Mr. Andrew Skafel reports

EDGEWATER CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Edgewater Wireless Systems Inc. has closed the first tranche of its previously announced non-brokered private placement (see news releases dated Nov. 15, 2023, and Nov. 17, 2023). Pursuant to the first tranche closing of the offering, the company issued 7.83 million units at a price of five cents per unit for gross proceeds of $391,500. Each unit comprises one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional share at an exercise price of 10 cents per share for a period of 24 months from the closing date of the offering.

In connection with the offering, the company paid aggregate cash finders' fees of $2,275 and issued an aggregate of 45,500 finders' warrants. Each finder's warrant entitles the holder to acquire one additional share of the company at an exercise price of 10 cents per share for a period of 24 months from the closing date of the offering. The securities issued in connection with the first tranche closing of the offering are subject to a four-month hold period expiring on April 21, 2024. The offering is subject to final acceptance of the TSX Venture Exchange.

The company expects to use the net proceeds of the offering for product commercialization and general working capital. The company may reallocate the proceeds from the offering as may be required depending upon the development of the company's business.

In connection with the offering, the company issued one million units to Andrew Skafel, the chief executive officer and a director of the company. As a result, the offering constitutes a related party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on Section 5.5(a) and on Section 5.7(1)(a) of MI 61-101 as the fair market value of the related party participation in the offering is not more than 25 per cent of the company's market capitalization.

About Edgewater Wireless Systems Inc.

Edgewater Wireless is the industry leader in innovative spectrum slicing technology for residential and commercial markets. The company develops advanced Wi-Fi silicon solutions, access points and IP (intellectual property) licensing designed to meet high-density and high-quality-of-service needs of service providers and their customers. With 26 granted patents, Edgewater's spectrum slicing technology revolutionizes Wi-Fi, delivering next-generation Wi-Fi today.

Edgewater's physical layer spectrum slicing allows a frequency band to be divided or sliced to enable more radios to operate in a given area. Think of spectrum slicing like moving from a single-lane road to a multilane highway -- regardless of Wi-Fi technology. The recently completed proof of concept (PoC) with a major Tier 1 service provider showed seven to 18 times performance gains in 75 per cent of homes surveyed. Interestingly, homes with the most devices saw the most significant improvements.

We seek Safe Harbor.