ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology company specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions, today provides an update on its US-based ZenaDrone subsidiary’s expansion plans for “Made in America” manufacturing in light of the recent expanded tariffs announced by the current US Administration. ZenaTech maintains its commitment to domestic manufacturing for US defense drone solutions, including strategic local investments and military-compliant supply chains. ZenaDrone will now move some of its commercial drone production for US commercial customers to Arizona, meaning no need to increase prices for customers to offset tariff costs.

ZenaDrone’s headquarters is in Phoenix, Arizona, which includes sales, administration, research and development, and aerial testing operations. The company plans to expand its manufacturing capabilities over the next two months to produce drones for US commercial customers in addition to planned production for the US military. This expansion will include up to 2,000 additional square feet of production space. This will be the second global manufacturing facility; the company currently has development and production facilities for the ZenaDrone 1000 and IQ series of drones at its 10,000-square-foot facility in Sharjah, UAE.

In response to the evolving trade landscape, ZenaTech also expects that the expansion of its Phoenix-based manufacturing facility will bring over 150 new jobs to the region by the end of 2026.

"While tariffs can be challenging, they also reveal which companies are truly agile. ZenaTech has always been long-term in our thinking; engaging in smart resource management and supply chains and prepared to navigate global shifts," said CEO Shaun Passley, Ph.D. "With increased US bans on Chinese drones and components and local incentives for domestic production, we are well-positioned to expand our manufacturing in Arizona, also creating more high-quality American jobs,” added Mr. Passley.

ZenaDrone previously completed two paid trials using its drone products with the US Air Force and the US Navy Reserve for logistics and transportation applications carrying critical cargo, such as blood, in the field. ZenaTech previously announced that ZenaDrone’s supply chain will be NDAA (National Defense Authorization Act) compliant by manufacturing its parts and cameras at its Spider Vision Sensors company established in Taiwan.

The company has initiated cybersecurity and internal controls planning in preparation to apply for the Green UAS (Uncrewed Aerial Systems) certification, a requirement for drone companies that want to sell to government agencies, law enforcement, first responders, and many commercial enterprises. This certification serves as a pathway to the more stringent Blue UAS certification, which the company intends to apply for next, to enter the US defense market enabling direct sales to the Department of Defense and other defense-related agencies.

The global military drone market was estimated to be a US $14 billion industry in 2023, which includes the $5 billion US market and is expected to grow to $47 billion globally by 2032 according to Fortune Business Insights research. The Intelligence, Surveillance, Reconnaissance, and Targeting (ISRT) segment is the largest segment for military drones, used to collect crucial information and data in a targeted territory. The logistics and transportation sector is the second largest segment. ZenaDrone is targeting all these segments using its multifunction AI drones.

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About ZenaTech

ZenaTech (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) is a technology company specializing in AI drone, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions for mission-critical business applications. Since 2017, the Company has leveraged its software development expertise and grown its drone design and manufacturing capabilities through ZenaDrone, to innovate and improve customer inspection, monitoring, safety, security, compliance, and surveying processes. With enterprise software customers using branded solutions in law enforcement, health, government, and industrial sectors, and drones being implemented in these plus agriculture, defense, and logistics sectors, ZenaTech’s portfolio of solutions helps drive exceptional operational efficiencies, accuracy and cost savings. The Company operates through seven global offices in North America, Europe, Taiwan, and UAE, and is growing a DaaS business model and global partner network.

About ZenaDrone

ZenaDrone, a wholly owned subsidiary of ZenaTech, develops and manufactures autonomous business drone solutions that can incorporate machine learning software, AI, predictive modeling, Quantum Computing, and other software and hardware innovations. Created to revolutionize the hemp farming sector, its specialization has grown to multifunctional drone solutions for industrial surveillance, monitoring, inspection, tracking, process automation and defense applications. Currently, the ZenaDrone 1000 drone is used for crop management applications in agriculture and critical field cargo applications in the defense sector, the IQ Nano indoor drone is used for inventory management in the warehouse and logistics sectors, and the IQ Square is an indoor/outdoor drone designed for land survey and inspections use in commercial and defense sectors.

Contacts for more information:

Company, Investors and Media:
Linda Montgomery
ZenaTech
312-241-1415
investors@zenatech.com

Investors:
Michael Mason
CORE IR
investors@zenatech.com

Safe Harbor

This press release and related comments by management of ZenaTech, Inc. include “forward-looking statements” within the meaning of U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “aim”, “seek”, “is/are likely to”, “believe”, “estimate”, “predict”, “potential”, “continue” or the negative of these terms or other comparable terminology intended to identify forward-looking statements. Forward-looking information in this document includes, but is not limited to ZenaTech’s expectations regarding its revenue, expenses, production, operations, costs, cash flows, and future growth; expectations with respect to future production costs and capacity; ZenaTech's ability to deliver products to the market as currently contemplated, including its drone products including ZenaDrone 1000 and IQ Nano; ZenaTech’s anticipated cash needs and it’s needs for additional financing; ZenaTech’s intention to grow the business and its operations and execution risk; expectations with respect to future operations and costs; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; political, economic, environmental, tax, security, and other risks associated with operating in emerging markets; regulatory risks; unfavorable publicity or consumer perception; difficulty in forecasting industry trends; the ability to hire key personnel; the competitive conditions of the industry and the competitive and business strategies of ZenaTech; ZenaTech’s expected business objectives for the next twelve months; ZenaTech’s ability to obtain additional funds through the sale of equity or debt commitments; investment capital and market share; the ability to complete any contemplated acquisitions; changes in the target markets; market uncertainty; ability to access additional capital, including through the listing of its securities in various jurisdictions; management of growth (plans and timing for expansion); patent infringement; litigation; applicable laws, regulations, and any amendments affecting the business of ZenaTech.