Mr. Sean Homuth reports

DEFSEC TECHNOLOGIES INC. ANNOUNCES SHARE CONSOLIDATION

Defsec Technologies Inc. will complete a consolidation of its common shares on a 1:9 basis.

The consolidation will be effective at 12:01 a.m. Eastern Daylight Time on Nov. 16, 2026. The company expects its common shares to begin trading on the TSX Venture Exchange and the Nasdaq Capital Market on a consolidated basis on or around Nov. 16, 2026, under its existing name and ticker symbol. The Cusip number and ISIN (international securities identification number) for the consolidated common shares will be 244778205 and CA2447782053, respectively. The consolidation was approved by the company's board of directors on Nov. 4, 2026, and is intended to ensure continued compliance with Nasdaq's minimum bid price requirements. The consolidation remains subject to the final approval of the TSX-V and Nasdaq.

The company currently has 4,593,998 common shares issued and outstanding, and, assuming no other change to the issued and outstanding common shares, the consolidation will reduce the number of outstanding common shares to approximately 510,444, subject to adjustments for rounding. Any resulting fractional common shares will be cancelled and rounded down to the nearest whole number of common shares.

A letter of transmittal with respect to the consolidation will be mailed to registered shareholders of the company. Registered shareholders who hold their common shares in book-entry or direct registration system form will have their preconsolidation common shares automatically exchanged for postconsolidation common shares and are not required to take any action. Registered shareholders with physical certificates will be required to send their certificates representing preconsolidation common shares, along with a completed letter of transmittal to the company's transfer agent, TSX Trust Company, in accordance with the instructions provided in the letter of transmittal. Additional copies of the letter of transmittal can be obtained through TSX Trust or on SEDAR+ under the company's issuer profile. All shareholders who submit a duly completed letter of transmittal along with their preconsolidation share certificate(s) to TSX Trust will receive a postconsolidation share certificate. Shareholders who hold their common shares through a broker or other intermediary and do not have common shares registered in their name will not need to complete a letter of transmittal.

The consolidation will not have an effect on any of the company's outstanding warrants which trade on the TSX-V under the symbol DFSC.WT.U or on Nasdaq under the symbol DFSCW. However, as a result of the consolidation, the exercise price and the number of common shares issuable under any of the company's outstanding stock options and warrants will be proportionately adjusted to reflect the consolidation in accordance with the terms thereof. After the consolidation, there will be approximately 16,469 common shares issuable upon the exercise of outstanding options and 524,023 common shares issuable upon the exercise of outstanding warrants, respectively.

After the consolidation, the exercise of 1,890 listed warrants will be required to purchase one postconsolidation common share, and the exercise price will be $9,450 (U.S.) per common share. No fractional common shares will be issued upon exercise of any listed warrants. The listed warrants will continue to trade on the TSX-V and Nasdaq, as applicable, in each case, under their existing Cusip number.

About Defsec Technologies Inc.

Defsec Technologies 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 with applications across all segments of the less-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada.

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