Star Navigation Systems Group Ltd. Announces Strategic Regional Partnership in Saudi Arabia

Star secures a 50% profit-sharing, five-year exclusive Saudi partnership, contingent on the new Saudi entity’s incorporation, financing and approvals.

Rhea-AI Summary

Star Navigation Systems Group (SNAVF) has signed a strategic regional partnership agreement effective March 7, 2026 with representatives of a special purpose company to be incorporated in Saudi Arabia. The deal covers local commercialization, manufacturing, assembly, integration and support of Star’s aviation technologies in the Kingdom.

The agreement grants the Saudi Company exclusive rights in Saudi Arabia, subject to its terms and existing obligations, and contemplates a facility in Riyadh. Star retains ownership of its existing intellectual property, while approved future developments will be jointly owned on a 50/50 basis. Technologies such as STAR-A.D.S.® and STAR-ISMS® will be marketed under the localized branding “Made in Saudi Arabia. Powered by STAR.”

Star will receive 50% of net profit from covered Saudi activities, after allowable business expenses, with capitalized setup costs recovered via depreciation or amortization. The Saudi Company will lead funding and implementation, seeking grants and incentives under Saudi Vision 2030, while Star provides technical, training and operational support. The agreement has an initial five-year term with renewal provisions and is subject to incorporation, financing and required approvals.

Positive

• 50% profit share for Star on net profit from covered Saudi activities
• Exclusive Saudi rights with a contemplated Riyadh facility for manufacturing and support
• Future technology developments under the deal are jointly owned 50/50
• Saudi partner bears funding and most local implementation costs after initial support period
• Alignment with Saudi Vision 2030 may enable access to grants and industrial incentives

Negative

• Implementation is conditional on incorporation, financing and required approvals for the Saudi Company
• Capitalized setup costs are recovered via depreciation/amortization, not upfront, delaying cash benefit
• No government grants or SIDF financing approvals have been obtained yet

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Brampton, Ontario--(Newsfile Corp. - September 8, 2026) - Star Navigation Systems Group Ltd. (CSE: SNA) ("Star" or the "Company") is pleased to announce a strategic regional partnership agreement with Mr. Faraz Ali Khan and Mr. Syed Majid Uddin, acting on behalf of a special purpose company to be incorporated in Saudi Arabia (the "Saudi Company"). The agreement, effective March 7, 2026, establishes a framework for the local commercialization, manufacturing, assembly, integration and support of Star's aviation technologies in the Kingdom.

The partnership represents a further step in Star's strategy of working with partners that contribute local market access, funding and operating capabilities, while Star contributes its technology and technical expertise and retains ownership participation in the resulting business.

Saudi operations and commercial framework
The agreement provides for exclusive rights within Saudi Arabia, subject to its terms and existing binding obligations, and contemplates a manufacturing, assembly, engineering and support facility in Riyadh. Star retains ownership of its pre-existing intellectual property. Approved future technology developments under the agreement will be jointly owned by Star and the Saudi Company in equal shares.

Under the agreement, STAR-A.D.S.® / STAR-ISMS® and related technologies will be marketed and branded to reflect Saudi localization and Star's underlying technology contribution, using the designation: "Made in Saudi Arabia. Powered by STAR."

This branding will apply as appropriate and legally permissible, unless the parties agree otherwise in writing, supporting Saudi industrial localization while maintaining recognition of Star's technology.

Star will earn 50% of the net profit from the covered Saudi activities, calculated after allowable costs for relevant business expenses. Capitalized setup costs are deductible through depreciation or amortization under applicable Saudi accounting standards, rather than full upfront recovery. Purchase costs for land and buildings are excluded from the plant setup capital expenses covered by this mechanism. The agreement has an initial five-year term, with renewal provisions.

The Saudi Company will lead funding and local implementation. Star will provide agreed technical, training and operational support, with specified payroll and relocation costs borne by the Saudi Company after the initial support period and a designated employee's relocation. Implementation remains dependent on incorporation, secured financing and required approvals by the Saudi Company.

Funding aligned with Saudi Vision 2030
The Saudi Company intends to seek government grants and industrial incentives for which the project qualifies, together with appropriate financing, in support of Saudi Vision 2030's industrial development and localization objectives. The relevant policy framework includes the National Industrial Development and Logistics Program ("NIDLP"). Potential support routes to be evaluated include the Standard Incentives Program for the Industrial Sector and project financing from the Saudi Industrial Development Fund ("SIDF"). SIDF financing is distinct from grant funding. Eligibility, application requirements and availability will need to be established; no government funding approval or award is being announced at this time.

Star's strategy: A disciplined approach to growth
Over the past two and a half years, management and the Company's consultants have worked consistently to identify, develop and negotiate strategic opportunities while operating with very limited financial resources. This work has focused on building relationships that combine Star's technology and expertise with partners' funding, operating capabilities and market access. Star has pursued arrangements that reduce operating expenses borne by the Company or that provide reimbursement of agreed expenses by strategic partners, while preserving rights to a portion of net profits or royalties, as applicable under each agreement.

Management's approach has been to use the Company's available resources carefully, protect its technology interests and establish a foundation for long-term growth. The focus is on opportunities with defined responsibilities, manageable funding requirements and a clear basis for commercial returns. The Saudi partnership reflects this sustained strategic work and provides a framework for extending Star's technology into a new market while retaining participation in future profits.

Randy Koroll, CEO of Star, says that years of hard and continuous work by the Company and its consulting group have resulted in the signing of this opportunity. Star is also engaged in ongoing discussions with other companies and groups regarding additional strategic business opportunities, potential strategic investments and entry into new business verticals.

We continue to develop these relationships and evaluate opportunities for strategic fit, funding requirements, execution risk and potential contribution to long-term company value. Star will announce any material contracts or other material developments arising from these discussions and opportunities as they occur, in accordance with its disclosure obligations.

About Star Navigation Systems Group Ltd.
Star Navigation Systems Group Ltd. develops and manufactures the STAR-ISMS® (In-flight Safety Monitoring System), the core component of the Company's STAR-A.D.S.® (Aircraft Data System) platform. The STAR-A.D.S.® system provides real-time tracking, performance monitoring, trend analysis, and predictive capabilities designed to enhance aviation safety, improve fleet management, and reduce operating costs.

Through its MMI Division (Military and Defense), Star also designs and manufactures high-performance, mission-critical flight deck flat-panel displays for defense and commercial aviation markets worldwide.

Forward-Looking Information
Certain statements in this news release may constitute "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that Star expects or anticipates may occur in the future.

When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements.

Forward-looking statements reflect the current expectations and beliefs of Star's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Star or the industry may be materially different from those implied by such forward-looking statements.

Examples of such forward-looking information that may be contained in this news release include statements regarding; growth and future prospects of our business; our perceptions of the industry and markets in which we operate and anticipated trends in such markets; expectations regarding the operation of our app; and our future revenues.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements may include, but are not limited to, our ability to execute on our business plan, increase visibility amongst consumers and convert users to revenue producing subscribers and the success of the business of our partners.

Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved.

Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Accordingly, readers should exercise caution in relying upon forward-looking statements and Star undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CANADIAN SECURITIES EXCHANGE) ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Please visit www.star-navigation.com or contact

Mr. Randy Koroll, CEO at 1-416-252-2889 #228 or randy.koroll@star-navigation.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313301

FAQ

What operational structure does the Saudi partnership establish for Star Navigation?

The agreement establishes a framework for local commercialization, manufacturing, assembly, engineering, integration and support of Star’s aviation technologies in Saudi Arabia, with a contemplated facility in Riyadh. The Saudi Company will lead funding and local implementation, while Star will provide agreed technical, training and operational support. After the initial support period and a designated employee’s relocation, specified payroll and relocation costs will be borne by the Saudi Company.

How are intellectual property rights handled under the Saudi agreement?

Star retains ownership of its pre-existing intellectual property. Approved future technology developments under the agreement will be jointly owned by Star and the Saudi Company in equal shares. Marketing of STAR-A.D.S.® / STAR-ISMS® and related technologies will use localized branding, “Made in Saudi Arabia. Powered by STAR,” where appropriate and legally permissible, unless the parties agree otherwise in writing.

How will Star’s profit share from Saudi operations be calculated?

Star will earn 50% of the net profit from the covered Saudi activities. Net profit is calculated after allowable costs for relevant business expenses. Capitalized plant setup costs are deductible through depreciation or amortization under applicable Saudi accounting standards, rather than being fully recovered upfront. Purchase costs for land and buildings are excluded from the plant setup capital expenses covered by this mechanism.

What is the term of the Saudi partnership and can it be renewed?

The agreement has an initial term of five years. It includes provisions for renewal, allowing the parties to extend the relationship beyond the initial period, subject to the terms set out in the agreement.

What potential funding sources may support the Saudi project?

The Saudi Company intends to evaluate government grants and industrial incentives available under programs aligned with Saudi Vision 2030, including the National Industrial Development and Logistics Program. Potential support routes include the Standard Incentives Program for the Industrial Sector and project financing from the Saudi Industrial Development Fund. SIDF financing is distinct from grant funding, and eligibility, requirements and availability must still be established. No government funding approvals or awards are announced.

How does this partnership fit Star Navigation’s broader growth strategy?

Management describes a multi-year effort to structure arrangements that combine Star’s technology and expertise with partners’ funding, operating capabilities and market access. The approach emphasizes careful use of limited resources, protection of technology interests, and opportunities with defined responsibilities and manageable funding requirements. The Saudi partnership is presented as part of this disciplined approach, enabling entry into a new market while preserving Star’s participation in future net profits.