SOURCE: Kraken Sonar Inc.

Kraken Sonar Inc.

SOURCE: ATLAS ELEKTRONIK GmbH

ATLAS ELEKTRONIK GmbH

June 13, 2017 06:00 ET

Kraken and ATLAS ELEKTRONIK Sign Teaming Agreement

Collaboration to Offer Innovative Sensors and Underwater Robotics

ST. JOHN'S, NEWFOUNDLAND and BREMEN, GERMANY--(Marketwired - June 13, 2017) - Kraken Sonar Inc. (TSX VENTURE: PNG) announced today that its wholly-owned subsidiary, Kraken Sonar Systems Inc., has signed a Teaming Agreement with ATLAS ELEKTRONIK GmbH ("ATLAS"), a leading international defence contractor.

The objective of the Teaming Agreement is to combine the expertise and technology of both companies to provide the Royal Canadian Navy with the optimal solution for its Remote Mine Disposal System (RMDS). In addition to the RMDS program, Kraken has teamed with ATLAS to provide military grade KATFISH towed sonar systems to a leading Asian navy as part of a major mine-countermeasures procurement program.

Expanding upon this both ATLAS and Kraken are looking forward to jointly pursue further opportunities for both the Canadian and global naval defence market. Further collaboration programs between ATLAS and Kraken will be defined and disclosed within the remainder of this year.

Dr. Jens Bodo Koch, CEO of ATLAS ELEKTRONIK GmbH, said, "We are pleased to announce our cooperation with Kraken. By working together both companies can use their experience in sonar systems and maritime technology to meet customers' demands throughout the international maritime defence market. Our teaming is in alignment with our strategy to embrace new technologies, rapidly deploy smart products, improve platform efficiency and offer cost-effective solutions for our customers."

Karl Kenny, Kraken's President and CEO, said, "ATLAS represents the ideal partner for us in the military market. By offering advanced sensor solutions we expect that underwater vehicles will become more affordable and reliable, smarter and more closely aligned with operator needs. We also expect that our partnership will generate significant savings of time and money for our military customers and enhanced revenue for our combined products and services. Going forward, Kraken is already seeing expansion opportunities with additional global partners in sectors such as oil and gas, offshore renewable energy, seabed survey and ocean science."

For Kraken, the signing of the Teaming Agreement with Atlas marks a milestone achievement of its Sensors-to-Systems strategy. By teaming up ATLAS ELEKTRONIK and Kraken can offer cutting edge but affordable sensor and autonomous underwater vehicle technology on today's global market.

ABOUT ATLAS ELEKTRONIK GmbH

Headquartered in Bremen, Germany, ATLAS ELEKTRONIK is a wholly owned subsidiary of thyssenkrupp AG. Atlas supplies sonar, command and weapons deployment systems, mine warfare systems, unmanned underwater and surface vehicles, communication systems, underwater weapons as well as coastal surveillance and shipping guidance systems. For more information, please visit https://www.atlas-elektronik.com

ABOUT KRAKEN SONAR INC.

Kraken Sonar Inc. (TSX VENTURE: PNG) is a marine technology company, founded in 2012, that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. For more information, please visit www.krakensonar.com, www.krakenrobotik.de, www.krakenpower.de.

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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