Mr. Chris McGillivray reports

AEGIS CRITICAL ENERGY DEFENCE CORP. AND MALAHAT ENERGY SYSTEMS COMPLETE REGISTRATIONS TO PARTICIPATE IN CANADIAN FEDERAL AND PROVINCIAL PROCUREMENT OPPORTUNITIES

Aegis Critical Energy Defence Corp. has updated shareholders that it has completed a series of procurement, supplier and portal registrations across multiple Canadian jurisdictions. These registrations enable Aegis and its indigenous-led partner, Malahat Energy Systems Inc., to participate in government contracts for both indigenous and non-indigenous opportunities, with a key focus on the defence sector.

The company is focused on Canada's North and the federal government's commitment to improving infrastructure in the Arctic to protect Canada's sovereignty. In 2026, Prime Minister Carney stated, "We are taking full responsibility for our security and sovereignty in the Arctic."

According to the government of Canada's official 2026-2027 departmental plan for national defence and the Canadian Armed Forces, the Department of National Defence has a $51.7-billion plan that distributes funding across eight core responsibilities:

• Ready forces: $14.6-billion;
• Procurement of capabilities: $12.8-billion;
• Sustainable bases and information technology infrastructure: $7.28-billion;
• Defence team (personnel): $5.38-billion;
• Operations: $5.0-billion;
• Marine operations and response: $3.65-billion;
• Future force design: $1.45-billion;
• Internal services: $1.22-billion.

"Aegis and Malahat are focused on the North and Canada's investments in its forward bases and see these budget allocations as aligned with Canada's modernization priorities: Arctic sovereignty, continental defence, cyber capabilities and force readiness," as noted by David Parry of Malahat Energy Systems.

Malahat Energy Systems and indigenous participation

Aegis is a minority shareholder of Malahat Energy Systems, an indigenous-led company majority owned by the Malahat Nation. Malahat Energy is a designated indigenous business, is a member of the Canadian Council for Indigenous Business and is listed in the Indigenous Business Directory. This positions the partnership to participate in procurements that include indigenous participation targets and criteria.

Completed registration activities

Canada -- MERX:

• Malahat Energy Systems has completed registration with MERX, a pan-Canadian electronic procurement platform used by federal, provincial and municipal buyers to post opportunities and receive supplier responses.
• Presence on MERX helps ensure Aegis-Malahat solutions have access to key industry stakeholders and are visible and eligible when new energy storage tenders are launched.

Provincial supplier registrations:

• As previously announced, Malahat Energy Systems has completed additional procurement program registrations and supplier qualification processes to support participation in relevant procurement processes across British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.

British Columbia -- business BCeID and B.C. bid:

• Aegis Critical and Malahat Energy Systems have established business BCeID accounts, providing access to British Columbia's on-line government services, including B.C. Bid, the province's electronic procurement system.
• B.C. bid is how the B.C. government posts and manages purchasing opportunities. Being properly registered is a basic requirement to see, qualify for and bid on public-sector energy and infrastructure contracts.

Ontario -- Independent Electricity System Operator:

• Aegis Critical and Malahat Energy Systems have completed organization registration with the Independent Electricity System Operator and are progressing through the applicable participation agreement process.
• The IESO operates Ontario's electricity market. Registration is a prerequisite to potentially participate in programs and procurements where battery energy storage can support grid reliability and renewable integration.

These registrations are administrative in nature and do not yet represent project awards, purchase commitments or future revenue. However, they position Aegis and Malahat Energy as battery energy storage system suppliers across multiple provinces, which is often a precondition to submitting proposals for public-sector projects.

"Achieving certified indigenous supplier status and securing registration on MERX, B.C. Bid, IESO and other procurement portals is a major milestone for Aegis and Malahat. With technology-ready systems already performing in the field and now eligible for government acquisition, we are positioned to participate meaningfully in upcoming defence programs.

"Canada's $150-billion defence commitment over the next five years includes a mandated 5-per-cent indigenous participation requirement -- representing roughly $7.5-billion in opportunities for qualified indigenous suppliers. Malahat is now directly aligned to compete for that work," said Chris McGillivray, vice-president, client relations.

Product portfolio and target applications

Aegis and Malahat Energy offer a portfolio of battery energy storage systems designed for demanding environments and mission-critical uses, including:

• PWR-FLEX 261Q;
• Tough bhoy;
• Five-megawatt-hour utility-scale battery energy storage system.

These systems are engineered for commercial and industrial facilities in Canada's North, as well as for utilities, mining operations, telecommunications, defence installations, remote communities and other critical infrastructure.

Aegis and Malahat Energy Systems continue business development activities with utilities, EPC contractors, project developers, electrical distributors, indigenous communities, commercial and industrial customers, and technology partners regarding battery energy storage opportunities in Canada. These activities are intended to support the company's continuing pro-active engagement and potential participation in procurement and project opportunities.

About Aegis Critical Energy Defence Corp.

Aegis Critical is a Canadian-based energy technology company focused on the development of secure and resilient energy systems for critical infrastructure. The company's integrated platform combines advanced energy storage, hybrid and distributed generation systems, intelligent control architectures, and cybersecurity to deliver high-reliability solutions for applications across defence, marine, remote and industrial sectors.

We seek Safe Harbor.