Mr. Jennifer Welsh reports

DEFSEC TECHNOLOGIES FILES RESTATED INTERIM FINANCIAL STATEMENTS

Defsec Technologies Inc. has voluntarily filed restated unaudited condensed consolidated interim financial statements for the three and nine months ended June 30, 2025, and June 30, 2024, and the related management's discussion and analysis (MD&A) of financial condition and results of operations for the three and nine months ended June 30, 2025. The restated interim financial statements have been amended as a result of errors identified related to the initial measurement of right-of-use assets and lease liabilities associated with the company's lease entered into in June, 2025, as well as the recording of lease-related prepayments associated with the same lease. Changes were limited to the interim statements of financial position and related notes, with no change being made to the interim statements of net loss and comprehensive loss, the interim statements of changes in shareholders' equity, or the interim statements of cash flows reported in the restated interim financial statements.

"Reissuing our Q3 2025 financial results demonstrates our continued commitment to transparency, accuracy and corporate governance," said Jennifer Welsh, chief financial officer and chief compliance officer. "This adjustment is a one-time change with no impact on the company's cash balance, revenues, expenses or cash flows, and results in the company's working capital as at June 30, 2025, increasing by $200,000."

A copy of the restated interim financial statements and restated MD&A may be obtained under the company's SEDAR+ profile.

About Defsec Technologies Inc.

Defsec develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other Defsec products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM (original equipment manufacturer) products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded Para Shot with applications across all segments of the non-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada, with a representative office in London, U.K.

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