Mr. Paul Dickson reports

AEGIS AND SEETEL ESTABLISH CORDELIA BESS AND SUBMITS PROPOSAL TO PARTICIPATE IN IESO LT2 CAPACITY STREAM PROCUREMENT

Aegis Critical Energy Defence Corp. has entered into a legally binding agreement with Seetel New Energy Co. Ltd. (Taiwan) (7740.TW) through the formation of Cordelia BESS Inc., an Ontario-incorporated project company established for the purpose of participating in Ontario's grid-scale energy storage market.

Cordelia BESS Inc. has submitted a proposal Thursday, Dec. 18, 2025, in response to the independent electricity system operator's (IESO) long-term 2 (LT2) request for proposals -- capacity stream (C1). The submission contemplates the potential development of a battery energy storage system (BESS) project with an indicative size of approximately 90 megawatt-hours, subject to the outcomes of the IESO's evaluation process and the satisfaction of all applicable commercial, regulatory and contractual conditions.

The proposed project site is subject to an agreement with the land holders; the site is located adjacent to an existing Festival Hydro substation in Ontario. The project remains at a development and procurement participation stage, and no contract award, revenue or commercial operation is assured. Any advancement of the project is contingent upon the IESO's procurement process, the execution of definitive agreements, and receipt of all required approvals.

The LT2 capacity stream is part of the IESO's long-term electricity planning framework designed to secure additional dispatchable capacity to support system reliability and meet forecasted demand growth associated with electrification, population growth and industrial development. Battery energy storage systems are among the resource types eligible to participate in the LT2 procurement, given their ability to provide flexible capacity and grid support services.

Publicly available IESO planning materials indicate that Ontario electricity demand is expected to grow significantly over the coming decades, with forecasts projecting material increases in peak demand and total system requirements by mid-century. The LT2 procurement process is intended to competitively evaluate eligible resources capable of contributing to system reliability under these long-term conditions.

Aegis cautions that participation in the LT2 procurement does not imply selection, preference or endorsement by the IESO. All proposals are subject to a confidential, competitive evaluation process conducted independently by the IESO in accordance with its published rules and procedures.

About Aegis Critical Energy Defence Corp.

Aegis Critical Energy Defence develops and integrates advanced battery energy storage systems for defence, critical infrastructure, industrial and AI data centre applications. Through strategic partnerships with indigenous communities and global technology leaders, Aegis delivers rugged, intelligent and secure energy systems designed for the next generation of mission-critical operations.

We seek Safe Harbor.