Mr. Cameron Chell reports

ACQUISITION ADDS ULTRA-LOW COST, MASS PRODUCIBLE FIXED-WING DRONE CAPABILITIES INTO DRAGANFLY'S DEFENSE PORTFOLIO

Draganfly Inc. has completed its previously announced acquisition of Skip Dynamix Corp., as described in the company's press release dated May 18, 2026. The aggregate purchase price for the transaction was up to $7,525,000 (U.S.), consisting of:

• A cash payment of $2,525,000 (U.S.) paid at closing;

• $2.5-million in Draganfly common shares at a deemed price of $6.46 (U.S.) per share, issuable pursuant to a special warrant, subject to each founder remaining actively engaged with Draganfly until at least the first anniversary of closing;

• Up to $2.5-million in earn-out consideration, payable in cash or up to 80 per cent in Draganfly shares (at Draganfly's discretion) at a deemed price of $6.46 (U.S.) per share, subject to achievement of certain business milestones.

With the transaction now complete, Draganfly has deepened its defence platform portfolio and strengthened its position within the rapidly growing market for low-cost autonomous aerial systems. Skip Dynamix's fixed-wing platform architecture, optimized for affordability and rapid production, is now integrated with Draganfly's manufacturing, autonomy, artificial intelligence and military systems capabilities.

"We are excited to have completed this acquisition and to welcome the Skip Dynamix team to Draganfly," said Cameron Chell, chief executive officer of Draganfly. "This transaction positions us to meet growing global demand for affordable, scalable autonomous systems."

The transaction strengthens Draganfly's positioning with U.S. Department of War programs, NATO-aligned modernization initiatives and Indo-Pacific security programs. Draganfly intends to integrate Skip Dynamix's technologies into its broader defence ecosystem, including AI-enabled autonomy, sensor integration and next-generation mission systems.

Transaction Summary

Multimission platform: The Orca fixed-wing platform complements Draganfly's established multirotor portfolio, including the Flex FPV, Apex, Commander 3XL and heavy lift systems, by adding a long-range, hand-launchable fixed-wing capability that addresses a critical capability gap in the market.

Expanded market reach: The transaction expands Draganfly's presence in the defence, national security, government and international markets, providing access to Skip Dynamix's existing pipeline of opportunities for the Orca platform.

Revenue synergies. Management believes the combination offers significant revenue synergies, enabling incremental revenue growth for Draganfly in excess of Skip Dynamix's stand-alone forecasts.

Retention of key talent: Skip Dynamix founders Jonathan Baron and Andrew Chapman will continue with the combined business under employment agreements, bringing specialized expertise in fixed-wing sUAS technology.

About Skip Dynamix

Skip Dynamix is a Delaware-based drone technology company engaged in the design, manufacture, marketing, sale and distribution of long-range, hyper-customizable, multipurpose, hand-launchable, fixed-wing sUAS, including the Orca platform. Skip Dynamix serves customers across defence, national security, government and international markets.

About Draganfly Inc.

Draganfly is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly is an award-winning original equipment manufacturer and technology integrator to the public safety, civil, military, agriculture, industrial inspection, security, mapping and surveying markets.

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