Mr. Cameron Chell reports

SUCCESSFUL SWARMOS INTEGRATION AND FLIGHT SIMULATION MARKS STEP TOWARD NEXT-GENERATION DEFENSE APPLICATIONS

Draganfly Inc. and Palladyne AI Corp. have successfully completed a key integration milestone.

The companies have successfully tested Palladyne AI's SwarmOS platform across Draganfly's mission-ready drone components and validated the system through completion of a successful flight simulation. This milestone represents a significant step toward enabling advanced autonomous swarm capabilities for U.S. defence applications.

Unlike conventional drone automation systems that rely on centralized control or preprogrammed flight paths, the integrated solution is designed to enable decentralized, real-time collaboration between drones operating in dynamic and contested environments. Palladyne AI's decentralized edge collaborative autonomy (DECA) approach with SwarmOS enables drones to independently perceive, make decisions and collaborate without reliance on continuous communications or centralized command structures.

SwarmOS-powered systems are designed to dynamically adapt to evolving mission conditions, including degraded communications or asset loss, allowing the swarm to reconfigure and continue operations autonomously.

"This milestone is a meaningful proof point," said Cameron Chell, chief executive officer of Draganfly. "What excites us about this joint effort is the ability to enable true autonomous collaboration where systems that can think, adapt and operate together in real time. This represents a significant advancement in capability and positions Draganfly to pursue some of the most demanding defence programs."

"Completing the SwarmOS port across Draganfly's defined platform and validating it through flight simulation is a significant step forward," said Ben Wolff, president and CEO Palladyne AI. "SwarmOS isn't about preprogrammed drones flying in formation, it's about giving every drone in the swarm the intelligence to read its environment, collaborate with its teammates and make the right decision in milliseconds. Paired with Draganfly's proven hardware, we are building something operationally significant for the U.S. DoW."

The milestone aligns with increasing demand from U.S. defence initiatives, including efforts to deploy large-scale autonomous systems capable of operating in contested environments where traditional communications and command structures may be limited or unavailable.

Draganfly continues to expand its presence across defenCe applications, including recent engagements supporting U.S. Air Force Special Operations Command and active deployments across intelligence, surveillance, reconnaissance (ISR), logistics and tactical drone platforms.

About Draganfly Inc.

Draganfly is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, civil, military, agriculture, industrial inspection, security, mapping and surveying markets.

About Palladyne AI

Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced unmanned aerial vehicle (UAV) engineering services and precision-manufactured components for defence and industrial markets.

We seek Safe Harbor.