercise price of 19 cents per share. Of the options, 12.5 per cent will vest on Jan. 16, 2024, and an additional 12.5 per cent will vest every three months thereafter. The options will expire on Oct. 16, 2028. All 1,590,975 RSUs will vest on Oct. 16, 2024. All options and RSUs are subject to the terms of the company's omnibus long-term incentive plan and applicable securities law hold periods.

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 discreet, 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.

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