Mr. Randy Koroll reports

STAR NAVIGATION ANNOUNCES FURTHER DETAILS ON S3IAI LETTER OF INTENT

Star Navigation Systems Group Ltd. has provided further clarification on details of the binding letter of intent with S3iai Co., a high-tech generative artificial intelligence (AI) company that was signed on Feb. 26, 2024.

Star will have approximately eight months from the signing of the binding agreement to assess the progress of S3iai on the development of its AI platform and to independently obtain a third party valuation of the company before the end of the eight-month period before making any further investment decisions.

If the valuation of S3iai experiences exponential growth during this lock-up time frame and the valuation of S3iai changes positively, the binding agreement allows Star to keep its locked in investment in S3iai at the initial price of $4.5-million (U.S.).

Star also retains the right and has the flexibility to invest any amount between $100,000 (U.S.) and $4.4-million (U.S.) into S3iai, which will then determine the equity share proportion that Star will end up with.

The finder's fee that Star will be paying out will be done in tranches as the deal progresses.

In tandem with this groundbreaking collaboration, Star is pleased to reveal that S3iai has entered into a three-year software development kit (SDK) platform agreement with ImagineAR, a leading augmented reality AI company. This strategic alliance will empower S3iai to integrate ImagineAR's patented global AR self-publishing platform with proprietary large language model (LLM) interactive platforms, providing clients with unparalleled immersive AR experiences seamlessly integrated with proprietary GenAI interaction.

While Star has not finalized its financing strategy, it has various options at its disposal, including an equity raise, private borrowing or the exercise of outstanding warrants. This flexibility demonstrates Star's commitment to exploring avenues that best align with its strategic objectives and market conditions.

Randy Koroll, interim chief executive officer of Star, stated, "This strategic move highlights Star's commitment to being at the forefront of innovation and supporting groundbreaking advancements in AI technology."

About Star Navigation Systems Group Ltd.

Star Navigation manufactures the in-flight safety monitoring system, Star-Isms, the heart of the Star-A.D.S. system. The Star-A.D.S. system has real-time capability of tracking, performance trends and predicting incident-occurrences, which enhances aviation safety and improves fleet management while reducing costs for the operator.

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