Mr. Abhinav Singhvi reports

VOLATUS AEROSPACE INC. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UP TO $4.66 MILLION, BRINGING TOTAL FINANCING TO OVER $24.6 MILLION & PROVIDES CORPORATE UPDATE

Volatus Aerospace Inc. intends to complete a non-brokered private placement of up to 7.77 million common voting shares in the capital of the company at a price of 60 cents per offered share for aggregate gross proceeds to the company of up to $4,662,000 to satisfy certain strategic international demand. The private placement offering is being conducted concurrently with the company's bought deal public offering of common voting shares for aggregate gross proceeds of $20.01-million (or $23,011,500 if the overallotment option is exercised in full by the underwriters), as previously announced by the company on Nov. 4, 2025, which brings the total gross proceeds of the public offering and the private placement offering to $24,672,000 (or $27,673,500 if the overallotment option is exercised in full by the underwriters).

The company intends to use the net proceeds from the public offering and the private placement offering for the development of the company's Mirabel manufacturing hub, research and development of drone technologies to support the defence sector, potential acquisitions related to the defence sector, capital expenditures, and for working capital and general corporate purposes.

The offered shares will be offered to purchasers outside of Canada pursuant to exemptions from the prospectus requirement available under Ontario Securities Commission Rule 72-503 -- Distributions Outside Canada.

The public offering and the private placement offering are expected to close on or about Nov. 26, 2025, and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange.

Corporate update

The company is also pleased to announce that, further to its press release on Oct. 27, 2025, it has completed the acquisition of a suite of advanced RPAS (remotely piloted aircraft systems) technologies from Caliburn Holdings LLP, a United Kingdom-based aerospace engineering firm. The acquisition marks a major step forward in strengthening Canada's sovereign aerospace and defense manufacturing capacity.

The acquisition delivers complete aircraft designs, validated flight-test data, detailed engineering documentation and assets that form the foundation for a new generation of long-endurance, fixed-wing uncrewed aircraft systems to be manufactured and integrated in Canada. These aircraft are designed to meet operational needs across defence, public security and critical infrastructure sectors.

Under the terms of the definitive agreement, the purchase price was paid in the form of common voting shares of the company. The company issued 2,631,579 common voting shares based on the 15-day volume weighted average price (VWAP) of 76 cents per share on the date of signing of the definitive agreement, of which 1,315,790 common voting shares are subject to the hold period of four months and a day from the date of issuance and 1,315,790 common voting shares are subject to a hold period of 24 months from the date of issuance.

Canadian federal budget update

The Government of Canada released its budget on Nov. 4, 2025, titled "Canada Strong." Volatus believes it is well positioned to support the government of Canada as it takes some of its key defence goals and objectives as outlined in the budget and that the infrastructure that Volatus is currently investing in is well suited to advance such priorities.

About Volatus Aerospace Inc.

With more than a century of combined aviation expertise, Volatus Aerospace delivers innovative aerial solutions for intelligence, surveillance and cargo, utilizing both piloted and remotely piloted aircraft (RPAS/drones). Volatus provides a complete ecosystem of aerial services, including operations, equipment sales, training and mission support, helping industries integrate aerial capabilities safely, efficiently and sustainably.

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