FeralX Systems Inc. Announces Closing of a Private Placement and the Acquisition of Two New Makino Machining Centers

FeralX Systems Inc. (" FeralX " or the " Company ") is pleased to announce that it has completed closings of a non-brokered private placement financing (the " Private Placement ") of units (" Units ") of the Company for aggregate gross proceeds of $1,600,000. Pursuant to the closings, on July 15 and 17, 2026, the Company issued an aggregate of 3,416,666 Units at a price of $0.60 per Unit for gross proceeds of $2,050,000. Each Unit is comprised of one Common Share and one half (1/2) of a common share purchase warrant (each, a " Warrant "). Each Warrant is exercisable by the holder thereof to purchase one Common Share (each, a " Warrant Share ") at a price of $1.00 for a period of 24 months from the date of issuance. The securities issued pursuant to this closing form part of a larger offering of Units, which remains open and may be completed in one or more additional closings. The net proceeds of the Private Placement are expected to be used for working capital, general corporate purposes, and to acquire assets. In connection with the Private Placement, finder's fees may be payable to eligible finders in accordance with applicable securities laws. No finder's fees were paid in connection with this closing. The Company does not anticipate any insider participation in the Private Placement, and no insiders participated in this closing. All securities issued in connection with this closing are subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities laws.

FeralX is also pleased to announce that it has acquired two Makino a51nx four-axis machining centers, a USD$702,000 investment that expands the Company's precision-machining capacity and throughput. Purchased through Makino Canada, the a51nx platform delivers a 14,000 rpm spindle, 60-tool automatic tool changer, 60 m/min rapid traverse and a direct-drive B-axis with 1G acceleration - translating to faster cycle times, tighter tolerances and higher spindle utilization across FeralX's production lines. The addition builds out FeralX's five-machine Makino cell. With a common pallet and tooling architecture standardized across the cell, it is now primed for the addition of a Makino MMC (Machining Complex) automated pallet-handling unit - an unattended, lights-out automation system that will further increase efficiency, sustain around-the-clock spindle uptime and raise output per operator as FeralX scales production.

FeralX is setting itself up to be a Canadian defence research, development and manufacturing company. Upon completion of the transactions previously disclosed, it expects to be in position to design, build and deliver the full capability stack for the augmented warfighter, small arms, man-portable unmanned systems, and AI-enabled targeting as a single, integrated supplier.