Draganfly Inc. (NASDAQ: DPRO) has been awarded a five-year contract by the Government of Canada to supply Low-Cost Tactical Intelligence, Surveillance and Reconnaissance (ISR) Uncrewed Aircraft Systems (UAS) to the Canadian Armed Forces (CAF), according to a press release from the Calgary-based company.

The contract includes a firm commitment for 100 UAS systems, along with ground control stations, payloads, data links, support equipment, documentation, spare parts, and training. Contracted pricing was not disclosed, described as commercially sensitive.

Under the agreement, the Government of Canada retains the right to order up to 4,900 additional systems at its discretion, bringing the potential total to 5,000 units. The optional 4,900 systems carry an aggregate value of approximately C$24.25 million if fully exercised. Any additional orders would require written contract authorization or amendment.

The contract also includes initial training for CAF personnel, with options for additional training. Draganfly will provide system delivery, sustainment, spare parts, documentation, and software and firmware support throughout the program.

The procurement falls under Canada's Defence Drone Initiative (DDI), a government program intended to accelerate access to Canadian-developed uncrewed and autonomous systems. Draganfly was previously accepted as a qualified supplier across all five DDI Marketplace categories.

"This award is an important milestone for Draganfly and a meaningful opportunity to support the Canadian Armed Forces with systems designed to be fielded, supported and scaled in response to real operational requirements," said Cameron Chell, President and CEO of Draganfly.