QScreen AI Announces $681,000 Debt Settlement with Directors and Officers

QScreen AI Inc. (CSE: QAI) (OTC Pink: PMEDF) (FSE: 3QP) ("QScreen", "QAI" or the "Company"), an innovator in physiological AI screening and developer of an intelligence platform for clinical and occupational health applications, is pleased to announce that it has agreed to settle an aggregate of $681,000 of indebtedness owing to certain directors and officers of the Company (the "Debt Settlement") through the issuance of approximately 9.73 million common shares of the Company (the "Common Shares") at a deemed price of $0.07 per Common Share (the "Settlement Price").

The Settlement Price represents a premium of approximately 180% to the $0.025 closing price of the Common Shares on the CSE on September 18, 2026, and a premium of approximately 40% to the $0.05 price per unit under the Company's non-brokered private placement that closed on September 9, 2026. By agreeing to settle the indebtedness at a price significantly above both benchmarks, the participating directors and officers have reduced the number of Common Shares issuable pursuant to the Debt Settlement, thereby limiting dilution to existing shareholders.

The Debt Settlement eliminates $681,000 of liabilities from the Company's balance sheet without requiring any cash expenditure, allowing the Company to preserve its cash resources for ongoing operations and commercialization initiatives in the United States, Mexico and the European Union.

As certain directors and officers of the Company are participating in the Debt Settlement, the transaction constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 –  Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively, on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Debt Settlement exceeds 25% of the Company's market capitalization.

All securities issued pursuant to the Debt Settlement will be subject to a statutory hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the Canadian Securities Exchange (CSE).

About QScreen AI Inc. QScreen AI Inc. (CSE: QAI) (OTC Pink: PMEDF) (FSE: 3QP) is a health technology company building a proprietary artificial intelligence engine with quantum-inspired computing and advanced physiological sensing to clinical and occupational health assessments across correctional facilities, addiction medicine rehabilitation, and industrial workforce screening in multiple jurisdictions. For more information visit www.q-screen.ai .

Contact Dr. Rahul Kushwah, COO [email protected] (647) 889 6916

Caution Regarding Forward-Looking Information: This news release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information in this news release includes, without limitation, statements regarding the completion of the Debt Settlement, the issuance of Common Shares pursuant to the Debt Settlement, the anticipated reduction of liabilities and preservation of the Company's cash resources resulting from the Debt Settlement, and the Company's intended use of such resources for its business and commercialization activities. Forward-looking information is based on a number of assumptions that management believes to be reasonable as of the date of this news release, including assumptions regarding the receipt of all required approvals, the satisfaction of all conditions to completion of the Debt Settlement, and the Company's ability to execute its business plans and commercialization strategy. However, forward-looking information is subject to known and unknown risks, uncerta...