#1NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution draganu draganfly OVER 20 YEARS OF HISTORY Leader in the Unmanned Aerial Vehicle industry NOTES: THI ESTABLISHED 1998#2You Must Read This Before Continuing This corporate presentation ("Presentation") is confidential and contains proprietary non-public information regarding Draganfly Inc. (the "Company", "we", "us" or "our"). This Presentation is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities of the Company. The information contained herein has been prepared for the purpose of providing interested parties with general information to assist them in their evaluation of the Company. Under no circumstances may the contents of this Presentation be reproduced, in whole or in part, in any form or forwarded or further redistributed to any other person. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorized. By accepting and reviewing this document, you acknowledge and agree (i) to maintain the confidentiality of this document and the information contained herein, and (ii) to protect such information in the same manner you protect your own confidential information, which shall be at least a reasonable standard of care. The Company has not authorized anyone to provide prospective purchasers with additional or different information. In this Presentation all amounts are in Canadian dollars unless stated otherwise. This Presentation constitutes "forward-looking statements," within the meaning of applicable Canadian securities laws. Forward-looking statements are neither historical facts nor assurances of futur performance. Instead, they are based on our current beliefs, expectations, assumptions and analyses made by us regarding the future of our business, future plans and strategies, our operational results and other future conditions. These forward-looking statements appear in a number of places throughout this Presentation and can be identified by the use of words, such as "anticipates," or "believes," "budget," "estimates," "expects," or "is expected," "forecasts," "intends," "plans," "scheduled," or variations of such words and phrases or state that certain actions, events or results "may," "might," "will," "would," "could", "should," "continue," or be taken, occur or be achieved. These forward-looking statements relate to, among other things, our future financial performance, financial condition, liquidity, levels of activity, performance, prospects, growth, goals or achievements or other future events. Although we base the forward-looking statements contained in this presentation on assumptions that we believe are reasonable, these forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause actual performance and financial results in future periods to differ materially from those anticipated in our forward-looking statements. Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on our business. For example, they do not include the effect of asset impairments or other changes announced or occurring after the forward-looking statements are made. The financial impact of such transactions and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them. Despite a careful process to prepare and review the forward-looking statements, there can be no assurance that the underlying opinions, estimates, and assumptions will prove to be correct. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding our anticipated future performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this Presentation are made as of the date of this Presentation and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise unless required by applicable legislation or regulation. The forward- looking statements contained in this document are expressly qualified by this cautionary statement. NOTES: NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. DRAGANFLY 2018 All Rights Reserved Not For Public Distribution This Presentation also contains or references certain market, industry and peer group data which is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although we believe these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. We have not independently verified any of the data from third party sources referred to in this presentation and accordingly, the accuracy and completeness of such data is not guaranteed. This Presentation further contains future-oriented financial information and financial outlook information (collectively, "FOFI") as defined under Canadian securities laws, prepared by management of the Company about the Company's reasonably estimated prospective results of operations, revenue, cash flows, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. Readers are cautioned that FOFI are not guarantees of future performance, and should not be considered as such, since actual results may differ materially from those expressed in FOFI. The Company and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. FOFI contained in this Presentation were made as of the date of this Presentation and is provided for the purpose of describing management of the Company's belief of the anticipated effects of the Offering on the Company's business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this Presentation, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. draganfly™ Cameron Chell Direct Line: 1-310-658-4413 [email protected] Draganfly inc. Toll Free: 1 800-979-9794 ESTABLISHED 1998 2#31 REC 00:00:24.204: 1346877760-4b2d16b58157 00:00:24.265: Dragan view 2.0.16 Kayla is armed holding altitude dragan NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018. All Rights Reserved Not For Public Distribution RCMP Rescue Team Flight time: 10:21 Heading: 273° Injured Man AGL: 32.0m Speed: 0.5m/s NOTES: GCS Aircraft Link GPS/SV PDOP This Draganflyer quad-rotor, produced by Draganfly Inc. was the first public-service drone to save a human life in 2015. 12.3 14.7 24 7 1.2 Smithsonian National Air and Space Museum The Draganfly Story Draganfly, incorporated in 1998, is considered the oldest commercial drone company in the world. A company with a number of industry firsts, like the development of the first quadcopter drone, the first drone to save a life, the first drone to be inducted into the Smithsonian National Air & Space Museum. Draganfly has built its market presence by continually innovating and delivering industry firsts related to detection, defending and delivering solutions to enterprise and government. 3#4NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution draganely NOTES: draganeLy DETECT DEFEND DELIVER ESTABLISHED 1998 4#5U draganfly The Future of Robotics & Drone innovations Systems Draganfly Commander Dragan Scout Draganfly Tango draganFLY Military NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018. All Rights Reserved Not For Public Distribution OPENI NOTES: draganFly ESTABLISHED 1998 Public Safety Enterprise Operator draganely Industry Training 5#6PTO Serial No Canadian Industrial Design Registration Ser. No. 117,209 US Patent Serial No 8,052,081 US Patent Serial No. 8,292,215 CAN Patent Serial No. 2,787,279 US Patent Serial No. 8,991,740 CAN Patent Serial No. 2,787,075 US Patent Serial No. 8,753,155 CAN Patent Serial No. 2,815,885 US Patent Serial No. 9,260,184 US Patent Serial No. 9,442,485 US Patent Serial No. 9,489,937 US Patent Serial No. 9,511,878 US 14/533,995 US Patent Serial No. 9,710,709 NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018. All Rights Reserved Not For Public Distribution Status Issued Jul 10, 2008 Issued Nov 8, 2011 Issued Oct 23, 2012 Issued Oct 22, 2013 Issued Mar 31, 2015 Issued Oct 29, 2013 Issued Jun 17, 2014 Pending Issued Feb 16, 2016 Issued Sept 13, 2016 Issued Nov 8, 2016 Issued Dec 6, 2016 Allowed Issued July 18, 2017 NOTES: IP Portfolio Unmanned Aerial Vehicle Title Dual Rotor Helicopter with Tilted Rotational Axes Helicopter with Folding Rotor Arms Vehicle with Aerial and Ground Mobility Vehicle with Aerial and Ground Mobility Wheel with Folding Segments Wheel with Folding Segments Compact Unmanned Rotary Aircraft Compact Unmanned Rotary Aircraft Pixel Based Image Tracking System for UAV/ACS Real Time Noise Reduction System for Dynamic Motor Frequencies Aboard a UAV Adaptive Y-Axis Power Usage and Non-linear Battery Usage Action Camera System for UAV Cascade Recognition for Personal Tracking via UAV PTO Serial No US 14/802,871 US 14/825,878 US 14/863,917 US 14/939,369 US 14,994,080 US 15,141,444 US 15,164,718 US 15,584,815 US 15,256,193 US 15,651,672 CDN 2,815,885 CDN 2,876,630 CDN 2,917,434 CDN 2,935,793 US 62,395,211 Status Filed July 17, 2015 Filed Aug 13, 2015 Filed Sep 24, 2015 Filed Nov 12, 2015 Filed Jan 12, 2016 Filed Apr 28, 2016 Filed May 25, 2016 Filed May 2, 2017 Filed Sept 2, 2016 Filed July 17, 2017 Filed May 15, 2013 Filed January 2015 Filed Jan 12, 2016 Filed July 11, 2016 Filed Sept 15, 2016 Title Metadata Stamp Removal and Broadcast from Encoded Video Target Locking Creating Paired Attitude System for UAV/ACS Video-Based Autonomous Navigation for UAV/ACS Visual Intelligence Camera Device w/Peripheral Control Outputs Multi-Rotor UAV with Compact Folding Rotor Arms Micro correcting Gimbal and Stereoptic Vision System for UAV Vertical Take off and Landing Unmanned Aircraft System Tandem-Wing Aircraft System with Shrouded Propeller Pixel Based Image Tracking System for UAV/ACS (Continuation) Cascade Recognition for Personal Tracking via UAV Compact Unmanned Aerial Vehicle Unmanned Rotary Wing Aircraft with Compact Folding Rotor Arms Multi-Rotor UAV with Compact Folding Rotor Arms Vertical Takeoff and Landing Unmanned Aircraft System Vertical Take-Off and Landing (VTOL) Aircraft Having Variable Centre of Gravity 6#7Name: Unmanned Aerial Vehicle Patent Number: 117,209 Issued: 07/10/08 Name: Vehicle with Aerial and Ground Mobility Patent Numbers: 2,787,279 & 9,598,171 Issued: 03/21/17 11RR 1TRF- RARE RARR NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution B -RALA ALR 11LR HILF a-29 0-31 NOTES: IP Portfolio A Company of Firsts Name: Dual Rotor Helicopter with Tilted Rotational Axes Patent Number: 8,052,081 Issued:11/08/11 104a 100a CA 120 104b 120- FIG. 1 RA 102 RA Name: Pixel Based Image Tracking System for Unmanned Aerial Vehicle (UAV) Action Camera System Patent Number: 9,442,485 & 9,785,147 Issued: 10/10/17 100b 130 110 110 1040 100 104c 100c Name: Wheel with Folding Segments Patent Number: 8,753,155 & 2,787,075 Issued: 06/17/14 PA PB 5A 3A 3B- BATTERY 160 M Name: Cascade Recognition for Personal Tracking via Unmanned Aerial Vehicle (UAV) Patent Numbers: 9,710,709 & 9,892,322 Issued: 02/13/18 CMOS IMAGE SENSOR 166 STACKED NAND FLASH DDR3 SORAN POWER CONTROLLER 162 CAMERA SOC 106 IMAGE STABILIZATION MEMORY CONTROLLERS HIGH-SPEED MEMORY PROCESSOR/S GRAPHICS ENGINE DISPLAY OUTPUT IMAGE/VIDEO DSP ETHERNET GEN'L PURPOSE I/O ATTITUDE SENSORS MOTOR DRIVERS 170 5, 5B UAV ROTORS R1 R172 ◄ 7#8Name: Action Camera System for Unmanned Aerial Vehicle Patent Number: 9,769,387 & 15/707,752 Issued: 09/19/17 112a 114- 100 112b 134 Name: Vertical Takeoff and Landing Unmanned Aircraft System Patent Number: 10,059,442 Applied: 08/28/18 1368- 112c NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution 112d- 1268 126A IP Portfolio A Company of Firsts NOTES: 8-724 Name: Helicopter with Folding Rotor Arms Patent Number: 8,292,215 Issued: 10/23/12 520LR 571- 102 218 $20LF 110 520RR Name: Real-Time Noise Reduction System for Dynamic Motor Frequencies Aboard an Unmanned Aerial Vehicle (UAV) Patent Number: 9,489,937 Issued: 11/08/16 240 500 100d 510 -520, 520RF Name: Multi-Rotor UAV with Compact Folding Rotor Arms Patent Number: 10,035,581 Allowed: 07/31/18 106.3- 120 120C 2 106,2 120C.3 1200.2 120D.1 1200.3 1200.4 106.1 POWER MONITOR 103 120C.1 PROCESSOR 110 . 120C.6 POWER SUPPLY 136 10 106.6 SUBJECT TRACKING Name: System and Method for Adaptive Y-Axis Power Usage and Non-Linear Battery Usage for UAV Equipped with Action Camera System Patent Numbers: 9,511,878 & 14/802,871 Issued: 12/06/16 POWER MANAGEMENT MOTORS 104 1200.5 1200.6 ROTORS 102 120C.4 120C.5 1206 CAMERA 120A TRANSCEIVER 114 106.5 ATTITUDE CONTROL 8#9OVER 20 YEARS OF INNOVATION UNIQUELY POSITIONS DRAGANFLY FOR THE FUTURE NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution NOTES: 9#10National Security Threat New Directive By The US Government To Ban Chinese Made Drones Over Security Concerns draganfly NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution NOTES: 11}} MADE IN CHINA 10#11CNN politics Drones & National Security 45 CONGRESS SUPREME COURT FACTS FIRST 2020 ELECTION DHS warns of 'strong concerns' that Chinese-made drones are stealing data By David Shortell, CNN Updated 1:28 PM ET, Mon May 20, 2019 DJI's Inspire drone is seen at the 35th GITEX Technology Week at Dubai World Trade Centre on October 18, 2015 in Dubai, United Arab Emirates. Washington (CNN) - Chinese-made drones may be sending sensitive flight data to their manufacturers in China, where it can be accessed by the government there, the US Department of Homeland Security warned in an alert issued Monday obtained by CNN. NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution f NOTES: F DEPARTMEN A The report does not name any specific manufacturers, but nearly 80% of the drones used in the US and Canada come from China. MADE IN CHINA 11#12draganfly The Future of Robotics & Drone Innovation FIG.1 NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution ESTABLISHED 1998 NOTES: Reinvented The Wheel (literally)... another first (see Patent Number 8,753,155) TM High Endurance Solar Powered Aircraft ... another first (see Patent Number: 117,209) Patented VTOL (Vertical Take-Off and Landing) Delivery Drone ... another first (see Patent Number: 10,059,442) 12#13U.S. Contract Engineering DEPARTMENT HOMELMED NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution NOTES: ALION xxxx000000000 DEPARTMENT THIS 0000 OF WE'LL DEFEND xxxxxxxxxx ITED STAT 58888888 1775 THE COLLEXXXXXXXX oooooooooooooooo ARM RICA• MER UNITED DEPARTMENT STATE OF ***** DEFENSE BERSMED 13#14U.S. DETECT DEFEND DELIVER teet Terrorist Drone Interceptor HOMELAND DEPARTMENT OF NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution System Features 1. Detect: Detection by radar, vision or acoustic system then quickly approach hovering or moving threats. SECURITY 2. Classify: Determine Terrorism Threat Level 3. Neutralize: Capture and Destroy NOTES: 4 TERES 14#15DETECT DEFEND DELIVER Drug Smuggling Border Surveillance System Features 1. Detect: Detection by radar, vision or acoustic system. 2. Classify: Relay information to Border Patrol 3. Capture: Capture and destroy Drone With 28lbs of Heroin NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution NOTES: U.S. MENT OF HOMELAND ECURITY U.S. BORDER PATROL BORDER PATROL FEDERAL AGENT Drone Captured & Destroyed 15#16DETECT DEFEND DELIVER Critical Payload Delivery on the Battlefield System Features 1. Order: Base receives order for critical battlefield supplies. 2. Launch: Launch drones carrying critical payloads like blood. 3. Receive: Battlefield soldiers receive critical payloads. 4. Return: Drone automatically returns to base using Draganfly's proprietary flight control system. Automated deliveries providing essential items to critically wounded military personnel as quickly as possible after an injury occurs. Delivering blood and medical products to remote locations to treat wounded troops on the spot. Delivering a five-pound package over 100 kilometres/62 miles in "austere environments" NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution N NOTES: UNITED WINNAC OF HIS WE'LL DEFEND OUTFIToox THE 1775 00000 ARMY TATES OF AMERICA 16#17derse NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution ADIAN MO Shell LAKELAND COLLEGE NIAGARA REGIONAL POLICE SERVICE NOTES: Customers AV AeroVironment™ COUNTY MESA C ERSON COUNTY SHERIFF'S OFFICE SHERIFFI JEFFERSON co SINCE 1853 BC Oil & Gas COMMISSION UND NORTH DAKOTA. SHERIFF'S COUNT EST 186 COLORADO LINOIS STATE INTEGRITY Meridian Surveys SERVICE UNIVERSITY OF SASKATCHEWAN O.P.P. POLICE CE PRIDE *OFFICE OF Dow SHERIFF COUNTY SEAN P. KILKENNY LVA McGill FEDER USTRALIAN POLICE SHERIFFA FILLENG INDUSTRY POLICE OXOLSSON LCRA ENERGY WATER COMMUNITY SERVICES ATOON Ⓡ ASSOCIATES BChydro BURNS M MCDONNELL 17#18PUBLIC SAFETY $2.7B US MEDIA & BROADCASTING $120M US $480M Global NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution Markets Served d INFRASTRUCTURE NOTES: $18M US $93M Global SURVEYS & MAPPING AGRICULTURE $1.3B US $11.2B Global POLICE $18M US $93M Global INDUSTRIAL $144M US $1.18B Global OLICE Drones will be used in a variety of future industries and applications to collect data. Our direct sales efforts are focused in Public Safety/Paramilitary (law enforcement & security) organizations. Draganflyers are also sold to Commercial Surveying and Commercial Mapping organizations. Additionally, we have been asked to develop products and services in Agriculture, Media and Broadcasting, Infrastructure, and Industrial applications. 3010 18#19Market Comparable draganfly™ Pro-Forma Capital Structure SHARES ISSUED & OUTSTANDING: 69,353,673 Market Capitalization: $34.25M Exponential Growth 2019 PROFORMA REVENUE GROSS MARGIN 2020 PROJECTED REVENUE NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution ESTABLISHED 1998 1.9M 1.3M 6.3M 3.4M NEW YORK STOCK EXCHA GROSS MARGIN All Amounts in CDN Dollars SHARES ISSUED & OUTSTANDING: 69,353,673 NOTES: Afff Drone Delivery Canada Market Capitalization $215M Market Comparable DRONE DELIVERY CANADA.COM Drone Delivery Canada Corp - From Most Recent Sedar Filing 6 months ending July 30th 2019 Revenue Net Loss Basic and diluted loss per share N/A -CA $7,223,445 SHARES ISSUED & OUTSTANDING: 175,959,089 -0.04 19#20Cameron Chell FOUNDER & CHAIRMAN Cameron works with executives and companies to determine what is most important and specifically how to get it done. Cameron has worked in a business development capacity his entire career, working with brands across the globe, specializing in companies across North America, Europe, and the Middle East. Since the founding of BIG in 2007, Cameron has also co-founded: Slyce (TSX: SLC), Urthecast (TSX: UR) among other companies. NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution NOTES: THE TEAM BUR SMIT Patrick Imbasciani CHIEF OPERATING OFFICER A seasoned business professional with over 20 years of experience developing enduring relationships in domestic and international markets, During his eight years of service in the United States Marine Corps, he earned his Bachelors in Political Science from North Carolina State University. In addition to delivering UAS into agriculture, insurance, energy, and other industries as PrecisionHawk's Senior Director of International Business Development, Patrick personally led efforts to collect data with drones in Ecuador following a deadly earthquake, Louisiana during mass floods, and The Bahamas in the wake of Hurricane Matthew. Paul Sun CHIEF FINANCIAL OFFICER Paul Sun has over 20 years of business experience and has held numerous senior roles at investment banks including Scotia Capital, Desjardins, and Beacon Securities. Paul has provided financial solutions from small startups to billion dollar market cap companies and has been involved in many transactions across the entire capital structure. Zenon Dragan VP PRODUCT DESIGN Zenon Dragan founded Draganfly Innovations in 1998. Since then, the company has won several major awards, including the SABEX, ABEX, and Popular Science's Best of What's New' award. The Draganflyer X4-ES made its mark on the world in May 2013 when it was used by the Saskatoon RCMP to locate a missing driver after a single vehicle roll-over accident and was credited as the first ever small Unmanned Aerial System to save a person's life. Zenon's influence and experience has helped Draganfly become an industry leader. 20#21NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. Ⓒ DRAGANFLY 2018 All Rights Reserved Not For Public Distribution draganfly Patrick Imbasciani Direct Line: 1-919-208-4830 [email protected] Draganfly Inc. Toll Free: 1-800-979-9794 NOTES: ΤΗ LBUR SMITH SMAT 10% draganfly Cameron Chell Direct Line: 1-310-658-4413 [email protected] Draganfly Inc. Toll Free: 1-800-979-9794 21#22draganfly DETECT DEFEND DELIVER NOTE: The brands and images used in this presentation are for illustration purposes only and the copyright is held by the respective owners. DRAGANFLY 2018 All Rights Reserved Not For Public Distribution bution-No NOTES: ESTABLISHED 1998 TM 22