Mr. Dorian Banks reports

VALDOR TECHNOLOGY INTERNATIONAL ANNOUNCES PLAN TO EXPLORE QUANTUM SECURITY AND AI-FRAUD DETECTION TECHNOLOGIES TO AUGMENT FIBER OPTIC BUSINESS, MANAGEMENT CHANGES AND COMPLETION OF DEBT SETTLEMENT

Valdor Technology International Inc. plans to explore quantum security and AI-fraud detection software to augment its existing fibre optics business. This strategic initiative aims to enhance the security and reliability of Valdor's fibre optic products and position the company as a leader in secure communication solutions.

"We believe that, as the world becomes increasingly reliant on fibre optic networks, the need for robust security measures has never been greater," said Dorian Banks, chief executive officer of Valdor. "Quantum computing poses a significant threat to traditional encryption methods, potentially jeopardizing the confidentiality of information transmitted through fibre optic cables. By exploring ways to integrate quantum-resistant security measures, we are aiming to enhance the security and reliability of our fibre optic products and ensure the long-term integrity of our customers' communication networks."

Vulnerabilities of traditional fibre optics

Traditional fibre optic networks, while offering high bandwidth and speed, are not immune to security threats. Information transmitted through fibre optic cables can be intercepted and stolen through various methods, including:

• Physical tapping: accessing the fibre optic cable and using a device to split the light signal, allowing the eavesdropper to capture the data;
• Light leakage: exploiting weaknesses in cable connectors or splices to capture leaked light signals, potentially revealing transmitted data;
• Man-in-the-middle attacks: intercepting and manipulating data between the sender and receiver, potentially compromising sensitive information.

Valdor's security initiative

Valdor plans to explore quantum security and AI fraud detection software to augment its existing fibre optic business. Specifically, the company plans to investigate the potential of:

• Quantum-resistant encryption: implementing post-quantum cryptography (PQC) algorithms to protect data from potential decryption by quantum computers;
• AI-powered fraud detection: developing or implementing AI-driven software to detect and prevent fraudulent activities within fibre optic networks, such as unauthorized access or data manipulation.

This strategic initiative aligns with Valdor's commitment to innovation and providing cutting-edge solutions that meet the evolving needs of the industry.

Market size and comparable Initiatives

The global fibre optic market was valued at $11.9-billion (U.S.) in 2023 and is projected to be worth $25-billion (U.S.) by 2032. This projected growth is expected to be driven by increasing demand for high-speed Internet and data connectivity, the rising adoption of cloud computing and data centres, and the growing need for reliable and secure communication networks.

Several companies are actively involved in developing and implementing quantum-resistant security solutions for fibre optic networks. Notable examples include:

• Quantum Xchange, which provides quantum key distribution (QKD) solutions to secure fibre optic networks;
• ID Quantique, which offers quantum-safe cryptography solutions for various applications, including fibre optic communications.

Management changes

Valdor also announces the resignation of Francis Rowe from the board of directors and from the position of chief financial officer. Valdor thanks Mr. Rowe for his contributions to the company and wishes him well in his future endeavours. To fill the vacancy, the company is pleased to announce that Amar Purewal and Kelly Abbott have been appointed to the board of directors, effective immediately, and that Mr. Purewal will also assume the role of chief financial officer.

Mr. Purewal brings a wealth of experience in the capital markets and with debt financing. Mr. Purewal comes from a commercial lending background, where he underwrote, structured and provided over $45-million in debt financings across manufacturing, industrial, commercial farming, research and development, and product development projects with the Royal Bank of Canada.

Mr. Abbott has over 10 years of experience in entrepreneurship and has founded multiple companies ranging in size and industry. He has extensive experience in the public markets and has helped raise millions of dollars in capital for private and public companies. Mr. Abbott's expertise is in marketing, corporate strategy, venture capital and business development. He has overseen the corporate development function of various private and public companies within the mining and resource, technology, cannabis, and psychedelic sectors.

Closing of debt settlement

The company announces that it has closed its previously announced debt settlement agreements to settle outstanding debts owed to creditors totalling $181,500.

Pursuant to the settlement agreements, the company has issued an aggregate of 981,081 units at a deemed price of 18.5 cents per unit. Each unit comprised one common share in the capital of the company and one common share purchase warrant. Each warrant is exercisable for one common share at a price of 25 cents per share for a period of two years. All securities issued pursuant to the settlement agreements are subject to a four-month-and-one-day hold period, pursuant to National Instrument 45-106 -- Prospectus Exemptions.

The debt settlement included the issuance of 170,270 units to Francis Rowe (the insider debt settlement), a former director of the company. This Insider debt settlement was considered to be a related party transaction, as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, given the fair market value of the transaction did not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.

The board of directors of the company determined that it was in the best interests of the company to complete the debt settlement in order to preserve the company's cash for working capital.

About Valdor Technology International Inc.

Valdor Technology International is a provider of advanced fibre optic components, specializing in the design, manufacture, and sale of passive fibre optic connectors, enclosures and other optical components. The company provides high-quality, rugged and field-installable solutions for a wide range of applications. Valdor Technology International is committed to innovation and delivering cutting-edge fibre optic solutions to meet the growing demands of the global market.

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