Kraken Awarded $400,000 Aquapix(R) Sonar Contract

Kraken Robotics Inc. (TSX VENTURE: PNG) (OTCQB: KRKNF), announced today that its wholly-owned subsidiary, Kraken Robotic Systems Inc., has been awarded a repeat contract valued at over C$400,000 by a leading military customer for its AquaPix® Miniature Synthetic Aperture Sonar system. Due to the confidential nature of the application, the customer's name will not be disclosed. Delivery is expected in Q2, 2018.

Karl Kenny, Kraken's President and CEO said, "We are very pleased with this repeat contract award. AquaPix® is an industry-leading sonar system providing military grade technology that enables superior 3D seabed imaging and faster data processing at a lower cost than competing sonars. With militaries' increasing focus on Autonomous Underwater Vehicles (AUVs), Kraken is well-positioned in this high-priority, high-potential growth area. We thank our customer for their ongoing support and confidence in our technology and products."

AquaPix® is designed for operation on AUVs and towed platforms. Its modular system architecture uses the latest electronics, transducer arrays and real-time signal processing software optimized for the demanding size, weight, power and cost constraints of unmanned underwater vehicles.