Mr. Rob Walker reports

VOLATUS AEROSPACE COMPLETES THE INITIAL ISR DRONE FLEET DELIVERY TO NATO PARTNER

Volatus Aerospace Inc. has completed delivery of the uncrewed aircraft fleet under the initial approximately $4.5-million tranche of its previously announced ISR (intelligence, surveillance and reconnaissance) training system contract with a NATO (North Atlantic Treaty Organization) partner. The contract, announced on Dec. 15, 2025, has a potential aggregate value of up to $9-million. The customer has begun exercising its option under the second tranche, with Volatus receiving additional orders under the previously announced contract. The unexercised balance remains available at the customer's option through the end of 2027.

The fleet addresses an immediate training requirement by enabling defence personnel to develop foundational skills in drone flight, navigation, and basic intelligence, surveillance and reconnaissance (ISR). The systems are designed for repeated use by new operators in controlled training environments, allowing personnel to build confidence and practical experience before progressing to more advanced operational platforms.

"This delivery represents an important milestone in the continued growth of our defence business," said Glen Lynch, chief executive officer of Volatus. "It demonstrates our ability to respond to clearly defined allied requirements with practical, scalable uncrewed solutions. Just as importantly, it strengthens our relationships with NATO allies and positions Volatus to support the growing demand for uncrewed systems, training and sustainment worldwide. The additional orders demonstrate continued customer commitment to the program and reinforce our ability to bring together aircraft, integration, training and support to meet allied requirements."

This delivery completes the initial fleet shipment following the supply chain disruptions previously disclosed in the company's quarterly reporting.

The program includes a fleet of durable, commercially derived training aircraft, integrated control interfaces, technical and operational documentation, instructor familiarization, warranty coverage, and life cycle support. The systems feature intuitive controls and automated safety functions suited to personnel with limited prior UAS (unmanned aircraft system) experience.

Specific system configurations remain confidential under the terms of the agreement.

As NATO members increase their adoption of uncrewed technologies, the ability to develop trained operators is becoming an essential component of defence readiness. Volatus's combination of aircraft, integration, training and sustainment capabilities enables the company to address immediate customer requirements while supporting the longer-term development of uncrewed aviation capacity.

"Training is foundational to the effective adoption of uncrewed systems," added Mr. Lynch. "This program gives new operators the tools and experience they need to begin building that capability while creating a pathway toward more advanced systems and applications."

The delivery adds to Volatus's growing defence portfolio and provides a foundation for potential follow-on orders and broader opportunities across allied markets.

About Volatus Aerospace Inc.

Volatus Aerospace is a Canadian-headquartered global aerospace and defence company delivering intelligence and cargo solutions through piloted and remotely piloted aircraft systems. With operations, training programs and strategic partnerships spanning multiple continents, Volatus supports government, defence and commercial customers around the world. The company leverages advanced technologies, remote operations expertise and aviation experience to solve complex operational challenges in demanding environments.

We seek Safe Harbor.