July 7, 2022 – Ottawa – KWESST Micro Systems Inc. (TSXV: KWE) (OTCQB: KWEMF) (FSE: 62U) (“KWESST” or the “Company”), a developer of next-generation tactical systems for military, security, and personal defense markets, today announced that it has been awarded a three-year contract by CounterCrisis Technology Inc. (“CC-T”) to design, develop, and implement a significant component of a national Ground Search and Rescue Incident Command System (GSAR ICS) for Public Safety Canada. Under the contract, KWESST and CC-Twill create a Search And Rescue (SAR) planning, operations management, and situational awareness service that incorporates a custom SAR plug-in application for ATAK.  ATAK is increasingly the preferred software system throughout NATO for enabling real-time shared situational awareness.

“In partnership with CC-T, we are very pleased to have won this bid with Public Safety Canada, following an extensive competitive process,” said Rick Bowes, VP of Digitization and Counter-Threat Products at KWESST.  “This is significant beyond the modest dollars involved since it further validates KWESST as the go-to company for integrated tactical level situational awareness information systems, including ATAK, for both military and public safety operations, and will showcase our capabilities to other potential customers.   When soldiers and responders all have the same information in real time the result is a safer and more effective operation, whatever the mission”.

The GSAR ICS project announced today is a version of KWESST’s advertised Critical Incident Management System (CIMS) for the public safety market (https://kwesst.com/critical-incident-management-cims/).  CIMS puts situational awareness information into the hands of responders on their smart phones or tablets in real time from any source including drones.

The contract awarded to KWESST is valued at approximately $678,000, net of in-kind contributions of approximately $76,000, over three years with services to commence in July 2022.

About KWESST

KWESST Micro System Inc. (TSXV: KWE) (OTCQB: KWEMF) (FSE: 62U) commercializes breakthrough next-generation tactical systems for military and security forces and personal defense. The company’s current portfolio of unique proprietary offerings includes non-lethal systems (PARA OPS^TM and ARWEN^TM) with application across all segments of the non-lethal market, including law enforcement and personal defence. KWESST also facilitates digitization of tactical forces with its signature TASCS system for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and indirect fire weapons. Other KWESST products include countermeasures against threats such as drones, lasers and electronic detection. These include: the Phantom^TM electronic battlefield deception system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations that deceive and confuse adversaries; a Battlefield Laser Detection System to counter the emerging threat of laser targeting of personnel; and, a non-kinetic system to counter the threat of tactical drones. These systems can operate stand-alone or integrate seamlessly with third-party OEM products and networked battlefield management systems such as ATAK. The Company is headquartered in Ottawa, Canada, with operations in Stafford, VA and representative offices in London, UK and Abu Dhabi, UAE.

About CounterCrisis Technology Inc.

CounterCrisis Technology Inc. is a Canadian private incident management technology solutions based in Ottawa that provides technology-related solutions to help its customers prepare for any identified hazard or risk, including but not limited to those that fall under the following category: accidently human-caused, biological, geological, humanitarian, intentional human-caused, meteorological, and technological.

For more information, please visit https://kwesst.com/
Contact: Steve Archambault, CFO, archambault@kwesst.com  or (613) 241-1849 Ext. 116

Jason Frame, Investor Relations: frame@kwesst.com

Investor Contact:

Dave Gentry, CEO
RedChip Companies
1-800 RED-CHIP (733-2447) 407-491-4499 KWEMF@redchip.com

Press Contact:

Angela Trostle Gorman

angela@amwpr.com

1-917-348-0083

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.