• Drone threat rapidly evolving into autonomous weaponized drones that hover for long periods to attack selected targets.
• Demonstration samples of new "Counter-Loitering Munitions" ("CLM") system from KWESST to be trialed in early 2022, with commercial roll-out planned for mid-2002.
• KWESST partners with U.S. drone company to produce demonstration units.

Ottawa, Ontario--(Newsfile Corp. - October 26, 2021) - KWESST Micro Systems Inc. (TSXV: KWE) (OTCQB: KWEMF) ("KWESST" or "the Company") today announced the development of a new system to counter the rapidly emerging threat of "Loitering Munitions."

Unlike conventional drone threats programmed or guided to fly straight to a target area for surveillance or to attack with improvised explosives, a Loitering Munition ("LM") is an autonomous, military grade "suicide" or "kamikaze" drone with a built-in warhead that can hover in an area for extended periods to search for targets, then attack selectively once a desired target is located.

"The threat of Loitering Munitions has been described as nothing less than a revolution in land warfare," said Jeff MacLeod, Founder, President and CEO of KWESST. The recent conflict in Nagorno-Karabakh is a widely cited contemporary example of how Loitering Munitions can play a decisive role in outcomes, leaving ground forces exposed and vulnerable. More than a dozen countries currently have Loitering Munitions, and many more are in the process of adopting them as an economic replacement for missile systems, with surgical precision and highly destructive effects.

"Loitering Munitions constitute a new niche threat where KWESST is positioned to exploit its specialist counter-threat knowledge and technology," added MacLeod. The Company stated that it is already engaged with the lead military agencies in the U.S. and other NATO countries who are urgently seeking solutions to counter the threat of Loitering Munitions.

Details of KWESST's CLM solution are sensitive for security and competitive reasons. In concept, it receives a signal from any third-party drone detection system to locate the Loitering Munition then launches an unmanned platform with a proprietary payload into its pathway to neutralize it and prevent it from completing its mission. The nature of the neutralization method allows the system to also be safely used against domestic drone threats at sensitive facilities and public events without risk of collateral damage.

KWESST has partnered with a leading U.S. drone engineering company, to carry KWESST's neutralizing payload. Together, the two companies have successfully completed the feasibility phase and have begun work to produce functioning demonstration units by early 2022, with plans for trials with U.S. military agencies in the second calendar quarter of 2022.

The Company also announced that it has completed the previously announced 'shares for debt' transaction with one of its law firms to settle $18,000 of legal fees through the issuance of 10,000 common shares.

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 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; 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. All systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems including Frontline, Edge, Killswitch and all versions of the ATAK Tactical Awareness. KWESST also has developmental "smart ordnance" projects including its "Shot Counter" system, which records the number and type of rounds fired, for optimized firearms maintenance and performance, and a unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market. 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: frame@kwesst.com

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.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100812