Mr. Sean Homuth reports

DEFSEC TECHNOLOGIES INC. PROVIDES CORPORATE UPDATE

Defsec Technologies Inc. has provided a corporate update covering preliminary year-end cash and cash equivalents, product developments, business development strategy, and coming industry conference participation.

Preliminary year-end cash position

As at Sept. 30, 2026, the company's balance sheet continues to be well capitalized for fiscal 2027 with preliminary unaudited cash and cash equivalents of approximately $7.7-million and nil debt, compared with $3.5-million cash and nil debt as at June 30, 2026. The change reflects net proceeds from the August, 2026, equity offering net of operating activities during the fourth quarter of fiscal 2026.

As of today, the company has 4,593,998 common shares outstanding and 24,575 prefinanced warrants remaining to be converted.

Product developments

Recent demonstrations of Battlespace Laser Identification Sensor System (Bliss) preproduction units at Dugway Proving Ground, Utah, were completed in August, providing a valuable opportunity to demonstrate laser-detection performance at distance and across a broad spectrum to the U.S. Army.

Business development strategy

Arwen has an established customer base of law enforcement and corrections agencies across North America. The company is executing a business development strategy designed to grow Arwen sales within this base, reach new agencies and use those relationships to introduce its broader public safety portfolio.

The company is allocating additional commercial resources to strengthen sales capabilities, deepen existing customer relationships and accelerate revenue growth. This includes the hiring of senior resources in business development and marketing.

The company's priority is to grow and nurture its existing Arwen customer base. The commercial release of Arwen 40-millimetre baton ammunition, now in full-rate production for use with third party 40-millimetre launchers, extends the company's addressable market to agencies that do not currently operate Arwen launchers. Defsec supports this with hands-on range demonstrations for agencies to shorten the path from first look to evaluation and procurement. The company also actively pursues public procurement opportunities, including through CanadaBuys.

A stronger Arwen customer relationship base also provides a direct channel for cross-selling the company's newer public safety offerings, including Para Shot and Defsec Lightning 2.0.

Industry conference participation

Defsec maintains an active industry conference schedule in support of its business development strategy. This week, the company is exhibiting at Best Defence in London, Ont., which serves the military and defence community, and at Real Time Crime Centre Ops & Tech West in Edmonton, Alta., which serves law enforcement.

In fiscal 2026, Defsec attended Best Defence (London, Ont.), Shot Show (Las Vegas, Nev.), OTAB (Collingwood, Ont.), Cansec (Ottawa, Ont.), where it demonstrated Bliss, and the NTOA Law Enforcement Operators Conference (Nashville, Tenn.). Earlier this month, the company attended the AUSA Annual Meeting & Exposition in Washington, D..

Coming up, Defsec will attend the Police Tech Conference and Expo in Toronto, Ont. (December, 2026) and Shot Show in Las Vegas, Nev. (January, 2027) as well as participate in Army Day on the Hill (December, 2026). Since October, 2025, Defsec has attended six industry events across Canada and the United States, with five more under way or scheduled through January, 2027.

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 a TAK (team awareness kit). 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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