Wavefront Technology Solutions Inc. — Management Reports 2020

Jan 30, 2020

Dear Fellow Shareholders,

On-GoingChallenges In TheOil And Gas Industry

While 2019 saw benchmark oil prices for Brent Crude and West TexasIntermediate increasing approximately 26% and 35% respectively many of theworld’s top investment banks are bearish on oil prices for 2020 and do notforecast any significant change in the benchmark prices from year-end 2019.Given the capital and operating budgets of Exploration and Production (“E&P”)companies are strongly correlated to oil prices and, for shale producers, theneed to pay down debt, the Oil Field Services (“OFS”) industry faces on-goingchallenges. The share prices of the largest three OFS companies are at 5-yearlows. In the period 2015 to end 2019 approximately 190 North American OFScompanies claimed bankruptcy. Throughout this tumultuous period Wavefront(or the “Company”) not only persevered but the Company’s long-term financialhealth improved through a combination of prudent cost management and astrongly focused transformative marketing strategy. This does not meanWavefront will not face obstacles – we will. Steadfast to our operating principleswe will navigate the obstructions put before us and continue to foster purposefulrelationships and deliver outstanding results to build the Wavefront brandcountry-by-country and client-by-client. We have demonstrated our resilienceand I am confident we can rise up and address the challenges put before us.

As 2019 drew to a close we continued to strengthen Wavefront’s future with our Wavefront focused strategy of marketing Wavefront’s core technology, Powerwave[®] , in the Performance Middle East. For fiscal year 2019 revenues related to Powerwave well stimulations derived from the Middle East increased by $618,796 or 26.6% over the comparative year, and totalled 80.2% of all revenues. In renewing the Powerwave Distribution Agreement with our local distribution partner in the Kingdom of Saudi Arabia we will continue to grow on our strong Middle East presence and are eager to see Powerwave activities in other international jurisdictions establish a stronger footprint and flourish. Although revenues in the United States have yet to meet our expectations we will continue to work to maintain a strong relationship with one of our key clients, a Houston-based oil and gas producer, in which we entered into a two-year General Services Agreement (“GSA”). We have not incurred any additional expenses and have yet had to augment our Powerwave tool inventory related to the GSA; and although we not yet been able to recognize revenues, I believe we will realize the full benefits of the GSA in calendar 2020.

While there is much more to accomplish I am very proud of our current direction and the solid reputation the Wavefront brand carries.

Since its inception Wavefront has relied on research and development to expand Constant its product offerings and support future growth. Continuous innovation is an essential goal of the Company to sustain Wavefront’s position as an industry Innovation leader in the provision of advanced oil and gas well stimulation and Improved/Enhanced oil (“IOR/EOR”) recovery technology. While the Company continues to introduce and commercialize new Powerwave lines of well

stimulation tools and integrated systems Wavefront has also looked externally for complimentary technologies that will enable the Company and its Distributors to address the ever increasing complexities of maximizing production value from E&P company assets.

Accordingly, Wavefront recently entered into a licensing agreement with a Singapore-based company which provides Wavefront exclusive rights to a proprietary and patented acoustic-based well stimulation technology (“Acousticbased Technology”) in selected Middle East and North Africa countries where the Company carries on business through Distributors. The acquisition costs related to the exclusive license involved an initial payment of US $50,000 plus an ongoing royalty payment of twenty-five percent (25%) of Acoustic-based Technology net revenues received by Wavefront from product rentals. The Acoustic-based Technology is primarily deployed by wireline or slickline and not coiled tubing, the latter being the dominate conveyance method of current Wavefront well stimulation tools. The newly licensed technology competes in a well stimulation segment that historically remained untapped for Wavefront, and we anticipate that following product approvals by E&P’s it will provide growth opportunities for both Wavefront and its Distributors.

Exciting Opportunities

Adaptive And Disciplined

With the acquisition of the new license, the roll-out of new Powerwave tools and integrated systems; sales in the United States stimulation market’s approaching historical levels; and, the prospective addition of new distributors, many new exciting opportunities lay ahead for Wavefront. We look forward to such opportunities materializing into lasting growth contributions for the future of the Company.

Where necessary we will be adaptive to changing market conditions but will remain vigilant on building long-term sustainability by focusing on delivering best-in-class technology; disciplined cost control; revenue growth; and maintaining a strong balance sheet.

I would like to thank our shareholders for their continued support and look forward to reporting on our progress as it unfolds.

Sincerely,

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Brett Davidson President and CEO