Mr. Gregory Prekupec reports

DRAXOS CAPITAL CORP. ANNOUNCES VOLUNTARY ADOPTION OF SEMI-ANNUAL FINANCIAL REPORTING

Draxos Capital Corp. has elected to rely on the exemptions provided under Coordinated Blanket Order 51-933 (Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers) and has voluntarily adopted semi-annual financial reporting. The blanket order is a Canadian securities regulator pilot program that allows eligible venture issuers to voluntarily move from quarterly to semi-annual financial reporting.

The company has a fiscal year end of Sept. 30. Under the SAR pilot, the company will be exempt from filing interim financial reports and related management's discussion and analysis for its first and third fiscal quarters. Accordingly, the company will not file interim financial statements or related MD&A for the nine-month period ended June 30, 2026, and will not file interim financial statements or related MD&A for subsequent first and third quarter reporting periods while it remains eligible to participate in the SAR pilot.

The company confirms that it satisfies the eligibility requirements of the blanket order, including being a venture issuer with annual revenues of less than $10-million in its most recently filed audited annual financial statements, having been a reporting issuer in at least one jurisdiction for at least 12 months, and having filed all required periodic and timely disclosure documents. The company remains committed to timely disclosure, and will continue to report all material changes and significant developments in accordance with National Instrument 51-102 (Continuous Disclosure Obligations).

The company's board of directors approved the transition to semi-annual reporting to significantly reduce the administrative and compliance burdens associated with quarterly reporting. This shift allows management to optimize resource allocation, redirecting executive time and corporate capital directly toward enhancing the company's core business objectives and strategic growth initiatives.

The company will continue to file audited annual financial statements (due within 120 days of Sept. 30) and six-month interim financial reports and related MD&A (due within 60 days of March 31).

This news release is being filed pursuant to Coordinated Blanket Order 51-933 (Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers).

About Draxos Capital Corp.

Draxos is a capital pool company governed by the policies of the TSX Venture Exchange. The company has not commenced commercial operations and has no assets other than cash. In accordance with TSX-V policies, until the completion of its qualifying transaction (as defined in the policies of the TSX-V), Draxos will not carry on any business other than the identification and evaluation of businesses, assets or companies with a view to completing a proposed qualifying transaction.

We seek Safe Harbor.