Disseminated on behalf of SPARC AI Inc. (CSE: SPAI) (OTC: SPAIF) and may include paid advertising.

• Canada has launched its first Defense Industrial Strategy, unlocking $180 billion in procurement opportunities over 10 years
• The strategy prioritizes domestic innovation in artificial intelligence, aerospace, and digital technologies
• Sparc AI’s patented spatial targeting technology and Overwatch navigation platform align with rising demand for advanced software-defined defense systems

Sparc AI (CSE: SPAI) (OTC: SPAIF) operates at the nexus of sensor technology, artificial intelligence, and next-generation target acquisition systems, a convergence increasingly integral to modern defense strategy. As global security dynamics shift and allied nations increase sovereign defense investment, the firm’s proprietary SPARC technology operates within a quickly evolving ecosystem.

Canada’s new Defense industrial strategy represents a generational pivot in national defense procurement. Supported by $81.8 billion in 2025 budget commitments and backed by $180 billion in procurement, as well as $290 billion in defense-related financing opportunities over the next decade, the strategy prioritizes Canadian digital technologies, innovation, and sovereign intellectual property. Autonomous systems, artificial intelligence, aerospace, and advanced sensing are clearly identified as high-value opportunities (ibn.fm/5KHJK).

The shift in policy underscores a wider global trend. Countries are tilting towards a domestically controlled, tech-driven system that can be quickly deployed and adaptable. Modern battlefields are increasingly reliant on real-time intelligence, autonomous platforms, and precision targeting powered by software rather than just hardware-based systems.

Sparc AI’s patented Spatial Predictive Approximation and Radial Convolution technology transforms standard cameras, sensors, and smart devices into precise coordinate acquisition systems. By transforming fixed, airborne, or mobile imaging platforms into intelligent targeting systems, the company enables precision location data without needing sophisticated military hardware. Sparc AI’s Target Acquisition System software platform and autonomous flight module further increase its usability across unmanned aerial systems and surveillance platforms.

In February 2026, the company announced an upgrade to Overwatch, its flagship GPS denied navigation product. Users can now leverage Overwatch’s corrected waypoints, mission plans, and positions and have them exported into the flight software they already use, thereby increasing Overwatch’s use case across defense and commercial fleets (ibn.fm/dN4ER).

As Canada invests in scaling domestic defense innovation and streamlining procurement through its newly created Defense Investment Agency, companies providing practical software-defined solutions may find increased alignment with procurement priorities. Drone innovation hubs, artificial intelligence-driven targeting, and autonomous control of defense-related intellectual property are integral components of the strategy, areas at the core of Sparc AI’s capabilities.

Beyond Canada, NATO countries are boosting their defense budgets to tackle rising security threats. Across the nations, spending targets exceed 2% of the total gross domestic product, implying that demand for advanced digital defense solutions is expected to grow steadily over the next decade. With software-based targeting and autonomous systems, countries and industries are better positioned for cost-efficient force multiplication, offering fiscal discipline and capability.

As governments pay greater attention to economic resilience, national security, and technological independence, AI-driven defense platforms are poised to gain greater relevance. Sparc AI’s proprietary technology and commercialization focus align with the rapidly changing procurement landscape, positioning the company to leverage the evolving defense infrastructure landscape.

For more information, visit the company’s website at https://sparcai.co.

NOTE TO INVESTORS: The latest news and updates relating to SPAIF are available in the company’s newsroom at https://ibn.fm/SPAIF

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