KTEK AEROSYSTEMS LTD — Share Issue/Capital Change 2026

May 17, 2026

KTEK AEROSYSTEMS

ASX RELEASE

18 May 2026

ASX: KTK

ENTRY INTO MARKETING AGREEMENT

On 14 May 2026, KTEK Aerosystems Ltd (ASX: KTK) (Company) entered into an agreement with Equities Club Pty Ltd (Equities Club) under which Equities Club will provide marketing and public relations services to the Company for a period of 12 months (Services Agreement).

As consideration for these services, the Company agreed to make a payment of $10,000 and issue Equities Club 500,000 Shares in the Company. Given that these Shares have been issued for marketing and public relations services, ASX has deemed that Equities Club is a promoter and, as a result, the Shares issued to Equities Club will be subject to ASX imposed escrow for 24 months from the date of quotation of the Company.

As a result of the issue of Shares to Equities Club, please see the below updated Capital Structure and Restricted Securities on issue on commencement of quotation.

Final Capital Structure

The Company confirms that, on quotation the Company's issued capital will be as outlined below.

CLASS	NUMBER
Fully paid ordinary shares	140,500,000
Options	12,000,000

Restricted Securities

The Company confirms the following Securities will be subject to restriction pursuant to the ASX Listing Rules for the period outlined below.

CLASS	NUMBER	RESTRICTION PERIOD
Fully paid ordinary shares	11,670,000	12 months escrow from the date of issue.
Fully paid ordinary shares	66,330,000	24 months escrow from the date of the Company's admission to the Official List
Options	12,000,000	24 months escrow from the date of the Company's admission to the Official List

This announcement has been released with the approval of the KTK Board.

KTEK Aerosystems

ASX Release

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KTEK AEROSYSTEMS

For further information, please contact:

Company Contact

Dekel Keisar
Managing Director and Founder, KTEK Aerosystems

Media Contact

David Tasker
Chapter One Advisors
M: +61 433 112 936
E: dtasker@chapteroneadvisors.com.au

About KTEK Aerosystems

KTEK Aerosystems (ASX: KTK) is a Tier-2 supplier of composite airframes and electromechanical assemblies for military and commercial UAVs. The Company delivers built-to-spec, full-turnkey (FTK) sub-assemblies - combining mechanical, electrical and firmware components into qualified ship-ready units - across four product lines:

• composite airframes (UAV fuselage structures, wings and control surfaces, lightweight aerospace composites);
• electromechanical assemblies (actuation modules, avionics trays and mounts, power distribution systems);
• rugged defence systems (shock-isolated racks and cabinets, EMC-hardened enclosures, mission system infrastructure); and
• systems integration and kitting (MIL-spec harnessing, PCBA integration, firmware loading and acceptance testing). The result is Tier-1 rigour without Tier-1 overhead.

KTEK operates a scalable, asset-light “Cordless Factory” model, retaining engineering design, structural analysis and quality assurance in-house while outsourcing physical manufacturing to a certified global partner network across Israel, Europe, Thailand and the United States. This structure enables rapid production scaling in response to new customer demand without the capital expenditure of a traditional defence manufacturer. Positioned as a “picks and shovels” supplier into the defence ecosystem, KTEK benefits from structural tailwinds in global military spending and UAV adoption without the complexity of direct government contracting. Beyond defence, the Company also supplies agricultural and delivery drone operators, providing a further growth dimension independent of defence budget cycles.

KTEK is led by Founder and Managing Director Dekel Keisar, a former IDF Infantry Company Commander (Major) and Mechanical Engineer (B.Sc., Tel Aviv University) with hands-on

KTEK Aerosystems
ASX Release

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KTEK AEROSYSTEMS

experience across more than 20 military UAV platforms, and previously Head of UAV Structural Engineering at Israeli Aerospace Industries. The Board is chaired by Howard Digby, who brings 25+ years managing technology businesses in Asia-Pacific, 13 years of involvement with ASX-listed companies, and is the founding Non-Executive Director of Elsight Ltd (ASX: ELS) - a defence-focused drone communications company that grew from an ~A$18 million IPO to a market capitalisation exceeding A$1.5 billion. Non-Executive Director Winton Willesse contributes 25+ years in capital markets with expertise in company development, corporate governance, M&A and company secretarial practice across listed and private companies, and previously served as a Non-Executive Director of DroneShield (ASX: DRO). Non-Executive Director Chris Baxter adds 30+ years in financial services and private equity, with recent focus on Ukrainian military UAV technology, advisory roles with leading drone OEM Skyeton, and strong networks across UK and European defence customers and Ministries of Defence.

Website: https://ktek.tech/

KTEK Aerosystems

ASX Release