Mr. Steve Magirias reports

DRONE DELIVERY CANADA ANNOUNCES MULTIPLE AGREEMENTS AS PART OF THE SECOND PHASE PROJECT AT EDMONTON INTERNATIONAL AIRPORT

Drone Delivery Canada Corp., with the assistance of its sales agent, Air Canada, has entered into multiple commercial agreements executed by the company on Jan. 9, 2024, with each of Edmonton International Airport (YEG), Apple Express Courier Ltd., BBE Expediting Ltd. and MFN Management Inc. (a wholly owned corporation of Montana First Nation) to deploy Drone's award-winning and patented drone delivery solution at Edmonton International Airport.

The agreements, with an aggregate value of $417,000, will run for a 12-month duration. Pursuant to the terms of the agreements, Drone Delivery will expand the defined route delivery from YEG with an additional DroneSpot at a medical clinic located in the city of Leduc, Alta. Cargo delivery will take place from YEG to the medical clinic while also maintaining the current delivery route from YEG to the off-airport DroneSpot in Leduc county, which formed the delivery route for the first phase of the project. The medical clinic is wholly owned by Montana First Nation and provides health care services to indigenous and non-indigenous Canadians.

All operations will be conducted in accordance with applicable Canadian regulations and/or Transport Canada special approvals, with flights remotely piloted by Drone Delivery from its operations control centre located in Vaughan, Ont. Additionally, the Canary remotely piloted aircraft (RPA) will be used on this route once operational.

Drone Delivery will commence deployment of the site infrastructure shortly and expects to begin providing drone delivery services under the commercial agreements later in 2024. The YEG drone delivery project, which began with the execution of an agreement with YEG in 2019, won an Xcellence award for innovation from the Association for Uncrewed Vehicles Systems International in 2022 and became commercially operational in May, 2022. During the first phase of the project, over 2,400 flights with a total flight distance of over 6,500 kilometres were completed. The new agreements add a second leg to the operations originating out of the central DroneSpot at YEG.

Steve Magirias, chief executive officer of Drone Delivery Canada, commented: "We are very pleased to sign these new agreements as part of the next phase of our operations at Edmonton International Airport, as well as introducing two new partners as part of the agreements. This next phase will enable us to further expand our delivery capabilities, showcase our Canary RPA and explore new use cases for RPA delivery within the YEG area."

"As we build out the drone delivery demand, we continue to safely innovate the process through a collaborative approach with our partners. Alongside Leduc County and the City of Leduc, we are proud to advance sustainable solutions to first- and final-mile delivery at Edmonton International Airport and the surrounding region. Part of our commitment to being net zero by 2040 is creating opportunities for sustainable transportation and aviation, and we are excited to continue supporting and enhancing the future of drone delivery in the Edmonton metro region," said Myron Keehn, president and CEO of YEG.

"We are excited to collaborate with our Edmonton partners as we explore novel approaches to meet the growing demands of our health care and technology customers. Cutting-edge last-mile delivery solutions are essential in exceeding client expectations today and in the evolving future," stated Nasser Syed, CEO of Apple Express Courier.

"As we continue to find new ways to digitize the supply chain, BBE is excited to participate in this innovative drone delivery project alongside our partners in Edmonton. Finding ways to push the boundaries on what is possible for remote deliveries is important to the future health of logistics," said Heather Stewart, president of BBE Expediting.

"MFN Management Inc. is excited to be working with Drone Delivery Canada, Air Canada, BBE Expediting, Edmonton International Airport, Apple Express and the other partners on this project. As a company, we are always looking for innovative and sustainable opportunities for growth. We hope to develop some services and opportunities from this project to support our corporate growth strategy," said George Addai, general manager, MFN Management.

About Drone Delivery Canada Corp.

Drone Delivery Canada is an award-winning drone technology company focused on the design, development and implementation of its proprietary logistics software platform, using drones. The company's platform is intended to be used as a software-as-a-service (SaaS) model for government and corporate organizations globally.

We seek Safe Harbor.