Ms. Amy MacLeod reports

MDA SPACE ANNOUNCES BOUGHT DEAL OFFERING OF COMMON SHARES

MDA Space Ltd. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets Corp. and RBC Capital Markets LLC, as joint lead bookrunners, and J.P. Morgan, Bank of Nova Scotia and BofA Securities, as joint active bookrunners, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 20 million common shares of MDA Space at a price of $35.60 (U.S.) per common share for aggregate gross proceeds of $712-million (U.S.).

MDA Space has granted the underwriters an overallotment option to purchase up to an additional 15 per cent of common shares issued in connection with the offering, to cover overallotments, if any, at the offering price. The option is exercisable in whole or in part at any time up to 30 days following the closing of the offering.

MDA Space intends to use the net proceeds of the offering to finance a portion of the purchase price, which is payable in cash, of its concurrently announced acquisition of approximately a 70-per-cent interest in Collecte Localisation Satellites (CLS). The net proceeds may also be used to finance the repayment of all or a portion of CLS's existing indebtedness (if the company is unable to arrange debt financing to repay such indebtedness) and/or related financing fees and transaction expenses.

The offering is expected to close on or about July 14, 2026, subject to customary closing conditions, including the entering into of an underwriting agreement, the listing of the common shares on the New York Stock Exchange and the Toronto Stock Exchange, and any required approvals of the NYSE and the TSX. The closing of the offering is not conditional on the closing of the acquisition and the acquisition is not conditional on the closing of the offering. If the acquisition is not completed, MDA Space intends to use the net proceeds from the offering to pursue its growth strategy, which includes expanding its customer base and solutions, supporting the growth of existing customers, and pursuing other strategic opportunities, which may include acquisitions or investments.

The common shares will be offered in Canada pursuant to a short form base shelf prospectus, as accompanied by a prospectus supplement, and will be offered in the United States pursuant to a prospectus supplement to the base shelf prospectus forming part of the company's registration statement on Form F-10, filed with the United States Securities and Exchange Commission, and registering the common shares under the United States Securities Act of 1933, as amended, pursuant to the multijurisdictional disclosure system adopted by the United States and Canada. The base shelf prospectus, the prospectus supplement and the registration statement, including the U.S. prospectus, contain important detailed information about the offering. Prospective investors should read such documents, as well as the documents incorporated by reference therein, for more complete information about the company and the offering before making an investment decision.

Delivery of the base shelf prospectus, the final prospectus supplement and any amendments to the documents will be provided in accordance with Canadian securities legislation relating to access equals delivery procedures. Copies of the base shelf prospectus and the preliminary prospectus supplement are, and the final prospectus supplement will be within two business days from the date hereof, available on SEDAR+, and a copy of the registration statement, including the U.S. prospectus, is, or will be within two business days from the date hereof, available on EDGAR. Alternatively, an electronic or paper copy of the prospectus supplement, the base shelf prospectus and the registration statement, including the U.S. prospectus, and any amendment to such documents may be obtained, without charge: in Canada from BMO Nesbitt Burns Inc., Brampton distribution centre, care of The Data Group of Companies, 9195 Torbram Rd., Brampton, Ont., L6S 6H2, by telephone at 905-791-3151, extension 4312, or by e-mail at torbramwarehouse@datagroup.ca, or from RBC Dominion Securities Inc., attention: distribution centre, 180 Wellington St. W (eighth floor), Toronto, Ont., M5J 0C2, or by e-mail at distribution.rbcds@rbccm.com; or in the United States by contacting BMO Capital Markets, attention: equity syndicate department, 151 W 42nd St. (32nd floor), New York, N.Y., 10036, or by telephone at 800-414-3627 or by e-mail at bmoprospectus@bmo.com, or from RBC Capital Markets, 200 Vesey St. (eighth floor), New York, N.Y., 10281-8098, attention: equity syndicate, or by phone at 877-822-4089 or by e-mail at equityprospectus@rbccm.com, by providing the contact with an e-mail address or address, as applicable.

About MDA Space Ltd.

Building the space between proven and possible, MDA Space is a trusted mission partner to the global defence and space industry. A robotics, satellite systems and geointelligence pioneer with a 55-plus-year story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 4,000 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission -- bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that have been in the company's DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, MDA Space take you there.

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