On August 1, 2019, the Company entered in a business services agreement (the “Agreement”) with Business Instincts Group (“BIG”), a company that Cameron Chell, CEO and director has a material interest in that he previously controlled, to provide: corporate development and governance, strategic facilitation and management, general business services, office space, corporate business development video content, website redesign and management, and online visibility management. The services are provided by a team of consultants and the costs of all charges are based on the fees set in the Agreement. For the three and six months ended June 30, 2026, the Company incurred fees of $182,993 (2025 - $85,395) and $282,570 (2025 - $165,345) respectively. As at June 30, 2026, the Company was indebted to this company in the amount of $50,056 (2025 - $nil).

On October 1, 2019, the Company entered into an independent consultant agreement (“Consultant Agreement”) with 1502372 Alberta Ltd, a company controlled by Cameron Chell, CEO and director, to provide executive consulting services to the Company. The costs of all charges are based on the fees set in the Consultant Agreement. For the three and six months ended June 30, 2026, the Company incurred fees of $291,842 (2025 - $310,192) and $447,035 (2025 - $414,419) respectively. As at June 30, 2026, the Company was indebted to this company in the amount of $nil (2025 - $nil).

On July 3, 2020, the Company entered into an executive consultant agreement (“Executive Agreement”) with Scott Larson, a director of the Company, to provide executive consulting services, as President, to the Company. On May 2, 2022, the Company and entered into an agreement with Scott Larson, a director, to provide executive consulting services to the Company and all fees are set in the consulting agreement. For the three and six months ended June 30, 2026, the Company incurred fees of $nil (2025 - $36,597) and $61,666 (2025 - $39,458). As at June 30, 2026, the Company was indebted to this company in the amount of $nil (2024 - $9,000). As of January 19, 2026 the contract for consulting services was terminated and as of June 2, 2026 Scott stepped down as a director of Draganfly.

For the three and six months ended June, 2026 and 2025 salary and commissions were paid to family members of key management. In addition, during 2025, one family member was paid as a contractor prior to becoming an employee. The amounts paid were $76,795 and $235,672 (2025 - $19,053).

Trade receivables/payables and accrued receivables/payables:

As at June 30, 2026, the Company had $202,773 (2025 - $80,212) payable to related parties that was included in accounts payable. The balances outstanding are unsecured, non-interest bearing and due on demand.

Key management compensation

Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. Compensation awarded to key management for the three and six months ended June 30, 2026 and 2025 included:

 SCHEDULE OF KEY COMPENSATION AWARDS

Other related party transactions

 SCHEDULE OF KEY MANAGEMENT TRANSACTIONS