DEFSEC Adds 15 More Government Tech Roles, Boosting Annual Billings to C$8.3M and Gross Margins to C$2.3M Starting February 2026

DEFSEC Technologies Inc. (TSXV:DFSC) (TSXV:DFSC) (NASDAQ:DFSC) (NASDAQ:DFSCW) ("DEFSEC" or the "Company") is pleased to announce significant momentum in its government services business as it expects to add an additional 15 roles to the 24 roles previously disclosed in the Company's news release dated October 29, 2025, for a total of 39 roles staffed commencing in February, 2026. All dollar amounts in this news release are in Canadian Dollars unless otherwise noted.

All roles have been staffed with a large part of the increase due to an expansion of work scope with the Directorate Land Command Systems Program Management Software Engineering Facility ("DSEF") contract for digital modernization of the Canadian Armed Forces.

DEFSEC has arranged to fast track the fulfillment of this new work scope requirement by subcontracting 13 of the additional 15 roles from ADGA Group Consultants Inc. ("ADGA"). Commencement of work in February 2026 is subject to customary administrative onboarding procedures. The Company has already received DSEF's statement of work and expects to complete onboarding procedures over the next several weeks in time for the February start.

The cumulative impact of the additional resources means that, effective February 2026, when work commences, the Company's go-forward annualized program billings are expected to increase to approximately $8.3M4, compared to the $5.1M5 as reported in Company's news release dated October 29, 2025. Additionally, annualized gross margins on a go-forward basis on programmatic work are expected to increase commensurately to approximately $2.3M (with approximately $0.5M of the increase in gross margin associated with the roles added since October 29, 2025). This moves the Company significantly further towards its goal of achieving a cash flow positive operation on the commercialization of its technology and resources.