• DRO does not consider the LAND 156 Systems Integration Partner contract as material information
• DRO became aware of the information on 27 August 2025 and announced it promptly
• DRO is taking steps to improve its continuous disclosure processes

DroneShield Ltd (DRO) has responded to an ASX aware letter regarding its announcement on 28 August 2025 about not being selected as the Systems Integration Partner for the Australian Government's Project LAND 156. DRO stated that it does not consider the value of the LAND 156 Systems Integration Partner contract, which was approximately $45 million over 3 years, to be material information that would affect the price or value of its securities. DRO explained that the contract value represents only 1.92% of its global sales pipeline of $2.34 billion, and its internal forecast for revenue from the contract was only $7 million, or 0.3% of the pipeline. DRO became aware of the information at around 12:00pm on 27 August 2025 and announced it promptly the next day. DRO noted that the designation of the announcement as 'price sensitive' was an error. In response to ASX's further queries, DRO clarified that the 24 July 2025 announcement about initial LAND 156 contract awards was considered material due to it being a confirmed order, while the 28 August announcement was about an unsuccessful tender. DRO is adopting quantitative materiality guidelines for contract-related announcements to prevent similar errors in the future and improve its continuous disclosure processes.