Kraken Solar Reports Significant Increase in Revenues and Positive Net Profit - Video Available on Investmentpitch.com

Vancouver, British Columbia--(Newsfile Corp. - December 2, 2016) - Kraken Sonar (TSXV: PNG), a marine technology company and world leader in underwater robotics & sensors, reported a significant improvement in revenues for the recent quarter. The company generates revenue from three main product areas: MINSAS sensors, CVL sensors, and KATFISH underwater vehicles.

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Revenues for the quarter ended September 30, 2016 were $944,000, an increase of 91% over the $493,000 reported in the comparable quarter in 2015. The net profit was $19,000 for the quarter versus a net loss of $393,000 in the year ago quarter.

Kraken is a leading developer of Synthetic Aperture Sonar, or SAS, an advanced sonar technology capable of producing ultra-high resolution imagery at long ranges, which can be more than ten times the range of conventional side scan sonar. Within the video, an image of a 20 metre towrope lying on the seabed illustrates the difference between Kraken's SAS technology and conventional side scan sonar technology.

Kraken's technology was selected by Defence Research and Development Canada for deployment in the Franklin Expedition search of 2014, earning recognition from leading scientists and government agencies for its differentiation and performance in producing images of the Arctic seafloor that were unprecedented in their clarity and accuracy.

During the quarter, the company made a strategic partnership with Square Robot Inc. through the purchase of 16% of the company. Kraken is working with Square Robot to design, manufacture, and support advanced robotic systems for confined area inspection applications for use in the oil and gas industry, a sector that management believes will generate significant revenues in coming years.

The company will be receiving a $500,000 non-repayable financial contribution from the NRC IRAP program to cover costs associated with its new Autonomous Launch and Recovery System program, designed to handle the dangerous and challenging job of launching and recovering expensive underwater equipment.

Karl Kenny, President & CEO stated: "We continue to focus on executing against our long-term Sensors-to-Systems strategic plan and are very optimistic given the opportunities that we see emerging in the underwater robotics industry. We have a great team, our technology portfolio is growing and we have proven and robust products. We're excited about the many requests for proposals we have received regarding KATFISH from international military and commercial customers. We are now in the final stages of production, and we expect KATFISH sea trials to start in mid-December. We plan delivery of our first KATFISH product to Elbit Systems Ltd. in early 2017. We are continuing discussions with several strategic partners for the development of an underwater drone that will incorporate Kraken's AquaPix® Synthetic Aperture Sonar technology for advanced seabed survey applications."

The shares are trading at $0.14, and with 78.5 million shares outstanding, the company is capitalized at $11 million.

For a more information, including a comprehensive investor presentation, please visit the company's website www.krakensonar.com, or contact Greg Reid, CFO, at 416-818-9822 or email greid@krakensonar.com.

Investor relations is handled by Sean Peasgood of Sophic Capital, who can be reached at 416-565-2805 or email sean@sophiccapital.com.

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