• Placement of 14.2M new shares at $0.21 to raise $3M
• Funds to upgrade internal manufacturing and test capabilities
• Increased investment in global business development activities

Orbital Corporation Ltd, a world leader in the design and manufacture of integrated propulsion systems for military drones, has announced a capital raising of A$3.0 million (before costs) to be completed via the issue of ~14.2 million new fully paid ordinary shares at an issue price of A$0.21 per share. The funds raised will be used to upgrade and increase the company's existing manufacturing and test facilities, with approximately $2 million allocated to upgrading internal component manufacturing technology (5-axis milling and Metal 3D printing) and test equipment upgrades. A portion of the funds (approximately $0.3 million) will be allocated to increased global Business Development activity, both to support the recent appointment of a Business Development Manager in the US as well as ongoing activities in the Asia Pacific and Middle East regions. A further $0.5 million has been allocated to enable accelerated product development to address opportunities arising from the recently announced US Drone Dominance Policy. The placement was strongly supported by new institutional and sophisticated investors, as well as existing investors, reflecting confidence in the company's strategy. The funds raised will provide Orbital UAV with the financial strength to support its next phase of growth and execution of its business plan.

The company is focused on upgrading its existing internal manufacturing capability and engine development and test facilities to reduce both engine component costs and product development timeframes. The recent appointment of a new CEO is leading to a re-shaping of the product range and new business targets, including the high-end Tier 1 Commercial UAV market.