KWESST Announces Grant of Stock Options

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Ottawa, Ontario–(Newsfile Corp. – August 17, 2023) – KWESST Micro Systems Inc. (TSXV: KWE) (“KWESST” or the “Company“) announces it has awarded stock options pursuant to its Long-Term Performance Incentive Plan, to its directors, employees and consultants to purchase up to an aggregate of 330,000 common shares of the Company. The stock options are exercisable at a price of $2.55 per share and will expire on August 16, 2026.

About KWESST

KWESST (TSXV: KWE) (FSE: 62UA) 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.

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

Contact:

David Luxton, Executive Chairman: luxton@kwesst.com or 613-769-5353

Sean Homuth, Chief Financial Officer: homuth@kwesst.com or 613-863-1255

Jason Frame, Investor Relations: frame@kwesst.com or 587-225-2599

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.