• Total revenue of $15.8 million in Q1 Fiscal 2023, an increase of 127% year-over-year.

Vancouver, British Columbia--(Newsfile Corp. - May 29, 2023) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries ("Plurilock" or the "Company"), an identity-centric cybersecurity solution provider for workforces, today announces its financial results for the three months ended March 31, 2023. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

"During the first quarter of 2023, Plurilock achieved significant business milestones with respect to its revenue and gross margin, which saw double-digit growth as compared to the same period in the prior year," said Ian L. Paterson, CEO of Plurilock. "Overall, Q1 Fiscal 2023 was a transformational quarter attributable to the strategic and creative acquisitions closed in 2022. These strong financial results reflect our ongoing efforts to expand our margin profile through streamlining operations, securing more software sales, while focusing our attention on growth and executing on our strategy to achieve profitability."

Key Business Milestones During Q1 Fiscal 2023

• Revenue increased to $15.8 million in Q1 2023 from $7.0 million in Q1 2022, directly attributable to the strategic acquisitions of Integra and Atrion in 2022.

• Gross margins increased to 13.6% in Q1 2023 from 6.6% in Q1 2022, driven primarily by the Company's 2022 acquisitions, pricing strategy and its focus on securing high-margin software sales.

• A total of 16 sale orders and contract renewals, including cross-sale purchase orders with two U.S. financial institutions for the Company's flagship AI-driven technology offering were announced.

First Quarter Fiscal 2023 Financial Highlights

• Total revenue for the three months ended March 31, 2023, was $15,767,328 as compared to $6,953,052 for the three months ended March 31, 2022. Revenue for three months ended March 31, 2023, is significantly higher than the prior year period ended March 31, 2022, as a result of the acquisitions of the ("INC"), as well as the asset acquisitions of Atrion ("ATR") and CloudCodes ("CC") along with the increase in organic sales volume and cross selling amongst the Solutions and Technology Division.

• Hardware and systems sales revenue for the three months ended March 31, 2023 totalled $12,444,129 compared to $6,495,896 in the prior year for the same period. Software, license, and maintenance sales revenue for the three months ended March 31, 2023 was $2,713,578 compared to $429,456 in the prior year for the same periods. Professional services revenue was $609,621 for the three months ended March 31, 2023 compared to $27,700 in the prior year for the same periods.

• Hardware and systems sales revenues for the three months ended March 31, 2023, accounted for 78.9% of total revenues compared to 93.4% for the three months ended March 31, 2022. Software, license, and maintenance sales revenues for the three months ended March 31, 2023, accounted for 17.2% compared to 6.2% for the three months ended March 31, 2022. Professional services revenue for the three months ended March 31, 2023, accounted for 3.9% of total revenues, compared to 0.4% for the three months ended March 31, 2022.

• Gross margin for the three months ended March 31, 2023, was 13.6% compared to 6.6% for the three months ended March 31, 2022.

• Adjusted EBITDA for the three months ended March 31, 2023, was $(975,305) compared to $(1,886,015) in the prior year period ended March 31, 2022.

• Cash and cash equivalents and restricted cash on March 31, 2023, was $1,430,275 compared to $2,853,107 on December 31, 2022.

• During the three months ended March 31, 2023, the Company generated $1,699,960 of cash from operating activities compared to $4,501,599 of cash used in the prior year period.

First Quarter Fiscal 2023 Operational Highlights

• On January 3, 2023, the Company issued 440,277 of common shares at $0.125 related to the convertible debenture December 31, 2022, interest payment of $55,036.

• On January 17, 2023, the Company closed the third and final tranche of the Units Financing for aggregate gross proceeds to the Company of $198,995 consisting of 1,421,393 units at a price of $0.14 per unit and share issuance costs of $7,410 bringing the total gross proceeds of the Units Financing to $1,755,115.

• On February 1, 2023, the Company appointed Blake Corbet, a seasoned veteran with over 25 years of investment banking and corporate executive experience, to its Board of Directors and announced granting certain officers, employees, and consultants of the Company an aggregate of 3,908,667 options to purchase Common Shares at an exercise price of $0.15 per share, which will vest over four years from the grant date.

• On February 2, 2023, the Company announced that it received a cross-sale purchase order for its flagship software platform from a U.S. credit union.

• On February 7, 2023, the Company announced that it received a cross-sale purchase order for its flagship software platform from a U.S. financial institution that has been operating for over 60 years and has regional offices across multiple U.S. states.

• On February 9, 2023, the Company received seven new California Multiple Award Schedule (CMAS) contracts, enabling Plurilock to provide offers for its products and services to more organizations via the CMAS program, and potentially secure additional customers within California.

• On March 2, 2023, the Company announced the completion of the SOC 2 Type II Report renewal.

• On March 22, 2023, the Company was approved for an increase to its existing INC $1.5 million revolving line of credit ("INC LOC") dated July 29, 2022, from Pathward, National Association, a division of MetaBank, N.A, for up to $2.0 million effective March 8, 2023.

• On March 23, 2023, the Company announced that it has received a $3.4 million purchase order for Plurilock's IT solutions from the Department of National Defence.

Growth Outlook for 2023

As part of the Company's growth strategy to reach profitability, Plurilock aims to execute the following initiatives:

• Increase cross-selling of Plurilock's high-margin software solutions to the Company's growing customer pipeline.

• Streamline operations by further unlocking synergies between the Company and previous acquisitions to improve Plurilock's bottom-line.

• Adjust pricing of Technology Division's products to offer competitive rates to customers while increasing gross margins.

• Advance Plurilock's M&A strategy to complete accretive acquisitions of synergistic business with strong technology assets and extensive customer networks in key regional markets.

Share Issuance

The Company has issued 2,352,941 common shares of the Company at $0.17 per share in accordance with the earn-out provisions of the share purchase agreement dated March 4, 2022 between the Company, Integra Networks Corporation ("Integra") and Integra's sole shareholder, such agreement is available under the Company's SEDAR profile at www.sedar.com.

Summary of Key Financial Metrics

Note:

(1) Non-GAAP measure. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines EBITDA as earnings before interest, taxes, and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation, financing, and acquisition related expenses. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

Non-IFRS measures

This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about operating performance. Plurilock defines EBITDA as net income or loss before interest, income taxes, depreciation, and amortization. Adjusted EBITDA removes non-cash share-based compensation, financing, and acquisition-related expenses from EBITDA. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the adjustments do in fact reflect the underlying financial results of Plurilock's business and these effects should not be ignored in evaluating and analyzing Plurilock's financial results. Therefore, management believes that Plurilock's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Readers should refer to the Company's most recently filed MD&A for a more detailed discussion of these measures and their calculations.

Quarterly Filings

Management's Discussion and Analysis and Interim Condensed Consolidated Financial Statements and the notes thereto for the fiscal period ended March 31, 2023 can be obtained from Plurilock's corporate website at www.plurilock.com and under Plurilock's SEDAR profile at www.sedar.com.

About Plurilock

Plurilock secures workforces, delivering least privilege access management and advanced IT solutions to commercial and government customers worldwide. With industry-leading artificial intelligence and patented real-time identity confirmation technology, Plurilock combines next-generation cybersecurity with a comprehensive line of products and services that enable teams across North America and the globe to compute safely in a remote work world.