KWESST Signs Master Agreement with Global Defence Contractor for Digitization of Canadian Land Forces

Ottawa, Ontario, Canada -- December 14, 2021 -- InvestorsHub NewsWire -- KWESST Micro Systems Inc. (TSXV: KWE) (OTCQB: KWEMF) ("KWESST" or "the Company"), today announced that a top global defence contractor has signed a Master Professional Services Agreement ("Master Agreement") with KWESST to support the development of digitization solutions for future Canadian land C4ISR programs under Strong, Secure, Engaged: Canada's Defence Policy. ⁽¹⁾

Under the Master Agreement and initial order, KWESST will assist in the development of an initial prototype system that networks soldiers with information from various sources in real time, including location of friendly forces and adversaries, and facilitates more effective, coordinated fire. "This capability is similar to the kind of solution we provided to a key U.S. military customer under a contract now in the final stage of delivery," said Jeff MacLeod, KWESST Founder, President and CEO. "Situational awareness information like this, provided in real time, keeps soldiers safer and makes them operationally more effective, two key goals of future soldier programs throughout NATO."

The first orders are for delivery over the course of 2022 by KWESST's Digitization business unit. "This work is an important showcase precursor for Canada's next-generation Land Command Support System ("LCSS") for various procurements planned under Strong, Secure, Engaged: Canada's Defence Policy and Canada's Joint Fires Modernization Project which will enable tactical, operational and strategic fires and effects information to be shared through a digital network in near real-time. This capability will enable instantaneous sharing of the common operating picture including targets, friendly locations and command and control information," said MacLeod, who added, "We are of course very pleased to be selected for this important positioning project, which leverages our core expertise in the integration of tactical systems for dismounted soldiers."

The capability to be developed under the present order includes information exchange between applications on the same device and between applications on different platforms, in particular for "joint fires." Joint fires is the coordinated and integrated employment of all weapon platforms delivering fires (includes land, air, naval delivered indirect fires) to achieve the required effects on ground targets to support land operations in the full spectrum of conflict. It encompasses the integration of indirect fires and effects in order to influence the adversary forces, installations or functions.

(1) Source: https://canadianarmytoday.com/land-c4isr-the-bridge-to-a-better-way-to-buy-high-tech/

About KWESST

KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company's current portfolio of unique proprietary offerings include its unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market, including law enforcement and personal defence. KWESST is also involved in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCS^TM (Tactical Awareness and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other KWESST products include counter-measures against threats such as drones, lasers and electronic detection. These include the autonomous GreyGhost^TM soldier-portable micro drone missile system that defends against small hostile drones including swarms using high-speed kinetic impact; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel and the Phantom^TM electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE. KWESST trades on the TSX Venture Exchange under the symbol KWE and on the U.S. OTCQB under the symbol KWEMF.

Contact: Jason Frame, Investor Relations: [e-mail]

For more information, please visit https://kwesst.com/

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation for the purpose of providing information about management's current expectations and plans relating to the future. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. KWESST disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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