Drone Delivery Canada Corp. provided an update on continued successful development and testing of the new and innovative Canary drone. the development and testing of the Canary continues to progress on schedule.

It is successfully progressing through the Company's flight-testing program completing aircraft tuning at altitude (pitch, yaw, roll), and completion of aircraft ground and vibration testing. Current ongoing testing includes flight controller tuning to fly in semi-autonomous flight modes, and refining onboard avionics, payload and communications systems. Next steps are testing full autonomous missions and expanding the flight envelope. Flight range and cargo capacity of the Canary will be confirmed via future testing but it is expected to have a range of approximately 20km and cargo capacity of 4kg.

Features currently include a new motor configuration, next generation smart battery technology, touchless cargo drop functionality, a future optional public announcement system and an optional aircraft parachute. This new functionality is intended to potentially unlock additional customer use-cases and potentially facilitate future flights over people which could open new, commercially addressable future markets in urban and residential areas for B2B and also B2C retail residential deliveries. Initial fourth quarter 2021 successful testing included avionics system configuration, communications with the FLYTE management system, communications with the next generation smart battery system, propulsion system (motor spin /direction) testing, and on-board sensor testing.

The Sparrow continues to operate commercially and will continue to be available to future customers. As previously announced, the Company will look to complete the Robin XL commercialization as future market demands may indicate. The long-range, heavy-lift Condor is DDC's largest drone and is fully integrated with the Company's patented and FLYTE software system.

Successful Condor testing continues in line with Company expectations. As part of the solution's ecosystem, the Company is also working towards the further development of ground-based and airborne detect-and-avoid systems which are intended to potentially open even further new commercially viable uses cases, BVLOS operations, reduce operational costs and provide a robust solution to meet even more customer demands.