Vancouver, British Columbia--(Newsfile Corp. - March 18, 2026) - QSE - Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80) today announced its first municipal government post-quantum security pilot, representing an important step in the Company's expanding engagement with public-sector organizations preparing for the transition toward post-quantum cryptographic standards.

The pilot is being conducted through the Company's engagement with MISA (Municipal Information Systems Association), which supports collaboration and technology evaluation among municipal governments across Canada.

The initiative will utilize QSE's Quantum Preparedness Assessment (QPA) platform to assist the participating municipality in evaluating cryptographic exposure and assessing readiness for the long-term transition toward post-quantum security standards.

Post-quantum migration planning is increasingly becoming a priority for governments and critical infrastructure operators as advances in quantum computing are expected to eventually impact widely used encryption systems. The ability to identify cryptographic dependencies, assess risk exposure, and develop structured migration strategies is emerging as an important component of long-term cybersecurity governance.

Through the pilot program, QSE's QPA platform will support the participating municipalities in identifying areas of potential cryptographic vulnerability and establishing a structured framework for evaluating future migration planning.

"Our engagement with municipal governments reflects the growing recognition that post-quantum security planning must begin well before quantum computing capabilities reach maturity," said Ted Carefoot, CEO of QSE. "Municipal governments operate critical infrastructure and sensitive citizen data systems, making early evaluation of cryptographic risk an important step in preparing for the next generation of cybersecurity challenges."

The pilot represents the Company's first municipal government evaluation and is expected to provide insights that may support broader public-sector adoption of post-quantum security readiness planning across additional jurisdictions. The Company is currently engaged in discussions with additional municipalities evaluating similar post-quantum readiness initiatives.

QSE continues to expand its public-sector engagement through industry organizations and government technology initiatives, including its memberships in MISA and the Canadian Association of Defence and Security Industries (CADSI), as governments and public institutions increasingly begin evaluating long-term cryptographic risk associated with the transition to post-quantum encryption standards.

QSE's broader platform includes its Quantum Preparedness Assessment (QPA) migration readiness system, its qREK quantum-resilient key SDK, QAuth identity and authentication platform, and decentralized encrypted storage architecture, designed to support long-term cryptographic resilience.

About QSE — Quantum Secure Encryption Corp.

QSE - Quantum Secure Encryption Corp. is a Canadian technology company specializing in post-quantum data security, encryption, and secure data infrastructure. Built around quantum-delivered entropy and zero-knowledge architecture, QSE's solutions help protect sensitive data from current cyber threats and future quantum-enabled attacks. QSE serves organizations across commercial, enterprise, and public-sector environments requiring long-term data confidentiality and resilience.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets, and more specifically, the use of proceeds of the Offering. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks and are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, those risks and assumptions described in the Company's latest management discussion and analysis, a copy of which is available under the Company's profile on SEDAR+ at www.sedarplus.ca. While QSE considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions, continued satisfaction of Canadian Securities Exchange requirements, product safety and recalls, regulatory compliance and risks associated with the Company's business. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.

The Canadian Securities Exchange has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

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Source: Quantum Secure Encryption Corp.