Ms. Erika Racicot reports

DRAGANFLY ANNOUNCES PRICING OF US$2.0 MILLION REGISTERED DIRECT OFFERING

Draganfly Inc. has entered into a securities purchase agreement with a single institutional investor to purchase 16,666,666 units of the company, with each unit consisting of one common share (or one prefunded warrant to purchase one common share in lieu thereof) and one warrant to purchase one common share. Each unit was sold at a public offering price of 12 U.S. cents, for gross proceeds of approximately $2-million (U.S.), before deducting underwriting discounts and offering expenses. The warrants will have an exercise price of approximately 15 U.S. cents (20.48 Canadian cents) per share, are exercisable immediately and will expire five years following the date of issuance and the exercise price will be in Canadian currency.

Maxim Group LLC is acting as sole placement agent for the offering.

The offering is subject to customary closing conditions including receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange and notification to the Nasdaq Stock Market.

Draganfly currently intends to use the net proceeds from the offering for general corporate purposes, including to fund its capabilities to meet demand for its new products including growth initiatives and/or for working capital requirements, including the continuing development and marketing of the company's core products, potential acquisitions, and research and development. The offering is expected to close on or about Aug. 21, 2024, subject to the satisfaction of customary closing conditions.

The offering is being made pursuant to an effective shelf registration statement on Form F-10, as amended (file No. 333-271498) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission (SEC) on July 5, 2023, and the company's Canadian short-form base shelf prospectus dated June 30, 2023. Draganfly will offer and sell the securities in the United States only. No securities will be offered or sold to Canadian purchasers.

A prospectus supplement and accompanying base shelf prospectus relating to the offering and describing the terms thereof will be filed with the applicable securities commissions in Canada and with the SEC in the United States and will be available for free by visiting the company's profiles on the SEDAR+ website maintained by the Canadian Securities Administrators or the SEC's website, as applicable.

About Draganfly Inc.

Draganfly is the creator of drone solutions, software and AI (artificial intelligence) systems.

We seek Safe Harbor.