Mr. Andrew Arnovitz reports

CAE ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

CAE Inc. has received regulatory approval to renew its normal course issuer bid (NCIB) to purchase, for cancellation, up to 16,073,033 of its common shares commencing June 10, 2026, and ending June 9, 2027.

The maximum number of common shares that may be repurchased under the program represents approximately 5 per cent of the issued and outstanding common shares of CAE as of May 29, 2026. The actual number of common shares purchased under the NCIB, the timing of purchases and the price at which the common shares are bought will depend upon management discretion based on factors such as market conditions. As of May 29, 2026, CAE had 321,460,674 common shares issued and outstanding.

Purchases under the NCIB will be made through the facilities of the Toronto Stock Exchange in accordance with the TSX's applicable policies or the facilities of the New York Stock Exchange in compliance with applicable NYSE rules and policies and U.S. laws, or in such other manner as may be permitted under applicable stock exchange rules and applicable securities laws, including through alternative Canadian and U.S. trading platforms and privately negotiated, off-exchange block purchases. In the case of off-exchange block purchases, purchases will be at a discount to the prevailing market price in accordance with and subject to the terms of applicable exemptive relief.

TD Securities Inc. has agreed to act as CAE's designated broker to make purchases of common shares pursuant to the NCIB. CAE has also entered into an automatic repurchase plan (ARP) with TD, allowing it to purchase common shares under the NCIB when CAE would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout periods. Before entering a blackout period, CAE may, but is not required to, instruct TD to make purchases under the NCIB during such a period based on parameters set by CAE prior to the blackout period in accordance with the ARP, TSX rules and applicable securities laws. All purchases made under the ARP are included in computing the number of common shares purchased under the NCIB. The ARP has been precleared by the TSX and will be implemented and effective June 10, 2026, and will terminate on the earliest of the date on which: (i) the NCIB expires; (ii) the repurchase limit on the NCIB has been reached; (iii) CAE terminates the ARP in accordance with its terms; and (iv) TD terminates the ARP in accordance with its terms. The ARP constitutes an automatic securities purchase plan under applicable Canadian securities laws. The price CAE will pay for any common shares will be the market price at the time of acquisition, plus brokerage fees.

During the period that the NCIB is outstanding, CAE does not intend to make purchases of its common shares other than by means of open-market transactions or such other means as may be permitted or approved by any applicable securities regulator.

The average daily trading volume (ADTV) of CAE's common shares through the facilities of the TSX over the past six completed calendar months was 944,026 common shares. Accordingly, under the TSX rules and policies, CAE will be entitled on any trading day to purchase up to 25 per cent of the ADTV, which totals 236,006 common shares, for the next 12-month period of the NCIB. In excess of the daily repurchase limit, CAE may make, once per week, a block purchase (as such term is defined in the TSX company manual) of common shares not owned directly or indirectly by any insiders, which may exceed such daily limit, in accordance with the TSX rules.

All common shares purchased pursuant to the NCIB will be cancelled.

Under the normal course issuer bid which began on June 10, 2025, and which will expire on June 9, 2026, CAE received approval from the TSX to purchase up to 16,019,294 common shares. As at May 29, 2026, CAE had purchased a total of 565,259 common shares thereunder at a volume-weighted average price of $35.4418 per common share for total consideration of $20-million. Such purchases were effected through the facilities of the TSX and Canadian alternative trading systems.

The NCIB is being established as part of CAE's capital allocation strategy. The board of directors of CAE believes that any purchases made under the NCIB will be in the best interest of CAE and that such purchases will constitute a desirable use of funds that should enhance shareholder value.

About CAE Inc.

At CAE, the company exists to make the world safer. The company delivers cutting-edge training, simulation and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, CAE empowers pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, CAE is everywhere customers need the company to be with sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions while embedding sustainability at the heart of everything it does. By harnessing technology and enhancing human performance, CAE strives to be the trusted partner in advancing safety and mission readiness -- today and tomorrow.

We seek Safe Harbor.