Ann: Statement on French Media Reports, page-2

DroneShield Ltd (ASXRO) (“DroneShield" or the “Company”) has become aware of reports in French media in relation to DroneGun Tactical and the visit of His Excellency President of France Emmanuel Macron to French Army Camp Mourmelon.
French media have reported that on 1 March 2018, President Macron, the Minister of the Armed Forces Florence Parly, and the Chief of Staff of the Army Jean-Pierre Bosser visited Camp Mourmelon and among other things reviewed equipment that’s part of the Scorpion program, an equipment modernisation program of the French armed forces. Some of these media reports were accompanied by a photograph of President Macron holding and, together with Minister Parly and General Bosser, inspecting, DroneGun Tactical™.
On 13 June 2017, DroneShield advised the market that DroneGun had successfully passed the French DREP standards, an electromagnetic emission standard for human use, which test is part of the French defence procurement processes. On 9 October 2017, DroneShield’s investor presentation set out certain specific sales opportunities being pursued by DroneShield, which list included multiple French military and national security agencies. On 31 January 2018, DroneShield announced the release of DroneGun Tactical™, and advised the market that the product had been designed following comprehensive international military end-user trials.
DroneShield confirms that the French military has not placed an order for DroneShield’s products, and no assurance can be made that such an order will be placed. However, DroneShield is working closely with its French military partners (among dozens of other governmental agency partners globally), and working through the comprehensive French governmental review and procurement process.
DroneShield notes that at approximately $53 billion p.a., France has the fifth largest defence budget globally, and that it has been reported that the French National Assembly will be considering an increased military budget, with a particular focus on equipment modernization, in late March this year.