ZenaTech enters the drone sensors and components market and sets up a new Taiwanese subsidiary to win more US defense contracts for its AI drones

TORONTO, Ontario – ZenaTech, Inc. (Nasdaq: ZENA) (“ZenaTech”), a technology company specializing in AI (Artificial Intelligence) drone solutions and enterprise SaaS (Software-as-a-Service) solutions, today announced that it will establish a new company in Taiwan produce drone sensors and components for use in the drone products produced by its subsidiary ZenaDrone. The new company, called Spider Vision Sensors Ltd., will ensure ZenaDrone products comply with the US National Defense Authorization Act (NDAA), a key requirement for the company to do more business with the US military.

Spider Vision Sensors Ltd. will produce drone sensors, electronics and components such as LiDAR (Light Detection and Ranging), thermal, infrared, multi-spectral and hyper sensors, cameras and PBCs (Printed Circuit Boards). By having self-manufactured sensors and components, ZenaDrone can have a steady supply to meet customer orders and drone production needs at its drone production facilities in Sharjah, UAE, and future Arizona-based drone production facilities.

Taiwan was selected for its size and skills as an electronics hub, and the availability of low-cost alternative components compared to those from China. The new company is currently in the prototype phase and the production facility is expected to open in November.

“Establishing a drone sensor and component manufacturer in Taiwan will help bring our products to market faster and eliminate dependence on Chinese-made electronics. This will position us to win more US military contracts through achieving Green UAS (Uncrewed Arial Systems) and Blue UAS certifications as an approved supplier” said CEO Shaun Passley, Ph.D.

NDAA compliance refers to complying with the provisions of the National Defense Authorization Act, a US federal law that specifies the budget and expenditures for the Department of Defense (DoD). The Blue USA program is a rigorous, government-approved supplier list of drone companies seeking to do business with the Department of Defense; suppliers must meet strict NDAA cybersecurity and supply chain sourcing requirements.

About ZenaTech

ZenaTech (Nasdaq: ZENA) is a technology company specializing in AI drone solutions and enterprise SaaS solutions for mission-critical business applications. Since 2017, the company has leveraged its software development expertise and expanded its drone design and manufacturing capabilities through ZenaDrone, to innovate and improve customer inspection, monitoring, safety, security, compliance and field service processes. With more than 100 enterprise software customers using branded software solutions in the law enforcement, government and industrial sectors, and drones deployed across these sectors, plus the agriculture, defense and logistics sectors, ZenaTech helps drive exceptional operational efficiencies and cost savings. The company operates through six offices in North America, Europe and the UAE, and a growing global partner network.

About ZenaDrone

ZenaDronea wholly owned subsidiary of ZenaTech, develops and produces autonomous business drone solutions that can integrate machine learning software, AI, predictive modeling and other software and hardware innovations. Created to revolutionize the hemp farming sector, the specialization has evolved into multi-functional drone solutions for industrial surveillance, monitoring, inspection, tracking and process automation, utilizing the ZenaDrone 1000 drone and the IQ Series drone products for indoors and outdoors.

The ZenaDrone 1000 is a autonomous dronein an eight-rotor quadcopter design, is approximately the size of a conference table, is designed for stable flight, maneuverability and heavy lifting capabilities, with innovative software technology, AI, sensors and purpose-built attachmentsStogether with compact and robust hardware designed for industrial use. It is used in the agricultural sector and enables smart farming, plant tracking and crop management. ZenaDrone products have also been field tested with the U.S. Army for the delivery of temperature-controlled critical medical supplies.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration. or qualification under the securities laws of any such state or jurisdiction.

Contacts for more information:

Company, investors and media:

Linda Montgomery

ZenaTech

312-241-1415

(email protected)

Investors:

Michael Mason

CORE IR

(email protected)

Safe haven

This press release and related comments from ZenaTech, Inc. management. contain “forward-looking statements” within the meaning of the U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as ‘may’, ‘will’, ‘should’, ‘expect’, ‘plan’, ‘anticipate’, ‘seek’, ‘seek’, ‘is/ likely,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar terminology intended to identify forward-looking statements. Forward-looking information contained herein includes, but is not limited to, ZenaTech’s expectations regarding its revenues, expenses, production, operations, costs, cash flows and future growth; expectations regarding future production costs and capacity; ZenaTech’s ability to commercialize products as currently contemplated, including its drone products, including ZenaDrone 1000 and IQ Nano; ZenaTech’s anticipated cash needs and the need for additional financing; ZenaTech’s intention to grow the business and its operational and execution risk; expectations regarding future operations and costs; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; political, economic, environmental, fiscal, security and other risks associated with operating in emerging markets; regulatory risks; unfavorable publicity or consumer perception; difficulties in predicting industry trends; the ability to hire key personnel; the competitive conditions of the industry and ZenaTech’s competitive and business strategies; ZenaTech’s expected business objectives for the next twelve months; ZenaTech’s ability to obtain additional funds through the sale of equity or debt; investment capital and market share; changes in target markets; market uncertainty; ability to access additional capital; managing growth (plans and timing for expansion); patent infringement; dispute; applicable laws, regulations and any changes affecting ZenaTech’s business.

Forward-looking statements are based on certain assumptions and analyzes made by ZenaTech management in light of its experience and understanding of historical trends and current conditions and other factors that management believes are appropriate to consider and are subject to risks and uncertainties. Although ZenaTech management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and actual results could differ materially from the forward-looking information presented. Given these risks and uncertainties underlying the assumptions made, potential purchasers of ZenaTech’s securities should not place undue reliance on these forward-looking statements.

Further, any forward-looking statement speaks only as of the date on which such statement is made and, except as required by applicable law, ZenaTech undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made or to reflect the occurrence of unexpected events. New factors emerge from time to time, and it is not possible for management to predict all such factors and assess in advance the impact of each of these factors on ZenaTech’s business, or the extent to which any factor, or a combination of factors can cause actual problems. results may differ materially from those contained in any forward-looking statement. Potential investors should read this document with the understanding that ZenaTech’s actual future results may differ materially from what is currently expected.