Price at time of writing is 75.7 cents/share, represents a trailing PE of 39.55.

Market cap of 693 mil.

October 25th 4C recorded 238 mil in cash. I suppose the value you place on that cash depends on what you think the business will do with it...

Not a lay down misere yet but definitely keeping an eye on the fundamentals. The run up was overdone but will the run down be too?

slowdown in revenue, huge drop in SP (from peak) and also in chat! We used to be very interested in this stock as a community… just a heads up to keep it on your radar, might reach value again if it continues on current SP path…

30 September 2024

Quarterly Report

For the period ending

DroneShield Limited (ASX:DRO)

ASX Release

ABN 26 608 915 859

Image: DroneSentry-X Mk2 on a vehicle

DroneShield Limited ABN: 26 608 915 859 ASX:DRO

Level 5, 126 Phillip St, Sydney NSW 2000

1

25 October 2024 ASX Announcement

Quarterly Activities/Appendix 4C Cash Flow Report

DroneShield Limited (ASX:DRO) (“DroneShield" or the “Company”) is pleased to release its

business update and Appendix 4C for the three-month period ended 30 September 2024.

Highlights

Notes:

1. Revenues from existing orders relate to existing orders scheduled to be delivered and recognised as

revenue in 4Q24. Excludes revenues for any additional sales to be made and delivered for the remainder

of 2024.

2. Results for YTD 3Q24 are preliminary estimates. The audited results are due in February 2025, as part of

the 2024 Annual Report.

• 1Q-3Q 2024 cash receipts of $30.5 million, up 20% vs 2023 ($25.5 million) – noting the 2023

1Q-3Q period included $2.4 million in R&D tax incentive (now received as a tax offset)

- Highest 1Q-3Q cash receipts in DroneShield’s history

- 3Q24 customer cash receipts of $9.1 million, up 18% vs 3Q23 ($7.7 million)

- Highest 3Q customer cash receipts in DroneShield’s history

• 1Q-3Q 2024 revenues of $31.1 million

- 1Q-3Q 2023 revenue was $39.0 million – difference with 1Q-3Q 2024 due to the delivery

of a material amount of the $33 million order announced in July 2023, during the 3Q2023

- There are material deliveries already delivered and scheduled for 4Q2024 from existing

orders, of which an additional $24.1 million in revenue is estimated for 4Q2024, resulting

in an estimate of $55.2 million in 2024 revenue only from the existing orders, prior to

any additional new orders to be received and delivered prior to year-end (vs $54.1 million

total revenue in 2023)1

• DroneShield is well placed to deliver orders at short notice prior to year-end, with $240

million in existing inventory (completed and in progress/long lead items) by sale value held

- The technology obsolescence is managed by providing quarterly AI software updates to a

number of products, as well as forecasting inventory requirements by comparing sales

pipeline vs the timeframe of release of the next generation of hardware across its products

- The hardware carries sophisticated componentry (assisting high margins and

differentiation), driving the requirement for componentry purchasing in advance due to the

build time of 3-4 months

- Customers have urgent requirements and are unable to wait months for delivery

- The sales team is focussed on maximising revenues prior to the calendar year-end, with

October marking the start of the US new fiscal year

1 Estimate only, and should not be considered as guidance.

DroneShield Limited ABN: 26 608 915 859 ASX:DRO

Level 5, 126 Phillip St, Sydney NSW 2000

2

• Robust pipeline of $1.1 billion2 (as at 25 October 2024)

- Buyers of C-UxS systems are aware of the need to fulfil their requirements, and are

gearing up for large acquisitions of C-UxS equipment, following earlier smaller

purchases and trials

- Significant ramp up in the Asia region (especially countries neighboring China), as multiple

Governments are commencing C-UxS programs against the threat of small Chinese

drones conducting surveillance of sensitive areas, harassment and potential attacks

- The US is expected to continue to be the largest market for DroneShield (70% of 2023

revenues, and 60% for 2024 YTD), with a growing customer base across numerous

government agencies, including military and non-military agencies

- Drones are continuing to play a major role in the Ukraine war, including C-UxS foreign

military aid into Ukraine

- In Europe, the NATO framework agreement awarded to DroneShield is expected to drive

material sales, both directly and via the “halo effect” of being selected by the NATO

authorities

- With the larger C-UxS program acquisitions, the procurement times to award are longer for

larger projects, due to additional probity requirements associated with larger deals. There

are currently 34 separate sale opportunities, each in excess of $5 million, in the $1.1 billion

sales pipeline. Some may be potentially awarded prior to year-end.2

• Strong cash balance as of 30 September 2024 of $238.3 million, no debt or convertibles

- Up from $145.5 million as of 30 June 2024, and including the proceeds from the $120

million Placement in August 2024

- This also includes cash outflows of $19 million during the quarter on inventory

- There is currently $40 million in additional inventory payment commitments

- Key areas of spend going forward will be R&D investment to stay ahead of innovation in

the drone technology, as well as a gradual build out of inventory

• Current team of 220 staff includes 140 engineers to drive the technology development with

quarterly AI software updates and 2-3 year hardware development cycles

- 300 staff including 220 engineers planned by the end of 2025

- A number of hires are recent, with productivity expected to get a further significant boost

as they ramp up their contribution to the business

- DroneShield receives significant amounts of cutting-edge tech intelligence on drone trends

from Ukraine, Middle East and elsewhere globally via its network of tier 1 customer and

partner relationships

- Ramp up in Europe, with 3 experienced senior sales hires (all with ex-C-UxS competitor

background) in Denmark and Germany, as well as an experienced senior sales hire in the

Middle East. Two senior ex-Australian Defence Force (ADF) Australian hires (VP Strategy

and a senior adviser) have joined the business engaging on ADF’s C-UxS deployments,

which are expected to ramp up significantly. They are supported by other ex-senior ADF

staff as advisers where appropriate

- DroneShield has also hired Kacey Lam-Evans as its Government Affairs Director, based

in Canberra, who was in the original team at Pyne and Partners with Hon Christopher Pyne,

as the Company expects Australia to commence large C-UxS programs in near term

• Ukraine, Middle Eastern and other global conflicts substantively use small drones

- This is driving significant innovation in the small drone warfare, and as a result innovation

in counterdrone (C-UxS) systems. DroneShield does not consider itself competing with

other C-UxS companies in the market, but rather the drone technologies themselves

• 1H24 SaaS revenues of $1.3 million, up 93% vs 1H23 ($663k)

- SaaS revenue update incl 3Q and 4Q will be available as part of the 2024 full year results

- Customers require the Company’s latest AI software engines, upgraded quarterly on SaaS

basis, in response to a rapidly evolving drone threat

2 There is no assurance that any of the Company’s sales opportunities will result in sales.

DroneShield Limited ABN: 26 608 915 859 ASX:DRO

Level 5, 126 Phillip St, Sydney NSW 2000

3

- As the hardware becomes more flexible/open-ended with each generation of the product,

the software updates will play an increasing role, critical to effectiveness

- Additional SaaS based solutions planned for launch in the next 12 months

• $42 million contracted backlog

- Increasing amount ($28 million in 2Q24), and with $24.1 million expected to be delivered

this quarter and recognised as revenue

• Further expansion of DroneShield’s Sydney facility and its supply chain network, which is

expected to increase the manufacturing capacity from the current $400 million p.a. to $500

million p.a.

- Signed lease for a significant additional 1,800sqm space at the current Sydney HQ facility,

from the current 2,100sqm, for the combined total of 3,900sqm, with the move into the

expanded space planned to occur prior to 2024 year-end

- Expected to provide additional revenue opportunities (through higher production capacity)

- Majority of the expanded space is for DroneSentry-X Mk2 production (multi-mission

vehicle/fixed site/vessel detect and defeat system), which is expected to drive significant

revenue in 2025 and beyond

- The associated increase in annual lease cost (and other costs) is not material. The fitout

is expected to be covered via the landlord fitout incentive. DroneShield’s own operations

do not have substantial capex outlays associated with them, as only the final assembly and

testing part of the manufacturing is performed at the Company’s own facility, and the

remainder is outsourced with strict specifications

Outlook and Key Themes

As the geopolitical environment deteriorates, small drones continue to be used by bad actors,

both State and non-State alike. C-UxS market remains at a low saturation.

The C-UxS program managers are seeing the rapid evolution of drones on the battlefield, which

drives a degree of delay in larger acquisitions, for the concern of the purchased equipment not

being fit for purpose within a couple of years. DroneShield is approaching this concern in a number

of ways, including building a higher degree of flexibility in its hardware (with software updates

driving the technology), as well as commercial structures in its engagement that reflect the

fast changing technology landscape. The Company also benefits from having a wide range of

products, including handheld solutions, deploying AI on edge (in contrast with the server farms in

the cloud, which is the more traditional deployment of AI, however not suitable for battlefield

applications with no readily available network access at all times).

In terms of the evolution of drones, over the last 12 months, there appears to be penetration of

military technologies into what was originally a consumer technology space for small

drones, with a key focus to avoid detection and defeat of C-UxS systems on both sides of the

Ukraine conflict. Ongoing technology effort is required to keep up with this challenge. DroneShield

is well placed to meet this challenge due to its culture of rapid technology development.

While today the majority of hardware purchases are by customers who require additional

equipment to what they may already have (or it’s their initial purchase), in the next 5-10 years

significant sales are expected to be driven by the customers moving from the older to the latest

generation of hardware. For some customers, this may also lead to C-UxS-as-a-Service model,

with longer term contracts which include hardware purchase and refreshes, regular software

updates, installation and field support. This is positive, as it reduces the lumpiness of cashflows.

While today the military is majority of DroneShield’s customer base, over time the civilian segments

are expected to go through rapid acquisition cycles, likely triggered by incidents. The spread of

such acquisitions will be assisted by the cooperative nature of information sharing of such

customers (as opposed to militaries).

DroneShield Limited ABN: 26 608 915 859 ASX:DRO

Level 5, 126 Phillip St, Sydney NSW 2000

4

The C-UxS sector is continuing to consolidate in 2024, with Axon acquiring Dedrone,

Bridgepoint acquiring MyDefence and High Point acquiring Radio Hill, this year alone.

DroneShield remains the only publicly listed pure-play C-UxS company globally, as well as

one of the last original C-UxS pioneers in this space.

DroneShield’s Positioning

As a pioneer and global leader in the C-UxS sector, DroneShield has a number of technical and

commercial differentiators compared to its competitors. These differentiators have been developed

over years and are challenging to disrupt. On the commercial side, this includes deep trusted

relationships and being written into multi-year requirement plans with key customers across the

US Department of Defense (“DoD”) and other organisations directly, and the defence prime

contractors working with the DoD, to support current and coming priorities. Global primes are often

customers and partners, as opposed to competitors for DroneShield, as they prefer to leverage

DroneShield’s ability to deliver at the required speed of innovation.

With numerous customers and supporting several different C-UxS use cases, DroneShield is

poised for continued diversified growth. The Company is actively progressing opportunities, both

directly and as a subcontractor, across all of its major accounts.

With a large and agile team of hardware and software engineers (estimated as the largest C-UxS

engineering team globally), and a decade of solving C-UxS technology problems as they continue

to rise in complexity, DroneShield is rapidly innovating and building on its unique differentiators.

Payments to related parties of the entity and their associates

Board fees paid to Non-Executive Directors and salary to CEO amounted to $561,483.

This announcement has been approved for release to ASX by the Board.

For enquiries, please contact:

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against

advanced threats such as drones and autonomous systems. We offer customers bespoke

counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products

designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include

military, intelligence community, Government, law enforcement, critical infrastructure, and airports.

To learn more about DroneShield click here: www.droneshield.com/about

ENDS

For more information

Oleg Vornik

CEO and Managing Director

E: [email protected]

P: +61 2 9995 7280

ASX Listing Rules Appendix 4C (17/07/20) Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities

subject to Listing Rule 4.7B

Name of entity

DRONESHIELD LIMITED

ABN Quarter ended (“current quarter”)

26 608 915 859 30 September 2024

Consolidated statement of cash flows Current quarter

$A

Year to date

(9 months)

$A

1. Cash flows from operating activities 9,086,328 30,411,925

1.1 Receipts from customers

1.2 Payments for

(912,178) (2,371,213)

a) research and development

b) product manufacturing and

operating costs

These costs correspond to more than the

current period of sales, due to advanced

inventory purchases (19,017,571) (50,823,288)

c) advertising and marketing (892,815) (3,963,073)

d) leased assets - -

e) staff costs (6,991,794) (17,769,651)

f) administration and corporate costs (2,187,586) (6,663,455)

1.3 Dividends received (see note 3) - -

1.4 Interest received 1,474,537 2,156,999

1.5 Interest and other costs of finance paid

Interest paid relating to the lease liability for

DroneShield’s Office lease in Virginia and

Sydney. Payments for the Sydney office

commenced in July 2024. (84,819) (105,175)

1.6 Income taxes paid - -

1.7 Government grants and tax incentives 97,629 124,804

1.8 Other - -

1.9 Net cash from / (used in) operating

activities (19,428,269) (49,002,127)

ASX Listing Rules Appendix 4C (17/07/20) Page 2

+ See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows Current quarter

$A

Year to date

(9 months)

$A

2. Cash flows from investing activities

- -

2.1 Payments to acquire or for:

a) entities

b) businesses - -

c) property, plant and equipment

$879k relates to leasehold

improvements at DroneShield’s

new Sydney premises. IT

equipment, vehicle and production

tools contribute to the remainder of

the balance (2,332,311) (4,529,256)

d) investments - -

e) intellectual property - -

f) other non-current assets - -

2.2 Proceeds from disposal of:

- -

a) entities

b) businesses - -

c) property, plant and equipment - -

d) investments - -

e) intellectual property - -

f) other non-current assets - -

2.3 Cash flows from loans to other entities - -

2.4 Dividends received (see note 3) - -

2.5

Other

Leasing incentives received in relation to

DroneShield’s Sydney premises. 422,476 1,123,344

2.6 Net cash from / (used in) investing

activities (1,909,835) (3,405,912)

3. Cash flows from financing activities

120,062,501 243,414,473

3.1 Proceeds from issues of equity securities

(excluding convertible debt securities)

3.2 Proceeds from issue of convertible debt

securities - -

3.3 Proceeds from exercise of options - 1,432,528

3.4 Transaction costs related to issues of

equity securities or convertible debt

securities (5,400,000) (11,993,820)

3.5 Proceeds from borrowings - -

3.6 Repayment of borrowings - -

ASX Listing Rules Appendix 4C (17/07/20) Page 3

+ See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows Current quarter

$A

Year to date

(9 months)

$A

3.7 Transaction costs related to loans and

borrowings - -

3.8 Dividends paid - -

3.9 Other

Lease liability principal repayments relating

to DroneShield’s Office lease in Virginia and

Sydney. Payments for the Sydney office

commenced in July 2024. (242,384) (365,882)

3.10 Net cash from / (used in) financing

activities 114,420,117 232,487,299

4. Net increase / (decrease) in cash and

cash equivalents for the period

145,540,681 57,889,056

4.1 Cash and cash equivalents at beginning of

period

4.2 Net cash from / (used in) operating

activities (item 1.9 above) (19,428,269) (49,002,127)

4.3 Net cash from / (used in) investing activities

(item 2.6 above) (1,909,835) (3,405,912)

4.4 Net cash from / (used in) financing activities

(item 3.10 above) 114,420,117 232,487,299

4.5 Effect of movement in exchange rates on

cash held (288,238) 366,140

4.6 Cash and cash equivalents at end of

period 238,334,456 238,334,456

5. Reconciliation of cash and cash

equivalents

at the end of the quarter (as shown in the

consolidated statement of cash flows) to the

related items in the accounts

Current quarter

$A

Previous quarter

$A

5.1 Bank balances 56,158,487 38,493,207

5.2 Call deposits 861,377 841,726

5.3 Bank overdrafts - -

5.4 Other (Term Deposits) 181,314,592 106,205,748

5.5 Cash and cash equivalents at end of

quarter (should equal item 4.6 above) 238,334,456 145,540,681

ASX Listing Rules Appendix 4C (17/07/20) Page 4

+ See chapter 19 of the ASX Listing Rules for defined terms.

6. Payments to related parties of the entity and their

associates

Current quarter

$A

6.1 Aggregate amount of payments to related parties and their

associates included in item 1

Payments to CEO and Non-Executive Directors

561,483

6.2 Aggregate amount of payments to related parties and their

associates included in item 2

-

7. Financing facilities

Note: the term “facility’ includes all forms of financing

arrangements available to the entity.

Add notes as necessary for an understanding of the

sources of finance available to the entity.

Total facility

amount at quarter

end

$A

Amount drawn at

quarter end

$A

7.1 Loan facilities - -

7.2 Credit standby arrangements - -

7.3 Other (please specify) - -

7.4 Total financing facilities - -

7.5 Unused financing facilities available at quarter end -

8. Estimated cash available for future operating activities $A

8.1 Net cash from / (used in) operating activities (item 1.9) (19,428,269)

8.2 Cash and cash equivalents at quarter end (item 4.6) 238,334,456

8.3 Unused finance facilities available at quarter end (item 7.5) -

8.4 Total available funding (item 8.2 + item 8.3) 238,334,456

8.5 Estimated quarters of funding available (item 8.4 divided by

item 8.1)

12.27

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a

figure for the estimated quarters of funding available must be included in item 8.5.

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating

cash flows for the time being and, if not, why not?

Answer: N/A

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further

cash to fund its operations and, if so, what are those steps and how likely does it

believe that they will be successful?

Answer: N/A

ASX Listing Rules Appendix 4C (17/07/20) Page 5

+ See chapter 19 of the ASX Listing Rules for defined terms.

8.6.3 Does the entity expect to be able to continue its operations and to meet its business

objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20) Page 6

+ See chapter 19 of the ASX Listing Rules for defined terms.

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies

which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Date: 25 October 2024

Authorised by: Board of Directors

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the

entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An

entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is

encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions

in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has

been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the

corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing

activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the

board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert

here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the

market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out

as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles

and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the

financial records of the entity have been properly maintained, that this report complies with the appropriate accounting

standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the

basis of a sound system of risk management and internal control which is operating effectively.

Ok I have to admit I shrugged a little reading this announcement. How to place this:

• it’s AI, but isn’t everything!?!?
• it’s available through software subscription which might help build towards the 50:50 software hardware revenue split previously described
• How important is it and how much take up? No idea

announcement as follows:

 19 October 2023

ASX Announcement

 Launch of SensorFusionAI

 • DroneShield launches SensorFusionAI (SFAI), a sensor-agnostic, 3D data fusion engine for complex environments

• Currently deployed as a module in DroneSentry-C2, DroneShield’s Command-and-Control (C2) system

• This launch enables SFAI as a standalone module which can integrate into third party C2 systems on SaaS basis, providing smart fusion capability from diverse sensor arrays

DroneShield Limited (ASX:DRO) (“DroneShield" or the “Company”) is pleased to launch SensorFusionAI (SFAI), a sensor-agnostic, 3D data fusion engine for complex environments.

Angus Bean, DroneShield’s CTO, commented “Detection of drones or Unmanned Aerial Systems (UAS) is moving towards multi-sensor approach for fixed site (and in certain situations, vehicle and ship systems) where the space and budget allows for such approach, due to ability to provide better detection results with multiple sensor modalities, such as radiofrequency, radar, acoustic and camera systems, either deployed in a single or across multiple nodes.”

“However the multi-sensor approach only generates better results, with an intelligent software engine to fuse together the sensor outputs and give an intelligent set of outputs – otherwise adding more sensors is counterproductive as it creates more data without a clear way to manage it.”

DroneShield has developed a true AI-based sensorfusion engine, initially for its own DroneSentry- C2 command-and-control system, including all common drone detection modalities (RF, radar, acoustics, camera).

This separation enables third party C2 manufacturers (including primes) to add SFAI to their C2 systems, on a subscription basis (SaaS), thus improving the performance.

Oleg Vornik, DroneShield’s CEO, added “DroneShield seeks to be both the complete supplier of C-UAS solutions where possible, or a subcontractor where it makes sense. There will be numerous situations globally where the customer has an existing preference for another C2 supplier, based on their existing relationships or other requirements. Providing SFAI to such third party suppliers, maximises our market share and further monetises the IP that we have developed.”

Key feature of SFAI include:

• Behaviour Analysis - Track an object to determine classification and predict trajectory.

• Threat Assessment - Intelligently determine threat level based on a wide range of data types.

• Confidence Levels - Designed for complex, high noise environments, with inconsistent data

inputs.

• After-Action Reporting - Sophisticated analytics presented in easy to interpret graphical

dashboards.

• Edge Processing - Utilises an edge processing device (SmartHub) for reduced network load

and high scalability.

• Versatile Adaptable Inputs - New sensors use existing software adaptors to improve

integration time.

• Output to Any Platform - Visualisation on DroneSentry-C2 or third-party C2 platforms, data

analysis, alert systems or security management software.

SFAI has significant advantages over traditional multi-sensor C2 engines, whereby system sensors are utilised for their strengths with their weaknesses offset by the strengths of sensor types:

DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 • System intelligently builds a model informed by all inputs over time.

• Confidence values allow for soft sensitivity selection, reducing false positives or false

negatives.

• Prediction model can interpolate paths for consistent tracking even with sparse data.

• Any incomplete or contradictory data mediated by comprehensive object model.

• All sensor data fused into one consistent intelligence packet.

 Image: target tracking with SFAI

While the dollar amount of expected sales cannot be quantified at this time, it is expected to be material, and the Company will provide further guidance when available.

This announcement has been approved for release to the ASX by the Board.

For enquiries, please contact:

Oleg Vornik

CEO and Managing Director

E: [email protected] P: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports.

To learn more about DroneShield click here: www.droneshield.com/about ENDS

For more information

DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000

https://www.theage.com.au/world/europe/born-in-russia-australia-based-drone-boss-is-proud-to-help-ukraine-20230912-p5e3zz.html

Further to the straws of @Summer12 and @Rocket6 thjs is a major announcement which confirms the continuation of hockey stick growth in revenue and affirms the sense of the recent cap raise and increase in capacity building.

hopefully this ends up being one of those times that management were selling out for legit reasons despite the rosy future of the business…

this ‘major’ release, hard to know how major from an outsiders perspective, which goes to those subscribed to drone sentry will help to build saas/recurring revenue and build the kind of business model we all love (I hope)…

20 February 2023 ASX RELEASE

Release of 1Q23 DroneSentry-C2 Platform Update

DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to announce it has commenced the release of a major update to the proprietary DroneSentry-C2TM (Command & Control) platform to its subscribed customer base. Enrolled systems on subscription plans, receive a quarterly update to the Command-and-Control engine.

DroneSentry-C2 Version 9.0.0 has been in development for over 12 months and has been completed with close collaboration and partial funding from the Australian Department of Defence via the Defence Innovation Hub (https://innovationhub.defence.gov.au/).

The software update provides the next generation of the DroneShield Sensor Fusion engine, completely redeveloped using the absolute latest techniques in fusion, Machine Learning and data driven development.

Image: DroneSentry-C2 Sensor Fusion Graphic

Major upgrades include:

• New Sensor Fusion Engine: DroneSentry-C2 uses the latest in Multi-Hypothesis

Tracking and Random Finite Set Analysis to determine the presence, predict the historical

position and evaluate the threat of detected objects.

• Site Modes: The mode of each site can now be set to better accommodate critical operator

tasks. Modes include Active, Monitor and Calibration.

• Simplification of Site & Sensor Settings: Major improvements to complex system

settings provide a more intuitive user experience.

• Improved Filtering for Analytics: Events can be filtered based on key parameters such

as time, detection features and probability.

• Consolidation of Analytics: Events are now grouped by their ‘fused object’ rather than

individual sensor detections leading to more easily interpretable reports.

• Improved Filtering & Masking: Adding RF Filters and Radar Masks is more straightforward; the user creates filters at the C2 layer, and the information is passed to

each sensor.

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 • Probability Based System: Many of the sub-systems of DroneSentry-C2 have been updated to allow for probability-based rules, for example Alert Zones can set minimum probability thresholds prior to triggering a notification.

• GUI Overhaul: Major consolidation of GUI elements including map icons, notification panel and alerts due to ‘fused objects’ rather than separate sensor detections.

Angus Bean, DroneShield Chief Technology Officer, commented, “This DroneSentry-C2 system update is the largest in the company’s history. We have taken the learnings from the past 7 years to produce our next generation software platform that will offer major capability enhancement to our existing end users and provide new users a more intuitive and functional system. Using this new Sensor Fusion approach we can increase the accuracy of detection information, reduce the cognitive burden of the operator, and improve the response reaction time to emerging threats. Through our quarterly release cycle, we will continue to evolve, expand, and refine the DroneShield-C2 platform.”

Oleg Vornik, DroneShield CEO, added, “The commercial significance of this release is monumental.”

Firstly, a major differentiator of DroneShield is being both a sensor maker and a C2 (ecosystem) integrator. This enables a better customer experience as we control the entire technology chain in what we sell. It also gives us further flexibility into making sales either as sensor or C2 provider, where for legacy or commercial reasons the customer choses to acquire only a part of our offering and supplement them with third party systems.

Secondly, the C2 is a gateway to customer experience as it is the front facing part of the system, and having a sophisticated system that is embedded with a wide range of end users, enables us to control the user experience without a third-party integrator overlay, and acts as a channel to sell more systems and sensors.

Thirdly, C2 is a pure software, subscription-based product, with corresponding attractive margins and which lends itself to a rapid scale up.”

This announcement has been approved for release to the ASX by the Board.

Further Information

Oleg Vornik

CEO and Managing Director

Email: [email protected] Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports globally.

ENDS

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000

offer is 30 cents/share up to a maximum of 30,000 dollars…

in two minds, share @Noddy74 concerns regarding management communication but feel bullish about the business…

 DRONESHIELD LIMITED ACN 608 915 859

SHARE PURCHASE PLAN OFFER

The Offer closes at 7.00pm (AEDT) on 2 March 2023 (unless extended before that time)

 This is an important document and should be read in its entirety.

This document has been prepared by DroneShield Limited. The Offer is an initiative that provides Eligible Shareholders with the opportunity to purchase additional Shares at a discount without brokerage and transaction costs.

The Offer does not take into account the individual investment objectives, financial situation or particular needs of each Eligible Shareholder. Accordingly, before making a decision whether or not to accept the Offer, you should consult your financial or other professional adviser.

This document is not a prospectus or other disclosure document under the Corporations Act.

 Dear Shareholder,

Invitation to Participate in Share Purchase Plan

On 6 February 2023, DroneShield Limited (ACN 608 915 859) (DroneShield or the Company) announced that it had received firm commitments for a placement of 36,266,666 fully paid ordinary shares (Shares) at a price of $0.30 per Share to sophisticated, institutional and professional investors, to raise approximately $10,880,000 (Placement).

In order to provide Eligible Shareholders (defined below) with the ability to participate in the Company’s capital raising activities, the Company is pleased to provide details of a Share Purchase Plan (Plan).

Under the Plan, Eligible Shareholders will have the opportunity to purchase Shares up to the value of $30,000 at the same price as the Placement, irrespective of the size of their shareholding, without incurring brokerage or transaction costs.

The offer under the Plan (Offer) is intending to raise a maximum of $3,000,000 on the terms and conditions (Terms and Conditions) contained in this document. The Company may elect to accept additional subscriptions or alternatively close the Offer early and/or scale back applications.

Shareholders Eligible to Participate in the Plan

Participation under the Plan is optional and is available exclusively to shareholders of the Company who are registered as holders of Shares at 7.00pm (AEDT) on 3 February 2023 (Record Date) and whose registered address is in either Australia, New Zealand, Hong Kong or Singapore (Eligible Shareholders).

Share Purchase Plan

The Plan entitles Eligible Shareholders, irrespective of the size of their shareholding, to purchase Shares up to the value of $30,000 at an issue price of $0.30 (Price) being the same price as the Shares offered under the Placement. The Price represents a discount of 19.9% to $0.374 (being the volume weighted average market price (VWAP) of the Shares over the last five trading days on which sales in the Shares were recorded before the day on which the Plan was announced.

Whilst the Company intends to raise $3,000,000 under the Plan, the Company reserves the right to accept additional applications subject to shareholder demand and compliance with the ASX Listing Rules. In accordance with the ASX Listing Rules, the maximum number of Shares that can be issued under a share purchase plan is that amount equal to 30% of the Company’s existing issued share capital. Accordingly, as at the date of this document the maximum number of Shares which will be issued under this Plan will be 135,312,595 Shares.

Depending on applications received, the Company may, in its absolute discretion, undertake a scale back so that not more than $3,000,000 is raised under the Plan. Scale back decisions are made by the Board and are final.

9 February 2023

The Plan will not be underwritten. Directors Peter James and Oleg Vornik, who are Eligible Shareholders, intend to participate under the Plan and purchase Shares up to the maximum value of $30,000 each. An application form for the Plan (Application Form) is included in this package.

Current Activities

Details of the Company’s current activities are set out in the announcements made by the Company to the ASX and are available from the ASX platform (ASX: DRO), or the Company’s website at https://www.droneshield.com/.

Use of Funds

The proceeds raised under the Plan and the Placement are intended to be utilised for building up inventory in response to recent and anticipated contract wins, scaling up the Company’s engineering, manufacturing and sales teams, paying the expenses of the Offer and for general working capital purposes.

How much can you invest?

Eligible Shareholders may each apply for Shares with a maximum value of $30,000 and a minimum value of $2,000 under the Plan.

How to accept this Offer

To apply for Shares under the Plan, please follow the instructions on the enclosed personalised Application Form.

Eligible Shareholders may participate by selecting only one of the following offers to purchase Shares under the Plan:

   Total amount payable

  Number of Shares which may be purchased

 Offer A Offer B Offer C Offer D Offer E Offer F Offer G

$30,000 100,000 $25,000 83,333 $20,000 66,666 $15,000 50,000 $10,000 33,333

$5,000 16,666 $2,000 6,666

           The number of Shares to which you are entitled will be calculated by dividing the subscription amount you have selected by the Price, rounded down.

All payments in accordance with the options set out in your Application Form (Application) must be received by the Closing Date of 2 March 2023. If the exact amount of money is not tendered with your Application, the Company reserves the right to either:

(a) return your application monies and not issue any Shares to you; or

(b) issue to you the number of Shares that would have been issued had you applied for the highest designated amount that is less than the amount of your payment and refund the excess application money to you by cheque as soon as possible, without interest.

The Company confirms that if the amount to be refunded is less than the issue price of one Share, being $0.30, it will not be refunded and will be retained by the Company. Once an Application has been made it cannot be revoked.

Multiple Holdings

The maximum investment any Eligible Shareholder may apply for will remain $30,000 even if an Eligible Shareholder receives more than one Offer (whether in respect of a joint holding or because the Eligible Shareholder has more than one holding under a separate account). It is the responsibility of the applicant to ensure that the aggregate of the application amount paid for the Shares the subject of the Application and any other shares and interests in the class applied for by you under the Plan or any similar arrangement in the 12 months prior to the date of submission does not exceed $30,000.

Custodians and Nominees

Eligible Shareholders who hold Shares as Custodian or Nominee (Custodian) for one or more persons on the Record Date (Beneficiary) may apply for Shares up to a maximum amount of $30,000 in respect of each Beneficiary who is resident in either Australia, New Zealand, Hong Kong or Singapore as described in the Terms and Conditions enclosed with this document. Please refer to the Terms and Conditions for more details.

Relationship of Issue Price with Market Price

On the last trading day immediately prior to the announcement date of the Offer, the closing price of the Shares traded on ASX was $0.37. The market price of Shares in the Company may rise and fall between the date of the Offer and the date that any Shares are issued to you as a result of your Application under this Offer.

By making an Application under this Offer and applying for Shares under the Plan, each Eligible Shareholder will be acknowledging that although the Price is at a discount, Shares are a speculative investment and the price of Shares on ASX may change between the date of the Company announcing its intention to make an Offer and the date of issue of Shares under that Offer and that the value of the Shares received under the Plan may rise or fall accordingly.

The Board recommends that you obtain your own financial and taxation advice in relation to the Offer and consider price movements of Shares in the Company prior to making an Application under this Offer.

Additional Information and Important Dates

The offer of Shares under the Plan is made in accordance with ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 and therefore does not require a prospectus for the purposes of Chapter 6D of the Corporations Act 2001 (Cth) (Corporations Act).

The Offer cannot be transferred, and the Directors of the Company reserve the right in their absolute discretion to reject, or scale back, on an equitable basis, any Application. Shares issued under the Plan will be issued no more than five business days after the Closing Date of the Offer. Application for quotation on ASX of the new Shares will be made immediately following the issue of those Shares.

The maximum amount proposed to be raised under the Offer is $3,000,000. The Company, however, reserves absolute discretion regarding the final amount raised under the Offer, subject to the ASX Listing Rules.

In the event of oversubscription by the Closing Date the Directors may, in their absolute discretion, scale-back applications on an equitable basis. Scale-back for Shares held by Custodians will be applied at the level of the underlying Beneficiary. Directors may also, in their absolute discretion, decide to increase acceptances in the event of oversubscriptions.

If the Company rejects or scales-back an Application or purported application, the Company will promptly return to the shareholder the relevant Application monies, without interest.

Foreign offer restrictions

This document may not be released or distributed in any country other than Australia, New Zealand, Hong Kong and Singapore (Permitted Jurisdictions). This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in any other country. In particular, any securities described in this document have not been, and will not be, registered under the US Securities Act of 1933 (as amended) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

New Zealand Shareholders

The Shares offered under the Plan are not being offered or sold to the public within New Zealand other than to existing shareholders of the Company with registered addresses in New Zealand to whom the Offer is being made in reliance on the Financial Markets Conduct (Incidental Offers) Exemption Notice 2021 (as amended) (New Zealand).

This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand). This document is not a product disclosure statement under New Zealand law and is not required to, and may not, contain all the information that a product disclosure statement under New Zealand law is required to contain.

Hong Kong Shareholders

WARNING: This document may be distributed in Hong Kong only to existing shareholders of the Company. This document may not be distributed, published, reproduced or disclosed (in whole or in part) to any other person in Hong Kong or used for any purpose in Hong Kong other than in connection with the recipient's consideration of the Offer.

You are advised to exercise caution in relation to the Offer. If you are in doubt about any contents of this document, you should obtain independent professional advice.

This document has not been reviewed by any Hong Kong regulatory authority. In particular, this document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of the Laws of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong under the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong.

Singapore Shareholders

This document and any other materials relating to the Shares offered under the Plan have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document relating to the Shares may not be issued, circulated or distributed, nor may the Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore except pursuant to and in

accordance with exemptions in Subdivision (4) Division 1, Part 13 of the Securities and Futures Act 2001 of Singapore (the SFA), or as otherwise pursuant to, and in accordance with the conditions of any other applicable provisions of the SFA.

This document has been given to you on the basis that you are an existing holder of the Company's shares. In the event that you are not such a shareholder, please return this document immediately. You may not forward or circulate this document to any other person in Singapore.

Any offer is not made to you with a view to the Shares being subsequently offered for sale to any other party in Singapore. There are on-sale restrictions in Singapore that may be applicable to investors who acquire Shares. As such, investors are advised to acquaint themselves with the SFA provisions relating to resale restrictions in Singapore and comply accordingly.

Shortfall Placement

In the event that less than $3,000,000 is applied for under the Plan, the full amount of the shortfall may be placed at the discretion of the Board subject to compliance with all necessary legal requirements. The Company confirms that any issue of shortfall will be placed subject to the Company’s compliance with ASX Listing Rule 7.1 at the time of issue. As at the date of this document, assuming that all Shares subscribed for under the Placement are issued, the Company will have the capacity to issue 14,631 Shares under its ASX Listing Rule 7.1 capacity. Where the shortfall exceeds the Company’s available placement capacity, the shortfall will only be placed if shareholder approval is obtained.

Indicative Timetable

Record Date for Share Purchase Plan

Announce Share Purchase Plan Placement and lodge Appendix 3B

Opening date for Share Purchase Plan

Closing date for Share Purchase Plan

and

7.00pm (AEDT) 3 February 2023 6 February 2023

9 February 2023

2 March 2023 7 March 2023

9 March 2023

 Event

  Date*

   Lodge Cleansing Notice for the Offer, release Offer Booklet on the ASX platform and dispatch Share Purchase Plan booklet to shareholders

  9 February 2023

  Issue of Shares under Placement, and lodge Appendix 2A and Cleansing Notice with ASX for Placement

  10 February 2023

  Announcement of result of Share Purchase Plan

Issue of new Shares under the Share Purchase Plan and lodge Appendix 2A

  * These dates are indicative only. The Company may vary the dates and times of the Offer without notice. Accordingly, shareholders are encouraged to submit their Applications as early as possible.

Should you wish to discuss any information contained in this document further, do not hesitate to contact Stevan Adzic (Peloton Shareholder Services), on +61 401 639 114 or email [email protected].

Yours faithfully

Oleg Vornik CEO/Managing Director DRONESHIELD LIMITED

 DRONESHIELD LIMITED

ACN 608 915 859

Share Purchase Plan - Terms and Conditions

Purpose

The purpose of the Share Purchase Plan (the Plan), which will be conducted in conjunction with the Placement, is to offer shareholders of DroneShield Limited (DroneShield or the Company) the opportunity to acquire additional fully paid ordinary shares in the Company (Shares) up to a maximum value of $30,000 (when combined with any shares issued under any share purchase plan in the 12 months preceding the date of the Plan) and a minimum value of $2,000.

The issue price of $0.30 under the Plan will be at a discount of 19.9% to the volume weighted average market price of the Shares over the last five trading days on which sales in the Shares were recorded prior to the date the Plan was announced.

The Company is intending to raise $3,000,000 under the Plan. The Shares will not attract brokerage costs and will be issued without the need for the Company to issue a prospectus. The Plan is governed upon such terms and conditions as the board of directors of the Company, in its absolute discretion, sees fit.

No Financial Advice

This document does not provide financial advice and has been prepared without taking account of any person’s investment objectives, financial situation or particular needs. You should consider the appropriateness of participating in the Plan having regard to your investment objectives, financial situation or particular needs. Shareholders should seek independent financial and taxation advice before making any investment decision in relation to these matters.

Shareholders Eligible to Participate

Holders of Shares that are registered with an address in either Australia, New Zealand, Hong Kong or Singapore (Permitted Jurisdictions) at the Record Date are eligible shareholders (Eligible Shareholders) and may participate in the Plan, unless such registered shareholder holds Shares on behalf of another person who resides outside the Permitted Jurisdictions. Due to foreign securities laws, it is not practical for shareholders (or beneficial shareholders) resident in other countries to be offered the opportunity to participate in the Plan.

Participation in the Plan is optional and is subject to these Terms and Conditions. Offers made under the Plan are non-renounceable (i.e. Eligible Shareholders may not transfer their rights to any Shares offered under the Plan). Eligible Shareholders who wish to take up Shares issued under the Plan agree to be bound by the Company’s constitution in respect of Shares issued under the Plan.

An offer may, at the discretion of the directors of the Company (Directors), be made under the Plan once a year. The maximum amount which any shareholder may subscribe for in any consecutive 12-month period is $30,000. The Directors may also determine in their discretion the minimum amount for participation, the multiple of Shares to be offered under the Plan and the period the offer is available to Eligible Shareholders.

Custodians, trustees and nominees

If you are an Eligible Shareholder and hold Shares as a custodian (as defined in ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 (ASIC CI 2019/547)

(refer below) (Custodian) or in any more specific ASIC relief granted to the Company in relation to the Plan), you may apply for Shares up to a value of $30,000 for each beneficiary for whom you act as custodian provided you complete and submit, together with an Application, a certificate (Custodian Certificate) with the following information:

(a) that you held Shares on behalf of:

(i) one or more other persons that are not custodians; and/or

(ii) another custodian (Downstream Custodian) that holds beneficial interests in Shares on behalf of one or more other persons who are resident in a Permitted Jurisdiction, to which those beneficial interests relate,

(each a Participating Beneficiary) at the Record Date who have subsequently instructed you, and/or the Downstream Custodian, to apply for Shares under the Plan on their behalf;

(b) the number of Participating Beneficiaries and their names and addresses;

(c) the number of Shares that you hold on behalf of each Participating Beneficiary;

(d) the number or dollar amount of Shares that each Participating Beneficiary has instructed you, either directly or indirectly through a Downstream Custodian, to apply for on their behalf;

(e) that the application price for Shares applied under the Offer for each Participating Beneficiary for whom you act in addition to the application price for any other Shares issued to you as custodian (as a result of instruction given to you as Custodian or a Downstream Custodian) for that Participating Beneficiary under any arrangement similar to the Plan in the prior 12 months does not exceed $30,000;

(f) that a copy of the written offer document was given to each Participating Beneficiary; and

(g) where you hold Shares on behalf of a Participating Beneficiary indirectly, through one or more Downstream Custodians, the name and address of each Downstream Custodian.

For the purposes of ASIC CI 2019/547 you are a ‘Custodian’ if you provide a custodial or depository service in relation to shares of a body or interests in a registered scheme and you:

(a) hold an Australian financial services licence covering the provision of a custodial or depository service;

(b) are exempt from the requirement to hold an Australian financial services licence covering the provision of a custodial or depository service;

(c) hold an Australian financial services licence covering the operation of an IDPS or is a responsible entity of an IDPS-like scheme;

(d) are a trustee of a self-managed superannuation fund or a superannuation master trust; or

(e) are a registered holder of shares or interests in the class and is noted on the register of members of the body or scheme as holding the shares or interests on account of another person.

If you hold Shares as a trustee or nominee for another person or persons but are not a Custodian as defined above, you cannot participate for beneficiaries in the manner described above. In this case, the rules for multiple single holdings (above) apply.

Custodians should request a Custodian Certificate when making an Application on behalf of Participating Beneficiaries. To request a Custodian Certificate and if you would like further information on how to apply, you should contact the Company’s share registry at any time from 8.30am to 5.00pm (AEDT time) Monday to Friday during the Offer period.

The Company reserves the right to reject any Application to the extent it considers that the Application (whether alone or in conjunction with other Applications) does not comply with these requirements. The Company reserves the right to reject Applications in accordance with these Terms and Conditions.

Price of Shares

The price of Shares to be issued under the Plan is $0.30 which represents a discount of 19.9% of the volume weighted average market price for the Shares over the last five trading days on which sales in the Shares were recorded prior to the date the Plan was announced, being $0.374.

Applications and Notices

At the discretion of the Directors, the Company will send Eligible Shareholders a letter of offer and acceptance procedures, inviting them to subscribe for Shares under the Plan, and accompanied by these Terms and Conditions of the Plan and an Application Form. Applications will not be accepted after the Closing Date of the Offer being 2 March 2023. Over subscriptions to an offer may be refunded without interest.

Notices and statements made by the Company to participants may be given in any manner prescribed by its Constitution.

Acknowledgement

By completing an Application and making the associated payment in accordance with the options on your Application Form, you:

(a) irrevocably and unconditionally agree to the terms and conditions of the Plan and the terms and conditions of the Application Form and agree not to do any act or thing that would be contrary to the spirit, intention or purpose of the Plan;

(b) warrant that all details and statements in your Application are true and complete and not misleading;

(c) agree that your Application will be irrevocable and unconditional (that is, it cannot be withdrawn even if the market price of the Shares is less than the Price);

(d) warrant that you are an Eligible Shareholder and are eligible to participate in the Plan;

(e) acknowledge that no interest will be paid on any application monies held pending the issue of Shares under the Plan or subsequently refunded to you for any reason;

(f) acknowledge that the Company and its officers and agents, are not liable for any consequences of the exercise or non-exercise of its discretions referred to in these terms and conditions;

(g) acknowledge and agree that if you are acting as a trustee, nominee or Custodian, each beneficial holder on whose behalf you are participating is resident in a Permitted Jurisdiction, and you have not sent these Terms and Conditions, an Offer Document, or any materials relating to the Plan, to any person outside the Permitted Jurisdictions;

(h) if you are applying on your own behalf (and not as a Custodian), acknowledge and agree that:

(i) you are not applying for Shares with an application price of more than $30,000 under the Plan (including by instructing a Custodian to acquire Shares on your behalf under the Plan); and

(ii) the total of the application price for the following does not exceed $30,000:

(A) the Shares the subject of the Application;

(B) any other Shares issued to you under the Plan or any similar arrangement in the 12 months before the Application (excluding Shares applied for but not issued);

(C) any other Shares which you have instructed a Custodian to acquire on your behalf under the Plan; and

(D) any other Shares issued to a Custodian in the 12 months before the Application as a result of an instruction given by you to the Custodian to apply for Shares on your behalf under an arrangement similar to the Plan.

(i) if you are a Custodian and are applying on behalf of a Participating Beneficiary on whose behalf you hold Shares, acknowledge and agree that:

(i) you are a Custodian (defined above);

(ii) you hold Shares (directly or indirectly) on behalf of one or more Participating Beneficiaries;

(iii) you held Shares on behalf of the Participating Beneficiary as at the Record Date who has instructed you to apply for Shares on their behalf under the Plan;

(iv) each Participating Beneficiary on whose behalf you are applying for Shares has been given a copy of this document;

(v) the application price for the Shares applied for on behalf of the Participating Beneficiary, and any other Shares applied for on their behalf under a similar arrangement in the previous 12 months (excluding shares applied for but not issued), does not exceed $30,000; and

(vi) the information in the Custodian Certificate submitted with your Application is true, correct and not misleading;

(j) agree to be bound by the constitution of the Company (as amended from time to time);

(k) acknowledge that none of the Company, its advisers or agents, has provided you with any financial product or investment advice or taxation advice in relation to the Plan, or has any obligation to provide such advice; and

(l) authorise the Company, and its officers and agents, to correct minor or easily rectified errors in, or omissions from, your Application including the Application Form and to complete the Application by the insertion of any missing detail.

Placement of Shortfall

Any shortfall from the Offer may be placed at the discretion of the Directors. The Company confirms that any issue of shortfall will be placed subject to the Company’s compliance with ASX Listing Rule 7.1 at the time of issue. As at the date of this document and assuming all Shares under the Placement are issued, the Company will have capacity to issue 14,631 Shares under its ASX Listing Rule 7.1 capacity.

Issue of Shares

Shares to be issued under the Plan will be issued as soon as reasonably practicable after the Closing Date and in any event no more than five business days of the Closing Date and will rank equally in all respects with all other fully paid ordinary shares in the capital of the Company from the date of issue.

Shareholding statements or CHESS notification will be issued in respect of all Shares issued under the Plan. The Company will, promptly after the issue of Shares under the Plan, make application for those Shares to be listed for quotation on the official list of ASX.

Modification and Termination of the Plan

The Company may modify or terminate the Plan at any time. The Company will notify ASX of any modification to, or termination of, the Plan. The omission to give notice of any modification to, or termination of, the Plan or the failure of ASX to receive such notice will not invalidate the modification or termination.

Without limiting the above, the Company may issue to any person fewer Shares than the person applied for under the Plan if the issue of Shares applied for would contravene any applicable law or the Listing Rules of ASX.

Raising Amount and Scale back

The Company is seeking to raise a maximum of $3,000,000 under the Plan. However, the Company reserves its absolute discretion regarding the final amount raised under the Plan subject to compliance with the ASX Listing Rules.

In accordance with the ASX Listing Rules, the maximum number of Shares that can be issued as at the date of this document is 135,312,595 Shares.

In the event of oversubscriptions, the Directors may, in their absolute discretion, accept oversubscriptions (in accordance with the ASX Listing Rule parameters) or alternatively scale-back all Applications on an equitable basis. If the Company rejects or scales-back an Application or purported Application, the Company will promptly return to the shareholder the relevant application monies, without interest.

Dispute Resolution

The Company may, in any manner it thinks fit, settle any difficulties, anomalies or disputes which may arise in connection with or by reason of the operation of the Plan, whether generally or in relation to any participant, Application or Shares. The decision of the

Company in this respect will be conclusive and binding on all shareholders and other persons to whom that determination relates.

The Company reserves the right to waive strict compliance with any provision of these terms and conditions. The powers of the Company under these conditions may be exercised by the directors of the Company or any delegate of the directors of the Company.

Questions and Contact Details

If you have any questions regarding the Plan or how to deal with this Offer, please contact your stockbroker or professional adviser or Stevan Adzic (Peloton Shareholder Services), on +61 401 639 114 or email [email protected].

               All Registry Communication to:

GPO Box 5193, Sydney NSW 2001

1300 288 664 (within Australia)

+61 2 9698 5414 (international) [email protected] www.automicgroup.com.au

 DRONESHIELD LIMITED| ACN 608 915 859

 [EntityRegistrationDetailsLine1Envelope] [EntityRegistrationDetailsLine2Envelope] [EntityRegistrationDetailsLine3Envelope] [EntityRegistrationDetailsLine4Envelope] [EntityRegistrationDetailsLine5Envelope] [EntityRegistrationDetailsLine6Envelope]

 SRN/HIN: [HolderNumberMasked] ASX Code: DRO Record Date: 7:00pm (AEDT), 3 February 2023

[ReplaceNoImages]

SHARE PURCHASE PLAN APPLICATION FORM

IMPORTANT: OFFER CLOSES 5:00PM (AEDT) ON 2 MARCH 2023 (UNLESS VARIED) 1: SUBSCRIPTION

This Offer entitles each Eligible Shareholder in DroneShield Limited (Company) (ASX: DRO) to subscribe through the Company’s Share Purchase Plan (SPP) for a maximum of $30,000 worth of fully paid ordinary shares in the Company (New Shares). The SPP is open to all shareholders recorded as holding fully paid ordinary shares (Shares) on the Company’s Register as at the Record Date with a registered address either in Australia, New Zealand, Hong Kong or Singapore (Eligible Shareholders). The issue price of the New Shares is $0.30 (Price). Eligible Shareholders may subscribe for any one of the following parcels (subject to a maximum band or any scale back) described below by paying the applicable Subscription Amount in accordance with the payment instructions in section 2 of this Application Form:

$30,000 (maximum) $25,000 $20,000 $15,000 $10,000 $5,000 $2,000 (minimum)

100,000 83,333 66,666 50,000 33,333 16,666 6,666

No fractions of Shares will be issued. Any fraction of a Share will be rounded down to the nearest whole number of Shares (where applicable).

2: PAYMENT - You can pay either by BPAY® or Electronic Funds Transfer “EFT” Payment under the Share Purchase Plan can only be made by BPAY® or EFT.

3: Elect to receive email communication

Return to Automic Group by email to [email protected]

    Application Amount

  Number of New Shares

 Offer A

 Offer B

 Offer B

 Offer C

 Offer D

 Offer E

 Offer F

        SAMPLE

  Option A – BPAY® Option B – Electronic Funds Transfer (EFT)

   Biller Code: Ref No:

 The unique Payment Reference which has been assigned to your

Application is:

Funds are to be deposited directly to following bank account:

Account name: Account BSB: Account number: Swift Code:

IMPORTANT: You must quote your unique payment reference as your payment reference/ description when processing your EFT payment. Failure to do so may result in your funds not being allocated to your application and shares subsequently not issued.

       Contact your financial institution to make your payment from your cheque or savings account.

  Note: You do not need to return this form if you have made payment via BPAY® or EFT. Your BPAY® reference number or unique reference number will process your payment for your application for New Shares electronically.

         Telephone Number Contact Name (PLEASE PRINT) DRO-[HolderId] ()

Please insert your email address if you wish to elect to be an e-Shareholder, and you consent to receiving communications from the Share Registry

INSTRUCTIONS FOR COMPLETION OF THIS FORM

The right to participate in the SPP is optional and is offered exclusively to all Shareholders (including Custodians) who are registered as holders of fully paid ordinary shares in the capital of the Company on the Record Date with a registered address in Australia, New Zealand, Hong Kong or Singapore (Eligible Shareholders).

If the Company rejects or scales-back an application or purported applications, the Company will return to the Shareholder the relevant Application Monies, without interest.

HOW TO APPLY FOR SHARES UNDER THE SPP

1 Subscription

As an Eligible Shareholder, you can apply for up to a maximum of $30,000 worth of Shares. Eligible Shareholders can select one of the parcels prescribed overleaf.

In order to comply with ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547, the maximum value of Shares each Eligible Shareholder (irrespective of the size of their shareholding) may apply for under this Offer is $30,000 (including through joint holding(s), multiple share accounts or any holding in which they have a beneficial interest/s). This limit will apply even if you receive more than one offer from the Company (for example, because you are a joint holder of Shares or because you hold more than one shareholding under separate share accounts).

If the Company receives an amount that does not equal one of the amounts specified overleaf the Company may accept the payment at their discretion and refund any excess Application Money (without interest) to the Eligible Shareholder. If the Company receives a subscription of over $30,000 worth of Shares by an Eligible Shareholder through multiple applications or joint holdings, the Company may refund any excess Application Money (without interest) to the Eligible Shareholder.

Any application made under the SPP Offer is not guaranteed to result in the Eligible Shareholder receiving any Shares that have been applied for. Applications may be scaled back at the absolute discretion of the Company.

2 Payment

By making a payment via BPAY or EFT, you agree that it is your responsibility to ensure that funds are submitted correctly and received by Automic Share Registry by the closing date and time. Payment must be received by the Share Registry by 5:00pm (AEDT) on 2 March 2023.

It is your responsibility to ensure your CRN or unique Payment Reference is quoted, as per the instructions in Section 2. If you fail to quote your CRN or unique Payment Reference correctly, Automic may be unable to allocate or refund your payment. If you need assistance, please contact Automic.

Payment by BPAY®: You can make a payment via BPAY® if you are the holder of an account with an Australian financial institution that supports BPAY® transactions. To BPAY® this payment via internet or telephone banking use your reference number on this Form. Multiple acceptances must be paid separately.

Payment by EFT: You can make a payment via Electronic Funds Transfer “EFT”. Multiple acceptances must be paid separately. Please use your unique reference on this Form. This will ensure your payment is processed correctly to your application electronically.

If you make a payment by BPAY® or EFT and the Company receives an amount which is not equal to either $30,000, $25,000, $20,000, $15,000, $10,000, $5,000, or $2,000 the Company may accept the payment at their discretion. Your payment must be for a minimum of $2,000.

Applicants should be aware of Automic’s financial institution’s cut off-time, their own financial institution’s cut-off time and associated fees with processing a funds transfer. It is the Applicant’s responsibility to ensure funds are submitted correctly by the closing date and time, including taking into account any delay that may occur as a result of payments being made after 5pm (AEDT) and/or on a day that is not a business day (payment must be made to be processed overnight). You do not need to return this Form if you have made payment via BPAY® or EFT. Your reference number will process your payment to your application electronically and you will be deemed to have applied for such shares for which you have paid.

3 Contact Details - Elect to receive email communication

As a valued shareholder in DroneShield Limited, the Company encourages shareholders to elect to receive their shareholder communications electronically. This will ensure you receive all future important shareholder communications in a faster and more secure way and reduce the environmental footprint of printing and mailing.

IMPORTANT INFORMATION

1. This is an important document which requires your immediate attention. If you are in any doubt as to how to deal with this Application Form, please consult a professional adviser.

2. If you do not wish to purchase Shares under the SPP, there is no need to take action.

3. Please ensure you have read and understood the terms and conditions of the SPP in the Offer Booklet accompanying this Application Form and this section

entitled "Important Information" before making payment by BPAY® or EFT.

4. The offer for Shares under the SPP is non-renounceable. Applications can only be accepted in the name printed on the Application Form.

5. If you are a custodian, trustee or nominee within the meaning of “Custodian” as defined in ASIC Corporations (Share and Interest Purchase Plans) Instrument

2019/547, you must complete and submit an additional certificate that contains further certifications and details (Custodian Certificate) that must be provided before your application will be received. The Custodian Certificate can be obtained by contacting the Share Registry on the telephone number set out below. Applications received by Custodians that are not accompanied by the Custodian Certificate will be rejected. A completed Custodian Certificate must be emailed to: [email protected], failure to do so will result in the Application being rejected.

6. For applicants that are not required to complete the Custodian Certificate, by making payment by BPAY® or EFT, you certify that the aggregate of the payment paid by you for:

• the parcel of Shares indicated on this Application Form or BPAY® or EFT; and

• any other Shares applied for by you, or which you have instructed a custodian to acquire on your behalf under the SPP or any other similar arrangement

in the 12 months prior to making payment by BPAY® or EFT does not exceed A$30,000.

7. The maximum subscription limitation of A$30,000 will apply even if you have received more than one Application Form (whether in respect of a joint holding or

because you have more than one holding under separate security accounts).

8. You are not guaranteed to receive any Shares that you have applied for and the Company may, in its absolute and sole discretion:

a. scale back any applications made; and

b. reject your application, without limit.

9. By making payment of application monies, you certify that:

• you wish to apply for Shares under the SPP as indicated on this Application Form and acknowledge that your application is irrevocable and unconditional;

• you received a copy of the Offer Booklet and you have read and understood the terms and conditions of the SPP;

• you agree to be bound by the Constitution of the Company and the terms and conditions in the Offer Booklet;

• you agree to accept any lesser number of Shares than the number of shares applied for; and

• you are not in the United States and are not acting for the account or benefit of a person in the United States and have not sent any offering materials relating to the SPP offer to any person in the United States.

If you require further information about the Offer, please contact Automic on 1300 288 664 or +61 2 9698 5414 between 8:30am and 8:00pm (AEDT).

  SAMPLE

whilst this article doesn’t mention Droneshield clearly this is a problem costing a huge number of dollars… tailwinds!

https://www.irishmirror.ie/news/irish-news/dublin-airport-drone-cash-back-29153685?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target

CEO just sold half of his ordinary shares although the announcement muddies that a little by including options I presume (28% of his total undiluted holding)…

They offer that a substantial amount of this was to meet tax obligations.

Doesnt fill me with joy when the CEO sells 2 million dollars worth of shares but I’m bullish enough about DRO that I’m happy to look past it for now :

Appendix 3Y

Change of Director’s Interest Notice

Rule 3.19A.2

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/09/01 Amended 01/01/11

Name of entity DroneShield Limited ABN 26 608 915 859

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director  Oleg Vornik Date of last notice  3 June 2022

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Appendix 3Y Change of Director’s Interest Notice

   Direct or indirect interest

Date of change

Direct and Indirect

10 – 12 January 2023

 Nature of indirect interest

(including registered holder)

Note: Provide details of the circumstances giving rise to the relevant interest.

  Oleg Vornik and Elena Vornik <Bennelong A/C>

  Mr Oleg Vornik + <Marathon Superfund A/C>

Mr Jethro Marks

 No. of securities held prior to change

  15,310,356 fully paid ordinary shares.

750,000 unlisted and unvested zero exercise price options, vesting if certain performance milestones are met, each exercisable at $0.00 per option, expiring on 30 November 2022.

250,000 unlisted and unvested employee options (being the Class Q Options), vesting on 30 November 2022, exercisable at $0.65 per option, expiring on 30 June 2023.

10,000,000 unlisted and unvested Performance Options, vesting if certain performance milestones are met, each exercisable at $0.00 per option, expiring on 29 April 2027.

  Class

+ See chapter 19 for defined terms. 01/01/2011 Appendix 3Y Page 1

Fully paid ordinary shares

Appendix 3Y

Change of Director’s Interest Notice

Number acquired Number disposed

Value/Consideration

Note: If consideration is non-cash, provide details and estimated valuation

Nil

a) 7,233,334 fully paid ordinary shares

b) 750,000 unlisted and unvested options a) $1,908,346.81

b) Nil

    No. of securities held after change

 8,077,022 fully paid ordinary shares.

250,000 unlisted and vested employee options (being the Class Q Options), exercisable at $0.65 per option, expiring on 30 June 2023.

10,000,000 unlisted and unvested Performance Options, vesting if certain performance milestones are met, each exercisable at $0.00 per option, expiring on 29 April 2027.

  Nature of change

Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back

  a) On-market trade. The sale of shares represents 28.2% of the total Director’s holding on a fully diluted basis. A substantial part of the proceeds is towards meeting ATO tax obligations associated with issue of DroneShield securities.

b) Expiry of options

  Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract N/A Nature of interest N/A

Name of registered holder N/A (if issued securities)

Date of change N/A

Interest acquired N/A Interest disposed N/A

+ See chapter 19 for defined terms. Appendix 3Y Page 2

01/01/2011

    No. and class of securities to which interest

related prior to change

Note: Details are only required for a contract in relation to which the interest has changed

  N/A

Appendix 3Y Change of Director’s Interest Notice

Value/Consideration N/A Note: If consideration is non-cash, provide details and an estimated valuation

Interest after change N/A Part 3 – +Closed period

Were the interests in the securities or contracts detailed No above traded during a +closed period where prior written clearance was required?

If so, was prior written clearance provided to allow the N/A trade to proceed during this period?

If prior written clearance was provided, on what date was N/A this provided?

        + See chapter 19 for defined terms. 01/01/2011 Appendix 3Y Page 3

The announcements have developed from a stream to the proverbial firehose. Exciting as a holder, for a business that had already pivoted to profitability when interviewed by @Strawman to see what may be a real explosion in revenue, such tailwinds!

Hopefully a high margin opportunity :

 25 November 2022 ASX RELEASE

DroneShield and XRG Partner for Extended Reality Training

DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to advise it has teamed with xReality Group Ltd (ASX:XRG) (XRG) to provide eXtended Reality (XR) based counterdrone/C-UAS training solutions.

XR includes Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR). It combines physical and digital simulation across the enterprise, defence and consumer markets.

The XR category for military and law enforcement is growing rapidly with the market predicted to grow US$16bn in 20271.

XRG’s subsidiary “Operator Tactical Solutions” develops immersive planning, rehearsal and training solutions for the military and law enforcement markets, across local and international markets. XRG is led by Wayne Jones, who prior to establishing XRG was a highly decorated Patrol Commander with the Special Air Service Regiment. Additional information about XRG can be found at https://xrgroup.com.au/.

As part of the launch, XRG will be promoting the training solution at the I/ITSEC 2022 Exhibition in Orlando Florida, taking place November 28th – December 2nd. Additional information about the event can be found at https://www.iitsec.org/.

A video showing some of the highlights of the XR-based counter-UAS solutions can be seen here:

Video: XRG DroneShield C-UAS training video reel

1 https://www.marketwatch.com/press-release/police-and-military-simulation-training-market-revenue- continues-to-dominate-with-452-cagr-globally-to-2027-118-report-pages-2022-09-28

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 DroneShield CEO, Oleg Vornik, commented: “As the counterdrone industry continues to rapidly grow and develop, evidenced by significant use of small drones by both side in the Ukraine war, there is an emergent need for counterdrone tactics and training packages for the system operators. As the global leader in the C-UAS sector, DroneShield is well placed to provide the training.”

“We are excited to partner with XRG, who have deep experience in defence and law enforcement eXtended Reality training, and work in partnership with our customers to tailor design packages to meet their operational requirements.”

XRG CEO, Wayne Jones, added: “Today’s battlefield is evolving quickly making it difficult for front line defenders to be prepared for all situations. Operator’s solutions are enabling defence and law enforcement to rapidly train for these new situations in realistic, virtual environments. We are pleased to be able to add cutting-edge XR-based Counter Drone training programs to Operator’s product offering, in partnership with the C-UAS market leader, DroneShield.”

While the dollar amount of expected sales cannot be quantified at this time, it is expected to be material, and the Company will provide further guidance when available.

This announcement has been approved for release to the ASX by the Board.

Further Information

Oleg Vornik

CEO and Managing Director

Email: [email protected] Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports globally.

ENDS

 droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000

Pretty bullish

 10 November 2022

ASX RELEASE

 $1 million Order

 DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to advise it has received an approximately $1 million order for several of its DroneSentry-X® units for an international Government agency.

Full payment and shipment are expected prior to end of this quarter.

DroneSentry-X® is a vehicle, ship or fixed site counterdrone system that comes in either detect- only or detect-and-defeat variants. This order is for the full detect-and-defeat variant of the system.

The system includes AI-powered software with quarterly software updates on a subscription basis. $1 million refers to the upfront cost of the system, with future year subscriptions (if elected to continue by the customer) as an additional amount to be received by DroneShield.

DroneShield CEO, Oleg Vornik, commented, “Small drones continue to demonstrate their capability for surveillance, payload delivery and other nefarious uses in warfare, terrorism and intelligence gathering operations. Combined with a general rise in global tensions and increasing uncertainty, we are seeing a number of our existing and new customers globally strengthen their security posture and accelerate counterdrone acquisition programs.”

“For this customer, it is an initial purchase that follows earlier trials, and is expected to follow up with a number of additional systems to be acquired in 2023.”

Image: DroneShield DroneSentry-X® system

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 This order follows a number of recent wins for DroneShield in the last couple of months, including being recommended by the Joint Counter-small Unmanned Aircraft Systems Office (JCO) for deployment across US DoD bases within the Science Applications International Corporation (SAIC) consortium, a win of Small Business Innovation Research (SBIR) project for US DoD with Quantum Research International, and orders with US Army, European Government customers, first US airport deployment, and appointment to the Australian Department of Defence Intelligence, Surveillance, Reconnaissance and Electronic Warfare Standing Offer Panel.

This announcement has been approved for release to the ASX by the Board.

Further Information

Oleg Vornik

CEO and Managing Director

Email: [email protected] Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports globally.

ENDS

 droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000

Having heard the Recent interview and looking through the announcements I feel like this is a business which is on the cusp of profitability and with a huge runway ahead of it and at least according to them are an industry leader.

the below kind of announcement supports the premise that droneshield is at the leading edge of its area. Given the (in my view) inevitable rise of drones in many walks of life I feel this is the time to get on board.

 8 November 2022 ASX RELEASE

DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to announce that it has received, in a teaming arrangement between its US subsidiary DroneShield LLC and Quantum Research International, Inc. (Quantum), a Small Business Innovation Research (SBIR) Phase 1 project for “Utilizing Machine Learning Algorithms to track and identify UAS threats” for the United States Department of Defense (DoD) administered by SOFWERX.

SOFWERX is a platform established under a Partnership Intermediary Agreement between US Special Operations Command (USSOCOM) and DEFENSEWERX (a non-profit focussing on homeland security innovation) to help USSOCOM solve challenging Warfighter problems.

Quantum is a global services and technology company headquartered in Huntsville, Alabama, focused on multi-platform warfare domains. Quantum is the project principal lead with DroneShield supporting the work.

Phase 1 of the project covers a feasibility study to investigate the art of the possible regarding development of a LiDAR-based system using Machine Learning (ML) algorithms to create electronic signatures for Unmanned Aerial System (UAS) identification and continuous surveillance of UAS/drone threats. The project will address the risks and potential payoffs of the innovative technology options that are investigated and recommend the option that best achieves the objective of this technology pursuit. Phase 1 of the project is expected to be completed in the first quarter of 2023.

Quantum and DroneShield will perform applied research, development, and assessment of the feasibility of all viable overall system design options with respective specifications for detection and identification of UAS that provide real-time alerts with geolocation of target objects in the air. The main features for capability development will include range maximization while maintaining accuracy of detection.

Image: DroneShield DroneSentry system including RfOne detection sensors and DroneCannon defeat devices

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 U.S. Government Contract

 Matt McCrann, DroneShield US CEO, commented, “We’re excited to enter this collaboration to support cutting edge technologies enabling today’s warfighter. We look forward to completing the initial phase of the project with our partner Quantum and the potential for subsequent stages of development and fielding of the technology.”

While the undisclosed value of the contract is under materiality threshold, it is expected to lead to material follow up projects, including Phase 2 of the SBIR program.

This announcement has been approved for release to the ASX by the Board.

Further Information

Oleg Vornik

CEO and Managing Director

Email: [email protected] Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports globally.

ENDS

 droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000

great news for drone shield, hold irl since the recent meeting…

taiwan?  

feels like the Company is in the right place at the right time

25 October 2022

ASX RELEASE

 $900,000 Asian Order

 DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to advise that it has received an approximately $900,000 order contract for portable counterdrone systems. The order is from a Government agency of an Asian country allied with the West.

The delivery and payment will take place over the current and March 2023 quarters.

Image: DroneGun MKIIITM

This follows a strong of recent orders including $1.8 million U.S. DoD order for DroneGun MKIIITM units, the $2 million European sale of DroneSentryTM fixed site systems and the initial US airport deployment.

DroneShield CEO, Oleg Vornik, commented, “This order is important in several ways. It demonstrates the progression of the business from development of our product suite several years ago, to regular smaller orders, to periodic larger orders, to regular larger orders, which we anticipate to further increase in size over time. The substantial inventory balance that we have created over last 2 years, enables rapid fulfilment of these orders.”

“Further, this order is a testament to the diversity of the DroneShield sales pipeline – with last 3 larger orders being US, Europe and Asia based. The Company also continues to receive regular revenues in Australia, including through execution of the 2-year, $3.8 million Electronic Warfare contract, that we are approximately half way through.”

droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 1 Level 5, 126 Phillip St, Sydney NSW 2000

 “As we are seeing in Ukraine, with the latest use of Shahed-136 drones by Russia, drone warfare continues to rapidly escalate, and Government agencies globally are responding to this threat with acquisitions of counterdrone systems, where DroneShield is the global leader in the sector.”

This announcement has been approved for release to the ASX by the Board.

Further Information

Oleg Vornik

CEO and Managing Director

Email: [email protected] Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems. We offer customers bespoke counterdrone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms. Our customers include military, intelligence community, Government, law enforcement, critical infrastructure, and airports globally.

ENDS

 droneshield.com DroneShield Limited ABN: 26 608 915 859 ASX:DRO 2 Level 5, 126 Phillip St, Sydney NSW 2000