Mr. Cameron Chell reports

DRAGANFLY PROVIDES CORPORATE UPDATE HIGHLIGHTING STRONG DEFENSE MOMENTUM, INDUSTRY TAILWINDS, AND ROBUST BALANCE SHEET

Draganfly Inc. has provided a corporate update this week. The update highlighted continued operational progress, strong industry tailwinds and a well-capitalized balance sheet.

"Draganfly is operating at the centre of a global shift toward autonomous systems in defence and public safety," said Cameron Chell, chief executive officer of Draganfly. "While recent market volatility has impacted our share price, we believe it does not reflect the strength of our balance sheet, our growing defence engagements or the scale of the opportunity ahead."

Financial strength

Draganfly's current cash of approximately $145-million, positions the company with significant financial flexibility to execute on growth initiatives. At current trading levels, the company's market valuation remains modestly above its cash position.

Global defence and Tier 1 momentum

Draganfly continues to expand its footprint within the global defence ecosystem, including:

• Selection to supply Flex FPV systems and training to the U.S. Air Force Special Operations command;
• Selection as one of 25 participants in the Secretary of War's drone dominance program phase 1 Gauntlet, successfully obtaining a perfect score in the Urban Strike mission;
• Continued deployment of the commander 3XL platform within United States and allied forces, including extreme temperature environments in both Arctic and desert conditions;
• Invitation and participation in the Canadian Army's MINERVA uncrewed aircraft systems working group, an initiative focused on accelerating the integration of drone and autonomous technologies into future Canadian Armed Forces operations;
• Exclusive demonstration of advanced capabilities in line with MINERVA program objectives for Canadian Armed Forces (CAF) personnel at Area X.O. in Ottawa.

These developments reinforce Draganfly's position as a trusted, North American provider of compliant unmanned systems.

Favourable industry dynamics

Global demand for drone and autonomous systems continues to accelerate, driven by:

• Rapid adoption of FPV and ISR technologies in modern conflict;
• Increased U.S. and allied defence spending on autonomous capabilities;
• Heightened security demand in regions including the Middle East.

Draganfly believes these trends represent a sustained structural shift supporting long-term growth.

2026 priorities

The company remains focused on:

• Scaling production and delivery capabilities;
• Developing the domestic supply chain, leveraging key industry relationships and decades of UAS development experience to design and manufacture National Defense Authorization Act-compliant components;
• Expanding government and Tier 1 contractor relationships, including channel sales and integration partners;
• Continue evolving internal product, including system and software development;
• Advancing select strategic acquisitions;
• Maintaining disciplined capital deployment.

About Draganfly Inc.

Draganfly is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, agriculture, industrial inspection, security, mapping and surveying markets. The company is driven by passion, ingenuity, and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money, and lives.

We seek Safe Harbor.