Mr. Sean Homuth reports

DEFSEC TECHNOLOGIES INC. ANNOUNCES CDN$5.54 MILLION PRIVATE PLACEMENT

Defsec Technologies Inc. has entered into definitive agreements for the issuance and sale of 1,951,219 common shares in the capital of the company, no par value per share (or prefinanced warrants in lieu thereof), at a purchase price of $2.84 (Canadian) ($2.05 (U.S.)) per common share (or prefunded warrant in lieu therof) and common share purchase warrants to purchase up to an aggregate of 1,951,219 common shares in a private placement. Each common warrant will be immediately exercisable to acquire one common share at an exercise price of $3.30 (Canadian) per common share for a period of 60 months following the closing of the offering. Each prefinanced warrant will be immediately exercisable to acquire one common share at a nominal exercise price of 0.1 Canadian cent per common share.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The aggregate gross proceeds from the offering are expected to be approximately $5.54-million (Canadian) (approximately $4-million (U.S.)), before deducting placement agent fees and other offering expenses. Defsec intends to use the aggregate net proceeds from the offering for business and market development, intellectual property protection and registrations, and general working capital purposes.

The offering is expected to close on or about Aug. 18, 2026, subject to the satisfaction of customary closing conditions, including the approval of the TSX Venture Exchange.

About Defsec Technologies Inc.

Defsec develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other Defsec products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM (original equipment manufacturer) products and battlefield management systems, and all come integrated with a TAK (team awareness kit). The company also has a new proprietary less-lethal product line branded Para Shot, with application across all segments of the less-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada.

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