IronClad Encryption Corporation Releases Statement on Energy Sector Cyberattacks

Energy Companies Are Aware of the Threats, but Not Necessarily
Prepared for Them

HOUSTON–(BUSINESS WIRE)–IronClad Encryption Corporation (the "Company" or "IronClad") (OTCQB:
IRNC), a next-generation cyber defense company that secures digital
assets and communications across a wide range of industries and
technologies, released a statement today on Energy Sector Cyberattacks.

The energy industry, and other critical U.S. infrastructure are under
attack. Last month, the U.S. Department of Homeland Security (DHS) and
the Federal Bureau of Investigation (FBI) issued a joint warning that
the Russian government is sponsoring attacks on U.S. critical
infrastructure including companies in the energy sector. The malicious
actors are gaining access into energy sector networks, moving laterally
and collecting information pertaining to Industrial Control Systems
(ICS).

On April 5, Dark
Reading reported that four gas pipeline companies had been breached
via their Electronic Data Interchange (EDI) partner: Oneok Inc,
Boardwalk Pipeline Partners, Energy Transfer Partners, and Eastern Shore
Natural Gas. In the blog, author Jai Vijayan warned,

"The attack — and its impact on the four companies — is sure to
prompt a greater review of the security risks posed by third-party
support services in the energy sector as elsewhere. Networks belonging
to suppliers, partners, and service providers typically have trusted
access to enterprise networks but are very often far less protected.
Unsurprisingly, attackers have repeatedly targeted these networks to try
and gain access to their ultimate targets."

Recent research also reflects this trend. A
2017 SANS Institute report focusing on ICS security specifically,
said that 69% of the survey respondents consider ICS system threats
"high" or "severe/critical."

"We're behind the scenes with some of American's most successful energy
companies. They need help addressing attacks on industrial control
systems and programmable logic controllers," said J.D. McGraw, president
and CEO of IronClad Encryption. "As part of that effort, we are
providing professional services that help ensure more effective
monitoring and management of such threats. We're also providing
solutions that prevent hackers from seizing control of assets."

Energy company hacks are a danger to those organizations and the public
at large. Businesses can be disrupted, which can cause serious financial
and reputational damage. Dangers to the public include environmental
hazards such as toxic leaks or meltdowns that can cause serious health
conditions or even death. All of that can lead to regulatory fines and
lawsuits, although the larger threat is the widespread disruption of
businesses, governments, and day-to-day life.”

When hackers are able to slip past firewalls and evade intrusion
detection systems, they are free to roam networks. Rather than attacking
industrial control systems directly, they often target corporate or
third-party networks that are connected to the industrial control
systems.

“While energy companies are aware of the threats, they do not
necessarily know how to manage them,” said J.D. McGraw. “Business
leaders, especially, tend to be over-confident in their company's
ability to handle such threats, a perspective that can differ
significantly from those who are charged with preventing and mitigating
the effects of such attacks.”

Threats to the energy sector are a clear and present danger to the U.S.
national economy and its citizens. Cyberterrorism and cyberattacks are
becoming more persistent, so the strategies and tactics used to combat
them must evolve as the nature of the threats themselves evolve.

About IronClad Encryption Corporation:

Ironclad Encryption Corporation (OTCQB: IRNC) is an X-Generation cyber
defense company that secures digital assets and communications across a
wide range of industries and technologies. IronClad Encryption-powered
solutions utilize our patented Dynamic Encryption and Perpetual
Authentication technologies to make all known key-based encryption
technologies virtually impossible to compromise. Dynamic Encryption
Technology eliminates vulnerabilities caused by exposure of any single
encryption key by continuously changing encryption keys and keeping the
keys synchronized in a fault-tolerant manner. Perpetual Authentication
Technology uses multiple virtual channels for encryption so that in the
event one channel is compromised, the other channels maintain encryption
integrity. Together, these technologies not only eliminate the single
point of failure problem created by having keys exposed through brute
force, side channel, or other types of attack, but do so with very low
latency and system performance overhead. Developers, MSPs, MSSPs and IT
organizations can now easily and effectively integrate ultra-secure
authentication and encryption measures across essentially all mediums.
This includes the latest processors and operating systems, legacy
hardware and software, within or between networks and on
compartmentalized data or entire databases. At rest or in-motion,
IronClad Encryption ensures data remains safe, secure and uncompromised.

Visit IronClad Encryption at www.IronCladencryption.com

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements that involve
substantial risks and uncertainties. The information included in this
release should not be used for investment purposes because statements of
intent or projections of financial performance are based on assumptions
that can change. In addition, events or circumstances may arise that we
can neither anticipate or control. Therefore, any statements of intent
or predictions of financial performance are valid only on the date of
this press release. We undertake no obligation to update or revise
publicly any forward-looking statements, except as required by law.

Contacts

MEDIA:
IronClad Encryption Corporation
Lisa Morgan,
928-284-6849
[email protected]
or
INVESTORS:
Porter,
LeVay & Rose, Inc.
Matthew Abenante, 212-546-4700
[email protected]