Mr. Brenton Scott reports

CRITICAL INFRASTRUCTURE TECHNOLOGIES: ACQUISITION AND FINANCING UPDATE

Critical Infrastructure Technologies Ltd. has provided an update on its acquisition of 100 per cent of the issued shares in a Western Australian precision manufacturing company, to expand its advanced production capabilities and secure local sovereign manufacturing capacity for its Nexus 20 and future product lines.

Key highlights

• Nearing completion of the due diligence for the 100-per-cent acquisition of a leading Western Australian precision manufacturer with strong defence and industrial connections;
• Acquisition adds state-of-the-art fabrication facilities, strengthening sovereign manufacturing capability in Australia;
• Establishes vertically integrated production capacity, improving speed, cost efficiency and scalability;
• Provides $7.4-million-plus (Australian) revenue and $1.9-million-plus (Australian) EBITDA (earnings before interest, taxes, depreciation and amortization) contribution (fiscal 2025), with enormous scope to grow;
• Provides immediate DISP accreditation, enabling Critical Infrastructure participation in classified defence programs;
• Moneta Securities, a specialist capital markets advisory and corporate finance firm, engaged to raise $10-million.

Under the agreement, Critical Infrastructure will acquire the company from founders for a total consideration of $7.7-million (Australian), plus standard net debt and working capital adjustments.

The acquisition will add a profitable and well-established business to Critical Infrastructure, with revenue exceeding $7.4-million (Australian) and EBITDA of more than $1.9-million (Australian). This provides a robust earnings base to support accelerated growth in sovereign defence manufacturing, enabling Critical Infrastructure to scale production, strengthen supply chain control, and advance delivery of its Nexus 20 and future autonomous communication systems.

Key benefits of the acquisition:

1. Certified to ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Safety) standards, and operates a fully equipped in-house manufacturing facility featuring state-of-the-art laser cutting systems, CNC folding and bending machines, robotic welding technology, and advanced CAD/CAM integration.
2. Provides Critical Infrastructure with direct access to a highly skilled work force and modern fabrication systems, enabling faster prototyping, improved cost control, and scalable manufacturing for its defence and communications technologies.
3. This combination of modern equipment, skilled personnel and a robust quality management system enables it to produce defence-grade components and assemblies with precision, repeatability, and efficiency.
4. The business has successfully achieved DISP accreditation (Defence Industry Security Program), a critical credential administered by the Australian Department of Defence. DISP membership ensures that companies meet rigorous security, governance and information protection standards required to work with defence and its supply chain partners.
5. The acquisition reinforces Critical Infrastructure's commitment to building a sovereign Australian manufacturing ecosystem capable of supporting rapid-deployment systems for defence, emergency response and secure communications.
6. It complements Critical Infrastructure's growing network of international partnerships, including collaborations with Babcock International, Terma and the establishment of a European Union presence in Latvia, and therefore further expanding its reach across NATO's Eastern Flank and allied markets.

Integration and timeline

Due diligence is progressing well and is expected to be completed by Dec. 19, 2025. Upon satisfactory completion, the parties will immediately move to prepare and finalize the share purchase agreement (SPA).

The acquisition remains subject to:

• Completion of due diligence;
• Finalization of the SPA;
• Securing the required funding;
• Standard closing conditions.

To support these requirements, Critical Infrastructure has engaged Moneta Securities to raise up to $10-million (Australian), which will be used to settle the acquisition and provide working capital.

Targeted settlement date:  Jan. 31, 2026

About Critical Infrastructure Technologies Ltd.

Listed on the Canadian Securities Exchange with operations in Perth, Western Australia, Critical Infrastructure is creating autonomous, high-capacity, rapidly deployable technology that delivers essential services to where they are needed most. Critical Infrastructure is targeting the mining, defence, border security/surveillance and emergency services sectors in relation to its first product release, the Nexus 16, which aims to provide critical mobile telecommunications for such sectors. Using patented technologies, Critical Infrastructure's self-deploying platform (SDP) provides a solution for two of the greatest limitations of current rapidly deployable communication solutions, strength of the tower and ability to rapidly self-deploy and operate, in numerous situations. The SDP is designed to support radio equipment including LTE (long-term evolution) and several other technological payloads, such as surveillance and anti-drone systems. Critical Infrastructure has completed the research and development phase and is currently commercializing the first of many products that will be released.

We seek Safe Harbor.