Ms. Erika Racicot reports

DRAGANFLY ANNOUNCES CLOSING OF US$3.76 MILLION REGISTERED DIRECT OFFERING

Draganfly Inc. has closed its previously announced offering of 1.6 million units of the company, with each unit consisting of one common share (or one prefinanced warrant to purchase one common share in lieu thereof) and one warrant to purchase one common share. Each unit was sold at an offering price of $2.35 (U.S.), for gross proceeds of $3.76-million (U.S.), before deducting placement agent discounts and offering expenses. The warrants have an exercise price of $3.3086 (or $2.35 (U.S.)) per share, are exercisable immediately and will expire five years following the date of issuance, and the exercise price is in Canadian currency.

Maxim Group LLC acted as sole placement agent for the offering.

Pursuant to previous offerings in the United States, the company issued warrants to purchase 256,000 common shares at an exercise price of $5.6925 ($4.1152 (U.S.)) on Oct. 30, 2023, warrants to purchase 540,541 common shares at an exercise price of $5.625 ($4.1155 (U.S.)) on May 1, 2024, and warrants to purchase 666,667 common shares at an exercise price of $5.12 ($3.75 (U.S.)) on Aug. 21, 2024. In connection with the closing of the offering, the company and the holder of the existing warrants entered into an amendment agreement, whereby the exercise price of the existing warrants was reduced to $3.3086 (or $2.35 (U.S.)) per share, respectively.

Draganfly currently intends to use the net proceeds from the offering for general corporate purposes, including to finance 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 was 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 on July 5, 2023, and the company's Canadian short form base shelf prospectus dated June 30, 2023. Draganfly offered and sold the securities in the United States only. No securities were offered or sold to Canadian purchasers.

A prospectus supplement and accompanying base shelf prospectus relating to the offering and describing the terms thereof were filed with the applicable securities commissions in Canada and with the SEC in the United States, and are available at no charge by visiting the company's profiles on the SEDAR+ website maintained by the Canadian Securities Administrators at SEDAR+ or the SEC's website, as applicable. Copies of the prospectus supplement and the accompanying base shelf prospectus relating to the offering may be obtained by contacting Maxim Group, at 300 Park Ave., 16th floor, New York, N.Y., 10022, attention: syndicate department, by telephone at 212-895-3745 or by e-mail at syndicate@maximgrp.com.

About Draganfly Inc.

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

We seek Safe Harbor.