Maritime Launch Services : Interim Management Discussion and Analysis - September 30, 2021

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Management Discussion and Analysis (MD&A)

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MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND DECEMBER 31, 2019

Reference to the "Company," "our", "us" or "we" refer to Maritime Launch Services Ltd. ("MLS") together with its wholly-owned subsidiary, Maritime Launch USA Inc.

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with the unaudited interim condensed financial statements of the Company for the three and nine-months ended September 30, 2021 and the accompanying notes (the "Q3 2021 Financial Statements"), and the audited financial statements of the Company for the years ended December 31, 2020 and December 31, 2019 and accompanying notes (the "MLS Annual Financial Statements").

The Q3 2021 Financial Statements and MLS Annual Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All dollar amounts are expressed in Canadian Dollars ("CAD") except where otherwise indicated.

The information in this MD&A is current to April 22, 2022, unless otherwise noted.

FORWARD-LOOKING INFORMATION

This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, information with respect to the Company's objectives and strategies to achieve these objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates, intentions and views of future events. Discussions containing forward-looking information may be found throughout this MD&A. In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward looking information. Statements containing forward-looking information are not historical facts. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements include those relating to:

• expectations for space industry growth which may be impacted by new technology and geopolitics;
• the availability and cost of the launch vehicles which may be impacted by final development and geopolitics;
• the demand for medium class satellite launch services for satellite constellation deployment; and
• launch timing, which may be impacted by financing and construction schedules.

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Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. These assumptions include our ability to maintain and expand the scope of our business; our ability to execute on our growth strategies; assumptions relating to government support and funding levels for space programs and missions; continued and accelerated growth in the global space economy; the impact of competition; our ability to retain key personnel; our ability to obtain and maintain existing financing on acceptable terms; changes and trends in our industry or the global economy; currency exchange and interest rates; and changes in laws, rules, regulations.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, readers should not place undue reliance on the forward-looking information. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those described in this MD&A and listed under the heading "Risk Factors" in the Listing Statement, such factors should not be considered exhaustive and should be read together with the other cautionary statements in this MD&A.

If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.

COMPANY OVERVIEW

The Company was incorporated on October 17, 2016 to begin its efforts to make Canada a Launching State to serve the burgeoning global space industry needs by building and operating the first pure commercial satellite launch site in North America. Our initiative has matured with the growth in the industry and validation of the strengths and opportunities of our launch facility location to serve domestic and international needs for a range of satellite applications, from rural and global broadband to near real time earth imaging.

The Commercial Space Industry Opportunities are Growing

Since the landing of the last NASA Space Shuttle in 2011, the low earth orbit ("LEO") market demand has been met by commercial space industry, and has seen average year over year growth of approximately 3%. This is coupled with the miniaturization of technology away from the very large geosynchronous orbit ("GEO") satellites to much smaller satellite clusters and the market growth for global broadband and other communication and remote sensing satellites. The global space economy was valued by the analytics and engineering firm, BryceTech in 2020 at US$371 billion per year and is expected to grow two to three percent per year on average to reach

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a trillion dollars annually by 2040.1 The launch industry segment of this economy, which MLS sees as the backbone of the industry, was valued at about US$5.3 billion in 2020.

The entire commercial space industry depends on the spaceport and launch vehicle combination to achieve its growth. According to the BryceTech Data, approximately 77% of the US$377 billion per year space industry is attributable to the development, construction, launch and operation of satellites.

There are several key competitive considerations for the launch of these satellites, including: cost, schedule, spaceport location, launch inclination, satellite destination, lift capacity of the launch vehicle, as well as the physical volume of the payload bay (fairing diameter). The opportunity presented by a commercially operated, North American location with a wide range of launch inclinations using the mature, low technical risk launch vehicle with a five-ton lift capacity and a four-meter fairing is unique in the industry as it exists today and nearly impossible to replicate elsewhere.

As of the date of this MD&A, management is aware of 31 spaceports globally that have achieved the successful launch of satellites into orbit. All but one of these spaceports is owned and operated by a government entity. The one active commercial launch site is located in New Zealand. Our planned launch complex near Canso, Nova Scotia (the "Launch Complex") will become the second commercial launch site in the world, the only one in North America and the first ever for Canada. It will have unique competitive features, and an increased level of flexibility as compared to government-operated spaceports.

We believe that Canada's current atmosphere of innovative investment, renewed and revised space policy initiative provides an anchor tenancy for an entirely new industry to grow. We have engaged the government of Canada so as to promote the significant benefits the Launch Complex will bring to the region and the country which they have publicly acknowledged and support. The proposed location of the Launch Complex is a unique location being located in North America with a broad range of possible inclinations ranging from 45 degrees to 98 degrees, including sun synchronous orbit ("SSO"), and with a desirable northern latitude for LEO and medium earth orbit ("MEO") markets, including global broadband and communications satellites. Recent filings to the United States Federal Communications Commission by numerous satellite clients revealed an additional 37,000 satellites being planned in various constellations and with many inclinations that can be served at our launch location. The Launch Complex will provide a diversified launch offering from 150 kg to 4 tons for SSO launches and up to 6 tons to LEO. The proposed site for the Launch Complex is located in a high technology and university-rich province that serves as the base for the Canadian naval fleet. It is adjacent to a windfarm for electricity, is less than one kilometer from a deep seaport and 50 km from a major super port as well as a transnational rail line. The launches from the facility will be offered at competitive rates that are comparable to other spaceports offering similar services. There is also a significant satellite manufacturing industry in Canada and local basing is expected to encourage this industry to prioritize the Launch Complex

1 All BryceTech industry data referenced herein is available on their website: https://brycetech.com/reports

("BryceTech Data").

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so as to keep launch spending domestic and to reduce logistical costs. The development of a commercial site in Canada is also favorable for satellite clients in the United States, given the history of strong intergovernmental relationships between the two countries, the stability of the Canadian government, ongoing cross-borderspace-related collaborations (such as with Lunar Gateway2) and reduced logistical costs.

Expected Advantages of MLS in the Market

Phased Launch Approach to Gain Flight Heritage

The Company's development strategy is a two-phase approach, with the ultimate goal of reaching full launch operations of one or more medium class launch vehicles from the Launch Complex. This phased approach promotes the development of the Land and the Launch Complex and provides for the opportunity to work with federal regulators at Transport Canada to adapt the existing regulatory framework to the commercial context.

The financing required to achieve first small vehicle launch demonstration in the first phase ("Phase One") (calculated until approximately the third quarter of 2023) is approximately $5 million.. The Company intends to advance the concurrent portion of the second phase ("Phase Two"). This includes the design of the Launch Complex, construction of the initial road system throughout the Land into the Launch Complex and supports the first small vehicle launch demonstration. The phased approach to development will allow the Company to achieve early Flight Heritage for the launch site. This Flight Heritage demonstrates the successful collaboration between the Company and federal partners for rocket launch, will prove out the processes and procedures for launch giving the team vital experience, and provide a clear path for paying customers to launch their satellites. The phased approach will optimally schedule Facility development to accelerate towards the launch of a medium class launcher through additional investment rounds including equity, debt and federal government support.

A small vehicle launch requires significantly less infrastructure to support and can be completed earlier in the construction process of the Launch Complex. In Phase One, the launch vehicle developer would provide the vehicle and support equipment required while the Company would be responsible for providing road access, a small launch pad site for set up of the developer's equipment, portable power, control of public access to the Launch Complex and the regulatory approval for the launch in coordination with Transport Canada and NavCanada.

The Company will phase the complexity of the launch approvals by beginning with a Canadian suborbital launch and building towards the orbital launch of a non-Canadian launch vehicle and non-domestic payload. Relevant variables include the vehicle's country of origin, payload, and whether it is a suborbital or orbital launch. While the initial launch in Phase One will benefit the Company by providing the opportunity to work through the federal regulatory processes, procedures and permissions prior to the medium class launch, build public confidence in the

2 For more information, see the Canadian Space Agency's information page here: https://www.asc- csa.gc.ca/eng/astronomy/moon-exploration/lunar-gateway.asp.