Mr. Cameron Chell reports

DRAGANFLY ANNOUNCES STRATEGIC INVESTMENT FROM UNUSUAL MACHINES AND A LEADING U.S. INVESTMENT FUND

A $10-million (U.S.) strategic investment in Draganfly Inc. will be made by Unusual Machines Inc. and a leading U.S. investment fund, each investing $5-million.

This strategic investment comes during a period of accelerating commercial and defence activity for Draganfly across both the United States and Canada, including significant recent procurement milestones with the Canadian Armed Forces and continued important expansion of the company's U.S. defence operations.

Draganfly intends to use the net proceeds to accelerate the development of advanced strategic capabilities and to finance general working capital in meeting demand for its products in the rapidly maturing U.S. and international markets.

"We are seeing the convergence of customer adoption, government procurement, domestic manufacturing, defence autonomy and strategic industry participation," said Cameron Chell, chief executive officer and chairman of Draganfly. "This strategic investment from Unusual Machines and a leading U.S. investment fund is about positioning, not size. It is about aligning capabilities that can best serve the industries' requirements at scale domestically and abroad."

"America and its allies are entering a period in which the ability to manufacture drones, components and autonomous systems at scale is becoming a strategic capability," said Dr. Allan Evans, chief executive officer of Unusual Machines. "This investment into Draganfly allows us to support their production growth and deepen our supplier relationships."

The investment is priced at market based on the closing price of the company's common shares on Friday, Sept. 25, 2026, and represents an important step in the maturation of the U.S. and international drone supply chain and ecosystem.

The investment is a registered direct offering to purchase 1,869,159 common shares of the company at a price of $5.35 (U.S.), for gross proceeds of approximately $10-million (U.S.) before deducting placement agent discounts and offering expenses.

Jett Capital Advisors LLC and Northland Capital Markets are acting as joint lead placement agents in the offering.

The investment is expected to close on or about Sept. 29, 2026, subject to the satisfaction of customary closing conditions, including receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange and notification to the Nasdaq Stock Market.

The investment is being made pursuant to an effective shelf registration statement on Form F-10, as amended (file No. 333-290823), previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission on Feb. 25, 2026, and the company's Canadian short form base shelf prospectus dated Oct. 24, 2025. Draganfly will offer and sell the securities in the United States only. No securities will be offered or sold to Canadian purchasers.

A prospectus supplement and accompanying base shelf prospectus relating to the investment and describing the terms thereof will be filed with the applicable securities commissions in Canada and with the SEC in the United States, and will be available at no charge by visiting the company's profiles on the SEDAR+ website maintained by the Canadian Securities Administrators or the SEC's website, as applicable. Copies of the prospectus supplement and accompanying base shelf prospectus relating to the investment may be obtained, when available, by contacting Jett Capital Advisors, at 712 Fifth Ave., 11th floor, New York, N.Y., 10019, attention: general inquiries, by telephone at 1-212-616-0430 or by e-mail at info@jettcapital.com, or Northland Securities Inc., at 150 South Fifth St., Suite 3300, Minneapolis, Minn., 55402, attention: Valencia Day, by telephone at 1-612-851-4917 or by e-mail at vday@northlandcapitalmarkets.com.

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 27 years, Draganfly delivers award-winning technology to the public safety, civil, military, agriculture, industrial inspection, security, mapping and surveying markets. The company is driven by passion, ingenuity and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money and lives.

We seek Safe Harbor.