ROCKETDNA LTD. — Capital/Financing Update 2024

Apr 9, 2024

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ASX Announcement

BUSINESS UPDATE

New xBot® drone solution successfully rolling out

HIGHLIGHTS

• First batch of 6 xBots® launched and deployed across multiple customer sites in Australia and Africa

• Second batch of 5 xBots® in production with deployment starting in May

• On current pricing, margins, and overheads, RocketDNA expects to be EBITDA positive after signing of contracts for the first and second batch of xBots®

• The convenience of RocketDNA’s automated drone-in-a-box solution is exponentially growing the Company’s target market beyond mining, with discussions currently underway with Government Authorities, Ports, Insurance, Asset Managers, Agribusinesses and Security Companies

• Integration of Artificial Intelligence (AI) tools, in conjunction with RKT’s xBot® platform, enhances the Company’s ability to provide real-time data capture, reporting and analysis at a greater frequency than traditional manual methods, which is unique product differentiator in the market

• Investor call: the Company intends to host a Q&A investor call on the 16[th] April at 10am AWST

10 April 2024, RocketDNA Ltd (ASX: RKT) , a global drones-as-a-service provider, is pleased to provide a business update around the Company’s new autonomous drone solution (xBot®) and key market developments.

Business positioning status

RocketDNA raised circa $1m in December 2023 (see ASX announcement 4 December 2023) to accelerate manufacturing of xBot® units and to increase marketing capabilities around deployment, and has successfully launched and deployed the first batch of 6 xBots® units. These are operational in Australia and Africa.

The second batch of xBots® in production is on track, with deployments scheduled from May 2024.

After extensive validation testing and feedback from our first xBot® batch, the Company is now confident in both its market demand and drone manufacturing capacity for calendar 2024. Expectations for 2025 sales will dictate the introduction of additional manufacturing resources and capabilities.

Growing markets and future industries

The Company has submitted proposals for a number of public tenders that will require multi-drone and multi-year contracts, which is a positive market development for autonomous drone-in-a-box solutions.

Discussions are underway with a range of potential customers in a number of verticals including

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Government Authorities, Ports, Insurance, Agribusinesses and Asset Management (with applications for conveyor reliability and solar farm thermal monitoring as well as automated pipeline leak detection and corrosion identification). In addition, discussions have been launched in the areas of the security and surveillance of critical assets for Infrastructure and Mining customers.

RocketDNA, is one of the few Civil Aviation Safety Authority (CASA) approved operators, who are able to deploy remote autonomous drone systems at scale. This is of particular interest to Tier 1 and 2 mining customers who require a full-service solution, that includes after-sales support, across their various operating sites.

Potential customers appreciate RocketDNA’s capabilities, which extend beyond pure hardware assembly and maintenance, through our years of experience in geospatial and aerial survey applications. Our ability to automate these previously tedious and sometimes dangerous workflows, using artificial intelligence tools, address’ the entire problem statement expressed by their end users.

As a result, we continue to receive enquiries and opportunities for partnerships across multiple industry and geographical sectors.

RocketDNA CEO Christopher Clark said : “We are very excited as a management team at the growing opportunities and pipeline and look forward to delivering on our Phase 1 ‘land-grab’ strategy.

Initial sales are showing customers taking one unit first (which is always the most difficult sale) and then to plan on expanding the number of units to cover the full operating area.

With our second batch of xBots® now in production, we look forward to locking in revenue contracts for these units. At that time, based on our current pricing, margins and overheads, we expect to be EBITDA positive.

We have now largely completed our significant upfront investment in the xBot® solution and are motivated by the feedback we are receiving as we move through the enterprise customer trial and on-boarding process. This initial process traditionally encompasses many hurdles, such as cyber and data security, operational health and safety, as well as data accuracy validations.

With the new product business development and commissioning picking up steam, our team has risen to the challenge, while still performing at an exceptional level for our existing customer base. I am truly grateful for all their efforts.”

Investor Call

RocketDNA will host an online Q&A session on the 16[th] April 2024 at 10am AWST.

Click here to register: https://my.demio.com/ref/IUlS2dgPMrF4PKw4

Investors are encouraged to send through their questions in advance to contact@rocketdna.com.

This announcement has been authorised for release by the Board of RocketDNA Ltd.

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-ENDS-

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For more information, please contact:

Corporate Christopher Clark Chief Executive Officer & Chairman E: contact@rocketdna.com

Investors and Media Glen Zurcher P: +61 (0)420 249 299 E: glen@viriair.com

Stephen Buckley, Company Secretary P: +61 (0)8 6189 1155

About RocketDNA

RocketDNA Ltd (ASX: RKT), is an ASX listed multi-national drone-based data service and technology solutions provider for the mining, agricultural and engineering industries.

Services are aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis through a fully-outsourced service with AI and fast data turnaround that allows enterprise customers to focus on operations on the ground while RocketDNA takes care of everything in the air.

Revenues are generated through multi-year recurring revenue contracts and short projects which also have the potential to be recurring. Key customer contracts include with tier 1 and tier 2 miners, South32, Newmont Mining, Red 5 and Seriti Coal.

RocketDNA’s operations are focused on Australia and Africa with regional offices in Perth, Johannesburg & Accra.

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