Jemtec Inc. — Earnings Release 2024

Mar 27, 2024

JEMTEC INC.TSX-V: JTC

Source: JEMTEC Inc.

FOR IMMEDIATE RELEASE

JEMTEC 2024 Q2 & FINANCIAL UPDATE

March 27, 2024, Vancouver - JEMTEC Inc. (TSX-V: JTC) (the “Company”) is pleased to provide an update on its performance for the fiscal Quarter ended January 31, 2024 (2024 Q2) and the Companies situation, showing a quarterly profit, no debt, strong liquidity and net worth.

Q2 Revenues

Revenues have increased by 19% during the quarter ended January 31, 2024 compared to the quarter ended January 31, 2023 primarily due to the expansion with the province of Saskatchewan. The Company earned revenues on its agreements with the Provinces of Saskatchewan, CSC, interest on cash balances and from private bail clients waiting release from court dates.

Q2 Expenses

During the quarter ended January 31, 2024, expenses decreased by 8% compared to the quarter ended January 31, 2023 primarily due to the fluctuations in consulting fees, equipment rent and installation, monitoring and activation fees, repairs and maintenance, salaries and benefits, sharebased payments and shipping expenses.

Q2 Income Tax

For the quarter ended January 31, 2024, the Company recognized a current income tax expense (recovery) of $1,484 (January 31, 2023 - ($3,345)) and a deferred income tax expense of $Nil (January 31, 2023 - $7,000). The current income tax expense was related to income tax in Canada. The deferred income tax expense was related to unrecognized deferred tax assets.

Q2 Net Income

For the quarter ended January 31, 2024, the Company recorded a net income of $15,034, compared to a net loss of $92,729 during the quarter ended January 31, 2023. This increase in net income is primarily associated with the expansion of the Saskatchewan contract and the decrease in expenses related to the loss of contracts.

Q2 Liquidity

At January 31, 2024, the Company had cash and cash equivalents of $2,303,198 and working capital of $2,275,366. All cash and cash equivalents are on deposit with a Schedule I bank in Canada in current or interest accruing accounts.

Eric Caton, President and CEO said, "We are pleased to record a profit and continue the process of reducing expenses and reorganizing our business model with a greater awareness on nongovernment contracts, we expect the results should show positive returns going forward and we continue to see the Company well positioned to grow its core business”. Jemtec has provided a full spectrum of monitoring technologies and services to provincial and federal correctional and border services across Canada since 1987 and in doing so has built a reputation for offering the best technological solutions and support for use in this demanding environment.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward - looking statements reflect management's current beliefs and are based on assumptions made by and information currently

available to the Company. Investors are cautioned that these forward- looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

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For further information contact: Eric Caton, President Phone (877) 929-4559 Fax (877) 929-4198 www.jemtec.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.