Mr. Sean Homuth reports

KWESST MICRO SYSTEMS INC. ANNOUNCES PRICING OF PUBLIC OFFERING

Kwesst Micro Systems Inc. today priced a best efforts public offering of 3,889,000 common shares (or prefinanced warrants in lieu thereof) at a public offering price of 90 U.S. cents per common share (inclusive of the prefinanced warrant exercise price), for gross proceeds of approximately $3.5-million (U.S.), before deducting placement agent fees and offering expenses. All of the common shares (or prefinanced warrants) are being offered by the company. The offering is expected to close on Nov. 1, 2024, subject to satisfaction of customary closing conditions.

The company intends to use approximately one half of the net proceeds from this offering for product development and business development relating to BLDS, Kwesst Lightning, Arwen and Para OPS, and approximately one-half of the net proceeds for working capital and other general corporate purposes.

ThinkEquity is acting as sole placement agent for the offering.

A registration statement on form F-1 (file No. 333- 282626), relating to the shares was filed with the Securities and Exchange Commission (SEC) and became effective on Oct. 30, 2024. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State St., 41st floor, New York, N.Y., 10004.

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. Other Kwesst products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with original equipment manufacturer products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded Para Ops with application across all segments of the non-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada, with representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

We seek Safe Harbor.