Value proposition

Kraken’s KATFISH Towed Sonar Delivers Strong Seabed Intelligence Value Proposition

St. JOHN’S, NEWFOUNDLAND – The War in the Ukraineand the recent sabotage of the Nordstream submarine pipelines in the Baltic seafurther emphasizes the growing demand for underwater technologies capable of providing seabed information when and where it is most needed. Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), from Canada ocean companyfocuses entirely on this market, with a suite of technologies that dramatically improve image quality and dramatically reduce the time of traditional seabed surveys, delivering actionable seabed intelligence in a timely manner.

Kraken’s KATFISH system was recently demonstrated at several international naval exercises. It showed an ideal combination of Kraken’s rapidly deployable high-resolution seabed mapping with a robust launch and recovery solution for deep-sea operations on second-hand vessels.

KATFISH is gaining traction in the defense and commercial markets as a solution offering an incredible value proposition for seabed intelligence. KATFISH is a high-speed, actively stabilized Synthetic Aperture Sonar (SAS) towed fish that operates at speeds of up to 10 knots.

KATFISH’s high-speed capability and consistent resolution dramatically increase area coverage ratios (ACRs) by providing more usable data than traditional sidescan sonars. KATFISH provides consistent range-independent resolutions of 3 cm x 3 cm and area coverage rates (ACR) of up to 4 km2/hour, with swaths of up to 400 meters, including simultaneous 3D bathymetry at full swath. With post-processing, constant resolution imagery of 1.9 cm x 2.1 cm is available.

KATFISH has been successfully integrated and deployed on more than a dozen manned and unmanned vessels ranging in length from 12m to 80m. This included technology demonstrations in United States at the Advanced Naval Technology Expo (ANTX) and Trident Warrior, at the WISEX event in the UKas well as sales and integration with government defense customers and prime contractors in Israel, United States, Germany, Polandand Denmark. By the end of 2022, Kraken will have delivered six KATFISH systems to NATO navies, along with spare parts and comprehensive training programs.

Our KATFISH technology is cited for many defense contractors and navies in a range of defense industry offerings in North America, Europethe Middle Eastand Asia Pacific. These tenders in progress or about to be launched represent several hundred million revenue opportunities from KATFISH for Kraken over the next 5 years. As our customer reference list grows and we demonstrate strong performance with reasonably priced systems, our market momentum is accelerating.

Defense market opportunities abound

Kraken is experiencing strong growth in defense market opportunities for KATFISH, driven by several factors, the most dominant being technological obsolescence, amplified by the tense geopolitical climate. On the geopolitical level, the war between Russia and Ukraine has placed more emphasis on the defense market and defense technologies, most NATO countries planning to ramp up defense spending. In addition, other regions of the world, from Middle East to South China Sea and the arctic will continue to be prime areas of interest among major world powers, driving significant and continued spending in next-generation seabed intelligence solutions such as KATFISH.

Although not a new threat, the protection of seabed infrastructure is once again in focus following the recent Baltic pipe leaks. Every nation is now acutely aware of the threat and potential impact of various state and non-state actors who engage in sabotage of energy and communications infrastructure on or under the seabed. Today, more than 400 submarine data cables carry approximately 98% of the world’s international data and telephony Internet traffic. With so many countries dependent on the thousands of miles of undersea pipelines, power and communications cables that cross the ocean floor, there is a real and present danger of sabotage of undersea infrastructure.

The underwater explosive ordnance threat is an asymmetric threat where mines and low-cost explosives can damage and destroy critical assets, whether they be underwater pipelines or multi-billion dollar navy ships. dollars. The majority of minehunting vessels in service today are rapidly reaching the end of their life or becoming obsolete. Industry data shows that of the more than 300 minehunting vessels in service in Europe, Asia Pacific and the Middle East/North Africa, 70%+ are over 20 years old. In North America, the minehunting fleet faces similar challenges. Most navies around the world are moving forward or planning to move forward with major technology renewals or replacements. With this industry upgrade cycle underway, Kraken is well positioned to provide a variety of solutions.

Commercial market growth driven by offshore wind and oil & gas

As a dual-use technology, KATFISH’s value proposition is also gaining momentum in commercial markets with new customers in the offshore oil and gas, power and offshore wind sectors. Kraken offers the ability to generate ultra-high resolution data at high area coverage rates, resulting in more economical data acquisition costs for customers. In commercial markets, customers seek KATFISH as a turnkey service offering, unlike in the defense market where customers generally prefer to purchase KATFISH and operate it themselves.

ON KRAKEN ROBOTICS INC.

Kraken Robotics Inc. (TSX.V:PNG) (OTCQB:KRKNF) is a marine technology company dedicated to the production and sale of software-centric sensors, underwater batteries and underwater robotic systems. The company is headquartered in Newfoundland with offices at Canada, WE, Germany, Denmarkand Brazil. In July 2021, Kraken has acquired PanGeo Subsea, a leading services company specializing in high-resolution 3D acoustic imaging solutions for the seabed. PanGeo with offices in Canada, United States and the UK is now a wholly owned subsidiary of Kraken. Kraken is ranked among the top 100 marine technology companies by Marine Technology Journalist.

Certain information contained in this press release constitutes forward-looking statements. When used in this press release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek ”, “propose”, “estimate”, “expect” and similar expressions, with respect to the Company, are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements regarding, among other things, business objectives, expected growth, results of operations, performance, business plans and opportunities, and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. These statements reflect the Company’s current views with respect to future events based on certain important factors and assumptions and are subject to certain risks and uncertainties, including, without limitation, market changes, competition, governmental or regulatory developments, general economic conditions and other factors in the Company’s public disclosure documents. Many factors could cause the actual results, performance or achievements of the Company to differ from those described in this press release, including, without limitation, those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from those described in this press release and from such forward-looking statements included or incorporated by reference in this news. release, should not be unduly invoked. These statements speak only as of the date of this press release. The Company does not intend and undertakes no obligation to update these forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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Contact:

Joe McKay

Financial director

Such. : (416) 303-0605

Email: [email protected]

Greg Reid

CEO

Such. : (416) 818-9822

Email: [email protected]

Investor

Sean Peasgood

Such. : (647) 955-1274

Email: [email protected]