Mr. Glen Lynch reports

VOLATUS AEROSPACE SECURES APPROVAL FROM TRANSPORT CANADA TO LAUNCH SCALABLE AUTOMATED DRONE SERVICES IN CANADA AND PROVIDES CORPORATE UPDATE

Transport Canada has issued a special flight operations certificate authorizing Volatus Aerospace Inc. to conduct more complex beyond visual line of sight (BVLOS) operations by authorizing the use of MatrixSpace's next-generation radar, integrated through Kongsberg Geospatial's Iris terminal platform.

Unlike traditional ground-based radar systems, MatrixSpace's technology is compact, low power and able to detect smaller non-co-operative traffic such as other drones. When integrated with Kongsberg's proven airspace awareness and traffic management software and supported by Volatus's remote operations control centre, these capabilities make it practical to scale BVLOS operations into applications such as automated drone-in-a-box networks, distributed wide-area monitoring, and autonomous services where continuous, reliable detect-and-avoid is critical.

The global drone-in-a-box market was valued at just over $1-billion (U.S.) in 2024 and is forecast to grow to between $5-billion (U.S.) and $9-billion (U.S.) by the early 2030s, reflecting annual growth rates of approximately 20 to 23 per cent. This rapid expansion underscores the commercial potential for scalable, subscription-based drone services such as those enabled by this new approval.

Volatus already holds nationwide SFOCs permitting BVLOS operations in low-risk airspace, atypical airspace, high altitude and nighttime missions at an advanced regulatory risk level recognized by Transport Canada. Building on this foundation, the integration will expand automated drone-in-a-box services for infrastructure security, utilities and industrial monitoring, as well as wide-area inspection and surveillance at higher altitudes, such as forestry, wildfire monitoring and environmental oversight.

"This SFOC builds upon milestones such as Volatus's approved BVLOS medical delivery operations at Halton Healthcare," began Glen Lynch, chief executive officer of Volatus Aerospace. "With our partners, we are expanding these capabilities by integrating a lightweight and scalable detect-and-avoid system. This combination makes it practical to move from specialized projects into wide-scale deployments like drone-in-a-box networks, giving customers safe, reliable and scalable autonomous services."

"We're pleased to support Volatus with our Iris terminal platform as they expand advanced BVLOS operations," said Jordan Freed, president and managing director, Kongsberg Geospatial. "By integrating real-time airspace awareness into their operations control centre, Volatus is demonstrating how safe and scalable drone services can be delivered for commercial customers."

"This approval represents a major step toward scalable autonomous drone operations," said Greg Waters, co-founder and chief executive officer, MatrixSpace. "Our compact radar technology is designed for exactly these kinds of applications, and Volatus is leading the way in bringing drone-in-a-box and automated services to the Canadian market."

About Volatus's strategic partnerships

Kongsberg Geospatial and MatrixSpace are two industry leaders whose technologies are helping to transform advanced BVLOS capability into scalable, commercially viable services. By combining Volatus's operational expertise with Kongsberg's airspace management software and MatrixSpace's next-generation radar, the partnership creates a deployable ecosystem designed for safe and repeatable drone-in-a-box and autonomous operations.

Kongsberg Geospatial provides the Iris terminal platform, which integrates radar, telemetry and other sensor feeds into a single real-time airspace awareness display for safe BVLOS operations. Beyond the technology, Kongsberg brings decades of defence and aerospace experience, opening access to global security and government markets where regulatory trust and mission assurance are critical.

MatrixSpace delivers the next step forward in detect-and-avoid: a compact, low-power radar system that is smaller, more flexible and lower cost than traditional installations. It can also detect smaller, non-co-operative traffic such as other drones -- making it ideally suited for scalable, autonomous deployments like drone-in-a-box networks. MatrixSpace's growing presence in homeland security and critical infrastructure monitoring creates new opportunities for Volatus to expand into high-value markets.

Together, these partnerships enable Volatus to act as the integrator of a proven ecosystem combining operational expertise with advanced airspace awareness and next-generation radar to deliver safe, scalable and commercially viable drone services.

Corporate update

Volatus is also pleased to announce that it has entered into a consulting agreement with Think Ink Marketing Data & Email Services to provide investor relations and digital marketing services aimed at expanding market and investor awareness for a period of 12 months.

Under the terms of the agreement, Think Ink will provide investor relations services, including native and display advertising, video content distribution, social media coverage, e-mail distribution, and related marketing activities to increase awareness of the company.

The company has agreed to pay $125,000 (U.S.) on signing as compensation to Think Ink for the services provided under the agreement. The compensation is payable to Think Ink for a period of up to 12 months. Either party may terminate the agreement by providing 30 days written notice. The compensation payable to Think Ink does not include any securities of the company. Think Ink and the company are unrelated and unaffiliated entities at arm's length of each other, and neither Think Ink, nor its principals have an interest, directly or indirectly, in the securities of the company.

Think Ink is a California-based marketing firm established in 1991 that provides its customers with a complete range of marketing services that span both digital and direct mail venues. With its digital services ranging from data appending, e-mail marketing, and pay-per-click on-line banner and native ads, Think Ink helps its clients to reach a network of potential investors.

About Volatus Aerospace Inc.

With 100-plus years of combined aviation expertise, Volatus Aerospace delivers innovative global aerial solutions for intelligence and cargo, utilizing both piloted and remotely piloted aircraft (RPAS/drones). Committed to efficiency, safety and sustainability, Volatus offers a complete ecosystem of aerial solutions including remote operations, enterprise equipment sales, training and aerial services to enhance real-world applications across industries.

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