Mr. David Luxton reports

KWESST UPDATES INVESTORS ON PROGRAMMATIC BUSINESS RAMP-UP

Kwesst Micro Systems Inc. has provided an update to investors on the ramp-up of activity on its subcontract to Thales Canada in support of the Canadian Department of National Defence Land C4ISR series of contracts to modernize the Canadian Army's capabilities through advanced land command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) systems program.

Under the task-based contract, Kwesst has now deployed five full-time engineers to the program and is in various stages of staffing an additional 11 positions, totalling a current demand for 16 full-time technical positions. The company expects this to continue to increase staffing as future taskings are received.

"The early and steep ramp in activity under this subcontract reflects the urgency and importance of the work to Canada. Our collective ability to respond is testament to the high-trust working relationship we've developed with our partners at Thales. This work has also been, and continues to be, foundational in driving the skills required to deliver defence-grade solutions to law enforcement and first responders through Kwesst Lightning," said Sean Homuth, Kwesst president and chief executive officer.

While Kwesst's maximum workshare under the subcontract is approximately $48-million over the initial six-year term, the continued ramp-up of activity on the program remains dependent on the timing and extent of task orders issued by the customer. Management will continue to provide guidance on the impact of those activities to revenue in future reporting periods.

About Kwesst Micro Systems Inc.

Kwesst develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons.

We seek Safe Harbor.