Kraken Sonar Uses NRC-IRAP Funding to Advance Underwater Robotics Technology - Video Available on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - March 23, 2017) - Kraken Sonar (TSXV: PNG), a marine technology company and world leader in underwater robotics & sensors, announced that its wholly-owned subsidiary, Kraken Sonar Systems, will receive a significant financial contribution from the Government of Canada. The National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) will provide a non-refundable financial contribution of up to $1,470,000.

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In addition to technical and business advisory services provided by NRC-IRAP, the funding is being used to support the development of Kraken's underwater robotics program, which involves development of a technical demonstration platform.

The first phase of the program will utilize the Fraunhofer Institute's DEDAVE Autonomous Underwater Vehicle (AUV) as the base platform. The AUV will utilize Kraken's technology which enables onboard, real-time sonar data processing, image mosaicking and on-the-fly 3D seabed mapping.

Karl Kenny, President & CEO stated: "We sincerely appreciate the continued support and assistance from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) to help us further penetrate the $600 million AUV market. Over the past few years, AUVs have evolved from an emerging, niche technology to a viable solution and an established part of operations in both military and commercial applications. Given the recent shift in industry focus from AUVs being platform/hardware-centric to becoming sensor/software-centric, we believe there is significant potential for further growth. By combining our advanced sensor technologies with cutting edge artificial intelligence algorithms, it's our objective to deliver a cost-effective AUV solution that is truly autonomous as opposed to being simply automated."

Fraunhofer, the leading organization for applied research in Europe, employs a staff of 24,500, who work with an annual research budget totaling 2.1 billion euros, at 69 institutes and research units located throughout Germany.

The global AUV market is experiencing an advanced rate of growth due to increasing demand in military, commercial and scientific research applications. Research from industry analysts Technavio forecasts that the global AUV market is expected to grow from US$600 million in 2015 to over US$2 billion by 2020.

The shares are trading at $0.195, and with 78.5 million shares outstanding, the company is capitalized at $15.3 million.

For a more information, 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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