Nanotech Updates Post Year-end Matters

VANCOUVER, BC--(Marketwired - December 22, 2016) - Nanotech Security Corp. (TSX VENTURE: NTS) (OTCQX: NTSFF), announces the filing of its Annual Information Form ("AIF") for the year ended September 30, 2016 with the Canadian securities regulatory authorities on the System for Electronic Analysis and Retrieval ("SEDAR"). An electronic copy of the AIF may be obtained on the Company's website at www.nanosecurity.ca or on the Company's SEDAR profile at www.sedar.com.

The Company granted 489,000 restricted share units, of which 411,00 are to directors and officers. The Company has also granted an aggregate of 411,000 share purchase options to directors and officers. The options are for five years at $1.48 and brings the total options granted to 4.9% of outstanding shares.

The Company also announces that, subject to regulatory approval, it has retained Mackie Research Capital Corporation ("Mackie") to provide market-making services in accordance with TSX Venture Exchange ("TSXV") policies. Mackie will trade shares of the Company on the TSXV with the objective of maintaining a reasonable market and improving the liquidity of the Company's common shares.

Under terms of the agreement, Mackie will receive compensation of $3,000 per month, payable quarterly in advance. The agreement is for a one year term after which it may be terminated by either party with 60 days' notice. There are no performance factors contained in the agreement and Mackie will not receive shares or options as compensation. Mackie and the Company are unrelated and unaffiliated entities, but Mackie may provide investment banking services to the Company and Mackie and/or its client may have an interest, directly or indirectly, in the securities of the Company.

About Mackie Research Capital Corporation

Mackie is one of Canada's largest independent full-service investment firms, and proudly traces its roots back to 1921. Mackie is privately owned by many of its 300 employees. As a fully integrated national investment dealer, Mackie offers a full complement of capital markets and wealth management services to private clients, institutions and growth companies.

About Nanotech Security

Nanotech Security Corp. has been a leading innovator in the design and production of advanced banknote and commercial branding authentication products. Nanotech's KolourOptik® and Plasmogram™ products are nanotechnology based optical imaging product platforms originally inspired by the unique optical properties of the iridescent wings of the Blue Morpho butterfly. Our nano-optical products produce intense, high definition optically-variable images and colour-shift optical thin films. Activated by a simple tilt or rotation, with higher resolutions than the best LED-displays, they are ideal for authentication of currency, passports, and identification cards in addition to distinguishing branded goods from counterfeits.

Additional information about Nanotech can be found at the Company's website www.nanosecurity.ca, the Canadian disclosure filings website www.sedar.com or the OTCMarkets disclosure filings website www.otcmarkets.com.

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