Mr. Michael Zahra reports

DRONE DELIVERY CANADA SUPPORTS FAA REGULATORY ADVANCEMENTS

Drone Delivery Canada Corp. has expressed its support for the Federal Aviation Administration's (FAA) progressive actions in making amendments to advance the use of unmanned aircraft systems (UAS) for logistics and small-package delivery.

Use of drones in this market segment is forecast to increase significantly, according to a report released by the FAA recently. In its January, 2021, report (Aerospace Forecast 2020 -- 2040), the FAA highlights substantial expected growth in both the small UAS category (less than 55 pounds maximum takeoff weight) and the larger UAS category (a maximum takeoff weight of more than 55 pounds).

The FAA report directly highlighted:

• Continued strong growth of small commercial drones over the next five years; forecast change in the number of units in this category could be as much as 210 per cent by 2024 when compared with 2019 figures;
• Professional-grade commercial unmanned aircraft systems are forecast to expand rapidly over time, especially as newer and more sophisticated uses are identified, designed and operated;
• Approval of drones to enter the supply chain through small package delivery could result in growth that "will likely be phenomenal";
• Flights operated by larger unmanned aircraft systems will double by 2024 versus 2019 levels;
• The report also stated, "By 2030, last-mile package delivery ... may result in around 500 million deliveries annually with a fleet of 40,000."

In December, 2020, the FAA also issued a press release with respect to remote ID and operations over people and at night, further advancing the industry. The company also sees this as a positive catalyst in support of the UAS industry and applications Drone Delivery Canada is specifically considering.

In July, 2020, Drone Delivery Canada announced it had started the process to enter the U.S. market.

"In January, 2021, the FAA added new rules to 14 CFR Part 107 to permit the expansion of routine flights and created four categories of UAS for flights over suburban/urban areas, assuming certain, specific criteria are met. These new rules greatly improve the regulatory certainty for UAS delivery operations in the United States and represent a significant step forward toward UAS integration into the U.S. airspace. This FAA report further enables DDC on its path to U.S. operations and the requirements needed. As a global leader in the drone delivery industry, DDC has been anticipating these new regulations and we are well positioned to fully capitalize on them," said Steve Bogie, vice-president, flight operations and technology, at Drone Delivery Canada.

About Drone Delivery Canada Corp.

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

Drone Delivery Canada is a publicly listed company trading on the TSX Venture Exchange under the symbol FLT, on the U.S. OTCQB market under the symbol TAKOF, and on the Frankfurt Stock Exchange in Germany under the symbol A2AMGZ or ABB.F.

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