Mr. Sean Homuth reports

DEFSEC TECHNOLOGIES ANNOUNCES CAD$2.5 MILLION REGISTERED DIRECT OFFERING

Defsec Technologies Inc. has entered into definitive agreements for the purchase and sale of 673,006 common shares at a purchase price of $3.74 (Canadian) ($2.63 (U.S.)) per common share in a registered direct offering. In a concurrent private placement, the company will issue unregistered warrants to purchase up to 673,006 common shares at an exercise price of $4.39 per share that will be immediately exercisable upon issuance and will expire five years following the date of issuance. The closing of the offering is expected to occur on or about June 26, 2026, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to the company from the offering are expected to be approximately $2.5-million before deducting placement agent fees and other offering expenses payable by the company. The company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The common shares (but not the unregistered warrants and the common shares underlying the unregistered warrants) described above are being offered by the company pursuant to a shelf registration statement on Form F-3 (file No. 333-277196) that was filed with the Securities and Exchange Commission on Feb. 20, 2024, and declared effective by the SEC on March 4, 2024. The offering of the common shares is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC's website or by contacting H.C. Wainwright & Co. at 430 Park Ave., third floor, New York, N.Y., 10022, by phone at 212-856-5711 or e-mail at placements@hcwco.com.

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 original equipment manufacturer products and battlefield management systems, and all come integrated with Tak. The company also has the established Arwen less lethal munitions platform and a new proprietary less lethal product line branded Para Shot with applications across all segments of the less lethal market, including law enforcement. The company is headquartered in Ottawa, Canada.

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