Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) ("Draganfly" or the "Company"), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce that it has entered into a definitive asset purchase agreement (the "Agreement") with Skip Dynamix, Corporation ("Skip Dynamix"), a developer of ultra-low-cost, mass-producible fixed-wing unmanned aerial systems designed for long-range intelligence, surveillance and reconnaissance ("ISR"), electronic warfare support, logistics, and one-way missions. pursuant to which Draganfly has agreed to acquire substantially all of the assets of Skip Dynamix's drone technology business (the "Transaction").

The aggregate purchase price for the Transaction is up to US$7,525,000 

• A cash payment of US$2,525,000 (the "Closing Amount"), subject to customary working capital adjustments, will be paid to Skip Dynamix at closing.
  
   
• US$2,500,000 satisfiable in common shares of Draganfly ("Draganfly Shares") pursuant to a special warrant issued at closing (the "Payment Shares"). The Payment Shares will be issued subject to the satisfaction of the Payment Vesting Condition, which requires each founder to be actively engaged by Draganfly until at least the first anniversary of closing.
  
   
• up to US$2,500,000 (the "Earn-Out Amount"), payable in a combination of cash and Draganfly Shares as determined by Draganfly, subject to: (i) the business achieving certain milestones.