Announcement PDF Boresight Ltd (formerly Boresight Pty Ltd) Appendix 4E Preliminary final report 1. Company details Name of entity: Boresight Ltd (formerly Boresight Pty Ltd) ABN: 40 642 501 228 Reporting period: For the year ended 30 June 2026 Previous period: For the year ended 30 June 2025 2. Results for announcement to the market $ Revenues from ordinary activities up 46.3% to 6,383,532 Loss from ordinary activities after tax attributable to the owners of Boresight Ltd up 827.8% to (6,664,066) Loss for the year attributable to the owners of Boresight Ltd up 827.8% to (6,664,066) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the Group after providing for income tax and non-controlling interest amounted to $6,664,066 (30 June 2025: $718,267). 3. Net tangible assets Reporting period Previous period Cents Cents Net tangible assets per ordinary security 3.69 0.20 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There wereSyntax Error: Unknown form type no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. Boresight Ltd (formerly Boresight Pty Ltd) Appendix 4E Preliminary final report 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements have been audited and an unmodified opinion has been issued. 11. Attachments Details of attachments (if any): The Annual Report of Boresight Ltd for the year ended 30 June 2026 is attached. 12. Signed Signed ___________________________ Date: 28 August 2026 Dr Andrew Windsor Non-Executive Chairman Boresight Limited (ASX:BST) ASX Release | ABN 40642501228 Financial Year End 30 JUNE 2026 Boresight Ltd (formerly Boresight Pty Ltd) Chairman's Letter 30 June 2026 1 Dear Shareholders, On behalf of the Board I am pleased to present the Annual Report for Boresight Limited (the Company) for the year ended 30 June 2026 (FY26). FY26 represented a pivotal year of growth and investment for the Company. We consciously prioritised initiatives designed to strengthen our long-term competitive position, including increased marketing expenditure, investment in research and development, geographic and operational expansion, and the successful execution of our IPO. While these initiatives impacted short-term profitability, they were undertaken with a clear focus on building scale, enhancing capability, and establishing a platform for sustainable future growth. The Board believes the benefits of these investments, together with further targeted investment planned in FY27 and beyond, provide a strong foundation for revenue growth, expanded market opportunities, and long-term shareholder value. The Group recorded strong revenue growth of 46%, increasing to $6.38 million for the year ended 30 June 2026 from $4.36 million in the previous financial year. In addition, the Company has a strong start to FY27, with approximately $2.31 million of deferred revenue and confirmed orders and a quoted pipeline of approximately $2.6 million. As at 30 June 2026, the Company has working capital of $7.38M and the Board believes the Group is well positioned to continue its growth strategy in FY27 and beyond, including investment in manufacturing capacity, product development and market expansion initiatives. The Group reported a loss after income tax and non-controlling interests of $6,664,066 (30 June 2025: $718,267). Included within this result was $3,603,712 of non-cash share-based payment expense recognised during the year. Excluding this item, the Group's underlying operational loss was $3,060,354. This underlying operational loss largely reflects the Company's deliberate investment in future growth initiatives. During the year, the Company accelerated expenditure across marketing, product development, research and development, and expansion activities to support revenue growth and market penetration in future periods. Employee benefits expense increased to $2,974,482 (30 June 2025: $1,903,402), reflecting the strategic expansion of the Company's research and development, engineering, sales and marketing, and executive management teams. These investments have strengthened the Company's operational capability and, together with ongoing investment initiatives, position the business to capitalise on growth opportunities in the years ahead. The Company has seen a number of significant achievements during the year, including: • A successful debut on the ASX, with $8 million raised to fund expansion of the Company’s operations. • Strengthened engagement with the Australian Defence Force (ADF) included funded enhancements to the BS- 350 ISR drone, supply of target drones to the multi-year LAND 156 counter-drone program and a separate twelve month contract to supply BQ-400 Target Drones to ADF units. • Manufacture of the 5000th BQ-400 target drone, with the 6000th having subsequently been manufactured in August 2026. • Continued global sales across Australia, United States, Canada, Italy, New Zealand, the Netherlands, Norway, Germany, Sweden and the United Kingdom, cementing the Company’s position as a true global provider of low-cost target drones. This includes to existing, repeat customers and to new customers, both military and industry. • CASA certification to fly up to 20 aerial target drones for operational purposes and up to 100 aerial target drones for testing and development purposes, all from a single ground control station. The US continues to be a key growth market for the Company with an increase in revenue from $1.6m at 30 June 2025 to $2.2m at 30 June 2026. The Company now provides target drones to all the major arms of the US Department of Defence, and commenced manufacturing target drones in Huntsville, Alabama in 2026. In July 2026 the Company signed a lease for an expanded facility in Huntsville which, when fully operational, will be able to manufacture 5,000 drones per annum to support the US market directly. Boresight Ltd (formerly Boresight Pty Ltd) Chairman's Letter 30 June 2026 2 In the Company headquarters in Fyshwick, Canberra the engineering team continued the development of new capabilities. Support from the Australian Defence Force has seen development of an enhanced BS-350 platform. The BQ-750 Block 2 target drone was released in July 2026. In addition, the capabilities of the target drone ecosystem has the technical and CASA regulatory approvals to operationally fly twenty drones simultaneously (up to 100 for testing and development purposes), further expanding the training and threat emulation scenarios for militaries available from the Company. FY26 has established a strong foundation for the Company's next phase of growth. While the Board expects FY27 to remain a year of significant strategic investment as the Company expands its manufacturing capacity, develops new capabilities and increases its global market presence, these initiatives are intended to support the Company’s long term growth objectives. With a strengthened balance sheet following the IPO, expanding global market opportunities, increasing manufacturing capacity in Australia and the United States and continued investment in product innovation, the Board believes the Company is well positioned to capitalise on growing demand for low-cost, attritable target drone solutions over the medium to longer term. On behalf of the Board, I would like to thank our shareholders for their continued support, our customers for their trust, and our employees for their dedication and commitment throughout this transformational year. We look forward to building on the momentum achieved in FY26 and delivering long-term value for shareholders in the years ahead. Dr Andrew Windsor Non-Executive Chairman Boresight Ltd (formerly Boresight Pty Ltd) Corporate directory 30 June 2026 3 Directors Dr Andrew Windsor – Non-Executive Chairman Mr Justin Olde – Managing Director and Chief Executive Officer Mr Michael Sinkowitsch – Executive Director Mr Blake Burton – Non-Executive Director Company secretary Ms Kyla Garic Registered office Unit 1, 120 Giles Street Kingston ACT 2604 AUSTRALIA Email: admin@boresightuas.com Principal place of business Unit 3, 96 Wollongong Street Fyshwick ACT 2609 AUSTRALIA Auditor Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA 6008 AUSTRALIA Share registry Xcend Pty Ltd Level 2, 477 Pitt Street Haymarket NSW 2000 AUSTRALIA Stock exchange listing Boresight Ltd shares are listed on the Australian Securities Exchange (ASX code: BST) Website https://www.boresightuas.com/ Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 4 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Boresight Ltd (referred to hereafter as the 'Company') and the entities it controlled at the end of, or during, the year ended 30 June 2026. Directors The following persons were directors of Boresight Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated: Name Status Appointment date Resignation date Dr Andrew Windsor Non-Executive Chairman 9 July 2020 - Mr Justin Olde Managing Director and Chief Executive Officer 12 December 2025 - Mr Michael Sinkowitsch Executive Director 9 July 2020 - Mr Blake Burton Non-Executive Director 1 March 2026 - Mr Justin Olde was appointed Chief Executive Officer of the Company in December 2022 and transitioned to CEO/Managing Director on 12 December 2025. Information on directors Name: Dr Andrew Windsor Title: Non-Executive Chairman Qualifications: PhD in Theoretical Physics Experience and expertise: Dr Andrew Windsor is a co-founder of the Company. Prior to working for 10 years for the Australian Government in a number of roles. Dr. Windsor is an accomplished ICT leader with 15 years of experience in the industry spanning disciplines such as project and program management, cyber security, data analytics and intelligence systems, training, strategic planning and account management. Dr. Windsor is also a co-founder and director of Criterion Solutions Pty Ltd, a supplier of niche UAS and RF dominance technology to Government agencies. Other current directorships: Nil Former directorships (last 3 years): Nil Interests in shares: 40,904,508 Interests in options: 3,200,000 Name: Mr Justin Olde Title: Managing Director and Chief Executive Officer Qualifications: Masters Degree in Defence Capability Management & Acquisition Graduate of the Royal Military College of Australia Duntroon Experience and expertise: Mr Justin Olde was a 25-year Army Officer followed by 10 plus years in defence industry sales and product development with a strong focus on C-UAS technologies. Mr Olde was the VP of Global Business Development for EOS Ltd, an ASX listed defence company, before joining Boresight as its CEO. Mr Olde has also held roles as a senior capability management specialist for defence consulting firm Nova Systems and was a project and bid manager for multinational defence company Elbit Systems of Australia. His last role in the military was as the Deputy Director Land Test and Evaluation. Mr Olde has served three operational deployments and was awarded the Conspicuous Service Medal. Other current directorships: Nil Former directorships (last 3 years): Nil Interests in shares: Nil Interests in options: 8,077,500 Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 5 Name: Mr Michael Sinkowitsch Title: Executive Director Qualifications: Graduate from the Royal Military College of Australia, Duntroon Experience and expertise: Mr Michael Sinkowitsch is a co-founder of the Company. He is a former Australian Army Signals Corps officer. Mr Sinkowitsch is also a co-founder and director of Criterion Solutions Pty Ltd, a supplier of niche UAS and RF dominance technology to Government agencies. Mr Sinkowitsch has extensive sales and project management experience within the Australian Department of Defence, intelligence and law enforcement communities, having been responsible for providing complex solutions to a number of Federal agencies for over 20 years. He also has extensive UAS and C-UAS sales experience. Other current directorships: Nil Former directorships (last 3 years): Nil Interests in shares: 44,324,639 Interests in options: 3,200,000 Name: Mr Blake Burton Title: Non-Executive Director Qualifications: BCom (Accounting and Corporate Finance) Experience and expertise: Mr Blake Burton is an executive director of Adisyn Ltd (ASX: AI1), where he served as Managing Director from July 2022 to February 2026. Mr Burton possesses extensive experience in the IT industry. He was co-founder of web hosting company, Netorigin in 2011. Mr Burton grew Netorigin from inception and took the Company to successful trade sale in 2019 to Australia's largest privately owned web host VentraIP. At completion of the sale to Netorigin Mr Burton focused on Attained Group. Mr Burton has previously worked as an auditor at PwC, which included working with a number of ASX listed and international companies. Other current directorships: Adisyn Limited (ASX: AI1) Former directorships (last 3 years): Nil Interests in shares: 662,948 Interests in options: 1,200,000 Company secretary Name Kyla Garic Qualifications B Com, MAcc, CA, FGIA, FGIS Experiences Ms Garic is a Fellow of the Governance Institute of Australia and a member of the Institute of Chartered Accountants Australian and New Zealand. She is a Director of Onyx Corporate Pty Ltd a Company specialising in providing, company secretarial, corporate governance and corporate reporting services. Ms Garic acts as Company Secretary for a number of ASX listed companies. Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 6 Meetings of directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2026, and the number of meetings attended by each director were: Full Board Attended Held Dr Andrew Windsor 3 3 Mr Justin Olde 2 2 Mr Michael Sinkowitsch 3 3 Mr Blake Burton 2 2 Held: represents the number of meetings held during the time the director held office. Principal activities Boresight (ASX:BST) delivers an integrated aerial target drone ecosystem that enables realistic counter-UAS (aka counter drone, CUAS) training and testing for government and industry. The Group’s systems combine attritable aerial target drones, mission planning software and scalable ground control systems to support threat emulation and operational readiness. Boresight’s platform range includes quadrotor and fixed-wing aerial target drones designed to replicate evolving drone threats and enable repeatable testing and training scenarios without risking high-value intelligence, surveillance and reconnaissance (ISR) assets. With teams in Australia, the United States and Europe, Boresight supports customers globally with scalable CUAS training solutions, integrated engineering and production capabilities. Financial performance and results The Group recorded strong revenue growth of 46%, increasing to $6.38 million for the year ended 30 June 2026 from $4.36 million in the previous financial year. The Group recorded gross profit of $3.15 million, with the net loss for 30 June 2026 impacted by the IPO, other growth and expansion activities undertaken during the year in line with the Group’s strategy and non-cash share based payments expense. The net loss for the Group after providing for income tax and non-controlling interest amounted to $6,664,066 (30 June 2025: $718,267), comprised as follows: $ Gross profit 3,147,132 Other income 21,896 Employee benefits expense (2,974,482) Travel related to growth & expansion activities (817,521) Research & development (648,661) Transaction costs related to IPO (358,351) Selling, marketing & public relations (287,435) Other SG&A (note 7) (942,001) Depreciation & amortisation (153,532) Finance costs (70,047) Add back: net loss attributable to non-controlling interest 22,648 Operational loss 3,060,354 Non-cash share based payments expense (3,603,712) Net loss after income tax and non-controlling interest (6,664,066) Boresight Ltd Directors' report 30 June 2026 7 Following the IPO and capital raise of $8m (prior to costs), as at 30 June 2026, the Group reported net assets of $7,824,027, compared to $469,421 as at 30 June 2025. Cash and cash equivalents has increased by $7,313,009, from $568,962 as at 30 June 2025 to $7,881,971 at 30 June 2026. As at 30 June 2026, the Group has working capital of $7,376,082 compared to $28,748 as at 30 June 2025. The Board believes the Group is well positioned to execute its growth strategy and capitalise on expanding market opportunities in FY27 and beyond. Operating review Highlights • Boresight successfully listed on the Australian Securities Exchange (ASX:BST) on 10 June 2026, following a strongly supported A$8.0 million Initial Public Offering ("IPO") at A$0.20 per share. • FY26 audited annual revenue of A$6.38 million, an increase of ~46% from A$4.36 million in FY25. • Strong start to FY27 with ~A$2.31 million of deferred revenue and confirmed orders and a quoted pipeline of ~ $2.6 million • Cash and Cash Equivalents at end of period of ~A$7.88 million with no debt. FY26 was a year of significant growth and strategic investment for the Group. During the year, the Company continued to expand its global operations, invest in product development and manufacturing capability, and strengthen its market position through increased sales and marketing activities. These initiatives contributed to strong revenue growth and the achievement of several key operational milestones, while also increasing expenditure as the Company invested in the infrastructure, personnel and capabilities required to support future growth. The following review outlines the Group's operating performance, strategic achievements and financial results for the year ended 30 June 2026. Successful IPO The Company commenced trading on the ASX on 10 June 2026 under the ticker code BST, marking its transition from a high-growth private defence technology business to a publicly listed company. The IPO raised A$8.0 million (before costs) and was well supported by institutional and sophisticated investors, reflecting growing recognition of the structural growth in defence demand for low-cost, attritable aerial target and training systems. Australian Activities • Deepening engagement with the Australian Defence Force (ADF) on multiple fronts including the Sovereign UAS Program funding provision for the development of Boresight’s BS-350 Intelligence, Surveillance and Reconnaissance (“ISR”); drone ;supplying the multi-year “Project LAND 156” Uncrewed-Aerial-Systems (CUAS) program; and a separate follow on 12-month contract to supply BQ-400 Target Drones to ADF units. • Product highlights include the 5000th BQ-400 aerial target drone manufactured and delivered; BF-100 fixed- wing target developed with testing continuing, scheduled for release in September 2026, with customers committed; post quarter end, the release of the BQ-750 Block 2 Target Drone with customers committed. • Advanced the product roadmap, completed development of the enhanced one-to-many ground control station, achieving CASA certification to swarm up to 20 drone targets concurrently for customers and up to 100 drone targets simultaneously for testing purposes. Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 8 Australian Defence Force Engagement During the year, the Company continued to build on its existing relationship with the ADF across multiple departments. Importantly, shareholders should note, the ADF is funding a program of ongoing development specifically for the Boresight BS-350 ISR drone to enhance its capabilities to include night vision, more ruggedised components and improving the user interface and control system. The Company completed a capability uplift of the BS-350 ISR drone, initially developed under Defence’s Sovereign UAS challenge as part of Defence’s re-investment in the Sovereign UAS program. This is the first in a series of ADF funded uplifts, with the uplifted capability first rolled out in deliveries to Defence later in 2026. The Company continues to support the ADF Project Land 156, a major, multi-year CUAS program which is expected to generate an increasing number of target drone orders over its life. As that program matures the ADF will establish a regular program of CUAS training that Boresight anticipates will be a source of increasing long term revenue. The Company also continues to deliver under its Sovereign UAS Program contract and has received a follow-on contract for an enhanced version of the BS-350 ISR drone. Boresight was awarded a 12-month contract to supply BQ-400 Target Drones, reinforcing its position as a trusted provider of training and target solutions to the ADF. Manufacturing, Product and Engineering The Company manufactured and delivered the 5000th BQ-400 aerial target drone. Subsequent to the end of the FY, the 6000th BQ-400 aerial target drone has been manufactured. The Company significantly progressed development of the BF-100 fixed-wing drone target, with late-stage flight testing and design-for-manufacture work ongoing. Development remains on schedule, with expected release to market in September 2026. Sales have already been made of this system for delivery in October 2026. The Company completed development of the BQ-750 Block 2, a larger multirotor target designed to emulate the more significant drone threats increasingly being observed, and post the FY released it to the market. Sales of this target drone have already been made. Its baseline airframe will enable continued development toward more complex threat scenarios, including payload capacity for customers to deploy airborne capability in their operational scenarios. Boresight has continued to develop its one-to-many (1:M) drone target Ground Control Systems and software to allow operators to control multiple drone targets concurrently across different target types. Importantly, Boresight was certified by the Civil Aviation Safety Authority (CASA) to conduct flight operations for customers of up to 20 simultaneous target drones from a single GCS. The Company also achieved CASA certification to fly up to 100 simultaneous target drones from a single GCS for internal testing and development purposes. The intent is to continue to grow the number of target drones that can be flown from a single GCS so as to meet increasing customer demand to mimic drone swarm threats. The Company will continue to investigate further vertical integration of components where it makes commercial sense to do so, but in particular to secure supply chains and manufacturing scale. Additional additive manufacturing capabilities (3D printing) have been purchased to increase production scale. The Company has continued progressing its Defence Industry Security Program (DISP) related initiatives, which includes physical, cyber and personnel security requirements. The Fyshwick, Canberra facility remains the Company’s innovation hub and continues to serve non-US markets. The Company continues to evaluate opportunities to replicate its manufacturing model in other allied regions as customer volumes continue to increase. Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 9 International Activities • Awarded an 18-month contract for the supply of aerial target drones by a US company for military end use. • Company signed a lease for a new ~812 sqm manufacturing facility in Huntsville, Alabama - approximately 15x the size of its current US premises, post year end. • Commenced operational activity of Boresight UK Ltd, a wholly owned subsidiary, to drive European growth. • Delivered first orders to new US, UK, German, Norwegian, Canadian, Italian and Swedish customers, expanding into the North American and European defence markets. • Supported a multinational CUAS activity in Switzerland, emulating real threats with BQ-400 target drones to a broad range of international militaries and defence industry entities. American Engagement Boresight was awarded an 18-month contract from a US company for the supply of qty 600 x BQ-400 aerial target drones. This annuity contract will see its aerial target drones distributed to various US military units for their CUAS training requirements. Boresight also successfully supported a major US defence prime’s CUAS activity in the US, which showcased the Company’s integrated capabilities across numerous other vendor platforms. This used an earlier version of the BQ-750 that was specifically designed and manufactured for this particular event, demonstrating Boresight’s ability to quickly prototype and field new aerial target types. Boresight U.S., Inc, the wholly owned US subsidiary, actively searched for a larger facility in Huntsville, Alabama, having outgrown its current premises amid rising demand for targets in the United States. Since the end of the FY it has signed a lease on a new facility that is approximately 15 times the size of the previous facility, enabling scaling of production. The move to and establishment of manufacturing in this facility is ongoing and is expected to be completed by end September 2026. Additional additive manufacturing capabilities (3D printing) have also been purchased for the new facility fit out. The facility is initially expected to be capable of manufacturing more than 5,000 BQ-400 Target Drones annually, with plans to produce the BQ-750 Block 2 and the broader Boresight range for the US market over time. European Engagement Boresight commenced operations of Boresight UK Ltd, a wholly owned subsidiary, to drive growth within the European market. This initiative has already resulted in additional European sales to new customers as well as the appointment of an Italian reseller. During the year, Boresight successfully supported numerous customer activities, including a multinational CUAS activity in Switzerland, conducting Threat Emulation (Red Team) Operations using its BQ-400 target drones and GCS. The demonstration showcased the Company’s ability to provide realistic and effective aerial target solutions in support of advanced air defence testing and evaluation to a broad range of international militaries and Defence Industry entities. Global Business Development During the year, the Company continued production and delivery of BQ-400 aerial target drones for customers internationally, including gaining new customers in Australia, the US, Canada, Sweden, Norway, Italy, Germany and the UK. These are a combination of military and industry customers. Production volumes remained consistent and met customer demand. Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 10 Longer term, Boresight will continue to seek annuity contract opportunities in Australia and internationally as well as expanding its customer base and quantities of drones delivered. This will be achieved through its expanded Australian, US and UK sales teams. The Company is in ongoing discussions with numerous militaries and CUAS companies to provide aerial targets and services to support their activities. This includes supporting multi-national CUAS exercises which will provide additional exposure to other militaries and industry of Boresight’s capabilities. Revenue Revenue from customers increased 46% to $6.38 million for the year ended 30 June 2026 (FY25: $4.36 million), continuing the Company's strong growth trajectory. Revenue has increased from $1.08 million in FY23 (unaudited) to $6.38 million in FY26, representing a compound annual growth rate (CAGR) of approximately 81% over the three-year period. This growth reflects increasing customer adoption of the Company's products, expansion into new markets, and continued investment in manufacturing capability and product development. Pipeline In addition to the $1.31m of deferred revenue at 30 June 2026 that will be recognised in FY 27, the Company has a strong near term pipeline of approximately $1m in confirmed orders awaiting delivery of systems to customers and quotes to customers of approximately $2.6m. Significant changes in state of affairs Apart from as detailed in the operating review there were no significant changes in the state of affairs of the Group during the financial year. Business risk disclosure Material business risks that could affect future operational and financial growth of the Group are as follows: Additional requirements for capital The Group’s future capital requirements depend on numerous factors. Depending on the Group’s ability to maintain its funds and revenue from its operations, the Group may require further capital in the future. Any additional equity financing will dilute shareholdings. If the Group is unable to obtain additional financing as and when needed, the Group may be required to reduce the scope of its operations. Boresight Ltd (formerly Boresight Pty Ltd) Directors' report 30 June 2026 11 Government and government affiliate contracts A significant portion of the Group’s contracts are with government departments and/or government affiliates, in Australia, the United States and other jurisdictions. The Group’s ability to continue to generate revenue significantly depends on its ability to continue to conduct business with these departments/agencies. Given the general natu