# EDGAR Filing Document

**Accession Number:** 0001857047
**File Stem:** 0001104659-26-025809
**Filing Date:** 2026-3
**Character Count:** 1186595
**Document Hash:** 7145b3351ed644e1b45f709d7f9d538d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-025809.hdr.sgml**: 20260310

**ACCESSION NUMBER**: 0001104659-26-025809

**CONFORMED SUBMISSION TYPE**: F-10

**PUBLIC DOCUMENT COUNT**: 98

**FILED AS OF DATE**: 20260310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MDA Space Ltd.
- **CENTRAL INDEX KEY:** 0001857047

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-10
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-294179
- **FILM NUMBER:** 26739144

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 7500 FINANCIAL DRIVE
- **CITY:** BRAMPTON
- **PROVINCE COUNTRY:** A6
- **ZIP:** L6Y 6K7
- **BUSINESS PHONE:** 905 790 2800

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 7500 FINANCIAL DRIVE
- **CITY:** BRAMPTON
- **PROVINCE COUNTRY:** A6
- **ZIP:** L6Y 6K7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MDA Ltd.
- **DATE OF NAME CHANGE:** 20210414

**[**TABLE OF CONTENTS**](#TOC)

As filed with the Securities and Exchange Commission on March 10, 2026

Registration No. 333-

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM F-10

REGISTRATION STATEMENT

 *UNDER THE SECURITIES ACT OF 1933* 

## MDA SPACE LTD.
(Exact name of registrant as specified in its charter)

Ontario, Canada (Province or Other Jurisdiction of Incorporation or Organization) 3760 (Primary Standard Industrial Classification Code) 98-1703588 (I.R.S. Employer Identification No.)

7500 Financial Drive, Brampton, Ontario L6Y 6K7, Canada Tel: (905) 790-2800

(Address and telephone number of Registrant's principal executive offices)

CT Corporation System 28 Liberty Street New York, NY 10005 Tel: (212) 894-8940

(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States)

 *Copies to:* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| Ryan J. Dzierniejko Skadden, Arps, Slate, Meagher & Flom LLP One Manhattan West, New York, NY 10001 United States (212) 735-3000  | Emily Ting Christina Liao Goodmans LLP Bay Adelaide Centre 333 Bay Street, Suite 3400, Toronto ON M5H 2S7, Canada (416) 979-2211  | David Snarch MDA Space Ltd. 7500 Financial Drive, Brampton, ON L6Y 6K7, Canada (905) 790-2800  | Roxane F. Reardon Evan G. Zuckerman Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, NY 10017 United States (212) 455-2000  | Desmond Lee Rosalind Hunter Osler, Hoskin & Harcourt LLP 1 First Canadian Place, Suite 6200 100 King Street West Toronto, ON M5X 1B8 Canada (416) 362-2111  |

---

Approximate date of commencement of proposed sale of the securities to the public: From time to time after this Registration Statement becomes effective.

Province of Ontario, Canada

(Principal jurisdiction regulating this offering)

It is proposed that this filing shall become effective (check appropriate box)

&nbsp;&nbsp;&nbsp;&nbsp;A. ☐ upon filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in the United States and Canada).

&nbsp;&nbsp;&nbsp;&nbsp;B. ☒ At some future date (check the appropriate box below)

&nbsp;&nbsp;&nbsp;&nbsp;1. ☐ pursuant to Rule 467(b) on (date) at (time) (designate a time not sooner than 7 calendar days after filing).

&nbsp;&nbsp;&nbsp;&nbsp;2. ☐ pursuant to Rule 467(b) on (date) at (time) (designate a time 7 calendar days or sooner after filing) because the securities regulatory authority in the review jurisdiction has issued a receipt or notification of clearance on (date).

&nbsp;&nbsp;&nbsp;&nbsp;3. ☐ pursuant to Rule 467(b) as soon as practicable after notification of the Commission by the Registrant or the Canadian securities regulatory authority of the review jurisdiction that a receipt or notification of clearance has been issued with respect hereto.

&nbsp;&nbsp;&nbsp;&nbsp;4. ☒ after the filing of the next amendment to this Form (if preliminary material is being filed).

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to the home jurisdiction's shelf prospectus offering procedures, check the following box. ☒

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registration Statement shall become effective as provided in Rule 467 under the Securities Act of 1933, as amended (the "Securities Act") or on such date as the Commission, acting pursuant to Section 8(a) of the Securities Act, may determine.

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#### PART I

#### INFORMATION REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS

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Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This prospectus supplement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

#### Subject to completion, dated March 10, 2026

#### PRELIMINARY PROSPECTUS SUPPLEMENT TO THE SHORT FORM BASE SHELF PROSPECTUS DATED AUGUST 7, 2025
*<u>New Issue</u>* , 2026

![[MISSING IMAGE: lg_mdaspace-bw.jpg]](lg_mdaspace-bw.jpg)

### MDA SPACE LTD.

### US$300,000,000

### Common Shares
This offering (the "**Offering**") is the initial public offering of common shares (the "**Common Shares**") of MDA Space Ltd. (the "**Company**", "**MDA Space**", "**we**", "**our**" or "**us**") in the United States and a new issue of Common Shares in Canada by the Company. This prospectus supplement (the "**Prospectus Supplement**"), together with the accompanying short form base shelf prospectus dated August 7, 2025 (the "**Shelf Prospectus**"), qualifies the distribution of Common Shares (the "**Offered Shares**") at a price of US$ per Common Share (the "**Offering Price**").

The Offering is being made concurrently in Canada under the terms of this Prospectus Supplement and in the United States under the terms of the Company's registration statement on Form F-10 (the "**Registration Statement**") filed with the U.S. Securities and Exchange Commission (the "**SEC**").

---

| | |
|:---|:---|
| **J.P. Morgan**  | **RBC Capital Markets**  |

---

---

| | | | |
|:---|:---|:---|:---|
| **BMO Capital Markets**  | **Deutsche Bank <br> Securities**  | **Jefferies**  | **Scotiabank**  |
|  | **Canaccord Genuity**  |  |  |

---

 **Investing in the Common Shares involves significant risk. Prospective investors should consider the risks outlined in this Prospectus Supplement, the accompanying Shelf Prospectus and in the documents incorporated by reference herein and therein. See "*Cautionary Note Regarding Forward-Looking Statements*" and "*Risk Factors*".** 

The Company will use the net proceeds from the Offering of the Offered Shares as described in this Prospectus Supplement. See "*Use of Proceeds*".

The outstanding Common Shares are listed and posted for trading on the Toronto Stock Exchange (the "**TSX**") under the symbol "MDA". On March 9, 2026, the last trading day before the filing of this Prospectus Supplement, the closing price of the Common Shares on the TSX was C$42.05 or US$30.98 (based on the daily average exchange rate for the U.S. dollar in terms of Canadian dollars, as quoted by the Bank of Canada on March 9, 2026, of US$1.00 = C$1.3574). The Company has applied to list the Offered Shares and additional Common Shares to be issued by the Company if the Over-Allotment Option (as defined herein) is exercised in full (the "**Additional Shares**") on the TSX and has applied to list the Offered Shares, the Additional Shares and its outstanding Common Shares on the New York Stock Exchange (the "**NYSE**") under the trading symbol "MDA". Any such listing is subject to the Company fulfilling all of the listing requirements of the TSX and NYSE, respectively.

Unless the context otherwise requires, when used herein, all references to the "Offering" include the exercise of the Over-Allotment Option and all references to "Offered Shares" include the Additional Shares issuable upon exercise of the Over-Allotment Option.

### Price: US$ per Offered Share

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| | | | |
|:---|:---|:---|:---|
| | **Price to the Public<sup>(1)</sup>**  | **Underwriters' Fee<sup>(2)</sup>**  | **Net Proceeds to the <br> Company<sup>(3)</sup>**  |
| Per Offered Share  | US$ | US$ | US$ |
| Total Offering<sup>(4)</sup>  | US$ | US$ | US$ |

---

Notes:

(1) The Offering Price was determined by arm's length negotiation between the Company and the Underwriters (as defined herein), with reference to the then-current market price for the Common Shares on the TSX.

(2) Pursuant to the terms of the Underwriting Agreement (as defined herein), and in consideration of the services rendered by the Underwriters in connection with the Offering, the Underwriters will receive an aggregate fee (the "**Underwriters' Fee**") equal to % of the gross proceeds from the Offering, including any proceeds received pursuant to the exercise of the Over-Allotment Option. For additional information regarding underwriter compensation, see "*Plan of Distribution*".

(3) After deducting the Underwriters' Fee payable by the Company, but before deducting expenses in respect of the Offering to be paid by the Company, estimated to be approximately US$(exclusive of all applicable taxes).

(4) The Company has granted to the Underwriters an option (the "**Over-Allotment Option**"), exercisable in whole or in part for a period of 30 days after the date of the Underwriting Agreement (the "**Over-Allotment Deadline**"), to purchase up to an additional Common Shares at the Offering Price, less the Underwriters' Fee, on the same terms as set forth above solely to cover over-allotments, if any. If the Over-Allotment Option is exercised in full, the total price to the public, the Underwriters' Fee and net proceeds to the Company (before deducting expenses of the Offering) will be US$ , US$ and US$ , respectively. This Prospectus Supplement qualifies the distribution of the Over-Allotment Option. A purchaser who acquires Common Shares forming part of the Underwriters' over-allocation position acquires those Common Shares under this Prospectus Supplement, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases. See "*Plan of Distribution*".

The following table sets out the number of Additional Shares that may be sold to the Underwriters pursuant to the Over-Allotment Option:

---

| | | | |
|:---|:---|:---|:---|
| **Underwriters' <br> Position**  | **Maximum Number of <br> Securities Available**  | **Exercise Period**  | **Exercise Price**  |
| Over-Allotment <br> Option  | Additional <br> Shares  | Not later than 30 days after the date of the Underwriting Agreement  | US$ per <br> Additional Share  |

---

#### All dollar amounts in this Prospectus Supplement are in United States dollars, unless otherwise indicated. See " Currency Presentation and Exchange Rate Information ".
The Offered Shares are being offered in Canada by J.P. Morgan Securities Canada Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Jefferies Securities, Inc., Scotia Capital Inc. and Canaccord Genuity Corp. (collectively, the "**Canadian Underwriters**") and in the United States by J.P. Morgan Securities LLC, RBC Capital Markets, LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Jefferies LLC, Scotia Capital (USA) Inc. and Canaccord Genuity LLC (collectively, the "**U.S. Underwriters**", and together with the Canadian Underwriters, the "**Underwriters**") pursuant to an underwriting agreement dated , 2026 (the "**Underwriting Agreement**"). Deutsche Bank Securities Inc. is not registered to sell securities in any Canadian jurisdictions, and accordingly, will sell the Common Shares only outside of Canada. See "*Plan of Distribution*".

 **THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE SECURITIES COMMISSION OR ANY U.S. REGULATORY AUTHORITY NOR HAVE THESE AUTHORITIES PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.** 

 **An investment in the Offered Shares is highly speculative and involves a high degree of risk. Investors should carefully consider the risk factors described in this Prospectus Supplement, the accompanying Shelf Prospectus and in the documents incorporated by reference herein and therein before purchasing the Offered Shares. Prospective investors are advised to consult their legal counsel and other professional advisors in order to assess income tax, legal and other aspects of the investment. See "*Cautionary Note Regarding Forward-Looking Statements*" and "*Risk Factors*" in this Prospectus Supplement and in the Shelf Prospectus.** 

 **The Company and the Underwriters have not authorized anyone to provide any information other than that contained or incorporated by reference in this Prospectus Supplement or the accompanying Shelf Prospectus or any relevant free writing prospectus prepared by or on behalf of the Company or to which the Company has referred you. The Company and the Underwriters take no responsibility for, and can provide no assurance as to** 

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 **the reliability of, any other information that others may give you. It is important for you to read and consider all information contained in this Prospectus Supplement and the accompanying Shelf Prospectus, including the documents incorporated by reference herein and therein, and any free writing prospectus that the Company has authorized for use in connection with this Offering, in their entirety before making your investment decision.** 

 **This Offering is made in the United States by a foreign issuer that is permitted, under a multijurisdictional disclosure system adopted in the United States and Canada, to prepare this Prospectus Supplement and the accompanying Shelf Prospectus in accordance with Canadian disclosure requirements. Prospective investors should be aware that such requirements are different from those of the United States. Financial statements incorporated by reference herein have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS") and may be subject to foreign auditing and auditor independence standards, and thus may not be comparable to financial statements of United States companies.** 

 **Prospective investors should be aware that the acquisition, holding or disposition of the Offered Shares may have tax consequences both in Canada and the United States. Such consequences for investors who are resident in, or citizens of, Canada or the United States may not be described fully herein. See "*Certain Canadian Federal Income Tax Considerations*", "*Certain U.S. Federal Income Tax Considerations*" and "*Risk Factors*".** 

 **The enforcement by investors of civil liabilities under the United States federal securities laws may be affected adversely by the fact that the Company is incorporated under and governed by the *Business Corporations Act* (Ontario) (the "OBCA"), that most of its directors and officers reside principally in Canada, that some or all of the Underwriters or experts named in the Registration Statement may be residents of a foreign country, and that all or a substantial portion of the assets of the Company and said persons may be located outside the United States. See "*Enforcement of Civil Liabilities*".** 

The Underwriters, as principals, conditionally offer the Offered Shares qualified under this Prospectus Supplement and the Shelf Prospectus, subject to prior sale, when, as and if delivered by the Company to the Underwriters and accepted by them subject to the conditions contained in the Underwriting Agreement, as described under "*Plan of Distribution*".

Certain legal matters relating to Canadian law with respect to the Offering will be passed on our behalf by Goodmans LLP and on behalf of the Underwriters by Osler, Hoskin & Harcourt LLP. Certain legal matters relating to United States law with respect to the Offering will be passed upon on the Company's behalf by Skadden, Arps, Slate, Meagher & Flom LLP and on behalf of the Underwriters by Simpson Thacher & Bartlett LLP. See "*Legal Matters*".

Subject to applicable laws, the Underwriters may, in connection with this Offering, over-allot or effect transactions that stabilize or maintain the market price of the Common Shares at levels other than those which might otherwise prevail on the open market. Such transactions, if commenced, may be discontinued at any time. **After the Underwriters have made reasonable efforts to sell the Offered Shares at the Offering Price, the Underwriters may offer the Offered Shares to the public at prices lower than the Offering Price**. See "*Plan of Distribution*".

Subscriptions will be received subject to rejection or allotment in whole or in part and the right is reserved to close the subscription books at any time without notice. Closing of the Offering is expected to take place on or about , 2026 (the "**Closing Date**"), or such earlier or later date as the Company and the Underwriters may agree, but in any event no later than , 2026.

RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc. are each an affiliate of a Canadian chartered bank which is a lender under the Syndicated Credit Facility (as defined herein) available under the Credit Agreement (as defined herein) and to which the Company, through its wholly-owed subsidiary, is indebted and may borrow funds from time to time. **Consequently, the Company may be considered a "connected issuer" of RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc. under applicable Canadian securities legislation.** See "*Relationship Between the Company and Certain Underwriters*". The Company may use a portion of the net proceeds of the Offering to repay of a portion of amounts outstanding under the Company's Syndicated Credit Facility. See "*Use of Proceeds*".

It is expected that the Company will arrange for the instant deposit of the Offered Shares under the book-based system of registration, to be registered to The Depository Trust Company ("**DTC**") or its nominee and deposited with DTC on the Closing Date, or as may otherwise be agreed to among the Company and the

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Underwriters. In the case of certain Canadian purchasers, we may alternatively arrange for the electronic deposit of the Offered Shares distributed under the Offering under the book-based system of registration, to be registered in the name of CDS Clearing and Depository Services Inc. ("**CDS**") or its nominee and deposited with CDS on the Closing Date. No certificates evidencing the Offered Shares will be issued to purchasers of the Offered Shares. Purchasers of the Offered Shares will receive only a customer confirmation from the Underwriter or other registered dealer from or through whom a beneficial interest in the Offered Shares is purchased. See "*Plan of Distribution*".

Certain of our directors, namely Brendan Paddick, Darren Farber and Jill Smith, reside outside of Canada and have appointed MDA Space Ltd., located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, as their agent for service of process in Canada. Purchasers are advised that it may not be possible for investors to enforce judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized under the laws of a foreign jurisdiction or resides outside of Canada, even if the party has appointed an agent for service of process. See "*Enforcement of Judgments Against Foreign Persons*".

The Company's principal and registered office is located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7.

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#### **TABLE OF CONTENTS**

#### PROSPECTUS SUPPLEMENT

---

| | |
|:---|:---|
| [ABOUT THIS PROSPECTUS SUPPLEMENT](#tATPS)  | [S-1](#tATPS) |
| [CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION](#tCPAE)  | [S-1](#tCPAE) |
| [DOCUMENTS INCORPORATED BY REFERENCE](#tDIBR)  | [S-2](#tDIBR) |
| [U.S. REGISTRATION STATEMENT](#tURS)  | [S-3](#tURS) |
| [MARKETING MATERIALS](#tMAMA)  | [S-3](#tMAMA) |
| [NON-IFRS FINANCIAL MEASURES AND KEY METRICS](#tNFMA)  | [S-4](#tNFMA) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tCNRF)  | [S-4](#tCNRF) |
| [MARKET AND INDUSTRY DATA](#tMAID)  | [S-6](#tMAID) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYCF)  | [S-7](#tWYCF) |
| [THE COMPANY](#tTHCO)  | [S-7](#tTHCO) |
| [TRADEMARKS, SERVICE MARKS AND TRADE NAMES](#tTMSD)  | [S-8](#tTMSD) |
| [RISK FACTORS](#tRIFA)  | [S-9](#tRIFA) |
| [USE OF PROCEEDS](#tUOP)  | [S-16](#tUOP) |
| [CONSOLIDATED CAPITALIZATION](#tCOCA)  | [S-16](#tCOCA) |
| [DESCRIPTION OF SECURITIES BEING DISTRIBUTED](#tDOSB)  | [S-17](#tDOSB) |
| [PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)](#tPODC)  | [S-17](#tPODC) |
| [Relationship Between the Company and Certain Underwriters](#tRBTC)  | [S-27](#tRBTC) |
| [CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS](#tCCFI)  | [S-27](#tCCFI) |
| [Certain U.S. Federal Income Tax Considerations](#tCUFI)  | [S-32](#tCUFI) |
| [PRIOR SALES](#tPRSA)  | [S-36](#tPRSA) |
| [TRADING PRICE AND VOLUME](#tTPAV)  | [S-37](#tTPAV) |
| [LEGAL MATTERS](#tLEMA)  | [S-38](#tLEMA) |
| [AUDITORS, TRANSFER AGENT AND REGISTRAR](#tATAA)  | [S-38](#tATAA) |
| [ENFORCEMENT OF CIVIL LIABILITIES](#tEOCL)  | [S-38](#tEOCL) |
| [ENFORCEMENT OF JUDGMENTS AGAINST FOREIGN PERSONS](#tEOJA)  | [S-38](#tEOJA) |
| [SCHEDULE A INVESTOR PRESENTATION](#tINPR)  | [A-1](#tINPR) |

---

#### SHELF PROSPECTUS

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| | |
|:---|:---|
| [IMPORTANT INFORMATION ABOUT THIS PROSPECTUS](#bIIAT)  | [1](#bIIAT) |
| [EXEMPTION FROM NATIONAL INSTRUMENT 44-101](#bEFNI)  | [1](#bEFNI) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#bCNRF)  | [1](#bCNRF) |
| [non-ifrs financial measures](#bNFM)  | [2](#bNFM) |
| [market and industry data](#bMAID)  | [3](#bMAID) |
| [ADDITIONAL INFORMATION](#bADIN)  | [3](#bADIN) |
| [DOCUMENTS INCORPORATED BY REFERENCE](#bDIBR)  | [3](#bDIBR) |
| [THE COMPANY](#bTHCO)  | [5](#bTHCO) |
| [RECENT DEVELOPMENTS](#bREDE)  | [6](#bREDE) |
| [CONSOLIDATED CAPITALIZATION](#bCOCA)  | [6](#bCOCA) |
| [USE OF PROCEEDS](#bUOP)  | [6](#bUOP) |
| [DESCRIPTION OF SECURITIES](#bDOS)  | [6](#bDOS) |

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| | |
|:---|:---|
| [SELLING SECURITYHOLDERS](#bTSS)  | [11](#bTSS) |
| [PLAN OF DISTRIBUTION](#bPOD)  | [13](#bPOD) |
| [EARNINGS COVERAGE RATIOS](#bECR)  | [14](#bECR) |
| [PRIOR SALES](#bPRSA)  | [14](#bPRSA) |
| [TRADING PRICE AND VOLUME](#bTPAV)  | [14](#bTPAV) |
| [CERTAIN INCOME TAX CONSIDERATIONS](#bCITC)  | [14](#bCITC) |
| [RISK FACTORS](#bRIFA)  | [15](#bRIFA) |
| [enforcement of judgements against foreign persons](#bEOJA)  | [17](#bEOJA) |
| [well-known seasoned issuer](#bWSI)  | [17](#bWSI) |
| [LEGAL MATTERS AND INTEREST OF EXPERTS](#bLMAI)  | [17](#bLMAI) |
| [AUDITORS, TRANSFER AGENT AND REGISTRAR](#bATAA)  | [17](#bATAA) |

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#### ABOUT THIS PROSPECTUS SUPPLEMENT
This document is composed of two parts. The first part is this Prospectus Supplement, which describes the specific terms of the Offering and adds to and supplements information contained in the accompanying Shelf Prospectus and the documents incorporated by reference therein. The second part is the Shelf Prospectus, which gives more general information, some of which may not apply to the Offering. This Prospectus Supplement is deemed to be incorporated by reference into the Shelf Prospectus solely for the purpose of this Offering.

Neither the Company nor the Underwriters has authorized any person to provide readers with information different from that contained in this Prospectus Supplement and the accompanying Shelf Prospectus (or incorporated by reference herein or therein). Neither we nor the Underwriters take responsibility for, or can provide any assurance as to the reliability of, any other information that others may give readers of this Prospectus Supplement and the accompanying Shelf Prospectus. If the description of the Offered Shares or any other information varies between this Prospectus Supplement and the accompanying Shelf Prospectus (including the documents incorporated by reference herein and therein), the information in this Prospectus Supplement supersedes the information in the accompanying Shelf Prospectus or documents incorporated by reference herein or therein.

Readers should not assume that the information contained or incorporated by reference in this Prospectus Supplement and the accompanying Shelf Prospectus is accurate as of any date other than the date of this Prospectus Supplement and the accompanying Shelf Prospectus or the respective dates of the documents incorporated by reference herein or therein, unless otherwise noted herein or as required by law. It should be assumed that the information appearing in this Prospectus Supplement, the accompanying Shelf Prospectus and the documents incorporated by reference herein and therein are accurate only as of their respective dates. The business, financial condition, results of operations and prospects of the Company may have changed since those dates.

This Prospectus Supplement shall not be used by anyone for any purpose other than in connection with the Offering. We do not undertake to update the information contained or incorporated by reference herein or in the Shelf Prospectus, except as required by applicable securities laws. Information contained on, or otherwise accessed through, our website, www.mda.space, shall not be deemed to be a part of this Prospectus Supplement, the accompanying Shelf Prospectus or any document incorporated by reference herein or therein and such information is not incorporated by reference herein or therein and prospective investors should not rely on such information when deciding whether or not to invest in the Offered Shares.

In this Prospectus Supplement, unless otherwise indicated, all dollar amounts and references to "$" and "US$" are to U.S. dollars and references to "C$" are to Canadian dollars. See "*Currency Presentation and Exchange Rate Information.*"

Unless otherwise indicated, information contained in this Prospectus Supplement assumes or reflects no exercise of the Over-Allotment Option, no exercise of outstanding stock options and no vesting and settlement of outstanding deferred share units, restricted share units and performance share units.

This Prospectus Supplement does not constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by this Prospectus Supplement by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation.

In this Prospectus Supplement, unless the context otherwise requires, the terms "we", "our", "us", "MDA Space" and the "Company" refer to MDA Space Ltd. and its subsidiaries.

#### CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION
We express all amounts in this Prospectus Supplement in U.S. dollars, except where otherwise indicated. References to "$"and "US$" are to U.S. dollars and references to "C$" are to Canadian dollars.

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The following table sets forth, for the periods indicated, the high, low, average and end of period daily average exchange rates for one U.S. dollar, expressed in Canadian dollars, published by the Bank of Canada during the respective periods.

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| | | |
|:---|:---|:---|
| | **Fiscal Year Ended <br> December 31, 2025**  | **Fiscal Year Ended <br> December 31, 2024**  |
| Low | 1.3558 | 1.3316 |
| High | 1.4603 | 1.4416 |
| Average | 1.3978 | 1.3698 |
| End | 1.3706 | 1.4389 |

---

On March 9, 2026, the last banking day prior to the date of this Prospectus Supplement, the Bank of Canada daily average exchange rate was US$1.00 = C$1.3574.

#### DOCUMENTS INCORPORATED BY REFERENCE
This Prospectus Supplement is deemed to be incorporated by reference into the accompanying Shelf Prospectus solely for the purposes of this Offering. Other documents are also incorporated, or are deemed to be incorporated by reference, into the Shelf Prospectus and reference should be made to the Shelf Prospectus for full particulars thereof.

Copies of the documents incorporated by reference in this Prospectus Supplement and the accompanying Shelf Prospectus may be obtained on request without charge from the Vice President, Investor Relations of MDA Space Ltd. at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, Attention: Jim Floros, Telephone 289-914-0209, and are also available electronically on the System for Electronic Data Analysis and Retrieval+ ("**SEDAR+**") at www.sedarplus.ca and on the Electronic Data Gathering, Analysis, and Retrieval System ("**EDGAR**") at www.sec.gov.

The following documents, filed by the Company with securities commissions or similar regulatory authorities in the provinces and territories of Canada, are specifically incorporated by reference into, and form an integral part of, this Prospectus Supplement and the accompanying Shelf Prospectus:

(a) [the annual information form of the Company for the year ended December 31, 2025, dated March 4, 2026 (the "](tm266080d2_ex4-1.htm)**[Annual Information Form](tm266080d2_ex4-1.htm)**[");](tm266080d2_ex4-1.htm)

(b) [the audited consolidated financial statements of the Company for the years ended December 31, 2025 and 2024, together with the notes thereto and the independent auditor's report thereon (the "](tm266080d2_ex4-2.htm)**[Annual Financial Statements](tm266080d2_ex4-2.htm)**[");](tm266080d2_ex4-2.htm)

(c) [the management's discussion and analysis of the Company for the fourth quarters and years ended December 31, 2025 and 2024 (the "](tm266080d2_ex4-3.htm)**[Annual MD&A](tm266080d2_ex4-3.htm)**["); and](tm266080d2_ex4-3.htm)

(d) [the management information circular of the Company dated March 30, 2025 regarding the annual general meeting of shareholders of the Company held on May 8, 2025.](tm266080d2_ex4-4.htm)

 **Any statement contained in this Prospectus Supplement, in the accompanying Shelf Prospectus or in any document incorporated or deemed to be incorporated by reference herein or therein shall be deemed to be modified or superseded, for purposes of this Prospectus Supplement, to the extent that a statement contained in any subsequently filed document which also is, or is deemed to be, incorporated by reference herein or in the accompanying Shelf Prospectus modifies or supersedes such prior statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any other information set forth in the document that it modifies or supersedes. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to prevent a statement that is made from being false or misleading in the** 

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 **circumstances in which it was made. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute part of this Prospectus Supplement.** 

Any document of the type required by National Instrument 44-101—*Short Form Prospectus Distributions* to be incorporated by reference into a short form prospectus, including any annual information forms, material change reports (except confidential material change reports), business acquisition reports, interim financial statements, annual financial statements and the independent auditor's report thereon, management's discussion and analysis and information circulars of the Company, filed by the Company with securities commissions or similar authorities in Canada after the date of this Prospectus Supplement and for the duration of the Offering, shall be deemed to be incorporated by reference into this Prospectus Supplement. In addition, all documents filed on Form 6-K or Form 40-F by the Company with the SEC on or after the date of this Prospectus Supplement shall be deemed to be incorporated by reference into the Registration Statement of which this Prospectus Supplement forms a part of, if and to the extent, in the case of any Report on Form 6-K, expressly provided in such document.

You should not assume that the information contained in or incorporated by reference in this Prospectus Supplement is accurate as of any date other than the date on the cover page of this Prospectus Supplement, and in the case of the documents incorporated by reference herein, other than of the respective dates of such documents.

Reference to the Company's website in any documents that are incorporated by reference into this Prospectus Supplement do not incorporate by reference the information on such website into this Prospectus Supplement, and the Company disclaims any such incorporation by reference.

The documents incorporated or deemed to be incorporated herein by reference contain meaningful and material information relating to the Company and readers should review all information contained in this Prospectus Supplement, the accompanying Shelf Prospectus and the documents incorporated or deemed to be incorporated by reference herein and therein.

#### U.S. REGISTRATION STATEMENT
The Offering is being made concurrently in Canada pursuant to this Prospectus Supplement and the accompanying Shelf Prospectus and in the United States pursuant to the Registration Statement filed with the SEC under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"). This Prospectus Supplement and the accompanying Shelf Prospectus do not contain all of the information set forth in the Registration Statement, certain items of which are contained in the exhibits to the Registration Statement as permitted or required by the rules and regulations of the SEC.

The following documents have been or will be filed or furnished with the SEC as part of the Registration Statement of which this Prospectus Supplement forms a part: (i) the documents listed under the heading "*Documents Incorporated by Reference*"; (ii) powers of attorney from MDA Space's directors and officers, as applicable; (iii) the consent of KPMG LLP; (iv) the consent of Goodmans LLP; (v) the consent of Osler, Hoskin & Harcourt LLP; and (vi) the Underwriting Agreement.

#### MARKETING MATERIALS
A copy of the "template version" (as defined in National Instrument 41-101—*General Prospectus Requirements*) of the investor presentation used in connection with the Offering dated March 10, 2026 (the "**Marketing Materials**") is included at Schedule "A" of this Prospectus Supplement.

The Marketing Materials are not part of this Prospectus Supplement or the Shelf Prospectus to the extent that the contents of the Marketing Materials have been modified or superseded by a statement contained in this Prospectus Supplement or any amendment. Any "template version" of any "marketing materials" (each such term as defined in National Instrument 41-101—*General Prospectus Requirements*) filed by the Company with securities commissions or similar authorities in Canada in connection with the Offering after the date of the final form of this Prospectus Supplement but prior to the termination of the distribution of the Offered

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Shares pursuant to the Offering is deemed to be incorporated by reference in the final form of this Prospectus Supplement and in the accompanying Shelf Prospectus.

#### NON-IFRS FINANCIAL MEASURES AND KEY METRICS
Certain information presented in this Prospectus Supplement and the Shelf Prospectus, including certain documents incorporated by reference herein and therein, may include non-IFRS measures that are used by us as indicators of financial performance. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Share, Order Bookings, Net Debt, Net Debt to Adjusted EBITDA Leverage Ratio and Free Cash Flow to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. See "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" in our Annual MD&A, which are incorporated by reference herein.

#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Prospectus Supplement contains or incorporates "forward-looking information" within the meaning of applicable securities laws. Such forward-looking information includes, but is not limited to, information with respect to the Company's objectives and strategies to achieves these objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates, intentions, projections, views and other characterizations of future events or circumstances. All information contained in this Prospectus Supplement, other than statements of current and historical fact, is forward-looking information. All of the forward-looking information in this Prospectus Supplement is qualified by this cautionary note.

In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information. Statements containing forward-looking information are not historical facts. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs.

This forward-looking information includes, among other things, statements relating to our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects, financial targets or outlook, intentions, opportunities and the markets in which we operate, is forward-looking information.

Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. These assumptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to maintain and expand the scope of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to execute on our growth strategies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assumptions relating to government support and funding levels for space programs and missions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • continued and accelerated growth in the global space economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the impact of competition; our ability to retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain and maintain existing financing on acceptable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes and trends in our industry or the global economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • currency exchange and interest rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • and changes in laws, rules and regulations.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, prospective investors should not place undue reliance on the forward-looking information contained in this Prospectus Supplement and the documents incorporated by reference herein, as the case may be. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including: uncertain economic, political and geopolitical conditions; catastrophic space events, natural disasters, and other significant disruptions; our business being subject to the policies, priorities, mandates, and funding levels of governmental entities, changes to which may negatively or positively impact it; our contracts with customers subject to being terminated or suspended at any time and government contracts being frequently the subject of formal competitive bidding processes; our ability to comply with changing regulations; any significant disruption in or unauthorized access to our IT networks and related systems or those of third parties that we utilize in our operations, including those relating to cybersecurity or arising from cyber-attacks; the impact of tariffs or other international trade disputes; the loss, failure or performance degredation of RADARSAT-2; a significant portion of our expected revenue over the next several years being expected to continue to be concentrated in a relatively small number of contracts and the loss or reduction in scope of any such contract or the loss of one or more of our largest customers or programs would materially reduce revenue; certain commercial satellite customers being highly leveraged or not fully funded not fulfilling their contractual payment obligations, including repayment obligations if vendor financing is provided; our failure to successfully implement our growth strategy; our reliance on a single supplier or a limited number of suppliers, including indirect suppliers; the inability of these key suppliers to meet our needs and compliance requirements; disruptions in the supply of key raw materials or components and difficulties in the supplier qualification process, as well as increases in prices of raw materials; our operations in various jurisdictions across the world; developing new technology; our products may contain defects or fail to operate in the expected manner; potential contractual liability for errors or defects in our products or systems; our dependency on our ability to attract, train and retain employees; inflation risk; some of our workforce and our suppliers' workforces being represented by labour unions; our technology may infringe the proprietary rights of third parties; our use of open-source software; our intellectual property may be misappropriated or infringed upon by third parties; we are dependent on data and systems; certain of the products we offer are dependent on data supplied by third parties; the growth of artificial intelligence; regulatory risks; our operations being subject to governmental laws and regulations relating to environmental matters; our international business exposing us to risks relating to increased regulation, and political or economic instability in foreign markets; employees or others acting on our behalf may engage in misconduct or other improper activities; successfully consummating or integrating acquisitions; ongoing liabilities in connection with divestitures; we have significant goodwill and identifiable intangible assets recorded on our balance sheet; we may not receive the full amounts estimated under the contracts in our backlog; our revenue pipeline may not result in firm contracts or realized revenue; fixed price contracts; our cash flow and profitability could be reduced if expenditures are incurred prior to the final receipt of a contract; our ability to obtain additional debt or equity financing or government grants may be limited or difficult to obtain; our indebtedness and other contractual obligations could adversely affect our financial condition; our credit ratings are not conclusive and may be lowered or withdrawn; tax law changes may result in adverse outcomes; we routinely make accounting estimates and judgments; the adoption of new accounting standards

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or interpretations; epidemics, pandemics or other crises or public health concerns; providing financing of working capital to or on behalf of our customers to remain competitive in certain contracts; future satellites may be subject to construction and launch delays, failures, damage or destruction; our continued growth in the commercial satellite market is dependent on the growth in the sales and development; our business strategy being in part dependent on our ability to formulate corporate alliances with leading companies; estimates on projected growth of the market and industry not being certain; fixed costs; many of our customers having specific security requirements that can change quickly and with little notice; fluctuations in foreign exchange rates; insurance; current or future litigation; classified contracts; information contained in our disclosures proving to be incorrect; growth may place significant demands on our management and infrastructure; we incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies; our safety protocols may not protect against all risks of accidents in the workplace; the Company's corporate culture; climate change and the global transition to a low carbon economy; claims for indemnification by our directors and officers; we may not realize our anticipated return on capital commitments made to expand our capabilities; negative publicity; our risk management efforts may not be effective; we may incur operating losses in the future; pension and other post-retirement benefit obligations; our by-laws providing that certain actions are required to be litigated in Canada; enforcing judgements against foreign subsidiaries and our non-Canadian resident directors or officers; and those risk factors listed in this Prospectus Supplement under "*Risk Factors*" and elsewhere in this Prospectus Supplement, the Shelf Prospectus and the Annual Information Form and our other filings with the securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

These factors should not be considered exhaustive and should be read together with the other cautionary statements in this Prospectus Supplement. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.

Although the Company bases the forward-looking information on assumptions that it believes are reasonable when made, the Company cautions investors that statements containing forward-looking information are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this Prospectus Supplement. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking information contained in this Prospectus Supplement, those results or developments may not be indicative of results or developments in subsequent periods.

Given these risks and uncertainties, investors are cautioned not to place undue reliance on the forward-looking information. Any forward-looking information that is made in this Prospectus Supplement speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

#### MARKET AND INDUSTRY DATA
Unless otherwise indicated, information contained in this Prospectus Supplement and the documents incorporated by reference herein concerning the industry and the markets in which the Company operates, including its general expectations and market position, market opportunities and market share, is based on information from independent industry organizations, such as, but not limited to, the World Meteorological Organization, or other third party sources (including industry publications, surveys and forecasts), such as, but not limited to, Novaspace, SpaceNews, Critical Comms, Visual Capitalist, Breaking Defense, Reuters, The French Tech Journal, Indo-Pacific Defense Forum, NDTV World, the United Nations, Broadband Commission for Sustainable Development and the World Economic Forum, other third party sources and other specialist reports commissioned by management to validate industry assumptions, management studies and estimates.

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Unless otherwise indicated, the Company's estimates are derived from publicly-available information released by independent industry analysts and third party sources as well as data from its internal research and include assumptions made by the Company which it believes to be reasonable based on its knowledge of the industry and markets in which the Company operates. The Company's internal research and assumptions have not been verified by any independent source and the Company has not independently verified any third party information. While the Company believes the market position, market opportunity and market share information included in this Prospectus Supplement and the documents incorporated by reference herein is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the industry and markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the heading "*Risk Factors*" in the Annual Information Form.

#### WHERE YOU CAN FIND MORE INFORMATION
MDA Space is subject to the full informational requirements of the securities commissions or similar regulatory authority in all provinces and territories of Canada. Following this Offering, MDA Space will also file reports and other information with the SEC. Purchasers are invited to read and download a copy of any reports, statements or other information, other than confidential filings, that MDA Space files with the Canadian provincial and territorial securities commissions, the SEC or similar regulatory authority. These filings are also electronically available from SEDAR+ at www.sedarplus.ca and from EDGAR at www.sec.gov. Except as expressly provided herein, documents filed on SEDAR+ or on EDGAR are not, and should not be considered, part of this Prospectus Supplement or the accompanying Shelf Prospectus.

MDA Space has filed with the SEC under the U.S. Securities Act the Registration Statement relating to the Offered Shares, of which this Prospectus Supplement and the accompanying Shelf Prospectus form a part. This Prospectus Supplement and the accompanying Shelf Prospectus do not contain all of the information set forth in the Registration Statement, certain items of which are contained in the exhibits to the Registration Statement as permitted or required by the rules and regulations of the SEC. Items of information omitted from this Prospectus Supplement but contained in the Registration Statement are available on the SEC's website at www.sec.gov.

As a foreign private issuer, MDA Space is exempt from the rules under the United States Securities Exchange Act of 1934, as amended (the "**U.S. Exchange Act**"), prescribing the furnishing and content of proxy statements. MDA Space's reports and other information filed with or furnished to the SEC are available from EDGAR at www.sec.gov, as well as from commercial document retrieval services.

#### THE COMPANY
The Company is a corporation incorporated under the OBCA on June 2, 2020. On March 19, 2021, the Company's articles were amended to change the Company's name from "Neptune Acquisition Holdings Inc." to "MDA Ltd.". On April 6, 2021, the Company amalgamated with 2828330 Ontario Inc., a corporation incorporated under the OBCA, as part of certain transactions undertaken in connection with the closing of the Company's initial public offering (the "**IPO**"). On April 7, 2021, the Company completed its IPO in Canada and its Common Shares commenced trading on the TSX on that date under the symbol "MDA". On May 9, 2024, the Company's articles were amended to change the Company's name from "MDA Ltd." to "MDA Space Ltd."

MDA Space is a trusted mission partner for the world's most advanced space programs, delivering a suite of dual-use technology and services to civil, commercial, defence and national security customers. Our deep engineering expertise, broad portfolio of space-system capabilities, and end-to-end mission experience make us the partner of choice for government and private-sector clients. We leverage these capabilities to enable next-generation, space-based communications that empower our hyper-connected world; to build and operate critical space infrastructure for exploration, scientific research and on-orbit servicing; and to develop, operate and deliver data and analytic services from both Earth and space observation satellites and ground infrastructure. In an era where industries, technologies, people, and places are impacted every day by space

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technology, our mission is to build the space between proven and possible and to provide the space economy with our trusted, flight-tested, and human-rated solutions.

MDA Space has three core business areas: Satellite Systems, Robotics & Space Operations, and Geointelligence. Our diversified portfolio of solutions positions our customers to achieve mission success.

In Satellite Systems, we partner or prime space communication missions across low Earth orbit, medium Earth orbit, and geosynchronous equatorial orbit, in addition to providing a range of satellite subsystems and communication systems for human rated spacecraft. These missions span a growing number of applications including broadband access, direct-to-device satellite communication, and Internet of Things connectivity across the full communication frequency spectrum. In Robotics & Space Operations, we partner on space infrastructure missions to facilitate the exploration and development of space. We provide autonomous robotics and rover solutions along with proximity operation sensors that are used to operate in orbit and on the surface of the Moon and Mars, as well as operational services to plan, support, and operate these missions remotely. In Geointelligence, we develop, build and operate Earth observation ("**EO**") and space observation missions, as well as providing key products in the areas of EO synthetic aperture radar data and services, EO ground stations, and multi-sensor fusion-based analytics products and services. All of these activities serve a wide range of use cases, including in the areas of national security, maritime surveillance, and climate change monitoring.

We serve a broad range of customers, including governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry. We work collaboratively with our customers in the early engineering phases of product and program development and provide services throughout a mission's life, including engineering, manufacturing, integration, mission operation, and ongoing maintenance services. As of December 31, 2025, commercial customers represent approximately 70% of our revenue, and government customers represent approximately 30% of our revenue. For the year ended December 31, 2025, by geography, 63%, 30%, 5% and 2% of our revenue comes from Canada, the United States, Europe and the rest of the world, respectively.

#### TRADEMARKS, SERVICE MARKS AND TRADE NAMES
We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This Prospectus Supplement may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks or trade names in this Prospectus Supplement is not intended to, and does not imply, a relationship with or endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this Prospectus Supplement may appear without the <sup>®</sup>,™ or <sup>SM</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent permitted under applicable law, our rights or the rights of the applicable licensor to such trademarks, service marks and trade names.

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#### RISK FACTORS
An investment in the Offered Shares involves risks. Before purchasing the Offered Shares, prospective investors should carefully consider the information contained in, or incorporated by reference into, this Prospectus Supplement and the Shelf Prospectus, including, without limitation, the risk factors identified in our Annual MD&A incorporated by reference into this Prospectus Supplement and under "*Risk Factors*" in our Annual Information Form also incorporated by reference herein. If any event arising from these risks occurs, our business, prospects, financial condition, results of operations or cash flows, or your investment in the Offered Shares could be materially adversely affected.

The risks described herein or incorporated by reference into this Prospectus Supplement and the Shelf Prospectus are not the only risks that affect the Company. Other risks and uncertainties that the Company does not presently consider to be material, or of which the Company is not presently aware, may become important factors that affect the Company's future financial condition and results of operations. If any of such or other risks occur, the Company's business, prospects, financial condition, results of operations and cash flows could be materially adversely impacted. In that case, the trading price of the Common Shares could decline and investors could lose all or part of their investment. There is no assurance that risk management steps taken will avoid future loss due to the occurrence of the below described or other unforeseen risks.

 ***The market price for the Common Shares may be volatile and subject to wide fluctuations in response to numerous factors, many of which are beyond the Company's control.***

The trading price of the Common Shares has in the past been, and may continue to be, subject to significant fluctuations. This may make it more difficult for holders of the Common Shares to resell their Common Shares when they want at prices that they find attractive. These fluctuations may be caused by events related or unrelated to the Company's operating performance and beyond the Company's control.

The factors which may contribute to market price fluctuations of the Common Shares include, but are not limited to, the following:

• actual or anticipated fluctuations in the Company's quarterly financial performance;

• recommendations by securities research analysts;

• shareholder activism and general market interest in our securities;

• changes in the economic performance or market valuations of companies in the industry in which the Company operates;

• addition or departure of the Company's executive officers, directors and other key personnel;

• release or expiration of transfer restrictions on outstanding Common Shares (including Common Shares subject to lock-up restrictions);

• sales or perceived sales of additional Common Shares;

• operating and financial performance that vary from the expectations of management, securities analysts and investors;

• regulatory and political changes affecting the Company's industry generally and its business and operations;

• announcements of developments and other material events by the Company or its competitors;

• fluctuations to the costs of vital goods and services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• changes in commodity prices;

• changes in global financial markets and global economies and general market conditions, such as interest rates;

• significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving the Company or its competitors;

• litigation or regulatory action against us;

• operating and share price performance of other companies that investors deem comparable to the Company or from a lack of market comparable companies; and

• news reports relating to trends, concerns, technological or competitive developments, regulatory changes and other related issues in the Company's industry or target markets.

#### There is no guarantee that the Common Shares will earn any positive return in the short term or long term.
A holding of Common Shares is speculative and involves a high degree of risk and should be undertaken only by holders whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. A holding of Common Shares is appropriate only for holders who have the capacity to absorb a loss of some or all of their holdings.

 ***Our Common Shares do not currently trade on a stock exchange in the United States and we do not know whether a market for the Common Shares will develop to provide you with adequate liquidity.***

Our Common Shares are currently listed only on the TSX. Prior to this Offering, the Common Shares have not been listed on a stock exchange in the United States. We have applied to list our Common Shares on the NYSE in connection with this Offering. However, if an active trading market does not develop in the United States, you may have difficulty selling any of the Common Shares that you buy over a U.S. exchange. We cannot predict the extent to which investor interest in the Company will lead to the development of an active trading market on the NYSE or otherwise, or how liquid that market might become. The price of the Common Shares in this Offering may not be indicative of prices that will prevail in the United States trading market or otherwise following the Offering. Listing of our Common Shares on the NYSE in addition to the TSX may increase price volatility on the TSX and also result in volatility of the trading price on the NYSE because trading will be in two markets, which may result in less liquidity on both exchanges. In addition, different liquidity levels, volumes of trading, currencies and market conditions on the two exchanges may result in different prevailing trading prices.

#### Management of the Company will have broad discretion in the application of the net proceeds to the Company of the Offering.
We cannot specify with certainty the particular uses of the net proceeds we will receive from the Offering. Our management will have broad discretion concerning the use of the net proceeds as well as the timing of their expenditure, including for any of the purposes described in "*Use of Proceeds*". Accordingly, a purchaser of Offered Shares will have to rely upon the judgment of our management with respect to the use of the proceeds, with only limited information concerning management's specific intentions. Our management may spend a portion or all of the net proceeds from this Offering in ways that our shareholders might not desire, that might not yield a favourable return and that might not increase the value of a purchaser's investment. The failure by our management to apply these funds effectively could have a material adverse effect on our business, prospects, financial condition, results of operations and cash flows. Notably, we have in the past made, and in the future may make, acquisitions and investments that could divert management's attention, result in operating difficulties and dilution to our shareholders and otherwise disrupt our operations and adversely affect our business, operating results or financial position, and involve other risks and uncertainties outlined in this Prospectus Supplement, the accompanying Shelf Prospectus and in the documents incorporated by reference herein and therein. Pending their use, we may invest the net proceeds of the Offering in a manner that does not produce income or that loses value.

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 ***The Company may sell additional Common Shares or other securities that are convertible or exchangeable into Common Shares in subsequent offerings or may issue additional Common Shares or other securities to finance future acquisitions.***

The number of Common Shares that the Company is authorized to issue is unlimited. Subject to the rules of any applicable stock exchange on which the Common Shares are listed (including the TSX and the NYSE) and applicable securities laws, the Company may, in its sole discretion, issue additional Common Shares from time to time, and the interests of the Company's shareholders may be diluted thereby. The Company cannot predict the size or nature of future sales or issuances of securities or the effect, if any, that such future sales and issuances will have on the market price of the Common Shares. Sales or issuances of substantial numbers of Common Shares or other securities that are convertible or exchangeable into Common Shares, or the perception that such sales or issuances could occur, may adversely affect prevailing market prices of the Common Shares. With any additional sale or issuance of Common Shares or other securities that are convertible or exchangeable into Common Shares, investors will suffer dilution to their voting power and economic interest in the Company. Furthermore, to the extent holders of the Company's stock options or other convertible securities convert or exercise their securities and sell the Common Shares they receive, the trading price of the Common Shares may decrease due to the additional amount of Common Shares available in the market.

 ***The Company has not declared and paid dividends in the past and may not declare and pay dividends in the future, and consequently, purchasers in the Offering may never receive a return on their investment.***

Any decision to declare and pay dividends in the future will be made at the discretion of the Company's board of directors and will depend on, among other things, financial results, cash requirements, contractual restrictions and other factors that the Company's board of directors may deem relevant. As a result, investors may not receive any return on an investment in the Common Shares unless they sell their Common Shares for a price greater than that which such investors paid for them.

 ***Future sales, or the perception of future sales, of Common Shares by existing shareholders or by us, or future dilutive issuances of Common Shares by us, could adversely affect prevailing market prices for the Common Shares.***

Subject to compliance with applicable securities laws, sales of a substantial number of Common Shares in the public market could occur at any time. These sales, or the market perception that the holders of a large number of Common Shares or securities convertible into Common Shares intend to sell Common Shares, could reduce the prevailing market price of our Common Shares. We cannot predict the effect, if any, that future public sales of these securities or the availability of these securities for sale will have on the market price of our Common Shares. If the market price of our Common Shares were to drop as a result, this might impede our ability to raise additional capital and might cause remaining shareholders to lose all or part of their investment.

Following the consummation of this Offering, the Company as well as all directors and officers of the Company which beneficially held approximately 1.19% of our Common Shares outstanding as of March 9, 2026, will be subject to "lock-up" restrictions, as described under "*Plan of Distribution*". The applicable Underwriters might waive the provisions of these "lock-up" restrictions and allow the Company to, among other things, issue additional Common Shares, or allow the directors and officers of the Company to sell their Common Shares at any time. There are no pre-established conditions for the grant of such a waiver by the applicable Underwriters, and any decision by the applicable Underwriters to waive those conditions may depend on a number of factors, which might include market conditions, the performance of our Common Shares in the market and our financial condition at that time. If the "lock-up" restrictions of the Company are waived, additional Common Shares will be issued, and if the "lock-up" restrictions of the directors and officers of the Company are waived, additional Common Shares will be available for sale into the public market, subject to applicable securities laws, which, in both cases, could reduce the prevailing market price for our Common Shares.

In addition, certain holders of options and other share-based awards will have an immediate income inclusion for tax purposes when they exercise their options or when their other awards are share-settled (that is, tax is

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not deferred until they sell the underlying Common Shares). As a result, these holders may need to sell Common Shares purchased on the exercise of options or issued upon share settlement of share-based awards in the same year that they exercise their options or in which their share-based awards are share-settled. This might result in a greater number of Common Shares being sold in the public market, and reduced long-term holdings of Common Shares by our management and employees.

#### Our constating documents permit us to issue additional securities in the future, including Common Shares without additional shareholder approval.
Our articles of amalgamation permit us to issue an unlimited number of Common Shares. We anticipate that we will, from time to time, issue additional Common Shares in the future, including in connection with potential acquisitions. Subject to the requirements of the TSX and the NYSE, we will not be required to obtain the approval of shareholders for the issuance of additional Common Shares. Any further issuances of Common Shares will result in immediate dilution to existing shareholders and may have an adverse effect on the value of their shareholdings.

 ***If securities or industry analysts do not publish research or reports about our business, or if they downgrade our Common Shares, the price of our Common Shares could decline.***

The trading market for our Common Shares depends, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If one or more of the analysts who cover us downgrade our stock or publish inaccurate or unfavorable research about our business, the price of our Common Shares would likely decline. In addition, if our results of operations fail to meet the forecast of analysts, the price of our Common Shares would likely decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our Common Shares could decrease, which might cause the price and trading volume of our Common Shares to decline.

#### Provisions of Canadian law may delay, prevent or make undesirable an acquisition of all or a significant portion of the Company's shares or assets.
A non-Canadian must file an application for review with the Minister responsible for the *Investment Canada Act* and obtain approval of the Minister prior to acquiring control of a "Canadian business" within the meaning of the *Investment Canada Act*, where prescribed financial thresholds are exceeded. Furthermore, limitations on the ability to acquire and hold the Common Shares may be imposed by the *Competition Act* (Canada). This law permits the Commissioner of Competition to review any acquisition or establishment, directly or indirectly, including through the acquisition of shares, of control over or of a significant interest in the Company. Otherwise, there are no limitations either under the laws of Canada or in the Company's constating documents on the rights of non-Canadians to hold or vote the Common Shares. Any of these provisions may discourage a potential acquirer from proposing or completing a transaction that may have otherwise presented a premium to the Company's shareholders.

 ***We will incur increased costs as a result of being a public company in the United States, and our management will be required to devote substantial time to United States public company compliance efforts.***

As a public company in the United States, we will incur additional legal, accounting, NYSE, reporting and other expenses that we did not incur as a public company in Canada. The additional demands associated with being a U.S. public company may disrupt regular operations of our business by diverting the attention of some of our senior management team away from revenue-producing activities to additional management and administrative oversight, adversely affecting our ability to attract and complete business opportunities and increasing the difficulty in both retaining professionals and managing and growing our business. Any of these effects could harm our business, results of operations and financial condition.

If our efforts to comply with new United States laws, regulations and standards differ from the activities intended by regulatory or governing bodies, such regulatory bodies or third parties may initiate legal proceedings against us and our business may be adversely affected. As a public company in the United States,

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it is more expensive for us to obtain or retain director and officer liability insurance, and we will be required to accept reduced coverage or incur substantially higher costs to continue our coverage. These factors could also make it more difficult for us to attract and retain qualified directors.

The U.S. Sarbanes-Oxley Act 2002, as amended (the "**U.S. Sarbanes-Oxley Act**"), requires that we maintain effective disclosure controls and procedures and internal control over financial reporting. Pursuant to Section 404 of the U.S. Sarbanes-Oxley Act ("**Section 404**"), we will be required to furnish a report by our management on our internal control over financial reporting ("**ICFR**") starting with respect to the year ended December 31, 2026. However, for so long as we are an "emerging growth company," we will not be required to provide an attestation report on ICFR issued by our independent registered public accounting firm.

To achieve compliance with Section 404 within the prescribed period, we will document and evaluate our ICFR, which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside consultants and adopt a detailed work plan to assess and document the adequacy of our ICFR, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for ICFR. Despite our efforts, there is a risk that neither we nor our independent registered public accounting firm will be able to conclude within the prescribed timeframe that our ICFR is effective as required by Section 404. This could result in a determination that there are one or more material weaknesses in our ICFR, which could cause an adverse reaction in the financial markets due to a loss of confidence in the reliability of our consolidated financial statements. In addition, in the event that we are not able to demonstrate compliance with the U.S. Sarbanes-Oxley Act, that our internal control over financial reporting is perceived as inadequate, or that we are unable to produce timely or accurate financial statements, investors may lose confidence in our operating results and the price of our Common Shares may decline. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the NYSE.

 ***We are an emerging growth company and intend to take advantage of reduced disclosure requirements applicable to emerging growth companies, which could make our Common Shares less attractive to investors.***

We are an "emerging growth company" as defined in the U.S. Jumpstart Our Business Startups Act of 2012. We will remain an emerging growth company until the earliest to occur of (i) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more; (ii) December 31, 2031 (the last day of the fiscal year ending after the fifth anniversary of the effective date of the Registration Statement); (iii) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period; or (iv) the date we qualify as a "large accelerated filer" under the rules of the SEC, which means the market value of our Common Shares held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter after we have been a reporting company in the United States for at least 12 months. For so long as we remain an emerging growth company, we are permitted to and intend to rely upon exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the U.S. Sarbanes-Oxley Act.

We may take advantage of some, but not all, of the available exemptions available to emerging growth companies. We cannot predict whether investors will find our Common Shares less attractive if we rely on these exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares and the price of our Common Shares may be more volatile.

 ***As a foreign private issuer, we are subject to different U.S. securities laws and rules than a domestic U.S. issuer, which may limit the information publicly available to our shareholders.***

We are a "foreign private issuer" as such term is defined in Rule 405 under the U.S. Securities Act, and are permitted, under a multijurisdictional disclosure system adopted by the United States and Canada, to prepare our disclosure documents filed under the U.S. Exchange Act in accordance with Canadian disclosure requirements. Under the U.S. Exchange Act, we are subject to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies. As a result, we will not file

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the same reports that a U.S. domestic issuer would file with the SEC, although we will be required to file or furnish to the SEC the continuous disclosure documents that we are required to file in Canada under Canadian securities laws.

As a foreign private issuer, we are exempt from the rules and regulations under the U.S. Exchange Act related to the furnishing and content of proxy statements. We are also exempt from Regulation FD, which prohibits issuers from making selective disclosures of material non-public information. While we expect to comply with the corresponding requirements relating to proxy statements and disclosure of material non-public information under Canadian securities laws, these requirements differ from those under the U.S. Exchange Act and Regulation FD and shareholders should not expect to receive in every case the same information at the same time as such information is provided by U.S. domestic companies.

In addition, as a foreign private issuer, we have the option to follow certain Canadian corporate governance practices, except to the extent that such laws would be contrary to U.S. securities laws, and provided that we disclose the requirements we are not following and describe the Canadian practices we follow instead. For example, we do not intend to follow the minimum quorum requirements for shareholder meetings as well as certain NYSE shareholder approval requirements prior to the issuance of securities, as permitted for foreign private issuers. As a result, our shareholders may not have the same protections afforded to shareholders of U.S. domestic companies that are subject to all U.S. corporate governance requirements.

Following the completion of the Offering, we may cease to qualify as a foreign private issuer. If we cease to qualify, we will be subject to the same reporting requirements and corporate governance requirements as a U.S. domestic issuer which may increase our costs of being a public company in the United States.

 ***The Company is governed by the corporate and securities laws of Canada which in some cases have a different effect on shareholders than the corporate laws of Delaware, U.S. and U.S. securities laws.***

The Company is governed by the OBCA and other relevant laws, which may affect the rights of shareholders differently than those of a company governed by the laws of a U.S. jurisdiction, and may, together with the Company's constating documents, have the effect of delaying, deferring or discouraging another party from acquiring control of the Company by means of a tender offer, a proxy contest or otherwise, or may affect the price an acquiring party would be willing to offer in such an instance. The material differences between the OBCA and Delaware General Corporation Law ("**DGCL**") that may have the greatest such effect include, but are not limited to, the following: (i) for material corporate transactions (such as mergers and amalgamations, other extraordinary corporate transactions or amendments to the Company's articles) the OBCA generally requires a two-thirds majority vote by shareholders, whereas DGCL generally requires only a majority vote; and (ii) under the OBCA, holders of 5% or more of the Company's shares that carry the right to vote at a meeting of shareholders can requisition a special meeting of shareholders, whereas such right does not exist under the DGCL.

 ***As the Company is organized under the laws of a Canadian province and most of its directors and officers reside in Canada, it may be difficult for United States shareholders to effect service on the Company to realize on judgments obtained in the United States. Similarly, it may be difficult for Canadian investors to enforce civil liabilities against our directors and officers residing outside of Canada.***

The Company is governed by the OBCA with its principal place of business in Canada, most of its directors and officers reside in Canada and the majority of the Company's assets and all or a substantial portion of the assets of these persons may be located outside the United States. Consequently, it may be difficult for investors who reside in the United States to effect service of process in the United States upon the Company or upon such persons who are not residents of the United States, or to realize upon judgments of courts of the United States predicated upon the civil liability provisions of the U.S. federal securities laws. A judgment of a U.S. court predicated solely upon such civil liabilities may be enforceable in Canada by a Canadian court if the U.S. court in which the judgment was obtained had jurisdiction, as determined by the Canadian court, in the matter. Investors should not assume that Canadian courts: (i) would enforce judgments of U.S. courts obtained in actions against the Company or such persons predicated upon the civil liability provisions of the U.S. federal securities laws or the securities or blue sky laws of any state within the United States, or (ii) would

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enforce, in original actions, liabilities against the Company or such persons predicated upon the U.S. federal securities laws or any such state securities or blue sky laws. Similarly, some of the Company's directors and officers are residents of countries other than Canada and all or a substantial portion of the assets of such persons are located outside Canada. As a result, it may be difficult for Canadian investors to initiate a lawsuit within Canada against these persons. In addition, it may not be possible for Canadian investors to collect from these persons judgments obtained in courts in Canada predicated on the civil liability provisions of securities legislation of certain of the provinces and territories of Canada. It may also be difficult for Canadian investors to succeed in a lawsuit in the United States based solely on violations of Canadian securities laws.

#### We may be a passive foreign investment company, which may result in adverse U.S. federal income tax consequences for U.S. Holders of Common Shares.
Generally, if for any taxable year 75% or more of our gross income is passive income, or at least 50% of the value of our assets, generally determined based on a quarterly average, is attributable to assets that produce or are held for the production of passive income, we would be characterized as a passive foreign investment company ("**PFIC**") for U.S. federal income tax purposes. Based on the nature of our income and the value and composition of our assets, we do not believe we were a PFIC for the taxable year ended December 31, 2025 and do not expect to be a PFIC for the foreseeable future. However, because PFIC status is determined on an annual basis and generally cannot be determined until the end of the taxable year, there can be no assurance that we will not be a PFIC for the the current taxable year or any future year. For instance, because we may hold a substantial amount of cash and cash equivalents following this Offering, our status as a PFIC may depend on how quickly we use the cash proceeds from this Offering in our business. In addition, because the calculation of the value of our assets may be based in part on the value of our Common Shares, which may fluctuate considerably, we may be a PFIC in the current or any future taxable year if the value of our Common Shares declines. If we are characterized as a PFIC, our shareholders who are U.S. Holders (as defined herein) may suffer adverse tax consequences, including the treatment of gains realized on the sale of our Common Shares as ordinary income, rather than as capital gain, the loss of the preferential rate applicable to dividends received on our Common Shares by non-corporate U.S. Holders, and the addition of interest charges to the tax on such gains and certain distributions. A U.S. shareholder of a PFIC generally may mitigate these adverse U.S. federal income tax consequences by making a Qualified Electing Fund ("**QEF**") election, or, to a lesser extent, a mark-to-market election. However, we do not intend to provide the information necessary for U.S. Holders to make QEF elections if we are classified as a PFIC. For further discussion, see "*Certain U.S. Federal Income Tax Considerations*."

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#### USE OF PROCEEDS
The aggregate net proceeds to be received by us from the sale of the Offered Shares under the Offering are approximately US$ after deducting the Underwriters' Fee and other expenses relating to the Offering payable by us, which are estimated to be US$ . If the Over-Allotment Option is exercised in full, the estimated net proceeds of the Offering, after deducting the Underwriters' Fee payable to the Underwriters and the estimated expenses of the Offering, are expected to be US$ .

We intend to use the net proceeds of the Offering to allow us to pursue our growth strategies, which include expanding our customer base and solutions; supporting the growth of existing customers; and pursuing other strategic opportunities, which may include acquisitions or investments. We may also use a portion of the net proceeds of the Offering for general corporate purposes, including the repayment of a portion of amounts outstanding under the Company's Syndicated Credit Facility.

See "*Relationship Between the Company and Certain Underwriters*."

We do not believe we can provide the approximate amounts of the proceeds that will be allocated to each of these purposes with certainty, given the dynamic and rapidly evolving market. Pending their use, we may invest the net proceeds from this Offering in short-term, investment grade, interest bearing instruments or hold them as cash. While we currently anticipate that we will use the net proceeds of the Offering as set forth above, we may use the net proceeds differently, having consideration to our strategy relative to market and other conditions, as well as other factors described under "*Risk Factors*".

#### CONSOLIDATED CAPITALIZATION
There have been no material changes in the consolidated capitalization of the Company since the date of the Annual Financial Statements which have not been disclosed in this Prospectus Supplement or the documents incorporated by reference herein.

The following table sets forth our consolidated cash and cash equivalents and consolidated capitalization as at December 31, 2025 (i) on an actual basis and (ii) on an adjusted basis to give effect to the issuance and sale of the Offered Shares in the Offering, after deducting the Underwriters' Fee and estimated offering expenses payable by us (without giving effect to the exercise of the Over-Allotment Option). This table should be read in conjunction with our Annual Financial Statements and Annual MD&A, each of which is incorporated by reference in this Prospectus Supplement.

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| | | |
|:---|:---|:---|
| | **As at December 31, 2025**  | **As at December 31, 2025**  |
| | **Actual**  | **As Adjusted**  |
|  | (in millions of C$)  | (in millions of C$)  |
| **Non-current liabilities**  |  | &nbsp;&nbsp;&nbsp;<sup>(1</sup>)  |
| &nbsp;&nbsp;&nbsp; Net employee defined benefit payable  | 23.4 |  |
| &nbsp;&nbsp;&nbsp; Lease liabilities  | 118.9 |  |
| &nbsp;&nbsp;&nbsp; Long-term debt  | 272.0 |  |
| &nbsp;&nbsp;&nbsp; Deferred income tax liabilities  | 245.7 |  |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities  | 23.4 |  |
| **Total non-current liabilities**  | **683.4** |  |
| **Equity** |  |  |
| &nbsp;&nbsp;&nbsp; Common shares (Common Shares, no par value-126,321,001 Common Shares issued and outstanding, Actual; Common Shares issued and outstanding, As Adjusted)<sup>(2)</sup>  | 1042.7 | &nbsp;&nbsp;&nbsp;<sup>(3</sup>)  |
| &nbsp;&nbsp;&nbsp; Contributed surplus  | 36.0 |  |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income  | 29.1 |  |
| &nbsp;&nbsp;&nbsp; Retained earnings  | 247.2 |  |
| **Total equity**  | **1355.0** |  |
| **Total capitalization**  | **2038.4** |  |

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Notes:

(1) Converted from US$ to C$ using the rate of exchange of US$1.00 equals C$1.3706, which is the daily average rate of exchange posted by the Bank of Canada on December 31, 2025.

(2) As at December 31, 2025, the Company's authorized share capital is comprised of an unlimited number of Common Shares.

(3) The amount included in the table includes additional share capital raised by the Company through the Offering from the sale of the Offered Shares estimated to amount to approximately US$ million after deducting the Underwriters' Fee and the estimated expenses of the Offering (without exercise of the Over-Allotment Option).

#### DESCRIPTION OF SECURITIES BEING DISTRIBUTED
The Offered Shares and the Additional Shares shall be identical in their terms to all other Common Shares. The following is a summary of the material attributes and characteristics of the Common Shares. The following description may not be complete and is subject to, and qualified in its entirety by reference to, the terms and provisions of our articles, which are available electronically on SEDAR+ at www.sedarplus.ca. Further information relating to the Common Shares is set out in the Annual Information Form, which is incorporated by reference herein.

Our authorized share capital consists of an unlimited number of Common Shares, without par value. As at the date of this Prospectus Supplement, 126,563,893 Common Shares are issued and outstanding.

The holders of the Common Shares are entitled to receive notice of and to attend any shareholders' meetings and are entitled to one vote in respect of each Common Share held at such meetings. The holders of the Common Shares are entitled to participate equally in dividends, if any, declared on the Common Shares. In the event of the liquidation, dissolution or wind-up of MDA Space or other distribution of assets of MDA Space among shareholders for the purpose of winding-up MDA Space's affairs, the Common Shares shall rank equally as to priority of distribution. Such distribution shall be made in equal amount per Common Share on all the Common Shares outstanding without preference or distinction.

#### PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)

#### General
Pursuant to the Underwriting Agreement, the Company has agreed to issue and sell and the Underwriters have agreed to purchase, as principals, severally and not jointly (within the meaning of such terms under the laws of the State of New York) on the Closing Date, or such earlier or later date as the Company and the Underwriters may agree, but in any event no later than , 2026, the number of Offered Shares set out opposite their respective names below, representing an aggregate of Offered Shares, at a price of US$ per Offered Share, for an aggregate gross consideration of US$ , payable in cash against delivery of the Offered Shares. The Offering Price was determined by negotiation between the Company and the Underwriters, with reference to the then-current market price for the Common Shares.

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| | |
|:---|:---|
| **Underwriter**  | &nbsp;&nbsp;&nbsp; **Number of <br> Offered Shares**  |
| J.P. Morgan Securities LLC  |  |
| RBC Dominion Securities Inc.  |  |
| BMO Nesbitt Burns Inc.  |  |
| Deutsche Bank Securities Inc.  |  |
| Jefferies Securities, Inc.  |  |
| Scotia Capital Inc.  |  |
| Canaccord Genuity Corp.  |  |
| **Total** |  |

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The Offered Shares are being offered in the United States by the U.S. Underwriters and in Canada by the Canadian Underwriters pursuant to the Underwriting Agreement. The Offering is being made concurrently

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in Canada under the terms of the Shelf Prospectus and this Prospectus Supplement and in the United States under the terms of the Registration Statement, of which the Shelf Prospectus and this Prospectus Supplement form part, through the Underwriters and/or affiliates thereof registered to offer the Offered Shares for sale in such jurisdictions in accordance with applicable securities laws and such other registered dealers as may be designated by the Underwriters. Subject to applicable law, the Underwriters, their affiliates, or such other registered dealers as may be designated by the Underwriters, may offer the Offered Shares outside of Canada and the United States. Notwithstanding the foregoing, Deutsche Bank Securities Inc. is not registered to sell securities in any Canadian jurisdictions, and accordingly, will sell the Offered Shares only outside of Canada.

In consideration for the services provided by the Underwriters in connection with the Offering, and pursuant to the terms of the Underwriting Agreement, the Company has agreed to pay the Underwriters the Underwriters' Fee equal to % of the gross proceeds from the Offering (including any gross proceeds raised on exercise of the Over-Allotment Option). The Company will be responsible for all expenses related to the Offering, whether or not it is completed, including certain fees and certain out-of-pocket expenses of the Underwriters in connection with the Offering. We have agreed to grant to the Underwriters the Over-Allotment Option, exercisable, in whole or in part, on or prior to the Over-Allotment Deadline, to purchase up to an additional number of Additional Shares that is equal to 15% of the number of Offered Shares sold hereunder, at a price equal to the Offering Price and otherwise on the same basis as the purchase of the Offered Shares, solely to cover over-allotments, if any. The Over-Allotment Option is exercisable by the Underwriters giving notice to the Company prior to the Over-Allotment Deadline, which notice shall specify the number of Additional Shares to be purchased and the date on which such Additional Shares are to be purchased. This Prospectus Supplement qualifies the grant of the Over-Allotment Option. A purchaser who acquires Additional Shares forming part of the Underwriters' over-allocation position acquires those Additional Shares under this Prospectus Supplement, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases.

The obligations of the Underwriters under the Underwriting Agreement are several and not joint (within the meaning of such terms under the laws of the State of New York) and are subject to certain closing conditions. The Underwriters may terminate their obligations under the Underwriting Agreement by notice given by J.P. Morgan Securities LLC and RBC Dominion Securities Inc. (together, the "**Representatives**") to the Company, if after the execution and delivery of the Underwriting Agreement and on or prior to the Closing Date, (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of NYSE, The Nasdaq Stock Market or TSX, (ii) trading of any securities issued or guaranteed by the Company shall have been suspended on the NYSE or TSX, (iii) a material disruption in commercial banking or securities settlement, payment or clearance services in the United States or Canada shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared by U.S. Federal or New York State or Canadian authorities, or (v) there shall have occurred any outbreak or escalation of hostilities involving the United States or Canada or the declaration by the United States or Canada of a national emergency or war, or any change in financial markets, currency exchange rates or controls or any calamity or crisis that, in the judgment of the Representatives, is material and adverse and which, singly or together with any other event specified in this clause (v), makes it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the offer, sale or delivery of the Offered Shares on the terms and in the manner contemplated by the Underwriting Agreement or this Prospectus Supplement. The Underwriters are, however, subject to certain closing conditions, severally and not jointly, obligated to take up and pay for all of the Offered Shares that they have agreed to purchase if any Offered Shares are purchased under the Underwriting Agreement.

Subject to the terms of the Underwriting Agreement, the Company has also agreed to indemnify the Underwriters and their respective affiliates against certain liabilities, including civil liabilities under Canadian and United States securities legislation, or to contribute to any payments the Underwriters may be required to make in respect thereof. The Underwriters, as principals, conditionally offer the Offered Shares qualified under this Prospectus Supplement and the Shelf Prospectus, subject to prior sale, when, as and if delivered to and accepted by them, subject to approval of legal matters by their counsel, including the validity of the Offered Shares, and other conditions contained in the Underwriting Agreement, such as the receipt by the Underwriters of officers' certificates, comfort letters and legal opinions. The Underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

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Pursuant to the Underwriting Agreement, the Company has agreed that until the date that is 90 days following the date of the Underwriting Agreement (such period, the "**Restricted Period**"), it will not, directly or indirectly, without the prior written consent of any of the Representatives, on behalf of all of the Underwriters, such consent not to be unreasonably withheld, conditioned or delayed, (i) offer, sell, contract to sell, pledge, issue or grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or submit or file any registration statement with the SEC or prospectus with the Canadian securities regulators relating to, any securities of the Company that are substantially similar to the Common Shares, including but not limited to any options or warrants to purchase Common Shares or any securities that are convertible into or exchangeable for, or that represent the right to receive, Common Shares or any such substantially similar securities, or publicly disclose the intention to make any offer, sale, pledge, disposition, submission or filing, or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Shares or any such other securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Shares or such other securities, in cash or otherwise. The foregoing restrictions shall not apply to (i) Offered Shares to be sold under the Underwriting Agreement, (ii) the grant, issuance, exercise, vesting or settlement of awards (including Common Shares underlying such awards) pursuant to any employee, executive or director incentive compensation arrangement of the Company in accordance with the terms and conditions of the benefit plans described in this Prospectus Supplement or the documents incorporated by reference herein, as may be adopted, amended or restated, (iii) securities issued upon the conversion or exchange of convertible or exchangeable securities outstanding as of the date of the Underwriting Agreement, (iv) securities issued as consideration in connection with arm's length acquisitions, or (v) the filing of one or more registration statements on Form S-8 relating to stock options, other equity awards, or employee benefit plans of the Company described in the Registration Statement, this Prospectus Supplement and the accompanying Shelf Prospectus.

In addition, the directors and officers of the Company (such persons, the "**Lock-Up Parties**") have each executed a lock-up agreement (such agreement, the "**Lock-Up Agreement**") prior to the commencement of the Offering pursuant to which they have agreed that, without the prior written consent of the Representatives on behalf of the Underwriters, they will not, and will not cause any direct or indirect affiliate to, during the Restricted Period, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares (including without limitation, Common Shares or such other securities which may be deemed to be beneficially owned by the Lock-Up Party in accordance with Canadian securities laws or the rules and regulations of the SEC and securities which may be issued upon exercise of a stock option or warrant) (collectively with the Common Shares, the "**Lock-Up Securities**"), (ii) enter into any hedging, swap or other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise, (iii) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities, or (iv) publicly disclose the intention to do any of the foregoing.

The restrictions described in the immediately preceding paragraph and contained in each of the Lock-Up Agreements do not apply, subject in certain cases to various conditions, to certain transactions, including (a) transfers or dispositions of Lock-Up Securities: (i) as a bona fide gift or gifts, or for bona fide estate planning purposes, (ii) by will, other testamentary document or intestacy to the legal representative, heir, beneficiary or member of immediate family of the Lock-Up Party, (iii) to any trust for the direct or indirect benefit of the Lock-Up Party or the immediate family of the Lock-Up Party, or if the Lock-Up Party is a trust, to a trustor or beneficiary of the trust or to the estate of a beneficiary of such trust, (iv) to a partnership, limited liability company or other entity of which the Lock-Up Party and its immediate family are the legal and beneficial owner of all of the outstanding equity securities or similar interests, (v) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (i) through (iv) above, (vi) if the Lock-Up Party or its affiliate is a corporation, partnership, limited liability company, trust or other business entity, (A) to another corporation, partnership, limited liability company, trust or other business entity that is an affiliate (as defined in Rule 405 promulgated under the U.S. Securities Act) of the Lock-Up Party, or to any investment fund or other entity controlling, controlled by, managing or

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managed by or under common control with the Lock-Up Party or affiliates of the Lock-Up Party or (B) as part of a distribution to members or shareholders of the Lock-Up Party, (vii) by operation of law, such as pursuant to a qualified domestic order, divorce settlement, divorce decree or separation agreement, (viii) to the Company from an employee of the Company upon death, disability or termination of employment, in each case, of such employee, (ix) as part of a sale of the Lock-Up Party's or its affiliate's Lock-Up Securities acquired in open market transactions after the Closing Date, (x) in connection with the vesting, settlement, or exercise of restricted stock units, options, warrants or other rights to purchase Lock-Up Securities existing as of the date hereof (including, in each case, by way of "net" or "cashless" exercise), including for the payment of exercise price and tax and remittance payments due as a result of the vesting, settlement, or exercise of such restricted stock units, options, warrants or rights, provided that any such Lock-Up Securities received upon such exercise, vesting or settlement shall be subject to the terms of the Lock-Up Agreement, and provided further that any such restricted stock units, options, warrants or rights are held by the Lock-Up Party pursuant to an agreement or equity awards granted under a stock incentive plan or other equity award plan, each such agreement or plan which is described in the Registration Statement, this Prospectus Supplement and the accompanying Shelf Prospectus or (xi) pursuant to a bona fide third-party tender offer, take-over bid, merger, plan of arrangement, consolidation, amalgamation or other similar transaction that is approved by the Company's board of directors and made to all shareholders of the Company involving a change of control of the Company; *provided* that in the event that such tender offer, take-over bid, merger, plan of arrangement, consolidation, amalgamation or other similar transaction is not completed, the Lock-Up Party's Lock-Up Securities shall remain subject to the provisions of the Lock-Up Agreement; (b) grant pledges or security interests on the Lock-Up Securities, provided that the pledgee or beneficiary of the security interest agrees in writing for the benefit of the Underwriters to be bound by the terms of the Lock-Up Agreement for the remainder of its term; (c) exercise outstanding options, settle restricted stock units or other equity awards or exercise warrants pursuant to plans described in the Registration Statement, this Prospectus Supplement and the accompanying Shelf Prospectus; *provided* that any Lock-Up Securities received upon such exercise, vesting or settlement shall be subject to the terms of the Lock-Up Agreement; and (d) sell the Offered Shares to be sold by the Lock-Up Party pursuant to the terms of the Underwriting Agreement.

The Representatives, in their sole joint discretion, may release the Common Shares subject to any of the Lock-Up Agreements, in whole or in part at any time.

The outstanding Common Shares are listed and posted for trading on the TSX under the trading symbol "MDA". On March 9, 2026, the last trading day before the filing of this Prospectus Supplement, the closing price of the Common Shares on the TSX was C$42.05 or US$30.98 (based on the daily average exchange rate for the U.S. dollar in terms of Canadian dollars, as quoted by the Bank of Canada on March 9, 2026, of US$1.00 = C$1.3574). The Company has applied to list the Offered Shares and the Additional Shares, if the Over-Allotment Option is exercised, on the TSX and has applied to list the Offered Shares, the Additional Shares, if the Over-Allotment Option is exercised, and its outstanding Common Shares on the NYSE under the trading symbol "MDA". Listing is subject to the Company fulfilling all of the listing requirements of the TSX and NYSE, respectively.

 **The Underwriters propose to offer the Offered Shares initially at the Offering Price. After a reasonable effort has been made to sell all of the Offered Shares at the Offering Price, the Underwriters may subsequently reduce the selling price to investors from time to time in order to sell any of the Offered Shares remaining unsold. Any such reduction will not affect the proceeds received by the Company. The compensation realized by the Underwriters will be decreased by the amount that the aggregate price paid by purchasers for the Offered Shares is less than the gross proceeds to be paid by the Underwriters to the Company.** 

Pursuant to the rules and policy statements of certain securities regulatory authorities, the Underwriters may not, throughout the period of distribution under this Prospectus Supplement, bid for or purchase Common Shares. The foregoing restriction is subject to certain exceptions. These exceptions include a bid or purchase permitted under the rules of applicable Canadian regulatory authorities and the TSX including the Universal Market Integrity Rules for Canadian Marketplaces administered by the Canadian Investment Regulatory Organization relating to market stabilization and market-balancing activities and a bid or purchase made on behalf of a client where the client's order was not solicited, or if the order was solicited, the solicitation occurred prior to the commencement of the applicable restricted period. Subject to applicable laws, the

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The Underwriters must close out any naked short position by purchasing Common Shares in the open market. A naked short position is more likely to be created if the Underwriters are concerned that there may be downward pressure on the price of the Common Shares in the open market that could adversely affect investors who purchase in the Offering. Any naked short position would form part of the Underwriters' over-allocation position. A purchaser who acquires Common Shares forming part of the Underwriters' over-allocation position resulting from any covered short sales or naked short sales will acquire such Common Shares under this Prospectus Supplement, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases.

Subscriptions will be received subject to rejection or allotment in whole or in part and the Underwriters reserve the right to close the subscription books at any time without notice. It is expected that the Company will arrange for the instant deposit of the Offered Shares by the Underwriters under the book-based system of registration, to be registered to DTC and deposited with DTC on the Closing Date, or as otherwise may be agreed to among the Company and the Underwriters. In the case of certain Canadian purchasers, the Company may alternatively arrange for the electronic deposit of the Offered Shares distributed under the Offering under the book-based system of registration, to be registered in the name of CDS or its nominee and deposited with CDS on the Closing Date. No certificates evidencing the Offered Shares will be issued to purchasers of the Offered Shares. Purchasers of the Offered Shares will receive only a customer confirmation from the Underwriter or other registered dealer from or through whom a beneficial interest in the Offered Shares is purchased.

It is expected that delivery of the Common Shares will be made against payment therefor on or about , 2026, which is the business day following the date hereof (such settlement cycle being referred to as "T+ "). Under Rule 15c6-1 under the U.S. Exchange Act, trades in the secondary market generally are required to settle in one business day unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the shares of our Common Shares prior to the first business day before the settlement date will be required, by virtue of the fact that the shares of our common stock initially will settle in T+ , to specify an alternative settlement cycle at the time of any such trade to prevent a failed settlement. Purchasers of the shares of our common stock who wish to trade such shares prior to the first business day before the settlement date should consult their own advisors.

#### Conflicts of Interest
In addition, the Company may be considered a "connected issuer" of certain Underwriters within the meaning of National Instrument 33-105—*Underwriting Conflicts* for the purposes of applicable Canadian securities legislation. See "*Relationship Between the Company and Certain Underwriters*".

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#### Sales Outside the U.S. and Canada
No action has been taken in any jurisdiction (except in the U.S. and Canada) that would permit a public offering of our Common Shares, or the possession, circulation or distribution of this Prospectus Supplement or any other material relating to us or our Common Shares in any jurisdiction where action for that purpose is required. Accordingly, the Common Shares may not be offered or sold, directly or indirectly, and neither this Prospectus Supplement nor any other offering material or advertisements in connection with our Common Shares may be **distributed or published, in or from any country or jurisdiction, except in compliance with any applicable rules and regulations of any such country or jurisdiction.** 

The underwriters may arrange to sell the Common Shares offered hereby in certain jurisdictions outside the U.S. and Canada, either directly or through affiliates, where it is permitted to do so.

#### European Economic Area
In relation to each Member State of the European Economic Area (each, a "**Relevant Member State**"), no Common Shares have been offered or will be offered pursuant to the offering to the public in that Relevant Member State prior to the publication of a prospectus in relation to the Common Shares which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Regulation, except that the Common Shares may be offered to the public in that Relevant Member State at any time:

(a) to any qualified investor as defined under Article 2 of the Prospectus Regulation;

(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer; or

(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of our Common Shares shall require us and/or any Underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation, supplement a prospectus pursuant to Article 23 of the Prospectus Regulation or publish an Annex IX document pursuant to Article 1(4) of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to our Common Shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and our Common Shares to be offered so as to enable an investor to decide to purchase our Common Shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

Each person in a Relevant Member State who receives any communication in respect of, or who acquires any Common Shares under the Offering will be deemed to have represented, warranted and agreed to and with each of the Underwriters and their affiliates and us that:

(a) it is a qualified investor within the meaning of the Prospectus Regulation; and

(b) in the case of any Common Shares acquired by it as a financial intermediary, as that term is used in Article 5(1) of the Prospectus Regulation, (i) the Common Shares acquired by it in this Offering have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in any Relevant Member State other than qualified investors, as that term is defined in the Prospectus Regulation, or have been acquired in other circumstances falling within the points (a) to (d) of Article 1(4) of the Prospectus Regulation and the prior consent of the representatives has been given to the offer or resale or (ii) where the Common Shares have been acquired by it on behalf of persons in any Relevant Member State other than qualified investors, the offer of those Common Shares to it is not treated under the Prospectus Regulation as having been made to such persons.

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We, the Underwriters and their affiliates, and others will rely upon the truth and accuracy of the foregoing representation, warranty and agreement. Notwithstanding the above, a person who is not a qualified investor and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire Common Shares in this Offering.

#### United Kingdom
This Prospectus Supplement and any other material in relation to the Common Shares described herein are only being distributed to, and are only directed at, and any investment or investment activity to which this Prospectus Supplement relates is available only to, and will be engaged in only with (i) persons having professional experience in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, or the FPO; (ii) high net worth entities falling within Article 49(2)(a) to (d) of the FPO; (iii) persons who are outside the United Kingdom; or (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000, as amended) in connection with the issue or sale of any Common Shares may otherwise lawfully be communicated or caused to be communicated, (all such persons together being referred to as "**Relevant Persons**"). The Common Shares are only available in the United Kingdom to, and any invitation, offer or agreement to purchase or otherwise acquire the Common Shares will be engaged in only with, Relevant Persons. This Prospectus Supplement and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person in the United Kingdom. Any person in the United Kingdom that is not a Relevant Person should not act or rely on this Prospectus Supplement or any of its contents.

No Common Shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom except that the Common Shares may be offered to the public in the United Kingdom at any time:

(a) where (i) the offer is conditional on the admission of the Common Shares to trading on the London Stock Exchange plc's main market (in reliance on the exception in paragraph 6(a) of Schedule 1 of the POATR); or (ii) the Common Shares being offered are at the time of the offer already admitted to trading on the London Stock Exchange plc's main market (in reliance on the exception in paragraph 6(b) of Schedule 1 of the POATR);

(b) to any qualified investor as defined in paragraph 15 of Schedule 1 of the POATR;

(c) to fewer than 150 persons (other than qualified investors as defined in paragraph 15 of Schedule 1 of the POATR), subject to obtaining the prior consent of the representatives for any such offer; or

(d) in any other circumstances falling within Part 1 of Schedule 1 of the POATR.

For the purposes of this provision, the expression an "offer to the public" in relation to the Common Shares in the United Kingdom means the communication to any person which presents sufficient information on: (a) the Common Shares to be offered; and (b) the terms on which they are to be offered, to enable an investor to decide to buy or subscribe for any Common Shares, and the expression "POATR" means the Public Offers and Admissions to Trading Regulations 2024.

Each person in the United Kingdom who receives any communication in respect of, or who acquires any Common Shares under the Offering contemplated hereby will be deemed to have represented, warranted and agreed to and with each of the Underwriters and their affiliates and us that:

(a) it meets the criteria outlined in this section; and

(b) in the case of any Common Shares acquired by it as a financial intermediary, as that term is used in paragraph 4 of regulation 7 of the POATR, (i) the Common Shares acquired by it in this Offering have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in the United Kingdom other than qualified investors, as that term is

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defined in the POATR or (ii) where the Common Shares have been acquired by it on behalf of persons in the United Kingdom other than qualified investors, the offer of those Common Shares to it is not treated under the POATR as having been made to such persons.

We, the Underwriters and their affiliates, and others will rely upon the truth and accuracy of the foregoing representation, warranty and agreement. Notwithstanding the above, a person who is not a qualified investor and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire Common Shares in this Offering.

#### Dubai International Financial Centre
This Prospectus Supplement relates to an Exempt Offer in accordance with the Markets Law, DIFC Law No. 1 of 2012, as amended. This Prospectus Supplement is intended for distribution only to persons of a type specified in the Markets Law, DIFC Law No. 1 of 2012, as amended. It must not be delivered to, or relied on by, any other person. The Dubai Financial Services Authority ("**DFSA**") has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this Prospectus Supplement nor taken steps to verify the information set forth herein and has no responsibility for the Prospectus Supplement. The Common Shares to which this Prospectus Supplement relate may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the Common Shares offered should conduct their own due diligence on the Common Shares. If you do not understand the contents of this Prospectus Supplement you should consult an authorized financial advisor.

In relation to its use in the DIFC, this Prospectus Supplement is strictly private and confidential and is being distributed to a limited number of investors and must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purpose. The interests in the Common Shares may not be offered or sold directly or indirectly to the public in the DIFC.

#### Hong Kong
The Common Shares have not been offered or sold and will not be offered or sold in Hong Kong, by means of any document, other than (i) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) (the "**SFO**") of Hong Kong and any rules made thereunder or (ii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong) (the "**CO**") or which do not constitute an offer to the public within the meaning of the CO. No advertisement, invitation or document relating to the Common Shares has been or may be issued or has been or may be in the possession of any person for the purposes of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Common Shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the SFO and any rules made thereunder.

#### Singapore
This Prospectus Supplement has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this Prospectus Supplement and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Common Shares may not be circulated or distributed, nor may the Common Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "**SFA**")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

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Where the Common Shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor,

the securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Common Shares pursuant to an offer made under Section 275 of the SFA except:

(a) to an institutional investor or to a relevant person, or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(c)(ii) of the SFA;

(b) where no consideration is or will be given for the transfer;

(c) where the transfer is by operation of law;

(d) as specified in Section 276(7) of the SFA; or

(e) as specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018.

#### Japan
The Common Shares have not been and will not be registered pursuant to Article 4, Paragraph 1 of the Financial Instruments and Exchange Act. Accordingly, none of the Common Shares nor any interest therein may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any "resident" of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to or for the benefit of a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and any other applicable laws, regulations and ministerial guidelines of Japan in effect at the relevant time.

#### Australia
This Prospectus Supplement:

(a) does not constitute a disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001 (Cth) (the "**Corporations Act**");

(b) has not been, and will not be, lodged with the Australian Securities and Investments Commission ("ASIC"), as a disclosure document for the purposes of the Corporations Act and does not purport to include the information required of a disclosure document for the purposes of the Corporations Act; and

(c) may only be provided in Australia to select investors who are able to demonstrate that they fall within one or more of the categories of investors, available under section 708 of the Corporations Act ("Exempt Investors").

The Common Shares may not be directly or indirectly offered for subscription or purchased or sold, and no invitations to subscribe for or buy the Common Shares may be issued, and no draft or definitive offering memorandum, advertisement or other offering material relating to any Common Shares may be distributed in Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is

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otherwise in compliance with all applicable Australian laws and regulations. By submitting an application for the Common Shares, you represent and warrant to us that you are an Exempt Investor.

As any offer of Common Shares under this Prospectus Supplement will be made without disclosure in Australia under Chapter 6D.2 of the Corporations Act, the offer of those securities for resale in Australia within 12 months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none of the exemptions in section 708 applies to that resale. By applying for the Common Shares you undertake to us that you will not, for a period of 12 months from the date of issue of the Common Shares, offer, transfer, assign or otherwise alienate those Common Shares to investors in Australia except in circumstances where disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure document is prepared and lodged with ASIC.

#### Switzerland
This Prospectus Supplement does not constitute an offer to the public or a solicitation to purchase or invest in any Common Shares. No Common Shares have been offered or will be offered to the public in Switzerland, except that offers of Common Shares may be made to the public in Switzerland at any time under the following exemptions under the Swiss Financial Services Act ("**FinSA**"):

(a) to any person which is a professional client as defined under the FinSA;

(b) to fewer than 500 persons (other than professional clients as defined under the FinSA), subject to obtaining the prior consent of the representatives for any such offer; or

(c) in any other circumstances falling within Article 36 FinSA in connection with Article 44 of the Swiss Financial Services Ordinance,

provided that no such offer of Common Shares shall require the Company or any Underwriter to publish a prospectus pursuant to Article 35 FinSA.

The Common Shares have not been and will not be listed or admitted to trading on a trading venue in Switzerland.

Neither this Prospectus Supplement nor any other offering or marketing material relating to the Common Shares constitutes a prospectus as such term is understood pursuant to the FinSA and neither this Prospectus Supplement nor any other offering or marketing material relating to the Common Shares may be publicly distributed or otherwise made publicly available in Switzerland.

#### Taiwan
The Common Shares have not been and will not be registered with the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be sold, issued or offered within Taiwan through a public offering or in circumstances which constitutes an offer within the meaning of the Securities and Exchange Act of Taiwan that requires a registration or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer, sell, give advice regarding or otherwise intermediate this offering and sale of the Common Shares in Taiwan.

#### United Arab Emirates
The Common Shares have not been, and are not being, publicly offered, sold, promoted or advertised in the United Arab Emirates (including the Dubai International Financial Centre) other than in compliance with the laws of the United Arab Emirates (and the Dubai International Financial Centre) governing the issue, offering and sale of securities. Further, this Prospectus Supplement does not constitute a public offer of securities in the United Arab Emirates (including the Dubai International Financial Centre) and is not intended to be a public offer. This Prospectus Supplement has not been approved by or filed with the Central Bank of the United Arab Emirates, the Securities and Commodities Authority, the Financial Services Regulatory Authority or the Dubai Financial Services Authority.

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#### RELATIONSHIP BETWEEN THE COMPANY AND CERTAIN UNDERWRITERS
The Underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the Underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to the Company and to persons and entities with relationships with the Company, for which they received or will receive customary fees and expenses.

Specifically, a bank affiliate of each of RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc. is a lender (collectively, the "**Lenders**") under a second Amended and Restated Credit Agreement dated as of November 25, 2025 (the "**Credit Agreement**") between, *inter alios*, the Company's wholly-owned subsidiary, Neptune Operations Ltd. (as borrower), the Company (as guarantor) and the Bank of Nova Scotia (as administrative agent), providing for credit facilities in an aggregate principal amount of $700,000,000 with an optional accordion (at the sole discretion of the lenders) to increase the principal amount by $150,000,000 (the "**Syndicated Credit Facility**"). Consequently, the Company may be considered a "connected issuer" of RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc. under applicable Canadian securities laws. The maturity date for the Syndicated Credit Facility is November 25, 2030. The Syndicated Credit Facility bears interest at a floating rate based on the Canadian dollar prime rate, U.S. dollar base rate, Term CORRA (for Canadian dollar interest periods of one and three months), Daily Compounded CORRA (for Canadian dollars) and Term SOFR (for U.S. dollar interest periods of one, three and six months). As of February 28, 2026, the Company had approximately $105 million outstanding under the Syndicated Credit Facility. The Company is in compliance in all material respects with the terms and conditions of the Credit Agreement and no breach of the Credit Agreement has been waived by any of the applicable lenders or their affiliates since the Credit Agreement was established. Indebtedness under the Credit Agreement is secured by the assets of the Company and guarantees provided by certain subsidiaries of the Company. There has been no material change in the financial position of the Company since the Credit Agreement was established outside the normal course of business or except as otherwise publicly disclosed. The decision to offer the Offered Shares hereunder was made independently of the Lenders and the Lenders had no influence as to the determination of the terms of the Offering. The terms and conditions of the Offering were established through negotiations between the Company and the Underwriters, without involvement of the Lenders. The Underwriters will derive no direct benefit from the Offering other than their respective share of the Underwriters' Fee. As described in "*Use of Proceeds*", the Company may use a portion of the net proceeds of the Offering to repay of a portion of amounts outstanding under the Company's Syndicated Credit Facility.

In the ordinary course of their various business activities, the Underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the Company (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with the Company. The Underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments.

#### CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS
In the opinion of Goodmans LLP, Canadian counsel to the Company, and Osler, Hoskin & Harcourt LLP, Canadian counsel to the Underwriters, the following is a general summary, as of the date hereof, of the principal Canadian federal income tax considerations under the *Income Tax Act* (Canada) and the regulations thereunder (collectively, the "**Tax Act**") generally applicable to a holder who acquires as beneficial owner Common Shares pursuant to this Offering and who, for the purposes of the Tax Act and at all relevant times, (i) holds Common Shares as capital property, (ii) deals at arm's length with the Company or the Underwriters and (iii) is not affiliated with the Company (a "**Holder**"). Generally, the Common Shares will be considered to

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be capital property to a Holder unless they are held or acquired or deemed to be held or acquired in the course of carrying on a business of trading or dealing in securities or as part of an adventure or concern in the nature of trade.

This summary is based upon the current provisions of the Tax Act and counsel's understanding of the current administrative and assessing policies and practices of the Canada Revenue Agency published in writing prior to the date hereof. The summary also takes into account all specific proposals to amend the Tax Act that have been publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "**Tax Proposals**") and assumes that all such Tax Proposals will be enacted in the form proposed. No assurance can be given that the Tax Proposals will be enacted in the form proposed or at all. This summary does not otherwise take into account or anticipate any changes in law, whether by way of legislative, judicial or administrative action or interpretation, nor does it address any provincial, territorial or foreign tax considerations.

This summary is not applicable to a Holder: (i) that is a "financial institution" as defined in the Tax Act (including for the purpose of the mark-to-market rules); (ii) that is a "specified financial institution," as defined in the Tax Act; (iii) an interest in which would be a "tax shelter investment" as defined in the Tax Act; (iv) that has elected or elects under the functional currency rules in the Tax Act to report its "Canadian tax results" as defined in the Tax Act in a currency other than Canadian currency; (v) that is exempt from tax under Part I of the Tax Act; (vi) that has entered or enters into a "derivative forward agreement" or a "synthetic disposition arrangement," each as defined in the Tax Act, with respect to the Common Shares; (vii) that is a partnership; (viii) that receives dividends on the Common Shares under or as part of a dividend rental arrangement; or (ix) that is a "foreign affiliate" (as defined in the Tax Act) of a taxpayer resident in Canada. Such Holders should consult their own tax advisors having regard to their own particular circumstances.

 **This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Holder, and no representations are made concerning the income tax consequences to any particular Holder or prospective Holder. Accordingly, Holders are urged to consult with their own tax advisors about the specific tax consequences to them of acquiring, holding and disposing of Common Shares.** 

#### Currency Conversion
For purposes of the Tax Act, all amounts relevant in computing the income, taxable income and taxes payable by a Holder, including the cost and adjusted cost base of Common Shares, must be determined in Canadian dollars based on the exchange rate quoted by the Bank of Canada on the relevant date (or, if there is no such rate quoted for the relevant date, the closest preceding date for which such a rate is quoted) or such other rate of exchange that is acceptable to the Minister of National Revenue.

#### Residents of Canada
This portion of the summary is generally applicable to a Holder who, at all relevant times, for the purposes of the Tax Act, and any applicable income tax treaty or convention, is, or is deemed to be, resident in Canada ("**Resident Holder**"). Certain Resident Holders whose Common Shares might not otherwise qualify as capital property may, in certain circumstances, make the irrevocable election pursuant to subsection 39(4) of the Tax Act to have their Common Shares, and every other "Canadian security", as defined in the Tax Act, owned by such Resident Holders in the taxation year of the election and in all subsequent taxation years, deemed to be capital property. Resident Holders should consult their own tax advisors for advice as to whether an election under subsection 39(4) of the Tax Act is available and advisable in their own circumstances.

Additional considerations, not discussed herein, may be applicable to a Resident Holder that is a corporation resident in Canada and is, or becomes, or does not deal at arm's length for purposes of the Tax Act with a corporation resident in Canada that is or becomes, as part of a transaction or series of transactions or events that includes the acquisition of Common Shares, controlled by a non-resident person or, if no single non-resident person has control, by a group of non-resident persons that do not deal with each other at arm's length, for purposes of the "foreign affiliate dumping" rules in section 212.3 of the Tax Act. Such Resident Holders should consult their own tax advisors with respect to the consequences of acquiring Common Shares.

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 *Dividends on Common Shares* 

Dividends received (or deemed to be received) on a Common Share by a Resident Holder who is an individual (other than certain trusts) will be included in computing such Resident Holder's income for the taxation year and will be subject to the gross-up and dividend tax credit rules normally applicable under the Tax Act to taxable dividends received from taxable Canadian corporations, including the enhanced gross-up and dividend tax credit in respect of dividends designated by the Company as "eligible dividends". There may be limitations on the ability of the Company to designate dividends as "eligible dividends". Dividends received (or deemed to be received) by a Resident Holder who is an individual (including certain trusts) may result in such Resident Holder being liable for alternative minimum tax under the Tax Act. Resident Holders who are individuals should consult with their own tax advisors in this regard.

Dividends received (or deemed to be received) on a Common Share by a Resident Holder that is a corporation will be included in computing such Resident Holder's income for the taxation year and will generally be deductible in computing its taxable income for that taxation year. In certain circumstances a dividend received (or deemed to be received) by a Resident Holder that is a corporation may be deemed to be proceeds of disposition or a capital gain pursuant to subsection 55(2) of the Tax Act.

A Resident Holder that is a "private corporation" or a "subject corporation", each as defined in the Tax Act, generally will be liable to pay an additional tax under Part IV of the Tax Act on dividends received (or deemed to be received) on Common Shares to the extent such dividends are deductible in computing the Resident Holder's taxable income for the year. Such additional tax may be refundable in certain circumstances. Resident Holders that are corporations should consult with their own tax advisors having regard to their particular circumstances.

 *Dispositions of Common Shares* 

Upon a disposition, or a deemed disposition, of a Common Share (other than to the Company, unless purchased by the Company in the open market in the manner in which Common Shares are normally purchased by any member of the public in the open market), a Resident Holder will realize a capital gain (or a capital loss) equal to the amount by which the proceeds of disposition of the Common Share, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of the Common Share to the Resident Holder immediately before the disposition or deemed disposition. For this purpose, the adjusted cost base to a Resident Holder of a Common Share will be determined at any particular time by averaging the cost of such share with the adjusted cost base of all other Common Shares owned by the Resident Holder as capital property at that time. The Resident Holder's cost for the purposes of the Tax Act of Common Shares generally will include all amounts paid or payable by the Resident Holder for the Common Shares, subject to certain adjustments under the Tax Act. Such capital gain (or capital loss) will be subject to the treatment described below under "—Taxation of Capital Gains and Capital Losses".

 *Taxation of Capital Gains and Capital Losses* 

Generally, one-half of any capital gain (a "**taxable capital gain**") realized by a Resident Holder for a taxation year must be included in computing the Resident Holder's income for the taxation year in which the disposition occurs. Subject to and in accordance with the provisions of the Tax Act, a Resident Holder is required to deduct one-half of any capital loss (an "**allowable capital loss**") realized in a taxation year from taxable capital gains realized in that taxation year. Allowable capital losses in excess of taxable capital gains for the taxation year of disposition may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent year against net taxable capital gains realized in such years, to the extent and under the circumstances described in the Tax Act. If the Resident Holder is a corporation, any such capital loss realized on the sale of a Common Share may be reduced by the amount of any dividends which have been received (or deemed to be received) by the Resident Holder on such Common Share to the extent and in circumstances prescribed by the Tax Act. Similar rules may apply where a corporation or trust is a member of a partnership or a beneficiary of a trust that owns Common Shares, directly or indirectly through a partnership or a trust. Such Resident Holders should consult their own tax advisors.

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Taxable capital gains realized by a Resident Holder who is an individual (including certain trusts) may give rise to alternative minimum tax depending on the Resident Holder's circumstances.

A Resident Holder that is throughout the relevant taxation year a "Canadian-controlled private corporation" (as defined in the Tax Act), or that is or is deemed to be a "substantive CCPC" (as defined in the Tax Act) at any time in the relevant taxation year, may be liable to pay a refundable tax on its "aggregate investment income", including taxable capital gains.

#### Non-Resident Holders
This portion of the summary is generally applicable to a Holder who, at all relevant times, for the purposes of the Tax Act and any applicable income tax treaty or convention: (i) is not, and is not deemed to be, resident in Canada, and (ii) does not and will not use or hold, and is not and will not be deemed to use or hold, the Common Shares in connection with, or in the course of carrying on, a business or part of a business in Canada (a "**Non-Resident Holder**"). This summary does not apply to a Non-Resident Holder that carries on an insurance business in Canada and elsewhere or an "authorized foreign bank" (as defined in the Tax Act). Such Non-Resident Holders should consult their own tax advisors.

 *Dividends on Common Shares* 

A dividend paid or credited, or deemed to be paid or credited, on a Common Share to a Non-Resident Holder will be subject to Canadian withholding tax under the Tax Act at the rate of 25% of the gross amount of the dividend, subject to any reduction in the rate of withholding to which the Non-Resident Holder is entitled under an applicable income tax treaty or convention between Canada and the country in which the Non-Resident Holder is resident. For example, the rate of withholding tax applicable to a dividend paid on a Common Share to a Non-Resident Holder who is a resident of the United States for purposes of the Canada-United States Income Tax Convention (1980), as amended (the "**Convention**"), beneficially owns the dividend, and is fully entitled to the benefits of the Convention, generally will be reduced to 15% (or 5% in the case of a resident of the United States that is a corporation beneficially owning at least 10% of the Company's voting shares). Non-Resident Holders should consult their own tax advisors having regard to their particular circumstances.

 *Dispositions of Common Shares* 

A Non-Resident Holder will not be subject to tax under the Tax Act in respect of any capital gain realized by such Non-Resident Holder on a disposition or deemed disposition of a Common Share, unless the Common Share constitutes "taxable Canadian property"(as defined in the Tax Act) to the Non-Resident Holder at the time of disposition, and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention between Canada and the country in which the Non-Resident Holder is resident.

Generally, a Common Share will not constitute taxable Canadian property to a Non-Resident Holder at any particular time provided that the Common Share is listed on a "designated stock exchange" for the purposes of the Tax Act (which currently includes the TSX and the NYSE), unless at any time during the 60-month period immediately preceding such time: (a) at least 25% or more of the issued shares of any class or series of the capital stock of the Company was owned by or belonged to any combination of (x) the Non-Resident Holder, (y) persons with whom the Non-Resident Holder did not deal at arm's length (for the purposes of the Tax Act), and (z) partnerships in which the Non-Resident Holder or a person described in (y) holds a membership interest directly or indirectly through one or more partnerships; and (b) more than 50% of the fair market value of the Common Share was derived, directly or indirectly, from one, or any combination of, real or immovable property situated in Canada, "Canadian resource property" (as defined in the Tax Act), "timber resource property" (as defined in the Tax Act) or options in respect of, or interests in, or for civil law rights in, any such property (whether or not such property exists).

Notwithstanding the foregoing, a Common Share may be deemed to be "taxable Canadian property" in certain circumstances set out in the Tax Act. If the Common Share constitutes "taxable Canadian property" (as defined in the Tax Act) to the Non-Resident Holder at the time of disposition, and the Non-Resident Holder

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is not entitled to relief under an applicable income tax treaty or convention between Canada and the country in which the Non-Resident Holder is resident, the consequences above under "*Residents of Canada—Dispositions of Common Shares*" and "*Residents of Canada—Taxation of Capital Gains and Capital Losses*" will generally apply. Non-Resident Holders whose Common Shares may constitute taxable Canadian property to them should consult their own tax advisors regarding their particular circumstances.

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#### CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following discussion describes certain U.S. federal income tax consequences relating to the ownership and disposition of Common Shares by U.S. Holders (as defined herein). This discussion applies to U.S. Holders that purchase Common Shares pursuant to this Offering and hold such Common Shares as capital assets (generally, assets held for investment purposes). This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "**Code**"), U.S. Treasury regulations promulgated thereunder, published administrative and judicial interpretations thereof and the Convention, all as in effect on the date hereof and all of which are subject to change, possibly with retroactive effect. This discussion does not address all of the U.S. federal income tax consequences that may be relevant to specific U.S. Holders in light of their particular circumstances or to U.S. Holders subject to special treatment under U.S. federal income tax law (such as certain financial institutions, insurance companies, broker-dealers and traders in securities or other persons that generally mark their securities to market for U.S. federal income tax purposes, tax-exempt entities, governmental organizations, retirement plans, regulated investment companies, real estate investment trusts, certain former citizens or residents of the United States, persons who hold Common Shares as part of a "straddle," "hedge," "conversion transaction," "synthetic security" or integrated investment, persons that have a "functional currency" other than the U.S. dollar, persons that own directly, indirectly or through attribution 10% or more of the voting power or value of our shares, corporations that accumulate earnings to avoid U.S. federal income tax, persons who acquired Common Shares through the exercise or cancellation of employee stock options or otherwise as compensation for their services, and partnerships (or arrangements treated as partnerships for U.S. federal income tax purposes) and other pass-through entities, and investors in such partnerships or other pass-through entities). This discussion does not address any U.S. state or local or non-U.S. tax consequences or any U.S. non-income tax consequences such as federal estate, gift, Medicare contribution tax or alternative minimum tax consequences or the requirements of Section 451 of the Code with respect to conforming the timing of income accruals to financial statements. We have not requested, and will not request, a ruling from the U.S. Internal Revenue Service (the "**IRS**") with respect to any of the U.S. federal income tax consequences described below, and as a result there can be no assurance that the IRS will not disagree with or challenge any of the conclusions described herein.

As used in this discussion, the term "*U.S. Holder*" means a beneficial owner of Common Shares that is, for U.S. federal income tax purposes, (1) an individual who is a citizen or resident of the United States, (2) a corporation (or entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof, or the District of Columbia, (3) an estate the income of which is subject to U.S. federal income tax regardless of its source or (4) a trust (x) with respect to which a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or (y) that has elected under applicable U.S. Treasury regulations to be treated as a domestic trust for U.S. federal income tax purposes.

If an entity or arrangement treated as a partnership or other pass-through entity for U.S. federal income tax purposes holds Common Shares, the U.S. federal income tax consequences relating to an investment in the Common Shares will depend in part upon the status and activities of such entity or arrangement and the particular partner or owner. Any such entity or arrangement should consult its tax advisor regarding the U.S. federal income tax consequences applicable to it and its partners or owners of the ownership and disposition of Common Shares.

 **The information set forth below is of a general nature only and is not intended to be tax advice. Each prospective investor should consult its tax advisor with respect to the U.S. federal, state, local and non-U.S. income and other tax considerations relevant to the ownership and disposition of Common Shares in light of its particular circumstances.** 

#### Passive Foreign Investment Company Consequences
If the Company were to constitute a PFIC for any year during a U.S. Holder's holding period, then certain potentially adverse rules would affect the U.S. federal income tax consequences to a U.S. Holder resulting from the ownership and disposition of the Common Shares. In general, a corporation organized outside the United States will be treated as a PFIC for any taxable year in which either (1) at least 75% of its gross income

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is "passive income", or (2) at least 50% of the value of its assets, generally determined based on a quarterly average, is attributable to assets that produce or are held for the production of passive income. Passive income for this purpose generally includes, among other things, dividends, interest, royalties, rents, and gains from the sale or exchange of property that gives rise to passive income. Assets that produce or are held for the production of passive income generally include cash and cash equivalents, even if held as working capital or raised in a public offering, marketable securities, and other assets that may produce passive income. Generally, in determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.

Based on the nature of our income and the value and composition of our assets, we do not believe we were a PFIC for the taxable year ended December 31, 2025 and do not expect to be a PFIC for the foreseeable future. However, because PFIC status is determined on an annual basis and generally cannot be determined until the end of the taxable year, there can be no assurance that we will not be a PFIC for the current or any future taxable year. For instance, because we may hold a substantial amount of cash and cash equivalents following this Offering, our status as a PFIC may depend on how quickly we use the cash proceeds from this Offering in our business. In addition, because the calculation of the value of our assets may be based in part on the value of our Common Shares, which may fluctuate considerably, we may be a PFIC in the current or future taxable years if the value of our Common Shares declines. Even if we determine that we are not a PFIC for a taxable year, there can be no assurance that the IRS will agree with our conclusion and that the IRS would not successfully challenge our position. Our status as a PFIC is a fact-intensive determination made on an annual basis. Accordingly, our U.S. counsel expresses no opinion with respect to our PFIC status.

If we are a PFIC in any taxable year during which a U.S. Holder owns Common Shares, the U.S. Holder could be liable for additional taxes and interest charges under the "PFIC excess distribution regime" upon (1) distributions paid during a taxable year to the extent that they are greater than 125% of the average annual distributions paid in the three preceding taxable years, or, if shorter, the U.S. Holder's holding period for the Common Shares, and (2) any gain recognized on a sale, exchange or other disposition, including a pledge, of the Common Shares, whether or not we continue to be a PFIC. Under the PFIC excess distribution regime, the tax on any such distribution or gain would be determined by allocating the distribution or gain ratably over the U.S. Holder's holding period for Common Shares. The amount allocated to the current taxable year (i.e., the year in which the distribution occurs or the gain is recognized) and any year prior to the first taxable year in which we are a PFIC will be taxed as ordinary income earned in the current taxable year. The amount allocated to other taxable years will be taxed at the highest marginal rates in effect for individuals or corporations, as applicable, to ordinary income for each such taxable year, and an interest charge, generally applicable to underpayments of tax, will be added to the tax.

If we are a PFIC for any year during which a U.S. Holder holds Common Shares, we must generally continue to be treated as a PFIC by that holder for all succeeding years during which the U.S. Holder holds the Common Shares, unless we cease to meet the requirements for PFIC status and the U.S. Holder makes a "deemed sale" election with respect to the Common Shares. If the election is made, the U.S. Holder will be deemed to sell the Common Shares it holds at their fair market value on the last day of the last taxable year in which we qualified as a PFIC, and any gain recognized from such deemed sale would be taxed under the PFIC excess distribution regime. After the deemed sale election, the U.S. Holder's Common Shares would not be treated as shares of a PFIC unless we subsequently become a PFIC.

If we are a PFIC for any taxable year during which a U.S. Holder holds Common Shares and one of our non-U.S. corporate subsidiaries is also a PFIC (i.e., a lower-tier PFIC), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC and would be taxed under the PFIC excess distribution regime on distributions by the lower-tier PFIC and on gain from the disposition of shares of the lower-tier PFIC even though such U.S. Holder would not receive the proceeds of those distributions or dispositions. Each U.S. Holder is advised to consult its tax advisor regarding the application of the PFIC rules to our non-U.S. subsidiaries.

If we are a PFIC, a U.S. Holder will not be subject to tax under the PFIC excess distribution regime on distributions or gain recognized with respect to Common Shares if such U.S. Holder makes a valid "mark-to-market" election for our Common Shares. A mark-to-market election is available to a U.S. Holder only for

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"marketable stock." Marketable stock generally is stock in a PFIC that is "regularly traded" on a "qualified exchange." Generally speaking, stock is "regularly traded" if the stock is traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. Generally speaking, a "qualified exchange" is a securities exchange that is registered with the SEC or a non-U.S. securities exchange that satisfies certain requirements. The NYSE will be treated as a "qualified exchange" and we believe that the TSX should also be treated as a "qualified exchange." As a result, provided that the Common Shares are "regularly traded" on one or both exchanges, a U.S. Holder should be permitted to make a mark-to-market election for the Common Shares. If a mark-to-market election is in effect, a U.S. Holder generally would take into account, as ordinary income each year, the excess of the fair market value of Common Shares held at the end of such U.S. Holder's taxable year over the adjusted tax basis of such Common Shares. The U.S. Holder would also take into account, as an ordinary loss each year, the excess of the adjusted tax basis of such Common Shares over their fair market value at the end of the U.S. Holder's taxable year, but only to the extent of the excess of amounts previously included in income over ordinary losses deducted as a result of the mark-to-market election. The U.S. Holder's tax basis in Common Shares would be adjusted to reflect any income or loss recognized as a result of the mark-to-market election. Any gain from a sale, exchange or other disposition of Common Shares in any taxable year in which we are a PFIC would be treated as ordinary income and any loss from such sale, exchange or other disposition would be treated first as ordinary loss (to the extent of any net mark-to-market gains previously included in income) and thereafter as capital loss.

A mark-to-market election will not apply to Common Shares for any taxable year during which we are not a PFIC, but will remain in effect with respect to any subsequent taxable year in which we become a PFIC. Such election will not apply to any non-U.S. subsidiaries that we may own or acquire in the future. Accordingly, a U.S. Holder may continue to be subject to tax under the PFIC excess distribution regime with respect to any lower-tier PFICs that we may own or acquire in the future notwithstanding the U.S. Holder's mark-to-market election for the Common Shares.

The tax consequences that would apply if we are a PFIC would also be different from those described above if a U.S. Holder were able to make a valid QEF election. At this time we do not expect to provide U.S. Holders with the information necessary for a U.S. Holder to make a QEF election, and therefore prospective investors should assume that a QEF election will not be available.

Each U.S. person that owns stock in a PFIC is generally required to file an annual information return on IRS Form 8621 containing such information as the U.S. Treasury Department may require. The failure to file IRS Form 8621 could result in the imposition of penalties and the extension of the statute of limitations with respect to U.S. federal income tax.

In addition, non-corporate U.S. Holders will not be eligible for taxation at reduced long-term capital gains rates on any dividends received from us (as discussed below under "*—Distributions*") if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year.

 **The U.S. federal income tax rules relating to PFICs are very complex. Prospective U.S. investors are strongly urged to consult their own tax advisors with respect to the impact of PFIC status on the ownership and disposition of Common Shares, the consequences to them of an investment in a PFIC, any elections available with respect to the Common Shares and the IRS information reporting obligations with respect to the ownership and disposition of Common Shares.** 

#### Distributions
Subject to the discussion above under "*—Passive Foreign Investment Company Consequences*," a U.S. Holder that receives a distribution with respect to Common Shares generally will be required to include the gross amount of such distribution (before reduction for any Canadian withholding taxes withheld therefrom) in gross income as a dividend when actually or constructively received to the extent of the U.S. Holder's pro rata share of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). To the extent a distribution received by a U.S. Holder is not a dividend because it exceeds the U.S. Holder's pro rata share of our current and accumulated earnings and profits, it will be treated first as a tax-free return of capital and reduce (but not below zero) the adjusted tax basis of the U.S. Holder's Common Shares.

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To the extent the distribution exceeds the adjusted tax basis of the U.S. Holder's Common Shares, the remainder will be taxed as capital gain. Because we may not account for our earnings and profits in accordance with U.S. federal income tax principles, U.S. Holders should expect all distributions to be reported to them as dividends. Distributions on Common Shares that are treated as dividends generally will constitute income from sources outside the United States for foreign tax credit purposes and generally will constitute passive category income. Such dividends will not be eligible for the "dividends received" deduction generally allowed to corporate shareholders with respect to dividends received from U.S. corporations.

Dividends paid by a "qualified foreign corporation" to non-corporate U.S. Holders are eligible for taxation at reduced long-term capital gains rates rather than the marginal tax rates generally applicable to ordinary income, provided that certain conditions are met.

A non-U.S. corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) generally will be considered to be a qualified foreign corporation (a) if it is eligible for the benefits of a comprehensive tax treaty with the United States which the Secretary of Treasury of the United States determines is satisfactory for these purposes and which includes an exchange of information provision, or (b) with respect to any dividend it pays on shares that are readily tradable on an established securities market in the United States. We believe that we qualify as a resident of Canada for purposes of, and are eligible for the benefits of, the Convention, which the IRS has determined is satisfactory for purposes of the qualified dividend rules and includes an exchange of information provision. Further, our Common Shares will generally be considered to be readily tradable on an established securities market in the United States if they are listed on the NYSE, as we intend the Common Shares to be. Therefore, subject to the discussion above under "*—Passive Foreign Investment Company Consequences*", if we are eligible for the benefits of the Convention, or if the Common Shares are readily tradable on an established securities market in the United States, dividends paid on Common Shares will generally be "qualified dividend income" in the hands of non-corporate U.S. Holders, provided that certain conditions are met, including conditions relating to holding period and the absence of certain risk reduction transactions. Each non-corporate U.S. Holder is advised to consult its tax advisor regarding the availability of the reduced tax rate on dividends with regard to its particular circumstances.

As discussed above, dividends generally will constitute income from sources outside the United States for foreign tax credit purposes and generally will constitute passive category income. A U.S. Holder may be eligible, subject to complex limitations, to claim a foreign tax credit with respect to any Canadian withholding taxes imposed on dividends received on Common Shares (at a rate not exceeding the applicable Convention rate, in the case of a U.S. Holder eligible for the benefits of the Convention). The rules governing the foreign tax credit are complex. A prospective investor should consult its tax advisor regarding the availability of a foreign tax credit or the possibility of a deduction in lieu of a foreign tax credit in light of its particular circumstances.

Any dividends paid in Canadian dollars will be included in the gross income of a U.S. Holder in a U.S. dollar amount calculated by reference to a spot market exchange rate in effect on the date that the dividends are received by the U.S. Holder, regardless of whether such Canadian dollars are in fact converted into U.S. dollars on such date. If such dividends are converted into U.S. dollars on the date of receipt, a U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect thereof. If the Canadian dollars so received are not converted into U.S. dollars on the date of receipt, a U.S. Holder will have a basis in the Canadian dollars equal to their U.S. dollar value on the date of receipt. Any gain or loss on a subsequent conversion or other disposition of the Canadian dollars will generally be treated as ordinary income or loss to such U.S. Holder and will generally be income or loss from sources within the United States for U.S. foreign tax credit purposes.

#### Sale, Exchange or Other Disposition of Common Shares
Subject to the discussion above under "*—Passive Foreign Investment Company Consequences*," a U.S. Holder generally will recognize capital gain or loss for U.S. federal income tax purposes upon the sale, exchange or other disposition of Common Shares in an amount equal to the difference, if any, between the amount realized (i.e., the amount of cash plus the fair market value of any property received) on the sale, exchange or other

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disposition and such U.S. Holder's adjusted tax basis in the Common Shares, both determined in U.S. dollars. Such capital gain or loss generally will be long-term capital gain or loss if, on the date of sale, exchange or other disposition, the Common Shares were held by the U.S. Holder for more than one year. Long-term capital gains of a non-corporate U.S. Holder are taxable at reduced rates. Any capital gain of a non-corporate U.S. Holder that is not long-term capital gain is taxed at ordinary income rates. The deductibility of capital losses is subject to limitations. Any gain or loss recognized by a U.S. Holder from the sale, exchange or other disposition of Common Shares will generally be gain or loss from sources within the United States for U.S. foreign tax credit purposes.

#### Information Reporting and Backup Withholding
U.S. Holders may be required to file certain U.S. information reporting returns with the IRS with respect to an investment in Common Shares, including, among others, IRS Form 8938 (Statement of Specified Foreign Financial Assets). Substantial penalties may be imposed upon a U.S. Holder that fails to comply with the required information reporting.

Distributions on, and proceeds from the sale, exchange or other disposition of, Common Shares may be reported to the IRS and subject to the U.S. information reporting rules unless the U.S. Holder establishes a basis for exemption. In addition, backup withholding (currently at a rate of 24%) may apply to amounts subject to reporting if the holder fails to provide an accurate U.S. taxpayer identification number and certain certifications or otherwise establish a basis for exemption. However, U.S. Holders that are corporations generally are excluded from these information reporting and backup withholding tax rules. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or a credit against a U.S. Holder's U.S. federal income tax liability if the required information is furnished by the U.S. Holder on a timely basis to the IRS.

U.S. Holders should consult their own tax advisors regarding the application of the information reporting and backup withholding rules to them in light of their own circumstances.

 **EACH PROSPECTIVE INVESTOR IS URGED TO CONSULT ITS TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT OF AN INVESTMENT IN COMMON SHARES IN LIGHT OF THE INVESTOR'S OWN CIRCUMSTANCES.** 

#### PRIOR SALES
The following table sets forth the details regarding all issuances of Common Shares and securities that are convertible or exchangeable into Common Shares during the 12-month period preceding the date of this Prospectus Supplement.

---

| | | |
|:---|:---|:---|
| **Date of Issuance**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Type of Security**  | &nbsp;&nbsp;&nbsp;&nbsp; **Issuance / Exercise Price <br> per Security (C$)**  |
| March 2025  | Common Shares <br>232120<sup>(1)</sup>  | $6.00-$15.36  |
| March 26, 2025  | Common Shares <br>346029<sup>(2)</sup>  | $7.1456-$14.1181  |
| April 2025  | Common Shares <br>25200<sup>(1)</sup>  | $6.5951  |
| May 2025  | Common Shares <br>359172<sup>(1)</sup>  | $6.00-$21.6484  |
| May 15, 2025  | Restricted Share Units <br>355925<sup>(3)</sup>  | $24.8265  |
| May 15, 2025  | Performance Share Units <br>164330<sup>(3)</sup>  | $24.8265  |
| May 15, 2025  | Deferred Share Units <br>15264<sup>(3)</sup>  | $24.8265  |
| May 15, 2025  | Common Shares <br>8190<sup>(2)</sup>  | $6.7958  |
| June 2025  | Common Shares <br>1516112<sup>(1)</sup>  | $6.00-$30.00  |
| June 2, 2025  | Common Shares <br>141517<sup>(2)</sup>  | $8.1399  |
| June 2, 2025  | Common Shares <br>75715<sup>(4)</sup>  | $8.1399  |
| June 24, 2025  | Deferred Share Units <br>12041<sup>(3)</sup>  | $31.4708  |

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| | | |
|:---|:---|:---|
| **Date of Issuance**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Type of Security**  | &nbsp;&nbsp;&nbsp;&nbsp; **Issuance / Exercise Price <br> per Security (C$)**  |
| July 2025  | Common Shares <br>54065<sup>(1)</sup>  | $6.00-$15.36  |
| August 2025  | Common Shares <br>1209280<sup>(1)</sup>  | $6.00-$26.88  |
| August 22, 2025  | Common Shares <br>1611<sup>(2)</sup>  | $8.49  |
| September 2025  | Common Shares <br>174787<sup>(1)</sup>  | $9.60-$14.00  |
| September 9, 2025  | Common Shares <br>24353<sup>(2)</sup>  | $7.4542  |
| September 19, 2025  | Restricted Share Units <br>161789<sup>(3)</sup>  | $31.9789  |
| September 19, 2025  | Performance Share Units <br>2575<sup>(3)</sup>  | $31.9789  |
| September 23, 2025  | Common Shares <br>22570<sup>(2)</sup>  | $16.5008  |
| September 24, 2025  | Deferred Share Units <br>11678<sup>(3)</sup>  | $32.4441  |
| September 24, 2025  | Common Shares <br>14555<sup>(2)</sup>  | $31.9789  |
| October 20, 2025  | Common Shares <br>1595<sup>(2)</sup>  | $6.9000  |
| January 2026  | Common Shares <br>138395<sup>(1)</sup>  | $6.00-$15.36  |
| February 2026  | Common Shares <br>29000<sup>(1)</sup>  | $6.00-$9.60  |

---

Notes:

(1) Issued pursuant to the exercise of vested options.

(2) Issued pursuant to the settlement of vested restricted share units.

(3) Issued pursuant to the Company's Second Amended and Restated Omnibus Equity Incentive Plan dated February 27, 2024.

(4) Issued pursuant to the settlement of vested performance share units.

#### TRADING PRICE AND VOLUME
The Common Shares are listed and posted for trading on the TSX under the symbol "MDA". The following table shows the monthly range of high and low prices per Common Share and total monthly volumes traded on the TSX for the 12-month period prior to the date of this Prospectus Supplement.

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| | | | |
|:---|:---|:---|:---|
| **Month**  | **High (C$)**  | **Low (C$)**  | &nbsp;&nbsp; **Volume**  |
| March 2025  | 29.23 | 20.22 | 12809071 |
| April 2025  | 27.99 | 22.01 | 7496684 |
| May 2025  | 29.33 | 21.77 | 9932463 |
| June 2025  | 36.26 | 27.62 | 9834289 |
| July 2025  | 45.10 | 34.86 | 11696053 |
| August 2025  | 48.31 | 41.485 | 13961167 |
| September 2025  | 44.81 | 30.57 | 24390188 |
| October 2025  | 38.59 | 26.66 | 17644919 |
| November 2025  | 28.54 | 20.85 | 19764032 |
| December 2025  | 27.58 | 22.69 | 20152238 |
| January 2026  | 41.43 | 26.84 | 24212428 |
| February 2026  | 40.58 | 33.15 | 14963222 |
| March 1 to 9, 2026  | 44.11 | 38.53 | 7094724 |

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#### LEGAL MATTERS
Certain legal matters relating to the Offering will be passed upon on our behalf by Goodmans LLP with respect to Canadian legal matters and Skadden, Arps, Slate, Meagher & Flom LLP with respect to U.S. legal matters, and on behalf of the Underwriters by Osler, Hoskin & Harcourt LLP with respect to Canadian legal matters and Simpson Thacher & Bartlett LLP, New York, New York with respect to U.S. legal matters. As at the date of this Prospectus Supplement, the partners and associates of each of Goodmans LLP and Osler, Hoskin & Harcourt LLP beneficially own, directly and indirectly, less than one percent of our outstanding securities or other property, or that of our affiliates.

#### AUDITORS, TRANSFER AGENT AND REGISTRAR
The auditors of the Company are KPMG LLP, Chartered Professional Accountants, 100 New Park Place, Suite 1400, Vaughan, Ontario, L4K 0J3. KPMG LLP have confirmed that they are (i) independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations, and (ii) an independent registered public accounting firm with respect to the Company within the meaning of the U.S. Securities Act, the applicable rules and regulations adopted thereunder by the SEC and the Public Company Accounting Oversight Board (United States).

The transfer agent and registrar of the Company in Canada is TSX Trust Company at its principal office in Toronto, Ontario and in the United States is Continental Stock Trust and Trust Company at its principal office in New York, New York.

#### ENFORCEMENT OF CIVIL LIABILITIES
Certain of our operations and assets are located outside the United States, and certain of our officers, directors and shareholders, reside outside of the United States.

The Company has appointed an agent for service of process in the United States. It may be difficult for investors who reside in the United States to effect service of process in the United States upon the Company, or to enforce a U.S. court judgment predicated upon the civil liability provisions of the U.S. federal securities laws against the Company or its directors and officers. There is substantial doubt whether an action could be brought in Canada in the first instance predicated solely upon U.S. federal securities laws.

The Company filed with the SEC, concurrently with the Registration Statement of which this Prospectus Supplement forms a part, an appointment of agent for service of process on Form F-X. Under Form F-X, the Company appointed CT Corporation System as its agent for service of process in the United States in connection with any investigation or administrative proceeding conducted by the SEC and any civil suit or action brought against or involving MDA Space in a United States court arising out of or related to or concerning the offering of securities under this Prospectus Supplement.

Certain of our operations and assets are also located outside of Canada, and certain of our officers, directors and shareholders, reside outside of Canada. See "*Enforcement of Judgments Against Foreign Persons*".

#### ENFORCEMENT OF JUDGMENTS AGAINST FOREIGN PERSONS
Certain of our operations and assets are located outside of Canada, and certain of our directors, namely Brendan Paddick, Darren Farber and Jill Smith, reside outside of Canada and have appointed MDA Space Ltd., located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, as their agent for service of process in Canada.

Purchasers are advised that it may not be possible for investors to enforce judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized under the laws of a foreign jurisdiction or resides outside of Canada, even if the party has appointed an agent for service of process**.**

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#### SCHEDULE A

#### INVESTOR PRESENTATION
(See attached)

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#### SHORT FORM BASE SHELF PROSPECTUS

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| | |
|:---|:---|
| **NEW ISSUE AND/OR SECONDARY OFFERING** | **August 7, 2025**  |

---

![[MISSING IMAGE: lg_mdaspace-bw.jpg]](lg_mdaspace-bw.jpg)

### MDA SPACE LTD.

#### Common Shares Preference Shares Debt Securities Subscription Receipts Warrants Units
MDA Space Ltd. (the "**Company**", "**MDA Space**", "**we**", "**our**" or "**us**") may, from time to time, offer and issue the following securities: (a) common shares in the capital of the Company ("**Common Shares**"); (b) preference shares in the capital of the Company ("**Preference Shares**"); (c) debentures, notes or other evidence of indebtedness of any kind, nature or description and which may be issuable in series (collectively, "**Debt Securities**"); (d) subscription receipts of the Company exchangeable for Common Shares and/or other securities of the Company ("**Subscription Receipts**"); (e) warrants exercisable to acquire Common Shares and/or other securities of the Company ("**Warrants**"); and (f) securities comprised of more than one of Common Shares, Preference Shares, Debt Securities, Subscription Receipts and/or Warrants offered together as a unit ("**Units**"), or any combination thereof, at any time during the 25-month period that this short form base shelf prospectus (including any amendments hereto, the "**Prospectus**") remains valid. The Common Shares, Preference Shares, Debt Securities, Subscription Receipts, Warrants and Units (collectively, the "**Securities**") offered hereby may be offered separately or together, in separate series, in amounts, at prices and on terms to be set forth in one or more prospectus supplements (collectively or individually, as the case may be, "**Prospectus Supplements**").

 **THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY ANY SECURITIES COMMISSION OR REGULATORY AUTHORITY NOR HAS ANY SECURITIES COMMISSION OR REGULATORY AUTHORITY PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.** 

As of the date hereof, the Company has determined that it qualifies as a "well-known seasoned issuer" under the WKSI Blanket Orders (as defined below) and OSC Rule 44-503—*Exemption for Well-known Seasoned Issuers* ("**OSC Rule 44-503**") and is relying on such status in connection with this Prospectus. See "*Well-Known Seasoned Issuer*". All shelf information permitted under applicable securities legislation to be omitted from this Prospectus including, without limitation, the information disclosed in the specific terms of any offering of Securities will be contained in one or more Prospectus Supplements that will be delivered to purchasers together with this Prospectus, except in cases where an exemption from such delivery requirements is available or has been obtained. Each Prospectus Supplement will be incorporated by reference into this Prospectus for the purposes of securities legislation as of the date of such Prospectus Supplement and only for the purposes of the distribution of the Securities to which that Prospectus Supplement pertains. You should read this Prospectus and any applicable Prospectus Supplement carefully before you invest in any Securities issued pursuant to this Prospectus.

 **Owning our Securities may subject you to tax consequences. You should read the tax discussion in any applicable Prospectus Supplement; however, this Prospectus or any applicable Prospectus Supplement may not fully describe these tax consequences, and you should consult your tax adviser prior to making any investment in the Securities.** 

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The specific terms of any offering of Securities will be set forth in the applicable Prospectus Supplement and may include, without limitation, where applicable: (a) in the case of Common Shares, the number of Common Shares being offered, the currency, the offering price (in the event the offering is a fixed price distribution) or the manner of determining the offering price(s) (in the event the offering is not a fixed price distribution) and any other specific terms; (b) in the case of Preference Shares, the designation of the particular series, the number of Preference Shares being offered, the currency, the offering price (in the event the offering is a fixed price distribution) or the manner of determining the offering price(s) (in the event the offering is not a fixed price distribution), any voting rights, any rights to receive dividends, any terms of redemption, any conversion or exchange rights and any other specific terms of the Preference Shares; (c) in the case of Debt Securities, the specific designation, aggregate principal amount, the currency or the currency unit for which the Debt Securities may be purchased, maturity, interest provisions, authorized denominations, offering price, covenants, events of default, any terms for redemption at the option of the Company or the holder, any exchange or conversion terms and any other specific terms; (d) in the case of Subscription Receipts, the number of Subscription Receipts being offered, the currency, the offering price, the terms, conditions and procedures for the exchange of the Subscription Receipts into or for Common Shares and/or other securities of the Company and any other specific terms; (e) in the case of Warrants, the number of such Warrants offered, the currency, the offering price, the terms, conditions and procedures for the exercise of such Warrants into or for Common Shares and/or other securities of the Company and any other specific terms; and (f) in the case of Units, the number of Units being offered, the currency, the offering price, the terms of the Common Shares, Preference Shares, Debt Securities, Subscription Receipts and/or Warrants, as the case may be, underlying the Units, and any other specific terms. A Prospectus Supplement relating to a particular offering of Securities may include terms pertaining to the Securities being offered thereunder that are not within the terms and parameters described in this Prospectus. Where required by statute, regulation or policy, and where the Securities are offered in currencies other than Canadian dollars, appropriate disclosure of foreign exchange rates applicable to the Securities will be included in the Prospectus Supplement describing the Securities.

We may sell the Securities to or through one or more underwriters or dealers purchasing as principals and may also sell the Securities to one or more purchasers directly, through applicable statutory exemptions, or through one or more agents designated by us from time to time. The Securities may be sold from time to time in one or more transactions at fixed prices or not at fixed prices, such as market prices prevailing at the time of sale, prices related to such prevailing market prices or prices to be negotiated with purchasers, which prices may vary as between purchasers and during the period of distribution of the Securities. The Prospectus Supplement relating to a particular offering of Securities will identify each underwriter, dealer or agent engaged in connection with the offering and sale of such Securities, as well as the method of distribution and the terms of the offering of such Securities, including the initial offering price (in the event the offering is a fixed price distribution), the manner of determining the offering price(s) (in the event the offering is not a fixed price distribution), the net proceeds to us and, to the extent applicable, any fees, discounts or any other compensation payable to underwriters, dealers or agents and any other material terms. See *"Plan of Distribution".* 

This Prospectus may qualify an "at-the-market distribution" (as defined under applicable securities legislation).

 **In connection with any offering of the Securities other than an "at-the-market distribution", unless otherwise specified in the applicable Prospectus Supplement, the underwriters or agents may over-allot or effect transactions that stabilize or maintain the market price of the offered Securities at a level above that which might otherwise prevail on the open market. Such transactions, if commenced, may be interrupted or discontinued at any time. See *"Plan of Distribution"*.** 

No underwriter of an at-the-market distribution, and no person or company acting jointly or in concert with an underwriter, may, in connection with the distribution, enter into any transaction that is intended to stabilize or maintain the market price of the Securities or securities of the same class as the Securities distributed under the at-the-market prospectus, including selling an aggregate number or principal amount of Securities that would result in the underwriter creating an over-allocation position in the Securities.

The outstanding Common Shares are listed and posted for trading on the Toronto Stock Exchange (the "**TSX**") under the symbol "MDA". On August 6, 2025, the last trading day prior to the date of this Prospectus, the closing price of the outstanding Common Shares on the TSX was C$46.18.

 **Unless otherwise specified in the applicable Prospectus Supplement, the Preference Shares, Debt Securities, Subscription Receipts, Warrants and Units will not be listed on any securities exchange. There is no market** 

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 **through which these securities may be sold and purchasers may not be able to resell such securities purchased under this Prospectus. This may affect the pricing of such securities in the secondary market, the transparency and availability of trading prices, the liquidity of such securities, and the extent of issuer regulation. See "*Risk Factors*".** 

The Company is organized pursuant to the *Business Corporations Act* (Ontario) (the "**OBCA**") and its head and registered office is at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7.

Alison Alfers, Brendan Paddick, Darren Farber and Jill Smith, each being a director of the Company, reside outside of Canada. Each of the above-mentioned directors has appointed MDA Space Ltd., located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, as their agent for service of process in Canada. Purchasers are advised that it may not be possible for investors to enforce judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized under the laws of a foreign jurisdiction or resides outside of Canada, even if the party has appointed an agent for service of process.

#### No underwriter, agent or dealer has been involved in the preparation of this Prospectus or performed any review of the contents of this Prospectus.
 **Any investment in Securities involves significant risks that should be carefully considered by prospective investors before purchasing Securities. The risks outlined in this Prospectus and in the documents incorporated by reference herein, including the applicable Prospectus Supplement, should be carefully reviewed and considered by prospective investors in connection with any investment in Securities. See "*Risk Factors*".** 

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**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [IMPORTANT INFORMATION ABOUT THIS PROSPECTUS](#bIIAT)  | [1](#bIIAT) |
| [EXEMPTION FROM NATIONAL INSTRUMENT 44-101](#bEFNI)  | [1](#bEFNI) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#bCNRF)  | [1](#bCNRF) |
| [NON-IFRS FINANCIAL MEASURES](#bNFM)  | [2](#bNFM) |
| [MARKET AND INDUSTRY DATA](#bMAID)  | [3](#bMAID) |
| [ADDITIONAL INFORMATION](#bADIN)  | [3](#bADIN) |
| [DOCUMENTS INCORPORATED BY REFERENCE](#bDIBR)  | [3](#bDIBR) |
| [THE COMPANY](#bTHCO)  | [5](#bTHCO) |
| [RECENT DEVELOPMENTS](#bREDE)  | [6](#bREDE) |
| [CONSOLIDATED CAPITALIZATION](#bCOCA)  | [6](#bCOCA) |
| [USE OF PROCEEDS](#bUOP)  | [6](#bUOP) |
| [DESCRIPTION OF SECURITIES](#bDOS)  | [6](#bDOS) |
| [THE SELLING SECURITYHOLDERS](#bTSS)  | [11](#bTSS) |
| [PLAN OF DISTRIBUTION](#bPOD)  | [13](#bPOD) |
| [EARNINGS COVERAGE RATIOS](#bECR)  | [14](#bECR) |
| [PRIOR SALES](#bPRSA)  | [14](#bPRSA) |
| [TRADING PRICE AND VOLUME](#bTPAV)  | [14](#bTPAV) |
| [CERTAIN INCOME TAX CONSIDERATIONS](#bCITC)  | [14](#bCITC) |
| [RISK FACTORS](#bRIFA)  | [15](#bRIFA) |
| [ENFORCEMENT OF JUDGEMENTS AGAINST FOREIGN PERSONS](#bEOJA)  | [17](#bEOJA) |
| [WELL-KNOWN SEASONED ISSUER](#bWSI)  | [17](#bWSI) |
| [LEGAL MATTERS AND INTEREST OF EXPERTS](#bLMAI)  | [17](#bLMAI) |
| [AUDITORS, TRANSFER AGENT AND REGISTRAR](#bATAA)  | [17](#bATAA) |

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#### IMPORTANT INFORMATION ABOUT THIS PROSPECTUS
You should rely only on the information contained in or incorporated by reference in this Prospectus or any applicable Prospectus Supplement. We have not authorized any person to provide different information. The Securities may be sold only in those jurisdictions where offers and sales are permitted. This Prospectus is not an offer to sell or a solicitation of an offer to buy the Securities in any jurisdiction where it is unlawful. The information contained in this Prospectus is accurate only as of the date of this Prospectus or the date of the document incorporated by reference herein, as applicable, regardless of the time of delivery of this Prospectus or of any sale of the Securities. Our business, financial condition, results of operations and prospects may have changed since the date of this Prospectus.

Unless the context otherwise permits, indicates or requires, all references in this Prospectus to the "Company", "MDA Space", "we", "our", "us" and similar expressions are references to MDA Space Ltd. and the business carried on by it.

In this Prospectus, unless otherwise specified or the context requires otherwise, all dollar amounts are expressed in Canadian dollars.

#### EXEMPTION FROM NATIONAL INSTRUMENT 44-101
Pursuant to a decision of the Autorité des marchés financiers dated August 6, 2025, the Company was granted exemptive relief from the requirement that this Prospectus as well as the documents incorporated by reference herein and any Prospectus Supplement and the documents incorporated by reference therein to be filed in relation to an "at-the-market" distribution be publicly filed in both the French and English languages. This exemptive relief is granted on the condition that this Prospectus, any Prospectus Supplement (other than in relation to an "at-the-market" distribution) and the documents incorporated by reference herein and therein be publicly filed in both the French and English languages if the Company offers Securities to Quebec purchasers in connection with an offering other than in relation to an "at-the-market" distribution.

#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Prospectus contains "forward-looking information" within the meaning of applicable securities laws. Such forward-looking information includes, but is not limited to, information with respect to the Company's objectives and strategies to achieves these objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates, intentions and views of future events. All information contained in this Prospectus, other than statements of current and historical fact, is forward-looking information. All of the forward-looking information in this Prospectus is qualified by this cautionary note.

In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs.

This forward-looking information includes, among other things, statements relating to our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects, financial targets or outlook, intentions, opportunities and the markets in which we operate, is forward-looking information.

Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and

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uncertainties. These assumptions include our ability to maintain and expand the scope of our business; our ability to execute on our growth strategies; assumptions relating to government support and funding levels for space programs and missions; continued and accelerated growth in the global space economy; the impact of competition; our ability to retain key personnel; our ability to obtain and maintain existing financing on acceptable terms; changes and trends in our industry or the global economy; currency exchange and interest rates; and changes in laws, rules and regulations.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, prospective investors should not place undue reliance on the forward-looking information contained in this Prospectus and the documents incorporated by reference herein, as the case may be. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed in this Prospectus under "Risk Factors" and elsewhere in this Prospectus and the Annual Information Form (as defined below) and our other filings with the securities regulatory authorities which are available on the System for Electronic Data Analysis and Retrieval+ ("**SEDAR+**") at www.sedarplus.ca.

These factors should not be considered exhaustive and should be read together with the other cautionary statements in this Prospectus. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.

Although the Company bases the forward-looking information on assumptions that it believes are reasonable when made, the Company cautions investors that statements containing forward-looking information are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this Prospectus. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking information contained in this Prospectus, those results or developments may not be indicative of results or developments in subsequent periods.

Given these risks and uncertainties, investors are cautioned not to place undue reliance on the forward-looking information. Any forward-looking information that is made in this Prospectus speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data

#### NON-IFRS FINANCIAL MEASURES
The financial statements of the Company that are incorporated by reference in this Prospectus have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("**IFRS**"). Certain information presented in this Prospectus, including certain documents incorporated by reference herein, may include non-IFRS measures that are used by us as indicators of financial performance. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Order Bookings, and Net Debt to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS

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measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

#### MARKET AND INDUSTRY DATA
Unless otherwise indicated, information contained in this Prospectus and the documents incorporated by reference into this Prospectus concerning the industry and the markets in which the Company operates, including its general expectations and market position, market opportunities and market share, is based on information from independent industry organizations, such as the Satellite Industry Association, the Space Foundation and the World Meteorological Organization, or other third party sources (including industry publications, surveys and forecasts), such as Novaspace, Analysys Mason, Space Capital, the US Chamber of Commerce, the US Department of Defense, the United Nations, and the World Economic Forum, and other specialist reports commissioned by management to validate industry assumptions, management studies and estimates.

Unless otherwise indicated, the Company's estimates are derived from publicly-available information released by independent industry analysts and third party sources as well as data from its internal research and include assumptions made by the Company which it believes to be reasonable based on its knowledge of the industry and markets in which the Company operates. The Company's internal research and assumptions have not been verified by any independent source and the Company has not independently verified any third party information. While the Company believes the market position, market opportunity and market share information included in this Prospectus and the documents incorporated by reference into this Prospectus is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the industry and markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the heading "Risk Factors" in the Annual Information Form.

#### ADDITIONAL INFORMATION
 **The Company is required to file with the securities commission or authority in each of the applicable provinces and territories of Canada annual and quarterly reports, material change reports and other information.** 

 **Statements included or incorporated by reference in this Prospectus about the contents of any contract, agreement or other documents referred to are not necessarily complete, and in each instance, you should refer to the actual agreement for a complete description of the matter involved. Each such statement is qualified in its entirety by such reference. Each time we sell Securities under this Prospectus, we will provide a Prospectus Supplement that will contain specific information about the terms of that offering. The Prospectus Supplement may also add, update or change information contained in this Prospectus.** 

#### DOCUMENTS INCORPORATED BY REFERENCE
**Information has been incorporated by reference in this Prospectus from documents filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.** Copies of the documents incorporated herein by reference may be obtained on request without charge from the Senior Director, Investor Relations of MDA Space Ltd. at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, Attention: Shereen Zahawi, Telephone 289-401-3945, and are also available electronically under the Company's SEDAR+ profile at www.sedarplus.ca.

Except to the extent that their contents are modified or superseded by a statement contained in this Prospectus or in any other subsequently filed document that is also incorporated by reference in this Prospectus, the following documents of the Company filed with the securities commissions or similar regulatory authorities in each of the provinces and territories of Canada are specifically incorporated by reference into, and form an integral part of, this Prospectus:

(a) the annual information form of the Company for the year ended December 31, 2024, dated March 7, 2025 (the "**Annual Information Form**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(b) the audited consolidated financial statements of the Company for the years ended December 31, 2024 and 2023, together with the notes thereto and the independent auditors' report thereon;

(c) the management's discussion and analysis of the Company for the fourth quarters and years ended December 31, 2024 and 2023;

(d) the unaudited interim condensed consolidated financial statements of the Company for the three and six months ended June 30, 2025 and 2024 (the "**Interim Financial Statements**");

(e) the management's discussion and analysis of the Company for the second quarters and six months ended June 30, 2025 and 2024;

(f) the management information circular of the Company dated March 30, 2025 regarding the annual general meeting of shareholders of the Company held on May 8, 2025; and

(g) the material change report of the Company dated April 4, 2025.

Any documents of the type described in Item 11.1 of Form 44-101F1—*Short Form Prospectus Distributions* which are filed by the Company with the securities commissions or similar authorities in the provinces and territories of Canada subsequent to the date of this Prospectus and prior to the termination of this distribution shall be deemed to be incorporated by reference in this Prospectus. Documents referenced in any of the documents incorporated by reference in this Prospectus but not expressly incorporated by reference therein or herein and not otherwise required to be incorporated by reference therein or herein are not incorporated by reference in this Prospectus.

Upon a new annual information form being filed by the Company with the applicable securities commissions or similar regulatory authorities during the period that this Prospectus is effective, the previous annual information form, and any material change reports and business acquisition reports filed prior to the commencement of the financial year of the Company in respect of which the new annual information form is filed, shall in each case be deemed to no longer be incorporated into this Prospectus for purposes of future offers and sales of Securities under this Prospectus. Upon annual consolidated financial statements and the accompanying management's discussion and analysis being filed by the Company with the applicable securities commissions or similar regulatory authorities during the period that this Prospectus is effective, the previous annual consolidated financial statements and accompanying management's discussion and analysis of the Company and the previous interim consolidated financial statements and accompanying management's discussion and analysis of the Company most recently filed shall be deemed to no longer to be incorporated by reference in this Prospectus for purposes of future offers and sales of Securities under this Prospectus. Upon interim consolidated financial statements and the accompanying management's discussion and analysis being filed by the Company with the applicable securities commissions or similar regulatory authorities during the period that this Prospectus is effective, all interim consolidated financial statements and the accompanying management's discussion and analysis filed prior to such new interim consolidated financial statements and management's discussion and analysis shall be deemed to no longer be incorporated by reference into this Prospectus for purposes of future offers and sales of Securities under this Prospectus. In addition, upon a new management information circular for an annual meeting of shareholders being filed by the Company with the applicable securities commissions or similar regulatory authorities during the period that this Prospectus is effective, the previous management information circular filed in respect of the prior annual meeting of shareholders shall no longer be deemed to be incorporated by reference into this Prospectus for purposes of future offers and sales of Securities under this Prospectus.

A Prospectus Supplement containing the specific variable terms in respect of an offering of the Securities will be delivered to purchasers of such Securities together with this Prospectus, unless an exemption from the prospectus delivery requirements has been granted or is otherwise available, and will be deemed to be incorporated by reference into this Prospectus as of the date of such Prospectus Supplement only for the purposes of the offering of the Securities covered by such Prospectus Supplement.

 **Any statement contained in this Prospectus or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded, for the purposes of this Prospectus, to the extent** 

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 **that a statement contained herein or in any other subsequently filed document which also is, or is deemed to be, incorporated by reference herein modifies or supersedes such statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any other information set forth in the document or statement which it modifies or supersedes. The making of such a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute part of this Prospectus.** 

#### THE COMPANY
The Company is a corporation incorporated under the OBCA on June 2, 2020. On March 19, 2021, the Company's articles were amended to change the Company's name from "Neptune Acquisition Holdings Inc." to "MDA Ltd.". On April 6, 2021, the Company and 2828330 Ontario Inc., a corporation incorporated under the OBCA, were amalgamated under the OBCA as part of certain transactions undertaken in connection with the closing of the Company's initial public offering. On May 9, 2024, the Company's articles were amended to change the Company's name from "MDA Ltd." to "MDA Space Ltd.". MDA Space's head and registered office is located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7.

MDA Space is a trusted mission partner of leading-edge space missions across the rapidly expanding global space economy. Our recognized engineering capabilities, portfolio of space technologies, and space mission expertise make us a trusted partner of choice for a broad range of customers worldwide. We leverage our capabilities to enable next generation space exploration and infrastructure, space-based communication, and both earth and space observation missions. In an era where industries, technologies, people, and places are impacted every day by space technology, the mission of MDA Space is to build the space between proven and possible and to provide the space economy with our trusted and tested solutions. Our space technology solutions and services enable governments and businesses to develop and operate critical space infrastructure used for exploration and space-based science, to research, develop and operate space-based communications supporting our hyper-connected world, and to monitor global activities including climate change, illegal and unregulated fishing, and detection of oil spills. Our technologies and solutions are also deployed for defence and intelligence applications and space observation missions.

MDA Space has three business areas: Satellite Systems, Robotics & Space Operations, and Geointelligence. Our diversified portfolio of solutions serves many sectors of the space economy and positions our customers to achieve mission success.

In Satellite Systems, we partner on space communication missions across low Earth orbit, medium Earth orbit, and geosynchronous equatorial orbit, in addition to providing communication systems for human rated spacecraft. These missions span a growing number of applications including broadband access, Direct-to-Device satellite communication, and Internet of Things connectivity across the full communication frequency spectrum. In Robotics & Space Operations, we partner on space infrastructure missions to facilitate the exploration and development of space. We provide autonomous robotics and rover solutions along with proximity operation sensors that are used to operate in orbit and on the surface of the Moon and Mars, as well as operational services to plan, support and operate these missions remotely. In Geointelligence, we partner with customers to develop and operate earth observation ("**EO**") and space observation missions, as well as providing key products in the areas of EO ground stations, maritime domain awareness software platforms, and multi-sensor fusion-based analytics products and services. These activities serve a wide range of use cases, including in the areas of national security, climate change monitoring, and maritime surveillance.

We serve a broad range of customers, including governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry. We work collaboratively with our customers in the early engineering phases of product and program development and provide services throughout a mission's life, including engineering, manufacturing, integration, mission operation, and ongoing maintenance services.

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#### RECENT DEVELOPMENTS
On July 2, 2025, we announced completion of the previously announced acquisition of SatixFy Communications Ltd. ("**SatixFy**"), a leader in next-generation satellite communication solutions based on in-house-designed chipsets. SatixFy's operations and full technology portfolio will be integrated into the Satellite Systems business area of the Company.

On August 1, 2025, we announced that EchoStar, a global communications and connectivity provider, has selected MDA Space as the prime contractor for EchoStar's new non-terrestrial network (NRN) low Earth orbit (LEO) direct-to-device ("**D2D**") satellite constellation. The initial contract, valued at approximately US$1.3 billion (approx. C$1.8 billion), includes the design, manufacturing and testing of over 100 software-defined MDA AURORA™ D2D satellites.

On August 5, 2025, we announced the awarding of two contracts to equip the Royal Canadian Navy ("**RCN**")'s Halifax-class ships with up to six new Uncrewed Aircraft Systems ("**UAS**"). Part of the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft Systems (ISTAR UAS) project, these new systems will significantly enhance the RCN's ability to detect and monitor potential maritime threats, both at home and abroad. The award includes an acquisition contract valued at approximately C$39 million for the initial procurement of two state-of-the-art UAS aircraft with options to procure four additional systems, and an in-service support contract, estimated at C$27 million over an initial five-year period, to sustain operations.

#### CONSOLIDATED CAPITALIZATION
Since June 30, 2025, the date of the Interim Financial Statements, there have been no material changes to the Company's share and loan capitalization on a consolidated basis, which have not been disclosed in the Prospectus or the documents incorporated by reference herein. The applicable Prospectus Supplement will describe any material change in the share and loan capitalization of the Company that will result from the issuance of Securities pursuant to such Prospectus Supplement.

#### USE OF PROCEEDS
The use of proceeds from the issue and sale of specific Securities pursuant to this Prospectus will be described in the Prospectus Supplement relating to the issuance and sale of such Securities. The Company has filed this Prospectus in order to provide it with flexibility in managing its capital position and meeting its funding requirements and to facilitate timely access to the capital markets.

#### DESCRIPTION OF SECURITIES
The following is a brief summary of certain general terms and provisions of the Securities as at the date of this Prospectus. The summary does not purport to be complete and is indicative only. The specific terms of any Securities to be offered under this Prospectus, and the extent to which the general terms described in this Prospectus apply to such Securities, will be set forth in the applicable Prospectus Supplement. Moreover, a Prospectus Supplement relating to a particular offering of Securities may include terms pertaining to the Securities being offered thereunder that are not within the terms and parameters described in this Prospectus. The Securities will not include any novel derivatives or asset-backed securities as discussed under Part 4 of National Instrument 44-102—*Shelf Distributions* ("**NI 44-102**").

#### Common Shares
The Company is authorized to issue an unlimited number of Common Shares, of which there were 124,905,250 Common Shares issued and outstanding as of August 6, 2025 (being the final trading day prior to the date of this Prospectus).

Holders of Common Shares are entitled to receive notice of any meetings of our shareholders, to attend and to cast one vote per Common Share at all such meetings. The holders of the Common Shares are entitled to

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participate equally in dividends, if any, declared on the Common Shares. In the event of the liquidation, dissolution or wind-up of the Company or other distribution of assets of the Company among shareholders for the purpose of winding-up the Company's affairs, the Common Shares shall rank equally as to priority of distribution. Such distribution shall be made in equal amount per share on all the Common Shares outstanding without preference or distinction.

#### Preference Shares
The Company is currently not authorized to issue Preference Shares and may only do so upon an amendment to its articles. Preference Shares may be offered separately or together with other Securities, as the case may be. The applicable Prospectus Supplement will include details of the amendment to the Company's constating documents authorizing the issuance of the series of Preference Shares being offered. A copy of any amendment to the Company's constating documents relating to an offering of Preference Shares will be filed by the Company with the relevant securities regulatory authorities after it has been filed by the Company under the OBCA, and will be available electronically on SEDAR+ under the profile of the Company, which can be accessed at www.sedarplus.ca.

Each applicable Prospectus Supplement will set forth the terms and other information with respect to the Preference Shares being offered thereby, which may include, without limitation, subject to the provisions of the OBCA and the constating documents of the Company, the following (where applicable):

• the designation of, and the rights, privileges, restrictions and conditions attaching to, each series of Preference Shares offered, and the maximum number of such series of Preference Shares that the Company is authorized to issue;

• the aggregate number of Preference Shares offered;

• the price at which the Preference Shares will be offered;

• the currency for which the Preference Shares may be purchased (if other than Canadian dollars);

• the annual dividend rate, if any, and whether the dividend rate is fixed or variable, the date from which dividends will accrue, and the dividend payment dates;

• the priority of the Preference Shares in respect to the payment of dividends and the distribution of assets in the event of the liquidation, dissolution or winding-up of the Company;

• the price and the terms and conditions for redemption, if any, including whether redeemable at the Company's option or at the option of the holder, the time period for redemption, and payment of any accumulated dividends;

• the terms and conditions, if any, for conversion or exchange for shares of any other class of the Company or any other series of Preference Shares, or any other securities or assets, including the price or the rate of conversion or exchange and the method, if any, of adjustment;

• whether such Preference Shares will be listed on any securities exchange;

• the terms and conditions of any share purchase plan or sinking fund;

• the voting rights, if any;

• any other rights, privileges, restrictions, or conditions;

• certain material tax consequences of owning the Preference Shares; and

• any other material terms and conditions of the Preference Shares.

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#### Debt Securities
Debt Securities may be offered separately or together with other Securities, as the case may be. The following sets forth certain general terms and provisions of the Debt Securities offered under this Prospectus. The specified terms and provisions of the Debt Securities offered pursuant to an accompanying Prospectus Supplement, and the extent to which the general terms described in this section apply to those Debt Securities, will be set forth in the applicable Prospectus Supplement.

The Debt Securities will be direct obligations of the Company and may be guaranteed by an affiliate or associate of the Company. Where the Debt Securities are guaranteed for all or substantially all of the payments to be made, such guarantees will be further described in the Prospectus Supplement. The Debt Securities may be senior or subordinated indebtedness of the Company and may be secured or unsecured, all as described in the applicable Prospectus Supplement. In the event of the insolvency or winding up of the Company, the subordinated indebtedness of the Company, including the subordinated Debt Securities, will be subordinate in right of payment to the prior payment in full of all other liabilities of the Company (including senior indebtedness), except those which by their terms rank equally in right of payment with or are subordinate to such subordinated indebtedness.

Any Prospectus Supplement offering guaranteed Debt Securities will comply with the requirements of Item 12 of Form 44-101F1 or the conditions for an exemption from those requirements and will include a certificate from each credit supporter as required by section 21.1 of Form 44-101F1 and section 5.12 of National Instrument 41-101—*General Prospectus Requirements*.

The Debt Securities will be issued under one or more trust indentures (each, a "**Trust Indenture**"), in each case between the Company and one or more appropriately qualified financial institutions authorized to carry on business as a trustee in Canada, as may be required by applicable securities laws (each, an "**Indenture Trustee**"). The statements made hereunder relating to any Trust Indenture and the Debt Securities to be issued thereunder are summaries of certain anticipated provisions thereof and do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all provisions of the applicable Trust Indenture. Accordingly, reference should also be made to the applicable Indenture. A copy of the final, fully executed Indenture, together with any supplemental indenture and/or the form of note for any Debt Securities offered hereunder, will be filed by the Company with the relevant securities regulatory authorities after it has been entered into, and will be available electronically on SEDAR+ under the profile of the Company, which can be accessed at www.sedarplus.ca.

Each Trust Indenture may provide that Debt Securities may be issued thereunder up to the aggregate principal amount, which may be authorized from time to time by the Company.

Each applicable Prospectus Supplement will set forth the terms and other information with respect to the Debt Securities being offered thereby, which may include, without limitation, the following (where applicable):

• the designation, aggregate principal amount and authorized denominations of such Debt Securities;

• the percentage of the principal amount at which such Debt Securities will be issued;

• the date or dates on which such Debt Securities will mature;

• the rate or rates per annum at which such Debt Securities will bear interest (if any), or the method of determination of such rates (if any);

• the dates on which any such interest will be payable and the record dates for such payments;

• the Indenture Trustee of the Debt Security under the Trust Indenture pursuant to which the Debt Securities are to be issued;

• the designation and terms of any securities with which the Debt Securities will be offered, if any, and the number of Debt Securities that will be offered with each security;

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• whether the Debt Securities are subject to redemption or call and, if so, the terms of such redemption or call provisions;

• whether such Debt Securities are to be issued in registered form, bearer form or in the form of temporary or permanent global securities and the basis of exchange, transfer and ownership thereof;

• any exchange or conversion terms;

• whether the Debt Securities will be subordinated to other liabilities of the Company and, if so, to what extent;

• certain material tax consequences of owning the Debt Securities; and

• any other material terms and conditions of the Debt Securities.

Debt Securities may be issued at various times with different maturity dates, may bear interest at different rates and may otherwise vary. A Prospectus Supplement may include specific variable terms pertaining to the Debt Securities that are not within the alternatives and parameters described in this Prospectus.

The terms on which a series of Debt Securities may be convertible into or exchangeable for our Common Shares or any of our other securities will be described in the applicable Prospectus Supplement. These terms may include provisions as to whether conversion or exchange is mandatory, at the option of the holder or at our option, and may include provisions pursuant to which the number of Common Shares or other securities of the Company to be received by the holders of such series of Debt Securities would be subject to adjustment.

To the extent any Debt Securities are convertible into Common Shares or other securities of the Company, prior to such conversion the holders of such Debt Securities will not have any of the rights of holders of the securities into which the Debt Securities are convertible, including the right to receive payments of dividends or the right to vote such underlying securities. For greater certainty, any convertible or exchangeable Debt Securities shall only be convertible or exchangeable for underlying securities of the Company or an affiliate thereof.

#### Subscription Receipts
Subscription Receipts may be issued under a subscription receipt agreement. Subscription Receipts may be offered separately or together with other Securities, as the case may be. The applicable Prospectus Supplement will include details of the subscription receipt agreement, if any, governing the Subscription Receipts being offered. A copy of any subscription receipt agreement, if any, relating to an offering of Subscription Receipts will be filed by the Company with the applicable securities regulatory authorities after it has been entered into by the Company, and will be available electronically on SEDAR+ under the profile of the Company, which can be accessed at www.sedarplus.ca.

Each applicable Prospectus Supplement will set forth the terms and other information with respect to the Subscription Receipts being offered thereby, which may include, without limitation, the following (where applicable):

• the aggregate number of Subscription Receipts offered;

• the price (including whether the price is payable in installments) at which the Subscription Receipts will be offered;

• the manner of determining the offering price(s) of the Subscription Receipts;

• the terms, conditions and procedures for the conversion of the Subscription Receipts into other Securities;

• the dates or periods during which the Subscription Receipts are convertible into other Securities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• if applicable, the identity of the Subscription Receipt agent;

• the designation, number and terms of the other Securities that may be exchanged upon conversion of each Subscription Receipt;

• the designation, number and terms of any other Securities with which the Subscription Receipts will be offered, if any, and the number of Subscription Receipts that will be offered with each Security;

• whether such Subscription Receipts are to be issued in registered form, "book-entry only" form, bearer form or in the form of temporary or permanent global securities and the basis of exchange, transfer and ownership thereof;

• terms applicable to the gross or net proceeds from the sale of the Subscription Receipts plus any interest earned thereon;

• certain material tax consequences of owning the Subscription Receipts; and

• any other material terms and conditions of the Subscription Receipts.

#### Warrants
Warrants may be offered separately or together with other Securities, as the case may be.

The specific terms of the Warrants, and the extent to which the general terms described in this section apply to those Warrants, will be set forth in the applicable Prospectus Supplement. The Warrants will be issued under a warrant indenture or a warrant agreement. The applicable Prospectus Supplement will include details of the warrant agreements, if any, governing the Warrants being offered. The Warrant agent, if any, will be expected to act solely as the agent of the Company and will not assume a relationship of agency with any holders of Warrant certificates or beneficial owners of Warrants. A copy of any warrant indenture or any warrant agency agreement relating to an offering of Warrants will be filed by the Company with the relevant securities regulatory authorities after it has been entered into by the Company, and will be available electronically on SEDAR+ under the profile of the Company, which can be accessed at www.sedarplus.ca.

Each applicable Prospectus Supplement will set forth the terms and other information with respect to the Warrants being offered thereby, which may include, without limitation, the following (where applicable):

• the designation of the Warrants;

• the aggregate number of Warrants offered and the offering price;

• the designation, number and terms of the other Securities purchasable upon exercise of the Warrants, and procedures that will result in the adjustment of those numbers;

• the exercise price of the Warrants;

• the dates or periods during which the Warrants are exercisable including any "early termination" provisions;

• if applicable, the identity of the Warrant agent;

• the designation, number and terms of any Securities with which the Warrants are issued;

• if the Warrants are issued as a unit with another Security, the date on and after which the Warrants and the other Security will be separately transferable;

• whether such Warrants are to be issued in registered form, "book-entry only" form, bearer form or in the form of temporary or permanent global securities and the basis of exchange, transfer and ownership thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• any minimum or maximum amount of Warrants that may be exercised at any one time;

• whether such Warrants will be listed on any securities exchange;

• any terms, procedures and limitations relating to the transferability, exchange or exercise of the Warrants;

• certain material tax consequences of owning the Warrants; and

• any other material terms and conditions of the Warrants.

#### Units
Units may be offered separately or together with other Securities, as the case may be. Each applicable Prospectus Supplement will set forth the terms and other information with respect to the Units being offered thereby, which may include, without limitation, the following (where applicable):

• the aggregate number of Units offered;

• the price at which the Units will be offered;

• the manner of determining the offering price(s) of the Units;

• the designation, number and terms of the Securities comprising the Units;

• whether the Units will be issued with any other Securities and, if so, the amount and terms of these Securities;

• terms applicable to the gross or net proceeds from the sale of the Units plus any interest earned thereon;

• the date on and after which the Securities comprising the Units will be separately transferable;

• whether the Securities comprising the Units will be listed on any securities exchange;

• whether such Units or the Securities comprising the Units are to be issued in registered form, "book-entry only" form, bearer form or in the form of temporary or permanent global securities and the basis of exchange, transfer and ownership thereof;

• any terms, procedures and limitations relating to the transferability, exchange or exercise of the Units;

• certain material tax consequences of owning the Units; and

• any other material terms and conditions of the Units.

#### THE SELLING SECURITYHOLDERS
Securities may be sold under this Prospectus by way of secondary offering by or for the account of certain of the Company's securityholders. The Prospectus Supplement that the Company will file in connection with any offering of Securities by selling securityholders will include the following information:

• the names of the selling securityholders;

• the number or amount of Securities owned, controlled or directed by each selling securityholder;

• the number or amount of Securities being distributed for the account of each securityholder;

• the number or amount of Securities to be owned by the selling securityholders after the distribution and the percentage that number or amount represents of the total number of the Company's outstanding Securities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• whether the Securities are owned by the selling securityholders both of record and beneficially, of record only, or beneficially only; and

• all other information that is required to be included in the applicable Prospectus Supplement.

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#### PLAN OF DISTRIBUTION
We may from time to time during the 25-month period that this Prospectus, including any amendments hereto, remains valid, offer for sale and issue, in any combination, Common Shares, Preference Shares, Debt Securities, Subscription Receipts, Warrants or Units.

We may designate agents to solicit purchases for the period of their appointment to sell securities on a continuing basis. Unless otherwise indicated in the relevant Prospectus Supplement, any such agent will be acting on a reasonable best efforts basis for the period of its appointment. If underwriters are used for a sale of securities, the securities will be acquired by the underwriters for their own account. The underwriters may resell the securities in one or more transactions, including negotiated transactions at a fixed public offering price or at varying prices determined at the time of sale.

A Prospectus Supplement will set forth the terms of the offering, including the name(s) of any underwriters, dealers or agents, the purchase price(s) of the securities, the proceeds to MDA Space from the sale of securities, any initial public offering price (or the manner of determination thereof if offered on a non-fixed price basis), any underwriting discount or commission and any discounts, concessions or commissions allowed or paid by any underwriter to other dealers. Any initial public offering price and any discounts, concessions or omissions allowed or paid to dealers may be changed from time to time.

The securities may be sold, from time to time in one or more transactions at a fixed price or prices that may be charged or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices, including sales that are deemed to be "at-the-market distributions" as defined in NI 44-102, including sales made directly on the TSX or other existing trading markets for the securities. The prices at which the securities may be offered may vary as between purchaser and during the distribution. If, in connection with the offering of securities at the initial offering price or prices, the underwriters have made a *bona fide* effort to sell all of the securities at the initial offering price fixed in the applicable Prospectus Supplement, and have been unable to do so, the public offering price may be decreased and thereafter further changed from time to time, to an amount not greater than the initial public offering price fixed in such Prospectus Supplement, in which case the compensation realized by the underwriters will be decreased by the amount that the aggregate price paid by purchasers is less than the gross proceeds paid by the underwriters to MDA Space.

Unless otherwise indicated in the relevant Prospectus Supplement, the obligations of the underwriters to purchase the securities will be subject to various conditions precedent and the underwriters will be obligated to purchase all the relevant securities offered if any of such securities are purchased. Any public offering price and any discounts or concessions allowed or re-allowed or paid to dealers may be changed from time to time. Underwriters and agents may, from time to time, purchase and sell the securities described in this Prospectus and the relevant Prospectus Supplement in the secondary market, but are not obligated to do so. No assurance can be given that there will be a secondary market for the securities or liquidity on the secondary market if one develops. From time to time, underwriters and agents may make a market in the securities.

Only underwriters named in a Prospectus Supplement are deemed to be underwriters in connection with the securities offered thereby, and any discounts or commissions they receive from us and any profit on their resale may be deemed to be underwriting discounts and commissions.

Under agreements which may be entered into by us, underwriters, dealers and agents who participate in the distribution of our securities may be entitled to indemnification by us against certain liabilities, including liabilities under applicable securities legislation, or to contribution with respect to payments which such underwriters, dealers or agents may be required to make in respect thereof. The underwriters, dealers and agents with whom we enter into agreements may be customers of, engage in transactions with, or perform services for, us in the ordinary course of business.

In connection with any offering of securities, other than an at-the-market distribution, the underwriters, dealers or agents may over-allot or effect transactions which stabilize or maintain the market price of the securities offered at a higher level than that which might exist in the open market. Such transactions, if

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commenced, may be interrupted or discontinued at any time. No underwriter of an at-the-market distribution, and no person or company acting jointly or in concert with an underwriter, may, in connection with the distribution, enter into any transaction that is intended to stabilize or maintain the market price of the securities or securities of the same class as the securities distributed under the Prospectus or Prospectus Supplement, including selling an aggregate number or principal amount of securities that would result in the underwriter creating an over-allocation position in the securities.

#### EARNINGS COVERAGE RATIOS
Earnings coverage ratios will be provided in the applicable Prospectus Supplement(s) with respect to any issuance and sale of Preference Shares or Debt Securities pursuant to this Prospectus.

#### PRIOR SALES
Information regarding prior sales of Securities will be provided as required in the applicable Prospectus Supplement with respect to the issuance of Securities pursuant to such Prospectus Supplement.

#### TRADING PRICE AND VOLUME
The outstanding Common Shares are listed and posted for trading on the TSX under the symbol "MDA". On August 6, 2025, the last trading day prior to the date of this Prospectus, the closing price of the outstanding Common Shares on the TSX was C$46.18.

Information regarding trading price and volume of the Securities will be provided as required for all of the Company's issued and outstanding Securities that are listed on any securities exchange, as applicable, in each Prospectus Supplement.

#### CERTAIN INCOME TAX CONSIDERATIONS
The applicable Prospectus Supplement may describe certain Canadian federal income tax consequences to an investor who is a non-resident of Canada or to an investor who is a resident of Canada of acquiring, owning and disposing of any of our securities offered thereunder.

Investors should read the tax discussion in any Prospectus Supplement with respect to a particular offering and consult their own tax advisors with respect to their own particular circumstances.

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#### RISK FACTORS
 **Before deciding to invest in any Securities, prospective investors of the Securities should consider carefully the risk factors and the other information contained and incorporated by reference in this Prospectus and the applicable Prospectus Supplement relating to a specific offering of Securities before purchasing the Securities, including those risks identified and discussed under the heading "Risk Factors" in the Annual Information Form, which is incorporated by reference herein. See "Documents Incorporated by Reference".** 

An investment in the Securities offered hereunder is speculative and involves a high degree of risk. Additional risks and uncertainties, including those that the Company is unaware of or that are currently deemed immaterial, may also become important factors that affect the Company and its business. If any such risks actually occur, the Company's business, financial condition and results of operations could be materially adversely affected. Prospective investors should carefully consider the risks below and in the Annual Information Form and the other information elsewhere in this Prospectus and the applicable Prospectus Supplement and consult with their professional advisers to assess any investment in the Company.

#### There is no guarantee that the Securities will earn any positive return in the short term or long term.
A holding of Securities is speculative and involves a high degree of risk and should be undertaken only by holders whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. A holding of Securities is appropriate only for holders who have the capacity to absorb a loss of some or all of their holdings.

 ***Management of the Company will have broad discretion with respect to the application of net proceeds received by the Company from the sale of Securities under this Prospectus and a future Prospectus Supplement.***

Management of the Company may spend net proceeds received by the Company from a sale of Securities in ways that do not improve the Company's results of operations or enhance the value of the Common Shares or its other securities issued and outstanding from time to time. Any failure by management to apply these funds effectively could result in financial losses that could have a material adverse effect on the Company's business or cause the price of the securities of the Company issued and outstanding from time to time to decline.

 ***The Company may sell additional Common Shares or other Securities that are convertible or exchangeable into Common Shares in subsequent offerings or may issue additional Common Shares or other Securities to finance future acquisitions.***

The Company cannot predict the size or nature of future sales or issuances of Securities or the effect, if any, that such future sales and issuances will have on the market price of the Common Shares. Sales or issuances of substantial numbers of Common Shares or other Securities that are convertible or exchangeable into Common Shares, or the perception that such sales or issuances could occur, may adversely affect prevailing market prices of the Common Shares. With any additional sale or issuance of Common Shares or other Securities that are convertible or exchangeable into Common Shares, investors will suffer dilution to their voting power and economic interest in the Company. Furthermore, to the extent holders of the Company's stock options or other convertible securities convert or exercise their securities and sell the Common Shares they receive, the trading price of the Common Shares may decrease due to the additional amount of Common Shares available in the market.

 ***The market price for the Common Shares may be volatile and subject to wide fluctuations in response to numerous factors, many of which are beyond the Company's control.***

The factors which may contribute to market price fluctuations of the Common Shares include the following:

• actual or anticipated fluctuations in the Company's quarterly financial performance;

• recommendations by securities research analysts;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• shareholder activism and general market interest in our securities;

• changes in the economic performance or market valuations of companies in the industry in which the Company operates;

• addition or departure of the Company's executive officers and other key personnel;

• release or expiration of transfer restrictions on outstanding Common Shares;

• sales or perceived sales of additional Common Shares;

• operating and financial performance that vary from the expectations of management, securities analysts and investors;

• regulatory changes affecting the Company's industry generally and its business and operations;

• announcements of developments and other material events by the Company or its competitors;

• fluctuations to the costs of vital goods and services;

• changes in commodity prices;

• changes in global financial markets and global economies and general market conditions, such as interest rates;

• significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving the Company or its competitors;

• operating and share price performance of other companies that investors deem comparable to the Company or from a lack of market comparable companies; and

• news reports relating to trends, concerns, technological or competitive developments, regulatory changes and other related issues in the Company's industry or target markets.

#### There is currently no market through which the Securities, other than the Common Shares, may be sold.
As a consequence, purchasers may not be able to resell the Preference Shares, Debt Securities, Warrants, Subscription Receipts or Units purchased under this Prospectus and any Prospectus Supplement. This may affect the pricing of the Securities, other than the Common Shares, in the secondary market, the transparency and availability of trading prices, the liquidity of these securities and the extent of issuer regulation. There can be no assurance that an active trading market for the Securities, other than the Common Shares, will develop or, if developed, that any such market, including for the Common Shares, will be sustained.

Shareholders of the Company may be unable to sell significant quantities of Common Shares into the public trading markets without a significant reduction in the price of their Common Shares, or at all. There can be no assurance that there will be sufficient liquidity of the Common Shares on the trading markets, or that the Company will continue to meet the listing requirements of the TSX or achieve listing on any other public stock exchange.

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#### ENFORCEMENT OF JUDGEMENTS AGAINST FOREIGN PERSONS
Certain of our operations and assets are located outside of Canada, and certain of our directors, namely Alison Alfers, Brendan Paddick, Darren Farber and Jill Smith, reside outside of Canada. Each of the above-mentioned directors has appointed MDA Space Ltd., located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7, as their agent for service of process in Canada. Purchasers are advised that it may not be possible for investors to enforce judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized under the laws of a foreign jurisdiction or resides outside of Canada, even if the party has appointed an agent for service of process.

#### WELL-KNOWN SEASONED ISSUER
On December 6, 2021, the securities regulatory authorities in each of the provinces and territories of Canada each independently adopted a series of substantively harmonized blanket orders, including in Ontario, Ontario Instrument 44-501—*Exemption from Certain Prospectus Requirements for Well-known Seasoned Issuers (Interim Class Order)* (together with the equivalent local blanket orders in each of the other provinces and territories of Canada, collectively, as varied, extended or amended from time to time, the "**WKSI Blanket Orders**"). The WKSI Blanket Orders, which came into force on January 4, 2022, were adopted to reduce regulatory burden for certain large, established reporting issuers with strong disclosure records by providing relief from certain prospectus requirements under National Instrument 44-101—*Short Form Prospectus Distributions* and NI 44-102. In Ontario, the WKSI Blanket Orders were extended by Ontario Instrument 44-502—*Extension of Exemption for Well-known Seasoned Issuers (Interim Class Order)* and subsequently codified on a permanent basis through the adoption of OSC Rule 44-503, which came into force on January 4, 2025. OSC Rule 44-503 is intended to maintain the WKSI exemption until the Canadian Securities Administrators implement permanent amendments to NI 44-102.

The WKSI Blanket Orders were adopted to allow "well-known seasoned issuers", or "WKSIs", to file a final short form base shelf prospectus as the first public step in an offering, without the requirement to file and obtain a receipt for a preliminary base shelf prospectus, and exempts qualifying issuers from certain disclosure requirements relating to such final short form base shelf prospectus. As of the date hereof, the Company has determined that it qualifies as a "well-known seasoned issuer" under the WKSI Blanket Orders and OSC Rule 44-503 and is relying on the WKSI exemption in connection with the filing of this Prospectus.

#### LEGAL MATTERS AND INTEREST OF EXPERTS
Unless otherwise specified in the Prospectus Supplement relating to an offering and sale of Securities, certain legal matters relating to such offering and sale of Securities will be passed upon on behalf of the Company by Goodmans LLP with respect to matters of Canadian law. In addition, certain legal matters in connection with an offering and sale of Securities will be passed upon for any underwriters, dealers or agents by counsel to be designated at the time of such offering and sale by such underwriters, dealers or agents with respect to matters of Canadian and, if applicable, other foreign law. To the knowledge of the Company, as at the date hereof, the partners and associates of Goodmans LLP, as a group, own less than 1% of the outstanding securities of the Company.

#### AUDITORS, TRANSFER AGENT AND REGISTRAR
KPMG LLP is the independent auditor of the Company and have confirmed that they are independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations.

The transfer agent and registrar of the Company is TSX Trust Company of Canada at its principal office in Toronto, Ontario.

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![[MISSING IMAGE: lg_mdaspace-bw.jpg]](lg_mdaspace-bw.jpg)

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#### PART II

#### INFORMATION NOT REQUIRED TO BE DELIVERED

#### TO OFFEREES OR PURCHASERS

#### Indemnification of Directors and Officers
Under section 136 of the *Business Corporations Act* (Ontario) and the by-laws of the Registrant, the Registrant may indemnify a director or officer of the Registrant, a former director or officer of the Registrant or another individual who acts or acted at the Registrant's request as a director or officer, or an individual acting in a similar capacity, of another entity (each of the foregoing, an "individual"), against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the Registrant or other entity, but shall not indemnify an individual unless (i) such individual acted honestly and in good faith with a view to the best interests of the Registrant or, as the case may be, to the best interests of the other entity for which the individual acted as a director or officer or in a similar capacity at the Registrant's request; and (ii) if the matter is a criminal or administrative action or proceeding that is enforced by a monetary penalty, the Registrant shall not indemnify the individual unless the individual had reasonable grounds for believing that his or her conduct was lawful.

Further, the Registrant may, with the approval of a court, indemnify an individual in respect of an action by or on behalf of the Registrant or other entity to obtain a judgment in its favor, to which the individual is made a party because of the individual's association with the Registrant or other entity against all costs, charges and expenses reasonably incurred by the individual in connection with such action, if the individual fulfills the conditions (i) above. Such individuals are entitled to indemnification from the Registrant in respect of all costs, charges and expenses reasonably incurred by the individual in connection with the defense of any civil, criminal, administrative, investigative or other proceeding to which the individual is subject because of the individual's association with the Registrant or other entity as described above, provided the individual seeking an indemnity: (A) was not judged by a court or other competent authority to have committed any fault or omitted to do anything that the individual ought to have done; and (B) fulfills the conditions in (i) and (ii) above.

The Registrant maintains directors' and officers' liability insurance which insures directors and officers for losses as a result of claims against the directors and officers of the Registrant in their capacity as directors and officers and also reimburses the Registrant for payments made pursuant to the indemnity provisions under the by-laws of the Registrant and the *Business Corporations Act* (Ontario).

To the extent permitted by law, the Registrant has entered into an indemnification agreement with its directors and officers for liabilities incurred while performing their duties.

 **Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.** 

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#### EXHIBIT INDEX

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| | |
|:---|:---|
| **Exhibit <br> Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Description**  |
| 4.1  | [Annual Information Form of the Registrant for the year ended December 31, 2025, dated March 4, 2026.](tm266080d2_ex4-1.htm)  |
| 4.2  | [Audited Consolidated Financial Statements of the Registrant for the years ended December 31, 2025 and 2024, together with the notes thereto and the independent auditor's reports thereon.](tm266080d2_ex4-2.htm)  |
| 4.3  | [Management's Discussion and Analysis of the Registrant for the years ended December 31, 2025 and 2024.](tm266080d2_ex4-3.htm)  |
| 4.4  | [Management Information Circular of the Registrant, dated March 30, 2025, regarding the annual general meeting of shareholders of the Registrant held on May 8, 2025.](tm266080d2_ex4-4.htm)  |
| 5.1  | [Consent of KPMG LLP.](tm266080d2_ex5-1.htm)  |
| 5.2  | [Consent of Goodmans LLP.](tm266080d2_ex5-2.htm)  |
| 5.3  | [Consent of Osler, Hoskin & Harcourt LLP.](tm266080d2_ex5-3.htm)  |
| 6.1  | [Powers of Attorney (included in Part III of this Registration Statement).](#tSIGN)  |
| 107  | [Calculation of Filing Fee Table.](tm266080d1_ex-filinfees.htm)  |

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#### PART III

#### UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

#### Item 1. Undertaking
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities registered pursuant to Form F-10 or to transactions in said securities.

#### Item 2. Consent to Service of Process
Concurrently with the filing of this Registration Statement on Form F-10, the Registrant will file with the Commission a written irrevocable consent and power of attorney on Form F-X.

Any change to the name or address of the agent for service of the Registrant shall be communicated promptly to the Commission by amendment of the Form F-X referencing the file number of this Registration Statement.

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#### SIGNATURES
Pursuant to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-10 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Brampton, Province of Ontario, Country of Canada on March 10, 2026.

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| |
|:---|
| **MDA SPACE LTD.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By: <br>/s/ Guillaume Lavoie <br>Name: Guillaume Lavoie <br> Title: Chief Financial Officer  |

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#### POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Michael Greenley and Guillaume Lavoie their true and lawful agent, proxy and attorney-in-fact, each of whom may act alone, with full power of substitution and resubstitution, for them and in their name, place and stead, in any and all capacities, to sign any and all amendments, including post effective amendments, and supplements to this Registration Statement on Form F-10, and registration statements filed pursuant to Rule 429 under the Securities Act, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof. This Power of Attorney may be executed in multiple counterparts, each of which shall be deemed an original, but which taken together shall constitute one instrument.

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

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| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| /s/ Michael Greenley <br>Michael Greenley  | Chief Executive Officer and Director <br> (Principal Executive Officer)  | March 10, 2026  |
| /s/ Guillaume Lavoie <br>Guillaume Lavoie  | Chief Financial Officer <br> (Principal Financial and Accounting Officer)  | March 10, 2026  |
| /s/ Brendan Paddick <br>Brendan Paddick  | Chairman, Lead Director  | March 10, 2026  |
| /s/ Darren Farber <br>Darren Farber  | Director  | March 10, 2026  |
| /s/ Jill Smith <br>Jill Smith  | Director  | March 10, 2026  |
| /s/ John Risley <br>John Risley  | Director  | March 10, 2026  |
| /s/ Karl Smith <br>Karl Smith  | Director  | March 10, 2026  |
| /s/ Yaprak Baltacioglu <br>Yaprak Baltacioglu  | Director  | March 10, 2026  |
| /s/ Yung Wu <br>Yung Wu  | Director  | March 10, 2026  |

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#### AUTHORIZED REPRESENTATIVE
Pursuant to the requirements of the Securities Act, this Registration Statement on Form F-10 has been signed by the undersigned, solely in its capacity as the duly authorized representative of the Registrant in the United States, on March 10, 2026.

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| |
|:---|
| **MDA SYSTEMS INC.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By: <br>/s/ Michael Greenley <br>Name: Michael Greenley <br> Title: Chief Executive Officer and President  |

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## Exhibit 4.1

**Exhibit 4.1**

![](tm266080d2_ex4-1img001.jpg)

table of contents

---

| | |
|:---|:---|
| **Introduction** | **1** |
| **Corporate Structure** | **2** |
| **Recent Developments** | **4** |
| **General Development of the Business** | **4** |
| **Description of the Business** | **10** |
| **Risk Factors** | **28** |
| **Dividends** | **59** |
| **Description of Capital Structure** | **59** |
| **Market for Securities** | **61** |
| **Prior Sales** | **62** |
| **Escrowed Securities and Securities Subject to Contractual Restriction on Transfer** | **62** |
| **Directors and Executive Officers** | **62** |
| **Legal Proceedings and Regulatory Actions** | **72** |
| **Interest of Management and Others in Material Transactions** | **73** |
| **Transfer Agent and Registrar** | **73** |
| **Material Contracts** | **73** |
| **Experts** | **73** |
| **Additional Information** | **74** |
| **Glossary of Terms** | **75** |
| **Appendix A Charter of the Audit Committee** | **A-1** |

---

MDA SPACE Annual information form I

**Introduction**

**GENERAL**

In this Annual Information Form (the "**AIF**"), unless the context otherwise requires, "MDA Space", the "Company", "we", "us", or "our" refers to MDA Space Ltd., its subsidiaries and divisions, and their respective predecessors. For an explanation of the capitalized terms and expressions, please refer to the "Glossary of Terms" at the end of this AIF. Unless otherwise indicated, all references to "dollars" and "$" are to Canadian dollars. Unless otherwise indicated, the information contained herein is given as of December 31, 2025.

**FORWARD-LOOKING INFORMATION**

This AIF contains "forward-looking information" and "forward-looking statements" (collectively, "**forward-looking information**") within the meaning of applicable Canadian securities laws. In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information. Statements containing forward-looking information are based on our current expectations and projections about future events and financial trends that we believe might affect our financial condition, results of operations, business strategy, and financial needs. This forward-looking information includes, among other things, statements relating to our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. In particular, information regarding our expectations of future results, performance, achievements, prospects, financial targets or outlook, intentions, opportunities, and the markets in which we operate, is forward-looking information.

Statements containing forward-looking information are based on management's assumptions and analyses in light of their experience and perception of historical trends, current conditions and expected future developments and other factors we believe are appropriate and are subject to risks and uncertainties. Although we believe that the assumptions underlying these statements are reasonable as of the date of this AIF, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, readers should not place undue reliance on the forward-looking information. Whether actual results, performance, or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including, but not limited to, those listed in this AIF under "Risk Factors", which factors should not be considered exhaustive and should be read together with the other cautionary statements in our disclosure documents. See the detailed discussion below under the heading "Risk Factors" for more information regarding the applicable risk factors.

If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.

Although the forward-looking information contained herein is based on assumptions that we believe are reasonable when made, we caution readers that statements containing forward-looking information are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking information contained in this AIF. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking information contained in this AIF, those results or developments may not be indicative of results or developments in subsequent periods.

MDA SPACE ANNUAL INFORMATION FORM 1

Given these risks and uncertainties, investors are cautioned not to place undue reliance on the forward-looking information. Any forward-looking information that is made in this AIF speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

**MARKET AND INDUSTRY DATA**

Unless otherwise indicated, information contained in this AIF concerning our industry and the geographies in which we operate, including our general expectations, industry position, and opportunities, is based on information from independent industry organizations, other third-party sources (including industry publications, surveys, and forecasts), and management studies and estimates.

Unless otherwise indicated, our market and industry estimates are derived from publicly available information released by independent industry analysts and third-party sources, as well as data from our internal research, and include assumptions made by us which we believe to be reasonable based on our knowledge of our industry and the geographies in which we operate. Although we believe these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey. Our internal research and assumptions have not been verified by any independent source, and we have not independently verified such third-party information. While we believe the industry information included in this AIF is generally reliable, such information is inherently imprecise. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry and geographies in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the headings "Forward-Looking Information" and "Risk Factors".

**Corporate Structure**

**NAME, ADDRESS AND INCORPORATION**

MDA Space Ltd. is a corporation incorporated under the *Business Corporations Act* (Ontario) (the "**OBCA**") on June 2, 2020. On March 19, 2021, our articles were amended to change our name from "Neptune Acquisition Holdings Inc." to "MDA Ltd." On April 6, 2021, we amalgamated with 2828330 Ontario Inc., a corporation incorporated under the OBCA, as part of certain transactions undertaken in connection with the closing of the initial public offering of our Common Shares on April 7, 2021 (the "**IPO**"). On May 9, 2024, our articles were amended to change our name from "MDA Ltd." to "MDA Space Ltd."

Our head and registered office is located at 7500 Financial Drive, Brampton, Ontario, Canada, L6Y 6K7.

MDA SPACE ANNUAL INFORMATION FORM 2

**INTERCORPORATE RELATIONSHIPS**

The following chart identifies our material subsidiaries (including jurisdiction of formation or incorporation of the various entities) as of the date of this AIF. All of our subsidiaries are wholly-owned, either directly or indirectly, unless otherwise stated.

![](tm266080d2_ex4-1img002.jpg)

MDA SPACE ANNUAL INFORMATION FORM 3

**Recent Developments**

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| February 2026 | We announced the launch of 49North, a Canada-focused defence business, led by defence industry executive Joe Armstrong, as President, 49North. This announcement highlights 49North's capacity to deliver secure, multi-domain C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) and mission critical capabilities for Canada's national defence priorities outside the space domain. |
| January 2026 | We signed a memorandum of understanding ("**MOU**") with Hanwha Systems Col., Ltd. ("**Hanwha**"), a global leader in smart technologies and aerospace solutions. Through this MOU, we and Hanwha will explore opportunities to collaborate on the development of Korea's sovereign low earth orbit (K-LEO) defence constellation, leveraging MDA's AURORA™ software-defined digital satellites. |
| January 2026 | We received an indefinite delivery/indefinite quantity contract from the Missile Defense Agency for the U.S. Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program. This contract award positions us to bid on future tasks and services that support the expansive U.S. defence initiative, which covers a broad range of work to strengthen defence against threats from land, sea, air, cyberspace and space. |

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**General Development of the Business**

The following is a description of certain of our material developments over the last three financial years:

**General Developments**

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| SEPTEMBER 2025 | We were named one of Canada's Top Growing Companies by *The Globe and Mail's Report on Business* for the second consecutive year. The ranking recognizes Canadian companies with outstanding three-year revenue growth, celebrating entrepreneurial achievement and business excellence. We earned our place in the Technology category with verified growth of 126% from 2021 to 2024. |
| SEPTEMBER 2025 | We were named the 2025 Global Satellite Business of the Year by *Novaspace*. The award celebrates extraordinary accomplishments and positive contributions to the space and satellite sectors worldwide. |
| SEPTEMBER 2025 | We were named to the 2025 TSX30, TMX Group's flagship annual ranking of the 30 top-performing TSX-listed companies based on dividend-adjusted share price appreciation. |
| SEPTEMBER 2025 | We appointed Andrew Stanniland as Managing Director, MDA Space U.K. Mr. Stanniland brings more than 30 years of multidisciplinary and international management experience in the space sector, from Thales Alenia Space, Inmarsat, and Airbus Defence and Space. |

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MDA SPACE ANNUAL INFORMATION FORM 4

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| JULY 2025 | We appointed Rob Singh as Vice President, Strategic Solutions. Mr. Singh brings over 30 years of experience defining and delivering complex space solutions and service strategies for customers from companies including Axta Space, SpaceLink and Maxar Technologies. |
| November 2024 | We appointed Guillaume Lavoie to the role of Chief Financial Officer. Mr. Lavoie brings over 20 years of financial experience from large publicly traded and privately owned companies including Pratt & Whitney, Bombardier Inc., Woodbridge Group, and Sofina Foods Inc. |
| July 2024 | Mr. Karl Smith was appointed to our Board. Mr. Smith brings over 30 years of experience in a variety of executive roles including President and Chief Executive Officer of FortisAlberta and Newfoundland Power. |
| March 2024 | We were added to the S&P/TSX Composite Index, a list that includes the largest and most liquid publicly traded companies in Canada and represents the principal benchmark measure for Canadian equity markets. |
| February 2024 | Mr. Yung Wu was appointed to our Board. Mr. Wu is the former Chief Executive Officer of the MaRS Discovery District and has had a lengthy career as a serial entrepreneur and private equity investor. |

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**Contract Awards and Partnerships**

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| DECEMBER 2025 | We signed a strategic partnership agreement with the Government of Canada and Telesat Corporation to develop and deliver military satellite communications (MILSATCOM) capabilities as part of the Enhanced Satellite Communications Project – Polar (ESCP-P). The project will support Canada and North America defence and security with enhanced ability to conduct sovereignty operations in the Arctic. |
| DECEMBER 2025 | We were awarded a contract by Public Services and Procurement Canada on behalf of the Canadian Space Agency (the "**CSA**") valued at $44.7 million, to procure long lead parts in support of the RADARSAT Constellation Mission ("**RCM**") replenishment satellite development. The Government of Canada also announced its intention to contract our services to build, test, and launch this additional satellite for the RCM. These contracts are part of the Government's $1.012 billion RADARSAT+ initiative, a 15-year investment announced in October 2023 to support immediate and future satellite Earth observation needs. |
| NOVEMBER 2025 | We made a $10 million equity investment in Maritime Launch Services Inc. becoming an equity owner and a strategic partner. The equity investment will accelerate Spaceport Nova Scotia's readiness for orbital launch operations, providing reliable domestic launch capability for commercial, civil, government, and defence clients in Canada. |

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MDA SPACE ANNUAL INFORMATION FORM 5

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| SEPTEMBER 2025 | We were selected to deliver enhanced space situational awareness data services to the Canadian Department of National Defence. The standing offer, in partnership with Canadian-based ThothX Group, underscores the growing importance of Space Domain Awareness in safeguarding Canada's critical space assets amid an evolving and increasingly congested orbital environment. |
| AUGUST 2025 | We were awarded two contracts to equip the Royal Canadian Navy's ("**RCN**") Halifax-class ships with up to six new Uncrewed Aircraft Systems. Part of the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft Systems (ISTAR UAS) project, these new systems will enhance the RCN's ability to detect and monitor potential maritime threats, both at home and abroad. |
| AUGUST 2025 | We were selected by EchoStar as the prime contractor for EchoStar's non-terrestrial network LEO direct-to-device satellite constellation. The initial contract, valued at approximately US$1.3 billion, included the design, manufacturing, and testing of over 100 software-defined MDA AURORA™ direct-to-device satellites. In September 2025, we received a termination for convenience notification from EchoStar Corporation related to the constellation contract announced on August 1, 2025. The contract termination was the result of a sudden change to EchoStar's business strategy and plan in the wake of spectrum allocation discussions with the Federal Communications Commission in the United States. |
| JULY 2025 | A team led by MDA Space was selected by the CSA to conduct an early-phase study for Canada's proposed Lunar Utility Vehicle ("**LUV**"). This team brings together best-in-class Canadian expertise and is a critical first step in defining the LUV mission concept and technology development plan to provide scalable, autonomous mobility solutions on the lunar surface to deliver operations in challenging lunar environments. |
| JULY 2025 | We were selected to be the prime contractor for SkyPhi, a mission that will enable regenerative 5G direct-to-device (D2D) satellite communications from low Earth orbit (LEO). The mission is funded by the European Space Agency and the United Kingdom Space Agency and is part of the ARTES (Advanced Research in Telecommunications Systems) program. |
| JUNE 2025 | The Government of Canada extended our contract to provide continuous space-based maritime awareness and security with the Department of Fisheries and Oceans Canada ("**DFO**"). As part of the contract renewal, DFO also amended our contract to enable future utilization of data and services from MDA CHORUS™, our next generation Earth observation constellation. |
| JUNE 2025 | We were awarded $60 million in next phase contracts for the delivery and integration of two critical sensor systems for the Royal Canadian Navy's River-Class Destroyer program. The contracts are for the delivery and integration of sensor systems for the first three ships that improve situational awareness and protect the ships against laser and optical guided threats.<br>|

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MDA SPACE ANNUAL INFORMATION FORM 6

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| February 2025 | We announced a US$750 million (approximately C$1.1 billion) contract with Globalstar Inc. ("**Globalstar**") to be the prime contractor for the satellite operator's next generation LEO constellation. The contract includes the manufacturing of more than 50 MDA AURORA™ software-defined digital satellites for the constellation. This followed a US$180 million Authorization to Proceed contract entered into in November 2023 to immediately commence engineering and programmatic activities, including the procurement of long-lead items for this Globalstar constellation. |
| September 2024 | We were awarded a contract by SWISSto12 to provide antenna systems for three of the company's HummingSat satellites in geostationary orbit. The contract includes designing and building high-performance L-Band navigation antennas to be deployed as part of the Inmarsat-8 program to provide crucial safety services and support advances in emergency tracking. |
| June 2024 | We were awarded a $1 billion contract by the CSA for the Phase C (final design) and Phase D (construction, system assembly, integration and test) of the full robotics system of the Canadarm3 program. Canadarm3 will be used aboard Gateway, a multinational collaboration led by NASA to establish a space station in lunar orbit to support human and robotic missions to the surface of the Moon. |
| June 2024 | We were awarded a contract by the National Research Council of Canada to support the development, construction, and integration of radio telescope technology for the Square Kilometre Array Observatory, an international space exploration and astronomy project. |
| May 2024 | We joined Starlab Space LLC as a strategic partner and equity owner in a global commercial space station joint venture between, among others, Voyager Space, Airbus, and Mitsubishi Corporation. As a strategic partner in this joint venture, MDA Space will provide the full range of MDA SKYMAKER<sup>TM</sup> external robotics, robotics interfaces and robotic mission operations to the Starlab space station. |
| April 2024 | We were awarded a $250 million contract extension from the CSA to continue supporting robotics operations on the International Space Station from 2025 to 2030. As part of the contract, we will fulfil robotics flight-controlled duties to support mission operations on the ISS. |
| February 2024 | We received a $74 million contract from General Atomics Aeronautical Systems, Inc. (GA-ASI) to help deliver the fleet of MQ-9B SkyGuardian Remotely Piloted Aircraft Systems (RPAS) ordered by the Canadian Armed Forces. |
| August 2023 | We were selected as prime satellite contractor for Telesat Corporation's LEO satellite constellation, Telesat Lightspeed. The contract, valued at approximately $2.1 billion (which has subsequently been revised to $2.4 billion), includes the design, manufacturing, assembly and testing of 198 satellites with options for Telesat to purchase up to 100 additional satellites. |

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MDA SPACE ANNUAL INFORMATION FORM 7

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| June 2023 | We were awarded a Government of Canada contract to help in the fight against illegal, unreported and unregulated ("**IUU**") fishing in the Indo-Pacific region. Our Maritime Insights platform, which leverages our RADARSAT-2 Synthetic Aperture Radar (SAR), combines multiple satellite data sources to track and identify IUU fishing activity including dark vessel detection. |
| June 2023 | We were selected by L3Harris Technologies as part of the U.S Department of Defense Space Development Agency's ("**SDA**") Tranche 1 Tracking Layer program. We were tasked with designing and building 14 flight sets of Ka-Band steerable antennas and control electronics for LEO satellites. |
| May 2023 | We announced that we were working with Thoth Technology Inc. to create a made-in-Canada deep space radar surveillance and space domain awareness capability. As part of a strategic cooperation agreement, MDA Space commercial data services will be integrated with Thoth's ground-based radar technology to provide sovereign monitoring in deep space over Canada. |
| February 2023 | We secured a new contract to supply Ka-Band Multibeam Antennas for Argentina's ARSAT-SG1 satellite to provide high-speed internet and digital video and voice services across the country and to Bolivia, Paraguay, and Chile. |

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**Corporate Transactions**

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| december 2025 | We completed a private placement offering (the "**Offering**") of $250 million principal amount of 7.00% senior unsecured notes due 2030 (the "**Notes**"). The Notes are senior unsecured obligations, ranking *pari passu* in right of payment with all of our existing and future senior unsecured indebtedness and guaranteed by certain of our subsidiaries. We also announced that we entered into a second Amended and Restated Credit Agreement providing for a $150,000,000 accordion feature, potentially increasing the aggregate credit facilities to $850,000,000 if exercised in the future. |
| august 2025 | On August 7, 2025, we filed a short form base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada allowing us to qualify the offering and issuance of Common Shares, preference shares, debentures, notes or other evidence of indebtedness, subscription receipts, warrants or any combination thereof, during the 25-month period that the base shelf prospectus is valid. |
| july 2025 | We completed the acquisition of SatixFy Communications Ltd., a leader in next-generation satellite communications solutions based on in-house-designed chipsets. SatixFy's operations and full technology portfolio have been integrated into our Satellite Systems business, further enhancing the company's end-to-end satellite offering. |
| March 2024 | We completed a divestiture pursuant to which Calian Group Ltd. purchased assets associated with our nuclear services. |

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MDA SPACE ANNUAL INFORMATION FORM 8

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| October 2023 | We acquired SatixFy Space Systems UK Ltd., the digital payload division of SatixFy Communications Ltd. The division, which was integrated into our U.K. operations, helped accelerate our market expansion in the United Kingdom and added strategic in-country capability to produce satellite payloads. |

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**Program and Operational Updates**

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| JULY 2025 | We achieved an industry first in satellite digital beam forming with MDA AURORA™. Digitally formed beams, multiple simultaneous beams, and electronically steered beams are among the key features of the MDA AURORA™ Ka-band direct radiating array. The successful validation marks a breakthrough in satellite communication systems that support broadband connectivity and 5G networks. |
| JUNE 2025 | We assumed operations of the David Florida Laboratory in Ottawa, Ontario, ensuring this world-class testing facility remained open to industry and under sovereign Canadian control. The facility houses essential infrastructure that enables the assembly, integration, and testing of spacecraft and satellite systems and subsystems to ensure their ability to operate in the harsh conditions of space. |
| December 2024 | In collaboration with Telesat, we concluded a key phase in Telesat Lightspeed LEO constellation with successful completion of the spacecraft and multiple major subsystems Preliminary Design Review (PDR). With PDRs completed, Telesat and MDA Space transitioned to the program's detailed engineering and manufacturing phase, including the Critical Design Review. |
| September 2024 | We announced that construction was underway on a 185,000 square foot expansion at our satellite production facility in Sainte-Anne-de-Bellevue, Quebec. Once completed, it will be one of the world's largest high-volume manufacturing facilities in its satellite class. |
| April 2024 | We announced MDA SKYMAKER™, a new suite of space robotics purpose-built to meet the diverse needs of our customers' most ambitious missions. Derived from Canadarm technology, MDA SKYMAKER<sup>TM</sup> supports a diverse range of missions including lunar surface rovers and landers, space stations, satellite servicing in all orbits, and in-space assembly and manufacturing. |
| March 2024 | We moved into our new global headquarters and Space Robotics Centre of Excellence in Brampton, Ontario. These new facilities support our ongoing growth and lay the groundwork for long-term success in the evolving commercial space robotics market. |
| March 2024 | We announced MDA AURORA™ as the name of our new software-defined satellite product line. Designed to meet the changing and highly competitive technical and business requirements of the satellite industry to provide operators with exceptional flexibility and functionality, which enhances constellation performance at reduced cost and time to market. |

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MDA SPACE ANNUAL INFORMATION FORM 9

March 2024 We announced the rebranding of our company from 'MDA' to 'MDA Space', further positioning us to lead in a new era of space innovation.

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| October 2023 | We announced our selection of SpaceX to launch the MDA CHORUS™, our next generation Earth observation constellation. |
| September 2023 | We announced details of our new software-defined satellites designed to target operator pain points with digital solutions. The technology transition from analog to digital satellite solutions offers benefits to satellite operators looking to improve performance, and drive cost and complexity out of their LEO constellation networks. |

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**Description of the Business**

**OVERVIEW**

We are a trusted mission partner for the world's most advanced space programs, delivering a suite of dual-use technology and services to civil, commercial, defence and national security customers. Our deep engineering expertise, broad portfolio of space-system capabilities, and end-to-end mission experience make us the partner of choice for government and private-sector clients. We leverage these capabilities to enable next-generation, space-based communications that empower our hyper-connected world; to build and operate critical space infrastructure for exploration, scientific research and on-orbit servicing; and to develop, operate and deliver data and analytic services from both Earth and space observation satellites and ground infrastructure. In an era where industries, technologies, people, and places are impacted every day by space technology, our mission is to build the space between proven and possible and to provide the space economy with our trusted, flight-tested, and human-rated solutions.

We have three business areas: Satellite Systems, Robotics & Space Operations, and Geointelligence. Our diversified portfolio of solutions position our customers to achieve mission success. We are differentiated by factors including:

· our
 long track record of mission success and innovation in space spanning over 55 years and more
 than 450 successful space missions;

· our
 global reach, with operations and significant customer base in Canada and the United States
 and expanding customer base in the United Kingdom and other markets;

· our
 profitable operations, strong liquidity and disciplined capital structure that enables pursuit
 of market growth opportunities;

· the
 breadth of our customer relationships, with a diversified civil government, defence and commercial
 customer base;

· our
 experienced team of over 4,000 colleagues, comprised of experienced space engineers, scientists,
 technicians, business and space industry leaders, which includes approximately 2,000 engineers;

· our
 extensive portfolio of intellectual property and technologies including over 60 trademarks
 and over 700 patents which underpin our development capabilities and products, systems and
 services;

· consistent
 investment in research and development ()"**R&D**") and innovation, ranking
 us in the top 35 corporate R&D investors in Canada; and

· some
 of the most advanced equipment and facilities in the industry.

MDA SPACE ANNUAL INFORMATION FORM 10

In Satellite Systems, we partner or prime space communication missions across LEO, medium Earth orbit ("**MEO**"), and geosynchronous equatorial orbit ("**GEO**"), in addition to providing a range of satellite subsystems and communication systems for human rated spacecraft. These missions span a growing number of applications including broadband access, direct-to-device satellite communication, and Internet of Things ("**IoT**") connectivity across the full communication frequency spectrum. In Robotics & Space Operations, we partner on space infrastructure missions to facilitate the exploration and development of space. We provide autonomous robotics and rover solutions along with proximity operation sensors that are used to operate in orbit and on the surface of the Moon and Mars, as well as operational services to plan, support, and operate these missions remotely. In Geointelligence, we develop, build and operate Earth observation ("**EO**") and space observation missions, as well as providing key products in the areas of EO synthetic aperture radar ("**SAR**") data and services, EO ground stations and multi-sensor fusion-based analytics products and services. All of these activities serve a wide range of use cases, including in the areas of national security, maritime surveillance, and climate change monitoring.

Our established position as a trusted mission partner can be traced to our investment in our people as well as our broad suite of technology and full lifecycle services. We work collaboratively with our customers in the early engineering phases of product and program development and provide services throughout a mission's life, including engineering, manufacturing, integration, mission operation, and ongoing maintenance services, enabling valuable customer intimacy that drives repeat revenue opportunities.

Our market position allows us to serve a broad range of customers, including governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry. Our long and proven track record enables us to compete successfully for major space projects globally and to continue to grow our customer base beyond Canada. As an independent supplier of space technology products, we are also able to pursue a larger set of opportunities with U.S. prime contractors, which we believe can meaningfully enhance our revenue potential from U.S. government space programs.

**INDUSTRY OVERVIEW AND TRENDS**

All over the world, governments, defence agencies and corporations are finding new and valuable ways of using the capabilities of space to make the world a safer, healthier and more connected place. The benefits of space-based solutions are expected to grow significantly in the coming years, driven by continuous government and commercial investment in the increasing capabilities enabled by a burgeoning space economy.

The space economy reached US$626 billion in 2025<sup>1</sup> and is projected to surpass US$1.8 trillion by 2035.<sup>2</sup> This growth is driven by a confluence of factors, including significant commercial and government investment, private sector innovation, and a profound transformation in the global economic and geopolitical landscape. As the world becomes increasingly interconnected and reliant on data-driven technologies, the strategic importance of space is intensifying. Nations are investing resources into space-domain awareness, resilient dual-use constellations, and space-based defence capabilities – including secure LEO communications, high-resolution Intelligence Surveillance and Reconnaissance, navigation-jamming resistance, and counterspace technologies.<sup>3</sup> The pace of progress is also being influenced by a number of secular trends including a ten-fold reduction in launch costs over the past decade, a growing number of satellite launches, the emergence of new and mission-critical applications for secure communications services and real-time Earth observation data, and the development of

<sup>1</sup> Source: Global Space Economy Reaches $626 Billion, Marking a New Phase of Growth, Spacenews, January 29, 2026.

<sup>2</sup> Source: World Economic Forum: The $1.8 Trillion Opportunity for Global Economic Growth, April 8, 2024.

<sup>3</sup> Source: The Cost of Space Flight Before and After SpaceX: Visual Capitalist, January 27, 2022.

MDA SPACE ANNUAL INFORMATION FORM 11

space-based defence capabilities to safeguard national interests in a rapidly evolving geopolitical environment.

Moreover, advances in space-related materials, processes, and capabilities and adoption of advanced technologies are enhancing the sector's strategic value by improving efficiency, reducing costs, and enabling new applications. Space innovation is having a transformative impact across multiple traditional industries, including communications, transportation, agriculture, finance & insurance, and energy & utilities, and is providing new opportunities and solutions for government and commercial organizations to navigate the challenges of a dynamic global economy. Collectively, these developments are creating new opportunities and imperatives for space-based solutions and services, highlighting the need for timely and strategic investment to capitalize on the significant potential of the space economy.

**Lower Costs and New Technologies are Driving the Commercialization of Space**

New commercial space-based businesses are increasingly becoming prevalent due to lower launch costs and more powerful satellite technologies.<sup>4</sup> Additionally, the development of satellites with new digital technologies and advanced capabilities has resulted in significant performance improvement and cost reduction. This combination of technology advancements and reduced launch and satellite costs has improved the economic feasibility of many space-based activities and services, including space-based broadband Internet, direct-to-device (D2D) connectivity, EO, manned spaceflight, and In-Space Servicing, Assembly, and Manufacturing ("**ISAM**"). This trend was demonstrated in 2025 with a record 329 launch attempt (up 25% over 2024), which successfully delivered a record 4,526 payloads to orbit (up 58% over 2024).<sup>5</sup>

**Space is Enabling Global Connectivity**

We live in an increasingly interconnected and data-dependent world with data usage expected to grow as available bandwidth expands to enable universal connectivity and next generation technologies. Universal internet access and global broadband connectivity are fundamental to ensuring equal access globally and are critical pillars for socioeconomic development. Broadband Internet connectivity is estimated to have grown from 51% of the global population in 2019 to 68% in 2024<sup>6</sup>, and the Broadband Commission for Sustainable Development and United Nations have set a global goal of achieving universal connectivity by 2030.<sup>7</sup>

Satellites represent one of the most efficient methods to support universal connectivity and provide a complimentary capability to enhance the offerings of traditional terrestrial broadband providers. The proliferation of satellite constellations is expected to drive the majority of new satellite capacity. Operators such as OneWeb, Telesat, SpaceX, and Amazon are collectively expected to deploy at least 16,000 satellites for their constellations this decade. As of December 2025, it is estimated that there are over 13,000 active satellites orbiting the Earth, more than 90% of which are in LEO<sup>8</sup>. *Novaspace* estimates that more than 43,000 satellites will be launched between 2025 and 2034<sup>9</sup>. These communication constellations are critical to supporting global connectivity needs and enabling next generation technologies, including IoT applications, connected vehicles, direct-to-device and 5G communications.

<sup>4</sup> Source: Ibid.

<sup>5</sup> Source: Space Activities in 2025, Jonathan McDowell, January 2026.

<sup>6</sup> Source: The State of Broadband Advocacy Targets, Broadband Commission for Sustainable Development, June 2025.

<sup>7</sup> Source: Achieving Universal Connectivity by 2030, United Nations, 2025.

<sup>8</sup> Source: Orbital Traffic Surges, as 13,000 Active Satellites Recorded: Critical Comms, October 30, 2025.

<sup>9</sup> Source: Novaspace Projects $665B in Satellite Build and Launch Activity: Novaspace, October 7, 2025.

MDA SPACE ANNUAL INFORMATION FORM 12

**Space is Critical to National Defence and Security**

Space is now a critical and established military domain complementing the traditional fields of air, land, and sea. Space-based assets are employed in a broad range of essential military applications and operations including communications, intelligence and surveillance, missile warning and tracking, and navigation. The 25th Edition of *Novaspace's* Government Space Programs report notes a US$137.4 billion government space market in 2025, signaling a structural shift toward defense-driven investment and commercial procurement models. Defense now accounts for 54% of global spending (US$73.5 billion), surpassing civil budgets (US$63.7 billion) and cementing space as a core national security domain alongside land, air, maritime, cyber and information.<sup>10</sup>

In 2025, defence spending on space by the world's leading powers surged to unprecedented levels. The United States dedicated a historic US$175 billion to its "Golden Dome" space-defence architecture<sup>11</sup>, while Germany pledged €35 billion (~US$41 billion) for next-generation satellite and SSA capabilities.<sup>12</sup> France earmarked an additional €4.2 billion (~US$5 billion) for its Space Force<sup>13</sup>, Japan allocated ¥560 billion (~US$3.5 billion) to a dedicated space-operations command<sup>14</sup>, and Canada confirmed that space will be a core element of its NATO-mandated 2% defence-budget target, adding several billion dollars to the tally.<sup>15</sup> Additionally, the European Space Agency secured a €22.3 billion budget (a 32% increase) at its November 2025 Ministerial Council, which included funding for defence-related projects for the first time.<sup>16</sup> Collectively, these commitments signal a clear, multi-year acceleration of in-space defence investment.

In addition to traditional space-related defence spending that leverages space assets to support and complement terrestrial defence efforts, over the last decade several countries have begun developing offensive capabilities in space which have the ability to disrupt or destroy strategic space assets. In response to this threat, many governments are increasing military funding for space-based initiatives and creating independent space commands to reinforce national security priorities.<sup>17</sup>

Furthermore, militaries have begun to shift their satellite constellation architecture from a few large satellites to many cost-effective, but powerful satellites, a strategy that was previously too expensive to employ. The deployment of many satellites in a distributed network versus the deployment of a limited number of large satellites significantly improves the resiliency of strategic space assets. Governments are also increasingly leveraging the capabilities of commercial space companies to innovate and deliver cost-effective solutions to enable this distributed satellite constellation strategy.

**Robotics and On-Orbit Infrastructure is Critical to the Expanding Earth to Moon Economy and Future of Space**

Utilizing robotics and on-orbit solutions to keep satellites and other space infrastructure operating efficiently will be critical to enabling the growth of the new space economy. Autonomous robotics are expected to drive on-orbit applications, including ISAM, satellite refueling, repositioning, repair, and de-orbiting services, with a view to reducing costs and improving safety and mission continuity.

<sup>10</sup> Source: Global Space Spending Reaches $137B, Marking a Defense-Led Era: Novaspace, January 20, 2026.

<sup>11</sup> Source: Trump selects $175 billion Golden Dome defense shield design, appoints leader: Reuters, May 20, 2025.

<sup>12</sup> Source: Germany pledges $41 billion for space defence against Russia, China: NDTV World, September 25, 2025.

<sup>13</sup> Source: 'Space is Now a Battlefield': Macron Unveils 4.3B Defense Plan and Appeals to Startups: The French Tech Journal, November 14, 2025.

<sup>14</sup> Source: Japan boosts defense satellite investments to strengthen space resilience, communications: Indo-Pacific Defense Forum, February 26, 2025.

<sup>15</sup> Source: What does greater defense spending mean for Canada's economy?: RBC Wealth Management, July 3, 2025.

<sup>16</sup> Source: ESA raises more than 22 billion euros at ministerial: SpaceNews, November 27, 2025.

<sup>17</sup> Source: In historic shift, ESA poised to take on defense role: Breaking Defense, October 31, 2025.

MDA SPACE ANNUAL INFORMATION FORM 13

With geopolitical, defence and commercial imperatives expected to propel the rapid emergence of an in-space economy and drive demand for on-orbit servicing solutions and in-space manufacturing capabilities, ISAM will be essential to ensuring national mission success and economic expansion and viability. Advancements in uncrewed and autonomous robotics and in-space platforms are fundamental to supporting the growth of in-space manufacturing and assembly capabilities, and the ability to construct, reconfigure, repair and refuel spacecraft while in space will enable longer space missions with greater flexibility and a wider range of in-space economic activity.

**Earth Observation is Critical to Improving Global Sustainability and Economic Productivity**

EO uses data from space to answer questions about conditions on Earth. *Novaspace* estimates that the global market for EO data and services will reach US$8.4 billion by 2034, growing from US$5.4 billion in 2024.<sup>18</sup> Defence & intelligence contracts and advanced EO products are critical drivers behind the markets sustained expansion. As demand for EO data grows, analytics services are becoming increasingly important for synthesizing data and producing actionable insights to support decision-making.

Additionally, EO data allows governments and institutions to achieve sustainability objectives, including the monitoring of IUU fishing activity, ocean pollution and oil spill detection, deforestation and dumping, and tracking pollution, shoreline erosion and arctic ice levels. EO is also becoming an increasingly important driver of economic productivity across a broad range of sectors. Agricultural industries use EO data and analytics to monitor crop conditions, estimate yields, and optimize production and cost. Providers of critical infrastructure use EO technology to monitor remote assets, plan new installations, and predict requirements for future expansion. Global commercial and trade organizations use EO analytics to make informed decisions related to economic activity, increased supply chain visibility and the assessment of various market dynamics.

**Space Exploration is Becoming Interplanetary**

Space has become a truly borderless frontier, with approximately 94 countries investing in the space sector and approximately 75 countries that already have established some form of national space agency. Over the next decade, the number of space exploration missions is expected to increase by 185% to 855 missions as countries pursue manned lunar and Martian missions and other deep space exploration.<sup>19</sup>

Government funding for space exploration is projected to increase from approximately US$26 billion in 2023 to US$33 billion by 2032.<sup>20</sup> The moon is the fastest-growing area of sustained investment by governments engaged in space exploration, with *Novaspace* estimating that there will be over 328 missions to the moon alone over the next decade. The increasing frequency of lunar missions will be driven by a diverse number of countries, with 60 countries now signed on to the Artemis Accords as of December 2025. Missions to explore Mars are also on the rise.

<sup>18</sup> Source: Defense and Security Agencies Propel Demand for Earth-observation Data: SpaceNews, September 18, 2025.

<sup>19</sup> Source: Novaspace Forecasts Global Space Exploration Investment to Reach $31 Billion by 2034: SpaceNews, April 30, 2025.

<sup>20</sup> Source: Lunar ambitions boost space exploration funding as investment set to reach 33 billion by 2032, Novaspace, October 2, 2023.

MDA SPACE ANNUAL INFORMATION FORM 14

**BUSINESS AREA DESCRIPTIONS**

We offer solutions and capabilities to meet global market demand through three business areas:

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| | | |
|:---|:---|:---|
| **Satellite Systems**<br> 68% of 2025 Revenue<br> 55% of 2024 Revenue | **Robotics & Space Operations**<br> 19% of 2025 Revenue<br> 26% of 2024 Revenue | **Geointelligence**<br> 13% of 2025 Revenue<br> 19% of 2024 Revenue |
| ![](tm266080d2_ex4-1img003.jpg) | ![](tm266080d2_ex4-1img004.jpg) | ![](tm266080d2_ex4-1img005.jpg) |

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**Satellite Systems**

Satellite communications have transformed the way people connect and communicate on Earth and have continued to evolve and improve global connectivity across the globe. We serve our commercial and government mission partners worldwide as a prime contractor and supplier of satellite systems and sub-systems for communication networks in LEO, MEO, and GEO. With our acquisition of SatixFy complete and our space grade ASICs now in production in-house, our commercial digital satellite business is highly vertically integrated, down to the silicon chip level, further strengthening our competitive advantage and solidifying our industry lead. These communication missions span a growing number of use cases including space-based broadband Internet, direct-to-device satellite communication, and IoT connectivity across the full communication frequency spectrum. Our technology has been integrated into more than 350 satellite missions, and we expect this number to continue to grow.

Our continued transition to a satellite prime contractor for LEO and MEO constellations has been enabled by the development of MDA AURORA™, our new leading-edge software-defined digital satellite product line. Designed to meet the changing and highly competitive technical and business requirements of the satellite industry, the fully integrated MDA AURORA™ portfolio provides operators with exceptional flexibility and functionality. These software-defined, dynamic beam forming satellites provide a new level of performance and efficiency in space-based networks for our customers. The fully integrated digital satellite capability includes a complete range of modular digital products and components for space-based communication solutions coupled with advanced high-volume manufacturing production capability – dramatically enhancing constellation performance while reducing production costs and time to market.

Through our participation in multiple major satellite constellations and investments in our new state-of-the art high volume satellite production facility in Montreal, we have solidified our position as a trusted mission partner for space communications. Our strong market position is reflected in a series of recent key contract awards including our selection in 2025 by Globalstar as the prime contractor for the satellite operator's next generation LEO constellation of at least 50 satellites, our selection in 2023 as the prime contractor for Telesat's LEO satellite constellation Telesat Lightspeed (198 satellites) and our selection in 2022 as the prime contractor to expand Globalstar's existing LEO constellation with an additional 17 satellites. In 2025, we also signed a partnership agreement with the Government of Canada and Telesat Corporation to develop and deliver Arctic military satellite communications (MILSATCOM) capabilities as part of the Enhanced Satellite Communications Project – Polar (ESCP-P), one of the key procurements being led by Canada's newly formed Defence Investment Agency.

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We have also provided satellite subsystems to enable next generation military and commercial LEO communication constellations for end-users including the US Space Development Agency as well as for O3b mPower, Iridium Next, and OneWeb. The next generation LEO communication segment of the communication satellite market is driving meaningful growth for the Company. To support these high-volume satellite customers, we have continually adapted our satellite manufacturing base, which now includes Industry 5.0 robotics-based technologies capable of manufacturing dozens of satellites and satellite sub-systems each month.

As we continue to evolve the Satellite Systems business, we are doubling our manufacturing capacity to meet growing global demand, adding high-volume satellite production capabilities with capacity for large-scale standardized satellite production. At the end of December 2025, construction on a 185,000 square foot expansion at our satellite production facility in Montreal, Quebec was nearing completion. Once operational, it will be the one of the world's largest high-volume manufacturing facilities in its satellite class. This new facility is also designed to be a LEED (Leadership in Energy and Environmental Design) certified building and the production line at this facility will start ramping-up operations in 2026.

In 2025, we assumed operations of David Florida Laboratory in Ottawa, Ontario, ensuring this world-class testing facility remained open to industry and under sovereign Canadian control. The facility houses essential infrastructure that enables the assembly, integration and testing of spacecraft and satellite systems and subsystems to ensure their ability to operate in the harsh conditions of space. We also made a $10 million equity investment in Maritime Launch Services Inc., to accelerate Spaceport Nova Scotia's readiness for orbital launch operations and development of reliable sovereign Canadian launch capability for commercial, civil, government and defence clients.

In addition to leveraging fifty years of accumulated background intellectual property in space hardware manufacturing, our industry-leading satellite manufacturing facilities also integrate automated production lines and robots, cobots, and high-skilled assemblers using augmented reality to accelerate mass production. Our advanced manufacturing environment also contains one of the largest near field ranges and largest compact ranges for satellite testing in the world. In addition, this facility includes a wide range of thermal, environmental, Passive Inter Modulation (PIM), and vibration test facilities.

Our principal customers in the Satellite Systems business include a variety of customers operating in multiple markets including Globalstar, Telesat, Airbus, Lanteris Space Systems, OneWeb, Sierra Space, Thales Alenia Space, Boeing, Lockheed Martin, Northrop Grumman, OHB SE, York Space Systems, L3Harris and Rocket Lab.

**Robotics & Space Operations**

In our Robotics & Space Operations business, we partner with customers in critical, leading-edge space infrastructure missions. We facilitate the exploration and development of space by providing autonomous robotics systems and services used to operate in space and on the surfaces of the Moon and Mars. We are a world leader in space-based robotics including partnering on over 90 space shuttle missions, contributing to the assembly of the ISS, managing life-cycle operation of the ISS, and delivering our rover technology on Mars. The space infrastructure missions we partner on span broad space-based applications, including space station assembly and maintenance, ISAM, planetary rovers, and emerging markets such as space tourism, space mining, and space defence. Our differentiated capabilities include robotic systems, robotic interfaces, tooling, robotic ground control stations and operations services, electro-optic and light detection and ranging ("**LiDAR**") sensors, vision and targeting systems, guidance, navigation and control subsystems and planetary rover locomotion subsystems. Our LiDAR sensors are critical to spacecraft proximity operations supporting mission elements such as rendezvous, docking, inspection, and robotic capture of satellites in orbit, as well as spacecraft landing and autonomous rover navigation activities during planetary missions. Our LiDAR sensors and optical sensors also support future military space control applications.

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We are also developing commercial space robotic solutions that serve the evolving needs of the new space market. This includes MDA SKYMAKER™, a new suite of space robotics announced in 2024 that are purpose-built to meet the diverse needs of our customers' most ambitious missions. Derived from Canadarm technology, MDA SKYMAKER™ provides our customers with solutions based on the world's most flight-proven space robotics solutions and services, supporting a range of missions including lunar surface rovers and landers, space stations, satellite servicing in all orbits, and ISAM. Our products and services support logistics delivery, satellite servicing, debris removal, asset relocation, and infrastructure maintenance. Through focused investment in R&D, we have developed integrated space robotic systems, technologies, interfaces, tools, operational techniques, and control algorithms to enable on-orbit servicing solutions for commercial space businesses. We have completed multiple commercial sales of products derived from Canadarm3 technology. We are also a strategic partner and equity owner in Starlab Space LLC, a global joint venture that is designing and building the Starlab commercial space station and will provide the full range of MDA SKYMAKER<sup>TM</sup> external robotics, robotics interfaces and robotics mission operations to the station.

Demand for space robotics and mission-support services is primarily driven by increasing activity in LEO, lunar and deep space exploration, all of which are expected to expand with the introduction of new commercial space stations and commercial planetary missions in the coming years. The increase in the number of satellites and other spacecraft is driving demand for emerging solutions in on-orbit servicing (e.g., the upgrade and repair, relocation and refueling of satellites in orbit) and manufacturing. Our long history in space robotics includes development of the Canadarm for NASA's Space Shuttle program, and Canadarm2, which is currently in service on the ISS.

We are continuing to work on the Canadarm3 program, our third generation Canadarm that will provide autonomous and uncrewed robotics for the NASA-led Gateway, the lunar-orbiting outpost of the Artemis program. Current projects, including Canadarm3, are expanding our mission partner scope to now include on-orbit mission operations. We moved into our new headquarters and Space Robotics Centre of Excellence in March 2024. Our investment and construction of these new facilities included the creation of multiple mission control centers enabling us to provide on-orbit mission operations for our customers in the future.

We have developed technology for multiple Mars missions, including the Phoenix Lander, the Curiosity Rover, and the ExoMars Rover, with our sensors first operating on Mars in 2008. We also built the LiDAR instrument for the OSIRIS-Rex mission that completed the world's first 3D scan of an asteroid from an orbiting spacecraft.

Our principal customers in our Robotics & Space Operations business are Canadian, U.S., and international government space agencies, including the CSA, NASA, United Kingdom Space Agency and the European Space Agency. We also serve a wide variety of commercial customers in multiple markets, including Starlab Space, Northrop Grumman, Lanteris Space Systems, Airbus, Intuitive Machines, Astroscale and Mitsubishi Electric Corporation.

**Geointelligence**

As a Geointelligence mission partner, we are an owner, operator, and prime contractor for both EO and space observation missions, in addition to providing key technologies and products. We also use satellite-generated imagery and data to deliver critical and value-added insights for a wide range of end uses, including in the areas of national security, climate change monitoring and maritime surveillance.

Our Geointelligence business is a leader in SAR missions, which we both own and operate ourselves as well as deliver to customers and operate for them. We have designed and built three generations of SAR satellites (RADARSAT-1, RADARSAT-2, and the RADARSAT Constellation Mission (RCM)). As part of the RADARSAT+ initiative, in 2025 we were awarded an initial contract by the CSA to support the RCM

MDA SPACE ANNUAL INFORMATION FORM 17

replenishment satellite development, with the Government of Canada announcing its intention to contract MDA Space to build, test, and launch this additional satellite.

We are currently developing MDA CHORUS™, our next-generation collaborative multi-sensor satellite constellation that will provide data continuity for RADARSAT-2 and is expected to expand our SAR solutions offering. MDA CHORUS™ will enable us to fuse data from multiple sensors and to leverage machine learning in order to manage larger volumes of data and provide enhanced analytics services. MDA CHORUS™ is expected to operate in an inclined LEO and will provide frequent radar imaging day or night and in all weather conditions over the areas of most interest to our customers. The mission is expected to include significant innovations that result in improved access, better revisit, broader swath coverage, lower noise, less data compression, faster data rates, high-resolution and tip-and-cue capabilities. The MDA CHORUS™ constellation will include a powerful C-band SAR satellite that will provide broad area coverage in concert with a smaller trailing X-band SAR satellite for higher resolution data collection and near real-time cross-cueing. MDA CHORUS™ will also enable us to offer customers a cloud-based ground station solution as a next-generation offering. The capital expenditure for MDA CHORUS™ is substantially complete.

We also specialize in space observation satellites including the Sapphire mission that we developed and delivered to Canada's Department of National Defence. Following delivery of observation missions to customers, we are regularly entrusted to operate those missions for customers. We are currently operating most of the Canadian government's Earth and space observation satellites.

A key enabling product suite in EO is our full range of multi-satellite ground stations that receive, process, distribute, archive, and exploit imagery from RADARSAT-2, our own commercial EO satellite, as well as other satellites. We have installed more than 70 receiving ground stations in more than 25 different countries, which have processed data from over 20 different satellites.

Our EO business includes the collection, processing and dissemination of Earth imagery data from space. As the operator and owner of global commercial data distribution for the RADARSAT-2 satellite we are one of the largest radar information providers worldwide. Our extensive data archive is comprised of approximately 110 billion square kilometers of Earth imagery data and more than one million images of Earth. We also distribute high resolution optical imagery, satellite-based Automatic Identification System (AIS) data, and Radio-Frequency (RF) data from many other third-party missions. Our analytics-based information products regularly fuse these different sensor types into the information our customers require. As a result, our imagery solutions provide customers with timely, accurate and mission-critical information about our changing planet and support a wide variety of uses and sectors.

The largest market for our EO data and services today is maritime domain awareness, where governments and commercial organizations rely on us for real-time data. The data is used to track maritime activity, visualize maritime crime patterns, identify and monitor IUU fishing, track ice floes, shorelines and ocean winds, detect possible oil spills and monitor vessels. We have been a provider of these mission critical data and services for over 25 years and we play an integral role in our customers' surveillance strategies. We have also developed the Maritime Insights analytics platform that provides users with a software to monitor maritime areas of interest through the fusion and display of multiple sensor inputs.

We also provide a number of defence C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions, including command and control systems and airborne surveillance solutions, for which we are the original solution provider of many of these systems. Part of our offerings include advanced aeronautical navigation information solutions that increase safety and efficiency of aircraft landings and departures. We also operate a long endurance uncrewed aerial vehicle ("**UAV**") surveillance service that provides real-time, multi-sensor intelligence to support critical operations for the Royal Canadian Air Force as a partner with General Atomics for Canada's Remotely Piloted Aircraft System (RPAS). Additionally, we are the prime contractor for the Royal Canadian Navy to

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enhance maritime operations for the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft Systems (ISTAR UAS) project as well as a key contributor to the River-class Destroyer program. While these defence services and offerings were historically operated as part of our Geointelligence business, we announced in February 2026 that we had launched 49North, a Canada-focused defence business to deliver secure, multi-domain C4ISR and mission critical capabilities for Canada's national defence priorities outside the space domain.

Our principal customers in our Geointelligence business are Canadian, U.S., and international government agencies (primarily defence and intelligence agencies), as well as a wide variety of commercial customers across multiple markets.

**GROWTH STRATEGY**

With established industry leadership in diverse space markets, we are currently executing on specific strategies that will allow us to capitalize on the multiple waves of growth in the expanding space market.

The primary pillars of our strategy include:

· Investing
 in next generation space technology and services

&nbsp;&nbsp;&nbsp;&nbsp;· Developing
 MDA AURORA™, our new software-defined digital satellite product line, which will provide
 critical next generation solutions to communications satellite operators and prime manufacturers
 to support the industry's transition from analog to digital satellites.

&nbsp;&nbsp;&nbsp;&nbsp;· Developing
 MDA SKYMAKER™, our new commercial robotic products based on pre-qualified and multipurpose
 space robotics components derived from Canadarm3 technology to support a range of missions
 including lunar surface rovers and landers, space stations, satellite servicing in all orbits,
 and ISAM.

&nbsp;&nbsp;&nbsp;&nbsp;· Developing
 MDA CHORUS™, our next generation EO satellite constellation, which is expected to provide
 the broadest area SAR coverage on the market and include a trailing X-band SAR satellite
 with high-resolution capability. The enhanced capabilities of MDA CHORUS™ will help
 strengthen our EO data and service offerings and reinforce our competitive position as a
 mission prime for upcoming customer funded EO missions.

&nbsp;&nbsp;&nbsp;&nbsp;· Establishing
 mission control centers to provide on-orbit operations of our mission elements to our mission
 partners.

· Expanding
 our presence in attractive markets and geographies

&nbsp;&nbsp;&nbsp;&nbsp;· Expanding
 our role to a satellite prime for commercial communication satellite constellations while
 continuing to support other primes as a proven supplier of payloads, antennas and other satellite
 subsystems.

&nbsp;&nbsp;&nbsp;&nbsp;· Engaging
 in emerging commercial space markets to support growth and capture recurring revenue opportunities
 as markets develop.

&nbsp;&nbsp;&nbsp;&nbsp;· Enhancing
 our offerings and resources to fully participate in the national security and defence space
 markets, both domestic and international.

&nbsp;&nbsp;&nbsp;&nbsp;· Leveraging
 and expanding our existing presence in the United Kingdom and the U.S. to access new opportunities
 and evaluating other countries and select geographies such as Europe, Asia and the Middle
 East to expand our international footprint.

&nbsp;&nbsp;&nbsp;&nbsp;· Leveraging
 our incumbent position as a trusted mission partner to maximize opportunity in addressable
 national and international defence and security markets.

MDA SPACE ANNUAL INFORMATION FORM 19

· Scaling
 and expanding operations, skills and talent

&nbsp;&nbsp;&nbsp;&nbsp;· Investing
 in new facilities, technology and capacity to meet growing market demand.

&nbsp;&nbsp;&nbsp;&nbsp;· Scaling
 our employee base to execute on our current work and maximize the capture of future business
 opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;· Fostering
 an innovative and inclusive work environment that helps attract, support and develop world-class
 talent.

· Leveraging
 strategic mergers and acquisitions to complement organic growth

&nbsp;&nbsp;&nbsp;&nbsp;· Accelerating
 our technology roadmap and growing manufacturing capabilities to support strategic initiatives
 and our expansion into market adjacencies.

&nbsp;&nbsp;&nbsp;&nbsp;· Expanding
 our presence in international geographies to access new market sectors, customers, and talent.

&nbsp;&nbsp;&nbsp;&nbsp;· Augmenting
 our existing capabilities to increase vertical integration and domain expertise.

· Incumbent
 position as Canada's National Defence and Space Champion and a Trusted Supplier to
 Partners and Allies Globally

&nbsp;&nbsp;&nbsp;&nbsp;· Maintaining
 deep, long-standing collaborations with the Department of National Defence, Canadian Space
 Agency, Department of Fisheries and Oceans and numerous other national and international
 security and intelligence departments and agencies that count on our sovereign and mission
 critical capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;· Enhancing
 in-house sovereign capabilities through expanding our Canadian production capacity, investing
 in new facilities and classified program capabilities, hiring and training local engineers,
 and establishing national supply chains for critical components to reduce reliance on foreign
 suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;· Investing
 in Canadian technology companies to develop and strengthen critical upstream and downstream
 capabilities such as sovereign launch services, rover logistics and next generation satellite
 electronics.

&nbsp;&nbsp;&nbsp;&nbsp;· Leveraging
 world class manufacturing partnerships to serve Canadian needs by reducing lead times and
 delivering best-in-class solutions.

**COMPETITION**

We sell our products and services into a highly competitive global market.

In the Satellite Systems business, our competitors include Airbus, Lockheed Martin, Northrop Grumman, Thales Alenia Space, L3Harris, Lanteris Space Systems, RocketLab and York Space Systems.

In our Robotics & Space Operations business, we view the competitive market dynamics as bifurcated between well-known providers with a track record of proven on-orbit performance and newer providers offering unproven, low-cost solutions. Our major existing and potential competitors for our Robotics & Space Operations business include Airbus, GITAI, Lanteris Space Systems, Motiv Space Systems and Redwire.

In our Geointelligence business, we compete with major existing SAR satellite imagery providers, such as Airbus, ICEYE and e-GEOS, as well as other commercial satellite imagery companies, government-owned imagery providers, free sources of imagery, and UAVs. We also compete with companies that provide geospatial analytic information and services to government agencies, including defence prime contractors.

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**Competitive Strengths**

While the markets we serve are competitive, we believe that we are well positioned to provide differentiated solutions to customers, driven by the following competitive strengths:

**A Trusted Mission Partner with a Track Record of Execution**

As more governments and organizations begin to participate in space, a hostile and unforgiving operating environment with a high cost of failure, it is paramount to engage with trusted partners to ensure mission success. With our reputation and history of successful performance, we have earned the trust of some of the world's largest participants in space-based activities. With a strong track record of excellence in high-stakes, complex, mission-critical applications, we are well positioned to help our customers leverage the insights and opportunities of space for their applications and missions.

In addition to winning new business, our track record of execution drives customer loyalty, which leads to repeat business. Every program we develop further reinforces our domain expertise and establishes the Company as a recognized leader in our industry.

**Specific Expertise and Technological Resources Tailored for the New Space Economy**

We provide innovative, end-to-end offerings of technologies and solutions in each of our business areas. We anticipate the needs of our customers and partner with them as they navigate the space economy.

In Satellite Systems, we offer full satellite design and delivery capabilities, with our new MDA AURORA™ digital satellite product line, all enabled by high volume assembly, integration, and testing facilities with differentiated technologies and expertise across the full frequency spectrum. Our advanced manufacturing facilities, technologies, expertise and capacity enable us to deliver solutions and aftermarket and replacement services at a pace that we believe is faster than our competitors. They are also critical in enabling us to address next generation space-based missions for broadband communications, IoT and direct-to-device satellite communication services.

In Robotics & Space Operations, our industry-leading end-to-end technological capabilities are underscored by an established patent portfolio and extensive on-orbit operational expertise. Customers come to us seeking mission-critical solutions for advanced space applications, including space station operations, on-orbit servicing, surface infrastructure and mobility and ISAM. The introduction of MDA SKYMAKER<sup>TM</sup> also enables customers to derisk their missions with flight-tested and human-rated robotics technology not currently available from other vendors.

In Geointelligence, the technological sophistication of our integrated satellite and ground station network, combined with our value-added analytics capabilities, enables us to deliver a fully integrated EO solution to our customers. This is a key differentiator from competitors who lack a fully integrated solution. This integration allows us to provide seamless access to actionable insights in near real-time for a unique value proposition. MDA CHORUS<sup>TM</sup> is designed to enhance and ensure critical service continuity for customers.

**Agility and Scale Position Us to Serve Customers of all Levels of Size and Experience**

Our culture and organizational structure provide us with a competitive advantage over our large prime contractor competitors in terms of our ability to be responsive and to efficiently deliver solutions and products across our business areas. We believe the pace of space innovation has accelerated and that agility is critical to our customers' success. By focusing on agility, we are able to collaborate with partners to iterate quickly and achieve optimal outcomes.

We have significant scale with over 1,000,000 square feet of design, laboratories, office space, manufacturing and test facilities and the support of a supply chain of over 750 proven suppliers and subcontractors. This provides us with the engineering capabilities necessary to deliver on large and complex missions in a way that smaller, emerging space companies would be challenged to match.

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The combination of our agility and scale positions us well to service both commercial and government customers, allowing us to deliver a range of solutions from those that require customization and high-volume capabilities to those that require cost-efficient and fast delivery.

**Deep Team with a Winning Culture**

We have a highly experienced management team and workforce of over 4,000 colleagues, which provides us with the critical expertise to execute complex space missions. Our position as a recognized innovation leader in the growing space economy is an advantage in premium talent attraction and retention, as evidenced by the average tenure of our workforce. Our people embody our core values of putting the customer mission first, being exceptional, doing the right thing, always delivering and recognizing we are better together, a culture that drives successful delivery on customer missions.

**Entrepreneurial Go-to-Market Strategy**

We generate business opportunities by utilizing an entrepreneurial go-to-market strategy. We empower our business development teams and encourage them to find creative ways to support the success of our customers. For instance, we provide R&D support during proposal phases to jointly develop a mission and assist customers to obtain mission financing. This entrepreneurial strategy and ability to demonstrate our value with our customers early in the life cycles of their missions differentiates us from competitors who may have a more traditional approach.

We build on our relationships with customers to find additional opportunities to deliver mission-enabling solutions. While working closely with customers in the development phases of missions, our engineers discuss future mission ideas and proactively recommend potential solutions and enhancements to meet our customers' evolving needs. This forward-thinking approach regularly results in awards for follow-on solutions on subsequent missions.

**PEOPLE, SPECIALIZED SKILLS, AND KNOWLEDGE**

Our people are the lifeblood of our organization. As a global leader in technology and innovation, our success is linked to our ability to attract and develop a highly skilled workforce. We believe our location in Canada, our access to some of the most advanced equipment and resources available, and our commitment to growth and innovation enable us to attract and retain top talent. Our workforce comprises approximately 4,000 people throughout our operations in Canada, the United States, the United Kingdom and Israel, with these employees working across sixteen facilities in these countries.

We are committed to investing in our people and R&D to stay at the forefront of technological innovation. Our commitment to advancing innovation and R&D in Canada was again recognized in 2025, when we were ranked in the top 35 of Canada's top 100 corporate research and development spenders by *Research Infosource Inc.* for the third straight year.

**INTELLECTUAL PROPERTY**

Our portfolio of successful projects, technologies, and patents positions us well to continue our leadership role in the growing space economy.

Our substantial portfolio of intellectual property assets includes registered patents, designs, copyrights, trademarks and service marks, as well as unregistered trade secrets, know-how, data and software. We actively pursue patent protection for our innovation, advanced designs, and specialized services, with the goal of being a Canadian leader in intellectual property protection. Our current consolidated patent filing activity places MDA Space among the top wholly owned Canadian companies filing patents in Canada. We remain committed to internal development of high-tech innovation and strengthening our intellectual property position. Since MDA Space's IPO in 2021, we have increased our patent portfolio by over 400% through organic patent filings as well as strategic acquisition. Over 30% of our patent portfolio consists of granted patents, evidencing the novel and inventive nature of our technology. With our track record of

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successful development in all our business areas, we believe our portfolio of intellectual property assets and strong internal culture of intellectual property protection brings a high level of value to our customers and partners.

We rely on licenses of certain intellectual property to conduct our business operations, including certain proprietary rights to and from third parties. While our intellectual property rights in the aggregate are important to our operations, we do not believe that any particular trade secret, patent, trademark, copyright, license, or other intellectual property right is of such importance that its loss, expiration or termination would have a material effect on our business.

**RESEARCH AND TECHNOLOGY DEVELOPMENT**

We recognize that investing in R&D is vital to driving innovation and technological advancement in all aspects of the space economy. Our business depends on expanding the horizons of what is currently possible to develop new possibilities for the next generation of products and services. Our research and development expenses (after customer reimbursement for certain expenses) were $38.1 million for fiscal 2025. Combined with the capitalized development costs for new proprietary and software intangible technologies $93.3 million and Property, Plant and Equipment (PPE) Capital-in-Progress non-recurring costs associated with the design of the MDA CHORUS™ constellation $7.4 million, our overall investment in research and new technology development was $138.8 million in 2025. This investment in R&D supports each of our three business areas.

Our R&D efforts are a critical differentiator for MDA Space. *Research Infosource Inc.*, a leading research and consulting firm focused on the Canadian R&D ecosystem, ranked MDA Space in the top 35 of Canada's Top 100 Corporate R&D Spenders, based on R&D investment in fiscal 2025. We intend to continue our focus on R&D and product and service enhancements as a key strategy for innovation and growth.

**NEW PRODUCTS**

**MDA AURORA™**

**MDA SKYMAKER™**

In our Robotics and Space Operations business, MDA SKYMAKER™ is a suite of space robotics that addresses the diverse needs of our customers' most ambitious missions. MDA SKYMAKER™ is derived from Canadarm technology and provides innovative space companies with solutions based on the world's most flight-proven space robotics solutions and services, supporting a diverse range of missions including lunar surface rovers and landers, space stations, satellite servicing in all orbits, and ISAM.

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**MDA CHORUS™**

In our Geointelligence business, we continue to advance technical work on MDA CHORUS™, which will build on our RADARSAT heritage to provide continuity of services and enhanced capabilities. Expected to be the world's first commercial dual-band SAR constellation, MDA CHORUS™ will support time-critical applications such as national security, climate change monitoring and maritime surveillance by permitting faster, high-resolution data collection at any time of day and in any weather conditions. To support MDA CHORUS™, we are using breakthrough component technologies to develop updated SAR designs. This will integrate the reliability of C-band satellites with the narrowband capability of X-band satellites and onboard processing capabilities to provide one of the most extensive radar imaging capacities available on the market in one system, along with faster, higher-resolution data collection, and enhanced analytics services.

We have also unveiled a vessel detection onboard processing demonstration system ("**VDOP**") to be added to CHORUS™. The VDOP direct satellites-to-ship service offers defence and intelligence organizations rapid access to the data and insights they need to support critical and time sensitive maritime defence and security missions including countering piracy, narcotics smuggling, IUU fishing and human trafficking. The manufacturing of MDA CHORUS™ continued to be advanced throughout 2025, including the completion of the assembly of the main structure of the spacecraft and the flight software and the commencement of integration and testing of the spacecraft. We are currently targeting a launch window for MDA CHORUS™ in late 2026.

**RAW MATERIALS**

The Satellite Systems and Robotics & Space Operations businesses are involved in hardware production and therefore have increased reliance on raw materials. The Geointelligence business has minimal exposure to fluctuations in the supply of raw materials. In manufacturing our products, we use our own production capabilities as well as third-party suppliers and subcontractors.

Key raw materials used include metals such as aluminum and titanium, which are usually procured by suppliers who manufacture parts in accordance with our drawings. We also purchase materials such as: chemicals, composites, electronic, electro-mechanical, and mechanical components, subassemblies, and subsystems that are integrated with the manufactured parts for final assembly into finished products and systems. We are impacted by increases in the prices of raw materials used in production on fixed-price contracts. We monitor sources of supply to attempt to assure availability of sufficient raw materials and other supplies needed in manufacturing processes are available and, where possible, pass through cost fluctuations in raw material prices to our customers.

See "Risk Factors" for a discussion of the risks associated with the raw materials used in our business and the suppliers we engage.

**FACILITIES AND FOREIGN OPERATIONS**

Our head office is located in Brampton, Ontario. The majority of our business operates out of offices in Richmond, British Columbia, Brampton, Ontario, Montreal, Quebec and other areas of Canada. Our Canadian facilities encompass approximately 561,000 square feet of leased space and 490,000 square feet of owned space. The following table provides an overview of our facilities.

<u>British <br> Columbia</u> <u>Nova<br> Scotia</u> <u>Ontario</u> <u>Quebec</u> <u>United <br> Kingdom</u> <u>U.S.</u> <u>israel</u> <br> <u>Type<br> (Engineering /<br> Manufacturing)</u> <u>Eng</u> <u>Eng</u> <u>Eng / Mfg</u> <u>Eng / Mfg</u> <u>Eng / Mfg</u> <u>Eng</u> <u>Eng</u>

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<u>British <br> Columbia</u> <u>Nova<br> Scotia</u> <u>Ontario</u> <u>Quebec</u> <u>United <br> Kingdom</u> <u>U.S.</u> <u>israel</u> <br> <u>Leased / Owned</u> <u>Leased</u> <u>Leased</u> <u>Leased</u> <u>Leased /<br> Owned</u> <u>Leased</u> <u>Leased</u> <u>Leased</u> <br> <u>Sq. Ft.</u> <u>181,588</u> <u>22,794</u> <u>302,070</u> <u>54,613 /<br> 490,439</u> <u>37,440</u> <u>7,916</u> <u>3,025</u>

While our business operates primarily out of Canada, it also has international operations incorporating approximately 48,866 square feet of leased space in the United States, the United Kingdom and Israel. Our international facilities offer a strong supplement to our business offerings and provide inroads into both U.S. and U.K. space markets.

Within our satellite systems business, construction is nearing completion on a 185,000 square foot expansion at our satellite production facility in Sainte-Anne-de-Bellevue, Quebec. Once completed, it will be the one of the world's largest high-volume manufacturing facilities in its satellite class. This new facility is designed to be a LEED (Leadership in Energy and Environmental Design) certified building and the production line at this facility will start ramping-up operations in January 2026.

**CYCLES AND ECONOMIC DEPENDENCE**

We have not historically experienced cyclicality or seasonality in our operations. Some of our business areas are project-driven and, therefore, may vary from quarter to quarter as the result of large projects being at varying stages of completion.

A significant portion of our expected revenue over the next several years is concentrated in a relatively small number of contracts, including the contracts for Telesat Lightspeed, Canadarm3, Globalstar's LEO constellation, and Globalstar's next generation LEO Constellation. See "General Development of the Business" for a description of these contracts and "Risk Factors" for a discussion of the risks of loss, termination, breach, or reduction of services under such contracts.

**Sustainability**

One of our core values at MDA Space is to "do the right thing". We act ethically in all that we do, take ownership of our work and responsibility for the outcomes. As a core part of our business, we contribute to impactful and responsible sustainability initiatives that are important to us and our stakeholders.

**Impactful Innovation and Technology**

Through our capabilities, we play a critical role in delivering data and insights to inform decisions that protect people and the planet. We gather imagery and data that is used for environmental monitoring including natural disaster and response management, tracking ice floes and shoreline erosion, deforestation, IUU fishing, and providing maritime protection awareness.

Of the 50 Essential Climate Variables identified by the World Meteorological Organization to monitor climate change, 26 variables can only be effectively observed from space. In addition, according to the United Nations, IUU fishing is the planet's 6th largest crime, with 20% of the over 90 million tonnes of fish caught globally each year being captured illegally. We work to fight against IUU fishing every day, providing near real-time monitoring of fishing activity. Our company has worked with Canadian and international agencies for years to provide actionable maritime intelligence data that addresses dark vessel detection and supports maritime enforcement initiatives.

Our technology also supports search and rescue efforts and facilitates space-based science, such as NASA's OSIRIS-REx mission that in 2023 returned physical samples from asteroid Bennu, providing

MDA SPACE ANNUAL INFORMATION FORM 25

researchers unprecedented insight into Earth origins from roughly 4.5 billion years ago when our planet was forming.

In 2025, we continued to make steady progress to build a sustainable foundation in our organization, focused on addressing critical business risks and opportunities. See "Risk Factors" for a discussion of these business risks.

**Maintaining Sustainable Operations**

Our operations are regulated under various federal, provincial, municipal, and international laws governing the environment, including laws related to the discharge of pollutants into the soil, air and water, the management and disposal of hazardous substances and wastes, and the cleanup of contaminated sites.

Our operations comply with applicable environmental regulations, and we aim to continuously improve our environmental practices. In 2025, we scheduled third-party environmental compliance assessments for our major operations to strengthen the management of compliance activities. Additionally, we completed the company's second enterprise-wide greenhouse gas (GHG) emissions baseline assessment, submitting our data to the Carbon Disclosure Project (CDP).

**Harnessing Human Capital**

We are consistently investing in opportunities that enable all employees to reach their full potential and thrive at MDA Space. Taking action on our engagement survey feedback, we launched a series of activities, including our 'JUST ASK' initiative that is designed to support a culture of open feedback, holding more than a dozen sessions globally, led by our executive leadership team.

We also emphasized the importance of mental health, raising awareness of our benefits program with comprehensive mental health support available to employees. To promote these resources and create a community space for our employees to engage, we launched the Wellness at Work and Beyond online hub, featuring a suite of tools and services to help employees succeed, including a comprehensive list of employee benefits and numerous wellness webinars on a variety of topics including practicing resilience, self-care strategies, and improving mental health at work. In addition, we conducted a global discussion on the importance of mental health and wellness, highlighting our commitment to fostering a positive and supportive work environment that enables our employees to thrive.

Ensuring broad and inclusive hiring practices within our processes allow us to attract the best talent from a diverse pool of candidates. Operationally, to support our rapid growth while enabling a diverse candidate pool, our talent acquisition team have been certified in diversity sourcing under the Advanced Internet Recruitment Strategy (AIRS) Certified Diversity and Inclusion program. In 2025, over 240 managers across MDA Space underwent unconscious bias training, equipping them with the skills and awareness to make informed and inclusive hiring decisions. As our company expands globally, we prioritized cultural awareness training for our employees, facilitating a seamless integration of new team members into our values and culture.

**Board of Directors**

Our Board is composed of qualified professionals who have the requisite industry, financial, and commercial experience and expertise to fulfill the Board's mandate. Our current directors have a broad range of skills and experiences that have been highlighted in the director profiles skills matrix set out in our management information circular. We believe that an important part of our Board effectiveness includes the unique perspectives of our directors resulting from the combination of diverse backgrounds.

Currently, following the resignation of Alison Alfers from the Board on March 3, 2026, two of the eight directors (25%) identify as women. We have not yet adopted a written Board diversity policy; however, the Nominating & Governance Committee continuously monitors diversity on our Board, as part of our

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overall recruitment and selection process to fill Board positions, as the need arises, through vacancies, growth, or otherwise.

Additionally, the Human Resources, Development & Compensation Committee considers diversity in the appointment of executive officers and within ordinary course succession planning.

**Management**

Currently, three of seven executive officers (43%) identify as women and two out of three commercial Business Areas are led by women. In 2025 our Chief People, Culture and Transformation Officer Stephanie McDonald was named one of Canada's Best Executives by The Globe and Mail's Report on Business Magazine, reflecting an ongoing legacy of achievements in leadership excellence.

**Employees**

We have a highly educated workforce where over 80% of our employees hold bachelor's degrees and 35% also hold either a master's degrees or doctorate level degree. Within our highly technical workforce, approximately 25% identify as women. Our total workforce is made up of four different generations (Baby Boomers, X, Millennials, Z), with millennials representing approximately 40% of our total workforce.

**Health and Safety (H&S)**

With advanced manufacturing facilities in multiple operational locations, we place a high priority on health and safety ("**H&S**"). Dedicated employees in our primary manufacturing facilities in Brampton, Ontario and Montreal, Quebec actively review, revise, and monitor the implementation of H&S policies and procedures. In 2025, several focused H&S initiatives were implemented in line with the significant new investments we are making to expand and modernize our facilities. Highlights include the hiring of a global leader for Environment, Health and Safety and the formalization of an EHS management framework, which set the standards for the enterprise. Additionally, our teams continued to conduct risk assessments, update multiple H&S policies and procedures, and develop and test an updated Emergency Response Plan - all in line with the company's strategy, risk management, and in compliance with applicable laws, regulations and best practices.

**Cybersecurity**

We prioritize the effective management of cybersecurity risks through a strategy focused on identifying, assessing, and responding to cybersecurity vulnerabilities, threats, and incidents. Our primary objectives are to safeguard information assets, prevent their misuse or loss, and minimize business disruptions, through a comprehensive cybersecurity program intended to detect, analyze, contain, and address cybersecurity risk exposures, threats, and incidents.

Our Board devotes significant time and attention to information security and risk management, including cybersecurity, data privacy, and regulatory compliance. Our Audit Committee is mandated to provide cybersecurity oversight including ensuring regulatory compliance and appropriate risk management. The Board and Audit Committee periodically receive reports and presentations from management regarding our information and technology security program, which address a variety of topics, including recent developments and technological trends, evolving standards, any material findings of vulnerability assessments and third-party reviews, the threat environment, and other relevant cybersecurity considerations.

We have implemented several cybersecurity processes to manage and assess material risks, including but not limited to:

· Adoption
 of the NIST Cybersecurity Framework (CSF) developed by the National Institute of Standards
 and Technology (NIST) to guide our cybersecurity program and ensure strong governance and
 consistent processes;

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· Mandatory
 cybersecurity and information security compliance training for all employees on a regular
 basis, tracking completion and required attestations, which are designed to reinforce employee
 knowledge and culture surrounding cybersecurity risks;

· Implementation
 of third-party risk management procedures to assess third-party suppliers and vendors;

· Leveraging
 external security risk rating services to measure and monitor our IT security rating;

· Regular
 network and endpoint monitoring, including periodic vulnerability assessments and penetration
 testing;

· Tabletop
 exercises to simulate cybersecurity incident responses to identify gaps in processes and
 technologies;

· Regular
 phishing email simulations for employees and contractors to enhance awareness and responsiveness
 to possible phishing threats;

· Implementation
 of back-up systems and contingency plans in place to respond to cyber attacks and reduce
 the likelihood of disruptions to our systems; and

· An
 incident response and reporting protocol.

In 2025, we continued to enhance risk mitigation efforts to address cybersecurity and insider risks including: improving process initiatives relating to managing and monitoring, rigorous systems and network tracking, and other management systems improvements. We also implemented operational threat intelligence capabilities to ensure management and our Board have the necessary contextual information when making cybersecurity decisions.

**Governance**

We are committed to running our business ethically and responsibly and have a number of important policies to maintain our high level of business trust and integrity, including a Disclosure and Confidential Information Policy, Anti-Corruption Policy, Anti-Harassment Policy, Whistleblower Policy, Insider Trading Policy, Supplier Code of Conduct and a Code of Ethics and Business Conduct Policy. Further, we require our employees to undergo annual training on ethical standards, including sessions on Ethics & Business Conduct, Anti-Corruption and Anti-Harassment. In addition, we conduct mandatory continuous security awareness training for our current and new employees in areas such as phishing, social engineering, and data security.

**Risk Factors**

Our business is subject to a variety of risks and special considerations. As a result, prospective investors should carefully consider the risks described below and the other information included in this AIF and any information gathered as a result of the prospective investor's own independent evaluation of our business. The following summary of "risk factors" does not purport to be exhaustive or to summarize all the risks that may be associated with purchasing or owning our Common Shares. Additional risks and uncertainties not presently known to us, or that we believe to be immaterial, may impair our business. If any of the following risks actually occur, our business, financial condition, and results of operations could suffer.

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**RISKS RELATED TO OUR BUSINESS AND OUR INDUSTRY**

**Uncertain economic, political and geopolitical conditions could materially adversely affect our results of operations and financial condition.**

Customer demand for our products and services may be affected by economic and political conditions on an international and local level. For example, changes in interest rates, foreign exchange rates, the future rate of inflation, tariffs or other import and export duties and taxes, credit availability, the level of government spending, changes in the business market affecting our customers, and political decisions, including funding decisions that may impact our customers, may influence our sales, our ability to refinance our credit facilities, or our ability to access certain funding. Current or potential customers may delay, decrease or terminate spending on our products and services as their business and/or budgets are impacted by economic conditions. The inability of current and potential customers to pay us for our products and services may adversely affect our revenue, earnings, and cash flows. New economic policies, immigration policies, trade agreements, and defense strategies implemented by the United States could materially impact the Company's markets. The factors leading to, and the severity and length of, a business downturn are difficult to predict, and it is possible that we will not appropriately anticipate changes in the underlying end markets we serve. It is also difficult to predict whether any increased levels of business activity will continue as a trend into the future. Geopolitical developments and decisions, or the perception that any of them could occur, can have potentially wide-ranging consequences for global market volatility and economic conditions, and the resulting impacts could disrupt our operations and have a significant impact on our results of operations and financial position. The ongoing conflicts between Russia and Ukraine and in the Middle East, along with related sanctions and trade restrictions, create risks across the global economy. These include fluctuations in commodity prices, foreign exchange rates, supply chain disruptions, delays or cancellations of orders, deliveries or projects, and potential slowdowns in various industries. As we now operate an Israeli subsidiary, these risks may directly impact our operations, workforce safety and ability to conduct business in the region. Heightened instability could lead to increased costs, operational delays, or restrictions on cross-border transactions, which may adversely affect our results of operations and financial condition.

**Catastrophic space events, natural disasters, and other significant disruptions could materially adversely affect our results of operations and financial condition and impact our ability to effectively perform our daily operations and provide and produce our products and services.**

Our business may be materially adversely affected by the occurrence of various catastrophic natural phenomena or other significant events outside of our control. For example, the occurrence of a catastrophic space event, such as a meteor shower or a collision with space debris, or other significant disruption affecting the space stations or spacecraft that we service (including for example, the ISS or the Gateway), could have a material adverse effect on our results of operations and financial condition. In addition, orbital debris could render certain orbits unusable impacting our assets in those orbits or our ability to provide products or services in those orbits. We are also vulnerable to other natural disasters and significant disruptions, including tsunamis, floods, earthquakes, hurricanes, fires, water shortages, other extreme weather conditions, power shortages, blackouts and telecommunications failures, and business interruptions resulting from geopolitical actions, including acts or threats of war (including the ongoing conflicts between Russia and Ukraine and in the Middle East) or terrorism, international conflicts, political instability, and the actions taken by governments. Natural disasters or other disruptions could result in disruptions to our business operations or the operations of suppliers, subcontractors, distributors, or customers, destruction of facilities, economic instability, and loss of life, all of which could materially increase our costs and expenses, delay or decrease orders and revenue from our customers, result in customers terminating their contracts with us and/or have a material adverse effect on our business, financial condition, results of operations and cash flows. The availability of some of our products and services depends on the continuing operation of our satellite operations infrastructure, information technology and communications systems. Any downtime, damage to or failure of our systems

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could result in lengthy interruptions in our service, which could damage our reputation and have a material adverse effect on our financial condition and results of operations.

**Our business is subject to the policies, priorities, mandates, and funding levels of governmental entities and may be negatively or positively impacted by any changes thereto.**

Changes in government policies, priorities or regulations, funding levels through agency or program budget reductions, the imposition of budgetary constraints or the lack of government appropriations, the delay and/or deferment in governmental contract approvals or in government programs or disruptions in government operations (including shutdowns) could have a material adverse effect on our financial condition, results of operations, or future growth. Our business is dependent on governments continuing to create, support and fund the programs in which we and our customers participate. A decline or shift in governmental support and funding for such programs could result in contract terminations, delays in contract awards, the failure to exercise contract options, the cancellation of planned procurements and fewer new business opportunities, any of which could have a material adverse effect on our financial condition and results of operation. Although we have rarely experienced cancellations of previously awarded significant government contracts in the past, there can be no assurance that any contract with a government will not be terminated, reduced in scope or suspended in the future. The cancellation of, or a significant disruption to, any program that is material to our business could have a significant negative impact on our business, prospects, and profitability.

**Our contracts with customers may be terminated or suspended at any time and government contracts are frequently the subject of formal competitive bidding processes.**

Most contracts with our customers, including but not limited to government customers, are capable of being suspended by the customer or terminated for convenience at any time , or upon the provision of prior notice following an event of default. There can be no assurance that any such contracts will not be terminated or suspended in the future. Amounts payable to us under such contracts upon termination for convenience are not assured and may not be sufficient to fully compensate us for any early termination of a contract, which may impact the results of our operations and our financial condition. In addition, we may not be able to secure new contracts to offset the revenue or backlog lost as a result of any termination of customer contracts. The loss of one or more large contracts could have a material adverse impact on our business, financial condition, results of operations and cash flows.

In addition, government contracts are frequently awarded only after formal competitive bidding processes, which have been, and may continue to be, protracted and typically impose provisions that permit cancellation in the event that necessary funds are unavailable to the government agency. We may compete directly with other suppliers or align with a prime or subcontractor competing for a contract. We may not be awarded the contract if the pricing or product offering is not competitive, either at our level or the prime or subcontractor level. Competitive procurements impose substantial costs and managerial time and effort on the design, development and marketing of bids and proposals for contracts that may not be awarded to us. In many cases, unsuccessful bidders for government contracts are provided the opportunity to formally protest certain contract awards through various agencies, administrative and judicial channels. The protest process may substantially delay a successful bidder's contract performance, result in cancellation of the contract award entirely and distract management. We may not be awarded contracts for which we bid, and substantial delays or cancellation of purchases may follow our successful bids as a result of such protests.

Certain government contracts also contain "organizational conflict of interest" clauses that could limit our ability to compete for certain related follow-on contracts. There can be no guarantee that we will be able to avoid the perception of organizational conflict of interest issues when pursuing future government contracts.

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**Our business is subject to government regulation and may be negatively impacted by our ability to comply with changing regulations.**

Some areas in which we operate are subject to significant government regulation. These regulations are subject to change. Our failure to keep current and compliant with these changes could result in sanctions, financial penalties, or termination of customer contracts that may have a material adverse effect on our results of operations or limit our ability to operate in a specific market. Furthermore, we are regularly audited and reviewed by government entities and agencies in our performance of contracts with such entities. These entities review our performance under such contracts, our cost structure and compliance with applicable laws, regulations and standards, as well as the adequacy of, and compliance with, our internal control systems and policies. If an audit uncovers improper or illegal activities, we may be subject to civil and criminal penalties, sanctions, suspensions, or decreases or withholding of certain payments by the applicable government entity. In addition, we could suffer serious reputational harm if allegations of impropriety were made against us.

**Any significant disruption in or unauthorized access to our IT networks and related systems or those of third parties that we utilize in our operations, including those relating to cybersecurity or arising from cyber-attacks, could result in a loss or degradation of service, unauthorized disclosure of data, or theft of intellectual property, any of which could materially adversely impact our business.**

We face the risk of a security breach or other significant disruption of our IT networks and related systems, whether through system failures, cyber-attack or cyber intrusion via the Internet, cyber extortion (including ransomware), breaches of system security, electronic crime, software bugs or defects, malware or spyware, computer viruses, hacking, phishing, malicious code, identity theft, denial-of-service attacks aimed at causing network failures and interruptions, deliberate malfeasance of persons with access to our systems and email attachments to persons with access to our systems. Such threats may originate from a number of sources including but not limited to human error, hostile third parties including sophisticated state supported actors, and accidental technological failure. We also face the added risk of a security breach or other serious disruption of the systems that we develop and install for customers or that we develop and provide in any of our products, and those of the third parties that we utilize in our operations. As a provider of complex systems, we face a heightened risk of security breach or disruption from threats to gain unauthorized access to our partners, employees, suppliers and vendors proprietary or classified information, and our customers stored on our networks and related systems and to certain of the equipment used in a customers' network or related systems. We have in the past experienced a data breach caused by a vulnerability in a third-party application. The data breach was not material to our financial position, results of operations and/or cash flows. Since then, we migrated to a new application with enhanced protections and safeguards.

These types of information and IT networks and related systems are critical to the operation of our business and essential to our ability to perform day-to-day operations, and, in some cases, are critical to the operations of certain of our customers. There can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions will not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because attempted security breaches, particularly cyber-attacks and intrusions, or disruptions will occur in the future, and because the techniques used in such attempts are constantly evolving and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected. For example, the adoption of emerging technologies such as AI, deep fake enabled social engineering, quantum threats and use of automated techniques and the increasing use of "frontier" or cutting-edge cyber offensive techniques, require continued focus to effectively manage. We may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is virtually impossible for us to entirely mitigate this risk. A security breach or other significant disruption involving these types of information and IT networks and related systems could: disrupt the proper functioning of these networks and systems and therefore

MDA SPACE ANNUAL INFORMATION FORM 31

our operations and/or those of certain of our customers; result in the unauthorized access to, and destruction, loss, theft, misappropriation, or release of our, our customers, or suppliers' proprietary, confidential, sensitive, or otherwise valuable information, including trade secrets, which others could use to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes; compromise other sensitive government functions; damage our reputation with our customers (particularly agencies of various governments) and the public generally; drive cost hikes to maintain and upgrade technological infrastructures and systems; require remediation and incident response costs; and lead to regulatory inquiries, litigation and third party claims, and potential liability, all of which could have a material adverse effect on our results of operation, reporting capabilities, financial profitability, and reputation.

We also rely on our subcontractors and suppliers to effectively mitigate the risk of cyber and security threats to the information entrusted to them by us and our customers. We cannot guarantee the level of cybersecurity safeguards our suppliers and subcontractors maintain against possible failures to their networks and systems, including as the result of any potential cyber-attack or cyber intrusion via the Internet, cyber extortion (including ransomware), breaches of system security, electronic crime, software bugs or defects, malware or spyware, computer viruses, hacking, phishing or malicious code. Some of our suppliers and subcontractors may also be subject to an increased threat risk due to their involvement in government and defence-related contracts, which may indirectly elevate our exposure to cybersecurity risks. If our suppliers or subcontractors are the subject of cyber or other security threats or disruptions, it could have impacts on our operations or on our customers, which could result in potential terminations by our customers, either for convenience or as the result of an event of default, which could have a material adverse effect on our financial position, results of operations and/or cash flows. See the risk factor entitled "We often rely on a single supplier or a limited number of suppliers, including indirect suppliers…" below for further discussion on the possible impacts of supplier breaches.

While we maintain insurance policies that cover certain aspects of cybersecurity risks and incidents, such insurance coverage may not be adequate to cover all losses resulting from such incidents.

**Our business could be impacted by tariffs or other international trade disputes.**

Our business is subject to risks associated with doing business in foreign jurisdictions including, but not limited to, trade protection measures such as the imposition of or increase in tariffs. Future changes to trade or investment policies, treaties, international trade agreements, and tariffs imposed by other countries, or the perception that these changes could occur, could adversely affect our financial condition and results of operations. In addition, actions by foreign governments to implement further trade policy changes, including limiting foreign investment or trade, increasing regulatory scrutiny, imposing quotas or supply limitations or taking other actions which could apply to the jurisdictions in which we operate, could negatively impact our business, which may be material.

The U.S. government's current economic policy with respect to trade protection, and tariffs and the re-negotiation of The Canada-United States-Mexico Agreement (CUSMA) create additional uncertainty in the global economic outlook and the possibility of increasing input costs for companies in North America, which could lead to higher prices for our customers and reduce regional or global economic activity. In addition, any retaliatory trade measures taken by the Canadian government could result in disruptions to our supply chain and increased costs of materials and components, which could have a material negative impact on our business, customers, and suppliers.

**The loss, failure or performance degredation of RADARSAT-2 could have a material adverse effect on our results of operations and financial condition.**

The loss, failure or performance degradation of RADARSAT-2 could have a material adverse effect on our results of operations and financial condition, including revenue and EBITDA. RADARSAT-2 has surpassed its expected design life and its performance may begin to decline or stop working abruptly. RADARSAT-2

MDA SPACE ANNUAL INFORMATION FORM 32

also employs advanced technologies and sensors that are exposed to severe environmental stresses in space that could affect its performance. Generally, satellites may cease to function or their performance may be materially degraded (and those cessations may be permanent in nature) for various reasons, some of which are beyond our control, including the quality of design and construction, the supply of fuel, the expected gradual environmental degradation of solar panels, the durability of various satellite components and the orbits and space environments in which the satellites are placed and operated. Satellites have certain redundant systems which can fail partially or in their entirety and accordingly satellites can operate for extended periods with single points of failure. Hardware component problems in space could lead to deterioration in performance or loss of functionality of a satellite. The failure or substantial degradation of satellite components could cause damage to or loss of the use of a satellite before the end of its operational life. In addition, human operators may execute improper implementation commands that may negatively impact a satellite's performance.

Electrostatic storms or an unanticipated catastrophic event, such as a meteor shower or a collision with space debris, could reduce the performance of, damage or destroy RADARSAT-2 or any other satellite that may be owned and/or operated by us in the future. Additionally, in certain instances, governments may discontinue the access to or operation of a satellite for periods of time for any particular area on the Earth and for various reasons may not permit transmission of certain data, whether from a satellite owned by the government or not. We cannot offer assurances that RADARSAT-2 or any other satellite that we may own and/or operate in the future will remain in operation until the end of its expected operational life. Furthermore, we can offer no assurance that RADARSAT-2 or any other satellite will maintain its prescribed orbit.

In January of 2021, we announced that we would be building a next-generation EO commercial satellite, MDA CHORUS™, which will be a follow-on to RADARSAT-2, offering service continuity to our existing customers and expanded capabilities. However, if we suffer a partial or total loss of RADARSAT-2 prior to the deployment of MDA CHORUS™, it would significantly impact our business, prospects, and profitability. During any period of time in which RADARSAT-2 is not fully operational and has not been replaced, we may lose most, or all, revenue derived from RADARSAT-2. Our inability to repair or correct any other technical problem in a timely manner could result in a significant loss of revenue.

**A significant portion of our expected revenue over the next several years is expected to continue to be concentrated in a relatively small number of contracts. The loss or reduction in scope of any such contract or the loss of one or more of our largest customers or programs would materially reduce revenue.**

We are dependent on a relatively small number of customers for a large portion of our revenues, including but not limited to the Government of Canada, Telesat and Globalstar. In fiscal 2025, our top 10 customers accounted for 87.2% of our total revenues. A significant decrease in the sales to or loss of any of our major customers would have a material adverse effect on our business and results of operations.

Building on the Phase A contract that we received from the CSA in December 2020 to develop Canadarm3 for the Gateway mission, we received a Phase B contract from the CSA in March 2022 and a contract for Phase C and Phase D from the CSA in July 2024. The Canadarm3 will be designed and built over a five-year period and is expected to generate estimated total revenue of $1.8 billion, including 15 years of ongoing service and support revenue. Over the past three years, we have also been selected as the prime contractor for several new LEO satellite constellations, including: (i) Globalstar's constellation of 17 satellites, with options for Globalstar to purchase up to nine additional satellites valued at US$327 million (approximately C$415 million in 2022), (ii) Telesat's LEO satellite constellation Telesat Lightspeed, valued at approximately C$2.4 billion, and (iii) Globalstar's LEO satellite constellation, valued at approximately US$750 million (approximately C$1.1 billion).

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The loss or termination of, or a breach or reduction of services under, any of these or any other material customer contracts could have a material adverse effect on our business, financial condition and results of operations. It is also possible that these contracts may be terminated by the counterparty at any time for convenience. Amounts payable to us under such contracts upon termination for convenience are not assured and may not be sufficient to fully compensate us for any early termination of a contract, which may impact the results of our operations and our financial condition. In addition, our expectations for future renewals of, and other opportunities arising from, these contracts may prove to be incorrect. There can be no assurance that such renewals or opportunities will materialize. Various factors may affect the performance, duration and renewal of these contracts, including changes or shifts in government policies, priorities or funding levels or budgets in respect of these programs and the other risk factors described hereunder. Should these contracts not be renewed at expiry, cancelled or terminated by customers or should a competitor win the renewal, our future revenue stream and overall profitability could be significantly reduced.

In addition, certain of our revenues are largely dependent upon the ability of customers to develop and sell products or services that incorporate our products or services. No assurance can be given that our customers will not experience financial, technical or other difficulties that could adversely affect their operations and, in turn, our results of operations.

**Certain commercial satellite customers are highly leveraged or not fully funded and may not fulfill their contractual payment obligations, including repayment obligations if vendor financing is provided.**

We have certain commercial customers that are either highly leveraged or are in the development stages and may not be fully funded. There is a risk that these customers will be unable to meet their payment obligations under their contracts. In the event that any of our customers encounter financial difficulties, our cash flows and liquidity may be materially and adversely affected.

Pursuant to certain satellite contracts, we may be required to provide vendor financing to or on behalf of our customers, including guarantees or a combination of these contractual terms. To the extent that we provide vendor financing to or on behalf of our customers, our financial exposure is further increased. In some cases, these arrangements are provided to: (i) customers that are new companies; (ii) companies in the early stages of building new businesses; or (iii) highly leveraged companies, and in some cases, with near-term debt maturities. These companies or their businesses may not be successful and accordingly, they may not be able to fulfil their payment obligations under their contracts.

**Failure to successfully implement our growth strategy could reduce, or reduce the growth of, our revenue and net income.**

The successful implementation of our growth strategy could depend on various factors, including:

· competition
 in current and future markets;

· general
 economic, business and regulatory conditions;

· government
 agencies and other third parties continuing to implement programs and missions on anticipated
 terms and timelines;

· ability
 to respond rapidly to technological change; and

· the
 quality of new products.

Failure to successfully implement our growth strategy could reduce, or reduce the growth of, our revenue and net income and adversely affect our business, financial condition, and results of operations. See "Description of the Business – Growth Strategy" above for a discussion of these strategies.

MDA SPACE ANNUAL INFORMATION FORM 34

**We often rely on a single supplier or a limited number of suppliers, including indirect suppliers. The inability of these key suppliers to meet our needs and compliance requirements could have a material adverse effect on our business.**

We rely on other companies to provide major components for our products and services. Historically, we have contracted with a single supplier or a limited number of suppliers to provide certain key products or services, such as construction of launch vehicles. In addition, our manufacturing operations depend on specific technologies and companies for which there may be a limited number of alternative suppliers. If these suppliers are unable to meet our needs, are unable to match new technological requirements or problems, or are unable to dedicate engineering and other resources necessary to provide the services or products at the volume required, our business, financial position and results of operations may be adversely affected. In addition, changes in economic conditions, including changes in government budgets or credit availability, or other changes impacting a supplier (including changes in ownership or operations) could adversely affect the financial stability of our suppliers and/or their ability to perform. While alternative sources for most of these products, services, and technologies may exist, we may not be able to identify these alternative sources quickly and cost-effectively, which could materially impair our ability to operate our business. In some cases, there may be only one supplier for certain components or the provision of certain services. If a sole-source supplier cannot meet our needs or is otherwise unavailable, we may be unable to find a suitable alternative. There is also an ongoing risk of consolidation of suppliers within our industry, which may reduce competition and increase the costs of products and materials.

Deficiencies in the performance of our subcontractors and/or suppliers could result in increased costs or delays to a program, liquidated damages or our customers terminating their contract with us, including for convenience where delays do not trigger a termination for default right under the customer's contract, or for material breach where the subcontractor or supplier's performance has caused the Company to default under its customer contract. A termination for default could expose us to liability and adversely affect our financial performance and our ability to win new contracts. Suppliers are in most cases also selected through a competitive bid or negotiated process. Where applicable, major development subcontracts are established as firm fixed price contracts, generally with liquidated damages or other penalties for non-performance. However, some suppliers have limitations or exclusions from certain liabilities. We cannot protect ourselves against all potential failures or breaches by subcontractors, particularly those related to financial insolvency of the subcontractors, cost overruns by subcontractors, or cybersecurity risks caused by the actions of third-party subcontractors. In addition, a significant price increase in those subcontracts which are not firm fixed price, delays in performance, a subcontractor's failure to perform or the inability to obtain replacement subcontractors at a reasonable price, could have a material adverse effect on our business, results of operations and financial condition.

We also rely on indirect suppliers and such dependence also poses an oversight risk. While direct suppliers must comply with our standard contract terms and conditions, which are designed to uphold our legal and ethical standards, we cannot guarantee compliance from indirect suppliers. Violations of applicable laws and regulations or our business standards or cybersecurity events may not be reported in a timely matter, prolonging non-compliance. Continued violations may negatively impact our business and reputation and may result in certain fines and penalties.

**Disruptions in the supply of key raw materials or components and difficulties in the supplier qualification process, as well as increases in prices of raw materials, could have an adverse impact on operating results, financial condition, or cash flows.**

Many raw materials, major components, and product equipment items we use are procured or subcontracted on a single or sole-source basis. It is difficult to predict what effects shortages or price increases in raw materials, components and product equipment items may have in the future due to inflation or other factors. Our ability to manage inventory and meet delivery requirements may be

MDA SPACE ANNUAL INFORMATION FORM 35

constrained by our suppliers' inability to scale production and adjust delivery of long-lead time products during times of volatile demand, or if sole-source suppliers are unable to meet our supply needs. Our inability to fill our supply needs would jeopardize our ability to fulfill obligations under commercial and government contracts, which could, in turn, result in reduced sales and profits, contract penalties or terminations, and damage to customer relationships and could have a material adverse effect on our operating results, financial condition, or cash flows.

Key raw materials used in our operations include metals such as aluminum and titanium, which are usually procured by suppliers who manufacture parts in accordance with our drawings. We also purchase materials such as chemicals, composites, electronic, electro-mechanical, and mechanical components, subassemblies, and subsystems that are integrated with the manufactured parts for final assembly into finished products and systems. We are impacted by increases in the prices of raw materials used in production on fixed-price contracts.

We monitor sources of supply to attempt to ensure that adequate raw materials and other supplies needed in manufacturing processes are available. Difficulty completing qualification of new sources of supply, implementing use of replacement materials, components or new sources of supply, or a continuing increase in the prices of raw materials, energy or components could have a material adverse effect on our operating results, financial condition, or cash flows.

**We operate in highly competitive industries and in various jurisdictions across the world which may cause us to have to reduce our prices.**

We operate in highly competitive industries and some of our current or future competitors may have superior technologies or greater financial and other resources. The pace of technological innovation, including the continued evolution of artificial intelligence and machine learning capabilities, may also create new and unanticipated competitors that are able to offer competing products at lower costs or may lead to unanticipated changes in the needs of our customers. In addition, some of our foreign competitors currently, or may in the future, benefit from enhanced protective measures by their respective home country's government providing increased financial support, including significant investments in the development of new technologies. Government support of this nature greatly reduces the commercial risks associated with satellite development activities for these competitors. This market environment and the pace at which our industry is evolving may result in increased pressures on our pricing and other competitive factors. The Canadian competitive landscape may change for a number of reasons, including but not limited to the increased consolidation of the space industry, and it is possible that a new space prime contractor in Canada will emerge over time. Furthermore, government agencies may at any time decide to perform similar work to our services, either for themselves or for other government agencies, effectively competing with us.

Our competitors or potential competitors could, in the future, offer products and services with more attractive features, capabilities and technologies, or at lower prices, than our products and services. For example, the emergence of new remote imaging technologies or the continued growth of low-cost imaging satellites, could negatively affect our marketing efforts. Due to competitive pricing pressures, such as new product introductions by our competitors or other factors, the selling price of our products and services may further decrease. If we are unable to offset decreases in our average selling prices by increasing our sales volumes or by adjusting our product mix, our revenue and operating margins may decline and our financial position may be harmed.

**We may not be successful in developing new technology and the technology we succeed in developing may not meet the needs of our customers or potential new customers or achieve market acceptance.**

The markets in which we operate are characterized by changing technology and evolving industry standards. We have derived, and we expect to continue to derive, a substantial portion of our revenues

MDA SPACE ANNUAL INFORMATION FORM 36

from providing innovative engineering services and technical solutions that are based upon today's leading technologies and are capable of adapting to future technologies. For example, the Canadarm3, Globalstar and Lightspeed constellations and MDA CHORUS™ all involve the development of leading edge, next generation technologies in their respective areas. Advances in technology may impact future demand for the products and systems we offer. Consequently, we need to invest in technology to meet our customers' changing needs. Technological development and research are expensive and require long lead time. We may not be successful in identifying, developing and marketing products or systems that respond in time to rapid technological change, evolving technical standards and systems developed by others, and changing customer preferences. Our competitors may develop technology that better meets the needs of our customers. If we do not continue to develop, manufacture, and market innovative technologies or applications that meet customers' requirements in a timely and cost-effective way, sales may suffer and our business may not continue to grow in line with historical rates or at all. If we are unable to achieve sustained growth, we may be unable to execute our business strategy, expand our business or fund other liquidity needs and our business prospects, financial condition and results of operations could be materially and adversely affected.

We may experience design, manufacturing, marketing and other difficulties that could delay or prevent the development, introduction or acceptance of new products, systems and enhancements. There can be no assurance that we will be able to anticipate and achieve the technological advances necessary to remain competitive and profitable, that new products or systems will be developed and manufactured on schedule or on a cost-effective basis, or that our existing products or systems will not become technologically obsolete. Our failure to accurately predict the needs of current and prospective customers, and to develop products, systems or enhancements that address those needs and gain market acceptance, may result in the loss of current customers or the inability to secure new customers. To the extent that we adopt new technologies and introduce new solutions, we may face additional risks, such as increased R&D expenses, new data security risks, and lack of personnel with relevant experience.

We have invested and may continue to invest significant resources in our R&D efforts. However, there can be no assurance that our investments will lead to successful new technologies or products. If our R&D efforts are unsuccessful, we will not be able to recover the costs incurred. Results of R&D investments may be impacted negatively by products that are not accepted in the market, the changing demands of customers, and delays in obtaining regulatory approvals.

We cannot accurately predict whether our products and services will achieve significant market acceptance or whether there will be a market for our products and services on terms we find acceptable. Market acceptance of our products and services depends on a number of factors, including the quality, scope, timeliness, sophistication, price and the availability of substitute products and services. Lack of significant market acceptance of our offerings, delays in acceptance, failure of certain markets to develop or our need to make significant investments to achieve acceptance by the market would negatively affect our business, financial condition. and results of operations. If we are unable to achieve sustained growth, we might be unable to execute our business strategy, expand our business, or fund other liquidity needs and our business prospects, financial condition, and results of operations could be materially and adversely affected.

**Our revenue, results of operations and reputation may be negatively impacted if our products contain defects or fail to operate in the expected manner.**

We sell complex and technologically advanced space systems, products, hardware and software that can contain defects in design, manufacture and software implementation. The sophisticated software we develop may contain defects that can unexpectedly interfere with the software's intended operation. Defects may also occur in components and products that we purchase from third parties. In addition, many of our products must function under demanding and unpredictable operating conditions and in harsh and potentially destructive environments. We employ sophisticated design and testing processes

MDA SPACE ANNUAL INFORMATION FORM 37

and practices which include a range of stringent factory and on-site acceptance tests with criteria and requirements jointly developed with our customers. However, there can be no assurance that our products will be successfully implemented, will pass required acceptance criteria, or will operate or will provide the desired outputs or other results. We may also agree to the in-orbit delivery of services, adding further risks to our ability to perform under the contract due to defects or complications that may occur in the delivery process. Failure to achieve successful in-orbit delivery of such products could result in significant penalties, revenue impacts, and other obligations. Despite testing, our products have at times contained defects and errors and may in the future contain defects or errors, or experience performance problems when first introduced, when new versions or enhancements are released, or even after these products have been used by our customers for a period of time. These problems could result in expensive and time-consuming design modifications, delays in the introduction of new products or enhancements, significant increases in our service and maintenance costs, and diversion of our personnel's attention from our product development efforts. There can be no assurance that we will be able to detect and fix all defects in the products, hardware and software we sell or resolve any delays or availability issues in the launch services we procure. Failure to do so could result in lost revenue, harm to reputation, and significant warranty and other expenses, and could have a material adverse impact on our financial condition and operating results. In addition, a failure with respect to any satellite may adversely affect the perception by our customers of the quality of our products and may materially and adversely affect our ability to win new awards of contracts.

**We may have potential contractual liability for errors or defects in our products or systems.**

As described above, there is a risk that our products and services may contain errors or defects or fail to perform as intended. While we strive to contractually limit liability for damages arising from our provision of products and services, such limitations of liability may not have been included in all of our past contractual arrangements or sales nor may any such limitations of liability be at levels that if incurred, would not have an adverse effect on our operating results and financial condition. Additionally, where such limitations have been included, there can be no assurance that they will be enforceable in all circumstances or in all jurisdictions or that they otherwise will protect us from liability for any claims or damages except as any insurance coverage applies. Furthermore, the existence of defects, errors or failures in our products or services could lead to litigation against us, which, regardless of contractual terms, could result in substantial cost, divert management's attention and resources from our operations, and result in negative publicity that may impair our ongoing marketing efforts. Our product liability insurance (covering risk of property damage and personal injury), errors and omissions insurance, and warranty limitations in our contracts may not cover any or all of the potential claims brought against us.

**We are dependent on our ability to attract, train and retain employees. Our inability to do so, or the loss of key personnel, would cause serious harm to our business.**

Our growth and success are largely dependent on the abilities and experience of our executive officers and other highly qualified personnel. We continue to improve our talent acquisition team and associated systems, and to bring processes and systems together to identify, recruit, onboard, and integrate new talent on a continual basis. We rely on our senior management to generate business and execute programs successfully, and in order to maintain our ability to compete, we must continuously retain the services of a core group of specialists in a wide variety of disciplines. In addition, some projects require a significant number of highly skilled personnel. Competition for highly skilled management and technical, research and development and other personnel is intense in our industry. In addition, there has been an increase in wage inflation. We may not be able to retain current executive officers or key personnel or attract and retain additional executive officers or key personnel as needed to deliver on our corporate strategy. As a result, we may experience difficulties in project execution, which could have a material adverse impact upon our growth, operations and profitability. We will also need to increase hiring if we are not able to offset our attrition rate through current recruiting and retention policies. To the extent that the demand for qualified personnel exceeds supply, we could experience higher labour, recruiting, or training costs in

MDA SPACE ANNUAL INFORMATION FORM 38

order to attract and retain such employees or could experience difficulties in performing under contracts if our need for such employees is unmet. If we are not successful in hiring and retaining qualified engineers and other personnel, future product development efforts could be adversely affected, and we may be unable to implement our growth strategy.

**We are subject to inflation risk.**

Global economies recently experienced elevated inflation, which curtailed levels of economic activity, including in our primary markets. The general rate of inflation impacts the general economic and business environment, which in turn has an impact on our business. The imposition of higher interest rates could negatively impact our business, financial condition and results of operations. There can be no assurance that any governmental action will be taken to control inflationary or deflationary cycles, that any governmental action taken will be effective or whether any governmental action may contribute to economic uncertainty. Governmental action to address inflation or deflation may also affect currency values. Higher interest rates as a result of inflation could negatively impact future borrowing costs or make debt financing less attractive, which could in turn have a material adverse effect on our cash flow and ability to service debt obligations.

**Some of our workforce and our suppliers' workforces are represented by labour unions, which may lead to work stoppages.**

Approximately 55% of our total workforce are represented by labour unions as of the date of this AIF. We may experience work stoppages organized by labour unions, which could adversely affect our business. To date, we have not experienced any work stoppages which have had a significant impact to our business. While we have historically maintained positive relationships with labour unions, we cannot predict how stable our relationships with labour unions will be or whether we will be able to meet any labour unions' requirements without impacting our financial condition. On renewal, collective bargaining agreements could call for higher wages or benefits paid to union members, which would increase our operating costs. The labour unions may also limit our flexibility in dealing with our workforce. We can also be affected by labour union actions at our suppliers. Work stoppages and instability in our relationships with labour unions could delay the production and/or development of our products, which could strain relationships with customers and cause a loss of revenues which would adversely affect operations. The renegotiation of any collective agreements presents a risk of labour disruption if we are not able to satisfactorily renegotiate such agreements. There is no guarantee that we will be able to renegotiate agreements with the labour unions at all or on favourable terms.

**We cannot determine with certainty whether our technology may infringe the proprietary rights of third parties.**

A number of competitors and third parties have been issued patents and may have filed patent applications or obtained additional patents and proprietary rights for technologies similar to those used in our services and solutions. Some of these patents may grant very broad protection to the owners of the patents. Due to the broad nature of certain patents, we cannot determine with certainty whether any existing third-party patents or the issuance of any third-party patents would require us to alter our technology, obtain licenses or cease certain activities.

We may become subject to claims from third parties that software and other forms of intellectual property that we use in delivering services and solutions to our customers infringe upon intellectual property rights of such third parties. We use software modules and other intellectual property in our satellites systems and products, which use or incorporate licensed software components and other licensed technology. We have no control over the third parties that develop these components, and we have no assurance that those components or the combination that they are used, do not infringe upon the intellectual property rights of others. We could be exposed to infringement claims and liability in connection with the use of those software or technology components. We may be forced to replace

MDA SPACE ANNUAL INFORMATION FORM 39

those components with internally developed, purchased or other licensed software or technology, pay royalties or be liable to indemnify our customers on the use of the software components, or suffer loss of business due to outstanding intellectual property infringement legal claims.

It is also possible that we may infringe current or future third-party patents or third-party trade secrets. In the event of infringement, we could be required to pay royalties or damages and/or obtain a license from the rights holder, refund money to customers for components that are not useable or redesign our products to avoid infringement, all of which would increase our costs. We could also be subject to injunctions prohibiting us from using components or methods. We may also be required under the terms of our customer contracts to indemnify our customers for damages relating to infringement. Any claim of infringement could result in substantial costs incurred defending against the claim, even if the claim is invalid and could distract management from other business.

**Our use of open-source software may expose us to additional risks and harm our intellectual property.**

Our services and solutions make use of and incorporate so-called "open-source" software components. These components are developed by third parties that we do not have control over. We have no assurances that those components do not infringe on the intellectual property rights of others. In addition to risks related to license requirements, usage of open-source software can lead to greater risks, including potential cybersecurity vulnerabilities, than use of third-party commercial software, as some open-source licensors do not provide warranties or controls on the origin of the software. Additionally, open-source licenses typically require that source code subject to the license be made available to the public and that any modifications or derivative works to open-source software continue to be licensed under open-source licenses. These open-source licenses typically mandate that proprietary software, when combined in specific ways with open-source software, become subject to the open-source license. If we combine our proprietary software with open-source software, we could be required to release the source code of our proprietary software, including to our competitors.

We could be exposed to infringement claims and liability regarding the use of those open-source software components, and we may be forced to replace those components with internally developed software or software obtained from another supplier, which may increase our expenses. The developers of open-source software are usually under no obligation to maintain or update that software, and we may be forced to maintain or update such software ourselves or replace such software with internally developed software or software obtained from another supplier, which may increase our expenses. Making replacements could also delay enhancements to our services and solutions.

There is little or no legal precedent governing the interpretation of many of the terms of these licenses. An incorrect determination as to whether a combination is governed by these provisions will result in non-compliance with the terms of the open-source license. Such non-compliance could result in the termination of our license to use, modify and distribute copies of the affected open-source software.

**Our intellectual property may be misappropriated or infringed upon by third parties.**

To protect our proprietary rights, we rely on a combination of patent protections, copyrights, trade secrets, trademark laws, confidentiality agreements with employees, independent contractors and third parties, and protective contractual provisions such as those contained in license agreements with consultants, subcontractors, vendors and customers. There can be no assurance that the steps taken to protect our technology will prevent misappropriation or infringement. An infringement or misappropriation could harm any competitive advantage we currently derive or may derive from our proprietary rights. In addition, any changes in, or unexpected interpretations of, intellectual property laws may compromise our ability to enforce our trade secret and intellectual property rights. Our patents include those relating to communications, robotics, power control systems, antennas, filters and oscillators, phased arrays and

MDA SPACE ANNUAL INFORMATION FORM 40

thermal control as well as assembly and inspection technology. Our patents expire at various times. There is a risk that competitors could challenge or infringe our patents.

Litigation may be necessary to enforce or protect our intellectual property rights, our trade secrets or determine the validity and scope of the proprietary rights of others. Such litigation may be time-consuming and expensive to prosecute or defend and could result in the diversion of time and resources. In addition, competitors may design around our technology or develop competing technologies, or others may independently discover our trade secrets and proprietary information, and in such cases we could not assert any trade secret rights against such parties. The loss of trade secret protection could make it easier for third parties to compete with our services by copying functionality. If we do not obtain sufficient protection for our intellectual property, or if we are unable to effectively enforce our intellectual property rights, our competitiveness could be impaired, which would limit our growth and future revenue.

**We are dependent on data and systems and cannot prevent all possible errors or threats.**

We maintain, at various locations, databases of information and systems infrastructure. Such systems are required to be available without interruption on a continuous basis to meet contractual service level obligations, and to ensure our communications, data, and operational needs are met. System security network threats are frequent, and mechanical or software errors may cause system corruption or failure. In addition, the databases are subject to similar security threats and data corruption or loss may occur as a result of such security threats or malfunction of software or hardware. Errors in data could lead to significant liability if our customers relied on such incorrect data. Although we provide for redundancy, disaster recovery, tested systems, and network security, such systems and procedures may not operate as expected and cannot prevent all possible errors or threats.

**Certain of the products we offer are dependent on data supplied by third parties.**

Certain of the products we offer rely on data supplied by third parties. Contracts for data supply normally have provisions which permit either party to terminate the agreement in the event of a breach by the other party. There may, however, be costs associated with a breach of such contracts and the acquisition of software and/or data to be provided in our products. In the event that any of such contracts are terminated, or a data provider is not otherwise able to provide data, we may experience delays in obtaining data from alternative sources which may affect our operations or financial condition. We also source data from various third parties without formal contracts applying to such transactions. There can be no assurance that we will be able to continually acquire data from all government or other sources at a cost that permits us to realize a profit. If we are unable to protect sensitive information, our customers and governmental authorities could question the adequacy of our threat and error mitigation and detection systems and procedures. The costs related to system security network threats and disruptions may not be fully insured or indemnified by other means. Any occurrence of these events could have a material adverse impact on our operations, reputation, competitive advantages and financial condition.

**The growth of Artificial Intelligence ("AI") introduces complex risks and competitive pressures.**

Technological advancements, including the adoption of disruptive technologies such as AI, present both opportunities and risks. These risks require continued monitoring and investment to manage. The use of AI-generated data may disrupt our business by generating incorrect or incomplete information and we could be exposed to cybersecurity and privacy-related incidents. Such incidents may lead to remediation and incident response costs, in addition to causing reputational harm. As well, the use of AI may raise ethical concerns, which are the subject of increased legal and regulatory scrutiny. Compliance with the changing legal landscape of AI may also lead to direct and indirect costs being incurred.

We may also be negatively impacted if we cannot successfully integrate emerging AI with both our existing business processes, tools, and data systems. In particular, third parties and competitors that are able to more efficiently and successfully integrate AI into their operations and/or products could prevent us from competing effectively. In addition to the costs of managing risks associated with the growth of AI, we may

MDA SPACE ANNUAL INFORMATION FORM 41

need to divert resources and management's attention to successfully capitalize on our AI investments, which may lead to unexpected consequences in other parts of the business.

**Our business is subject to various regulatory risks that could adversely affect our operations.**

The environment in which we operate is highly regulated due to the sensitive nature of the complex and technologically advanced systems, products, hardware, and software, in addition to those regulations broadly applicable to publicly listed corporations. There are numerous regulatory risks that could adversely affect operations, including but not limited to:

· <u>Export Restrictions</u>. Certain of the systems, products, services, and technologies we have developed
 require the implementation or acquisition of products or technologies from third parties,
 including those in other jurisdictions. In addition, certain of our systems, products, services
 or technologies may be required to be forwarded or exported to other jurisdictions. In certain
 cases, if the use of the technologies can be viewed by the jurisdiction in which that supplier
 or subcontractor resides as being subject to export constraints or restrictions relating
 to national security, we may not be able to obtain the technologies and products that we
 require from subcontractors who would otherwise be the preferred choice or may not be able
 to obtain the export permits necessary to transfer or export technology. To the extent that
 we are able, we obtain pre-authorization for re-export prior to signing contracts, which
 requires us to export subject technologies, including specific foreign government approval
 as needed. In the event of export restrictions, we may have the ability through contract
 force majeure provisions to be excused from our obligations. Notwithstanding these provisions,
 the inability to obtain export approvals, export restrictions or changes during contract
 execution or non-compliance by customers could have an adverse effect on our revenues and
 margins.

· <u>Government Approval Requirements</u>. For certain aspects of our business operations, we are required
 to obtain government licenses and approvals and to enter into agreements with various government
 bodies in order to export satellites and related equipment, to disclose technical data, or
 to provide defence services to foreign persons. The delayed receipt of or the failure to
 obtain the necessary government licenses, approvals or agreements or certain employees maintaining
 appropriate security clearances may prohibit entry into or interrupt the completion of contracts
 which could lead to a customer's termination of a contract for default, monetary penalties,
 and/or the loss of incentive payments. The operation of certain systems, such as satellites
 or other devices, which are or will be operated by us, require regulatory approvals, such
 as those relating to licences and communication frequencies. In certain circumstances, third
 parties may be required to obtain such approvals or licences. There can be no assurance that
 the approvals or licences will be obtained by either us or third parties on a timely basis
 or retained for continuous operations. A failure to obtain the necessary approvals or licences
 could materially adversely affect our results of operations and financial condition.

· <u>Anti-Corruption Laws</u>. As part of the regulatory and legal environments in which we operate, we are subject
 to global anti-corruption laws that prohibit improper payments directly or indirectly to
 government officials, authorities or persons defined in those anti-corruption laws in order
 to obtain or retain business or other improper advantages in the conduct of business. Our
 policies and Supplier Code of Conduct also mandate compliance with anti-corruption laws.
 We may from time to time engage agents and other third parties in various jurisdictions in
 connection with our contracts and operations in those jurisdictions. While we have measures
 in place to select and oversee such agents and third parties, we cannot control or monitor
 all activities of such agents and third parties. Failure by our employees, agents, subcontractors,
 suppliers, and/or partners to comply with anti-corruption laws could impact us in various
 ways including, but not limited to, criminal, civil, and administrative fines, legal sanctions,
 and/or the inability to bid for or enter into contracts with certain entities, all of which
 could have a significant adverse effect on our reputation, operations and financial results.

We rely on our subcontractors and suppliers to comply with applicable laws and regulations. In some circumstances, we rely on certifications and/or contractual commitments provided by subcontractors and suppliers regarding their compliance. If our subcontractors or suppliers do not comply with all

MDA SPACE ANNUAL INFORMATION FORM 42

applicable laws and regulations or if the certifications received from them are inaccurate or they breach their contractual commitments, it could have a material adverse effect on our financial position, results of operations and/or cash flows.

**Our operations are subject to governmental laws and regulations relating to environmental matters, which may expose us to significant costs and liabilities that could negatively impact our financial condition.**

We are subject to various federal, provincial, state and local environmental laws and regulations relating to the operation of our businesses, including those governing pollution, the handling, storage, disposal and transportation of hazardous substances, and the ownership and operation of real property. Such laws and regulations may result in significant liabilities and costs and the loss of permits required to conduct certain operations. There can be no assurance that a failure to comply with such laws and regulations would not have a material adverse effect on our business in the future. The regulatory bodies in charge of environmental matters may conduct periodic compliance reviews. If we receive any notice of non-compliance, or any containment, mitigation or remedial order, we may be required to commit financial and technical resources we deem necessary, including outside consultants, to develop action plans in accordance with the requirements of the various jurisdictions within which we operate. In addition, new laws and regulations, more stringent enforcement of existing laws and regulations or the discovery of previously unknown contamination could result in additional costs.

**Our international business exposes us to risks relating to increased regulation, and political or economic instability in foreign markets, which could adversely affect our revenue.**

For the year ended December 31, 2025, approximately 37.4% of our revenue was derived from non-Canadian sales, and we intend to continue to pursue international contracts. Conducting and launching operations on an international scale requires close coordination of activities across multiple jurisdictions and time zones and consumes significant management resources. International operations are also subject to certain risks, such as: changes in domestic and foreign governmental regulations and licensing requirements; deterioration of relations between Canada and a particular foreign country; increases in tariffs and taxes and other trade barriers; foreign currency fluctuations; changes in political and economic stability in the countries in which we conduct business; effects of austerity programs or similar significant budget reduction programs; potential preferences by prospective customers to purchase from local (non-Canadian) sources; new and different sources of competition; the costs of complying with a variety of Canadian, U.S. and international laws and regulations; difficulties in managing and staffing international operations, including differences in labour laws; reduced or varied protection for intellectual property rights in some countries; the complexity and necessity of using foreign representatives and consultants; the inability to obtain required Canadian, U.S. or foreign country export licenses; and difficulties in obtaining or enforcing judgments in foreign jurisdictions.

In addition, our international contracts may include industrial cooperation agreements requiring specific in-country purchases, investments, manufacturing agreements or other financial obligations, known as offset obligations, and provide for penalties if we fail to meet such requirements. The impact of these factors is difficult to predict, but one or more of them could adversely affect our financial position, results of operations, or cash flows.

**Employees or others acting on our behalf may engage in misconduct or other improper activities, which could cause us to lose contracts or incur costs.**

We are exposed to risks from misconduct by employees, agents or other insiders. Such misconduct could include intentional failures to comply with government procurement regulations, engaging in unauthorized activities or misappropriating company property, insider threats to our cybersecurity, or falsifying time records. Misconduct by employees or others acting on our behalf could also involve the improper use of customers' sensitive or classified information, which could result in regulatory sanctions, serious harm to

MDA SPACE ANNUAL INFORMATION FORM 43

our reputation, a loss of contracts and a reduction in revenues, or result in incurred costs to respond to any related governmental inquiries. Particularly, the increasing size of our operations and activities raise the possibility that a member of our personnel will engage in fraudulent activity, breach our contractual obligations, or otherwise expose us to business risks. It is not always possible to deter misconduct, and the precautions we take to prevent and detect this activity may not be effective in controlling unknown or unmanaged risks or losses, which could cause us to lose contracts or cause a reduction in revenues. In addition, alleged or actual misconduct by employees or others acting on our behalf could result in investigations or prosecutions of persons engaged in the subject activities, which could result in unanticipated consequences or expenses and management distraction regardless of whether it is alleged we have any responsibility.

We may experience such misconduct despite our various compliance programs. Misconduct or improper actions by our employees and agents, or the employees or agents of subcontractors, suppliers, business partners, and/or joint ventures could subject us to administrative, civil, or criminal investigations and enforcement actions, monetary and non-monetary penalties, liabilities, and the loss of privileges and other sanctions, including suspension and debarment, which could negatively impact our reputation and ability to conduct business and could have a material adverse effect on our financial position, results of operations and/or cash flows.

**We may not be able to successfully consummate or integrate acquisitions, which may harm our ability to develop and grow our business and operations.**

We have in the past and may continue to expand our operations and business by acquiring additional businesses, products, or technologies. There can be no assurance that we will be able to identify, acquire, obtain the required regulatory approvals, or profitably manage additional businesses or successfully integrate any acquired businesses, products, or technologies without substantial expenses, delays, or other operational, regulatory, or financial problems. Furthermore, acquisitions may involve a number of additional risks, including diversion of management's attention, failure to retain key personnel, unanticipated events or circumstances, or unidentified pre-closing liabilities and other legal liabilities, some or all of which could have an adverse effect on our business, results of operations, and financial condition. In addition, there can be no assurance that acquired businesses, products or technologies, if any, will achieve expected synergies or anticipated revenues and income growth. Acquisitions could also result in potentially dilutive issuances of equity securities. Our failure to manage our M&A strategy successfully could have a material adverse effect on our business, results of operations, and financial condition.

**We may be subject to ongoing liabilities in connection with divestitures.**

If we are divesting certain parts of its businesses, we may not be able to obtain releases from counterparties under contracts for such divested businesses and may be required to provide indemnities to third parties or the purchaser with respect to such divested businesses. We will have little control over any divested businesses and may be called on to perform under contracts or indemnities without control. There can be no certainty that we will be indemnified by a purchaser for these continuing obligations. These obligations could result in liability payment of damages and costs and penalties related to non-performance of a contract. The sale agreement for a divested business may contain indemnification provisions pursuant to which we may be required to indemnify the purchaser of the divested business for liabilities, losses, or expenses arising out of breaches of covenants and certain breaches of representations and warranties (including breaches of representations and warranties stated to be based on the knowledge of specified persons) relating to the condition of the divested business prior to and at the time of sale. There is a possibility that other facts may become known in the future, and we may be subject to claims for additional liabilities or expenses beyond those presently anticipated and provided for. In addition, a purchaser may make allegations relating to disclosures made to it as part of any sale process, in addition to any contractual obligations that we may have to the purchaser. We may also not

MDA SPACE ANNUAL INFORMATION FORM 44

be able to invest or utilize the net proceeds realized in the divestiture of a business, in a manner to achieve the same return that had been historically realized by the divested business. Any action taken against us on any continuing obligations related to a divested business, any claim of a material amount under any indemnity, and the inability to utilize the net proceeds of a divestiture in a manner that maximizes our return could have a material adverse effect on our business and results of operations.

**We have significant goodwill and identifiable intangible assets recorded on our balance sheet which may be subject to impairment losses that would reduce our reported assets and earnings.**

Identifiable intangible assets and goodwill, arising from acquired businesses, comprise a substantial portion of our total assets. At December 31, 2025, our total assets were $3,356.2 million, of which $800.4 million, or 23.8% was goodwill and $876.7 million, or 26.1%, was identifiable intangible assets. Economic, legal, regulatory, competitive, contractual and other factors may affect the value of goodwill and identifiable intangible assets. If any of these factors impair the value of these assets, accounting standards require us to reduce their carrying value and recognize an impairment charge, which would reduce our reported assets and earnings in the year the impairment charge is recognized. Goodwill is tested for impairment annually, or whenever events or changes in circumstances indicate that our carrying amount may be less than our recoverable amount. Our intangibles are all finite lived intangible assets, and as a result, are required to be tested for impairment whenever indicators of impairment arise. Any impairment charges in the future may have a material adverse impact on our financial results.

**We may not receive the full amounts estimated under the contracts in our backlog, which could reduce revenue in future periods below the levels anticipated. This makes backlog an uncertain indicator of future operating results.**

Backlog is typically subject to large variations from quarter to quarter and comparisons of backlog from period to period are not necessarily indicative of future revenues. We may not be able to convert our backlog into revenue and cannot guarantee that the revenues projected in our backlog will be realized or, if realized, will result in profits. The timing of receipt of revenues, if any, on projects included in backlog could change because many factors affect the scheduling of projects. Cancellation of or adjustments to contracts may occur. The failure to realize all amounts in our backlog could adversely affect revenues and gross margins. As a result, our funded, unfunded, and total backlog as of any particular date may not be an accurate indicator of our future earnings.

**Our revenue pipeline may not result in firm contracts or realized revenue.**

Our revenue pipeline, which includes opportunities that either exist as options under current customer agreements or new opportunities with government customers that have down-selected MDA Space, is built on a pipeline of customer opportunities at varying stages, which may not be awarded or ultimately translate into realized revenues. Our ability to achieve the pipeline and successfully translate the expected customer opportunities into firm contracts and revenue is dependent on various factors, including our ability to negotiate and agree to terms that are mutually satisfactory to the parties (including pricing that is consistent with our expectations) and our successful execution and delivery of contracted services and products in a timely matter. Certain factors are beyond our control, including our customers' evaluation of our technologies and offerings, budgetary constraints, timing of our customers' approval processes, changes in customer and government priorities, actions of our competitors, broader economic and geopolitical conditions and other risk factors described herein which may lead to customers terminating our contracts with them or otherwise impact our ability to successfully execute and deliver services and products under our customer contracts. Anticipated contracts reflected in our pipeline may not ultimately be awarded or may be delayed, reduced in scope, renegotiated, or cancelled, and there can be no assurance that any such contracts will result in revenue in the expected period, in the expected amounts or at all. In addition, revenues may be recognized over time rather than upon contract execution, and may be subject to deferrals, phased implementations, performance obligations, or customer acceptance criteria, which could cause actual revenues to differ materially from expectations. Our

MDA SPACE ANNUAL INFORMATION FORM 45

pipeline may also be impacted by contract non-renewals, delays in implementation, or the failure to expand existing customer relationships as anticipated. As a result, opportunities in our pipeline may not close on terms and/or timing in line with our expectations or may not close at all. Any impacts to these anticipated contracts reflected in our pipeline may have a material adverse effect on our anticipated revenues in any given period.

**A large portion of our contracts are firm fixed price contracts, which puts us at risk for cost overruns and contractual terminations for default, and some of our contracts provide for payments contingent upon successful operation of a satellite, system or product.**

A large portion of our contracts are firm fixed price contracts. These firm fixed price contracts, which require us to deliver all contractual obligations for a set price with any costs incurred above that price being the responsibility of the Company, involve the completion of satellite system development and manufacturing, large-scale system engineering, software, hardware and product development projects. There is a risk in every firm fixed price contract that we will be unable to deliver under the contract within the time specified and at a cost that is less than the contract price. The technical nature and complexity of the satellite systems and products deliverable under these contracts may require amendments to be negotiated from time to time, subject to agreed contract change processes. In the absence of any agreement to such amendments which increase the price payable or extend delivery times when deliveries are late, cost overruns may occur and customers may be in a position to terminate the contract, or to demand repayments or trigger penalties including liquidated damages. A termination of a contract for default or a significant cost overrun that is caused by our actions or inactions could adversely affect our results of operations and financial condition.

In addition, most of our contracts may be terminated for convenience by the customer. See the risk factor entitled "Our contracts with customers may be terminated or suspended at any time" above. In the event of such termination, we may, in some cases, be entitled to recover the purchase price for delivered items, reimbursement for allowable costs for work in process and/or an allowance for profit or an adjustment for loss, depending on whether completion of the project would have resulted in a profit or loss.

Some of our contracts provide for payments contingent upon successful operation of a satellite, system or product. While we may procure insurance policies that we believe would indemnify us against the loss of fees that are not earned and for performance refund obligations, insurance may not continue to be available on economical terms, if at all. Further, we may elect not to procure such insurance for commercial reasons. In addition, some of our contracts require payment of penalties or damages in the event that satellites, systems, or products are not delivered on a timely basis, or to refund cash receipts if a contract is terminated for default prior to delivery. Our failure to receive incentive payments, or a requirement that we refund amounts previously received or pay delay penalties, could have a material adverse effect on our financial condition and results of operations.

**Our cash flow and profitability could be reduced if expenditures are incurred prior to the final receipt of a contract.**

We provide various professional services, specialized products, and sometimes procure equipment and materials on behalf of customers under various contractual arrangements. From time to time, in order to ensure that we satisfy customers' delivery requirements and schedules, we may elect to initiate procurement in advance of receiving final authorization from the government customer or a prime contractor. In addition, from time to time, we may build production units in advance of receiving an anticipated contract award. If a government or prime contractor customer's requirements should change, if the government or the prime contractor should direct the anticipated procurement to another contractor, if the anticipated contract award does not materialize, or if the equipment or materials become obsolete or require modification before we are under contract for the procurement, the investment in the equipment or materials might be at risk if we cannot efficiently resell them. This could reduce anticipated earnings or result in a loss, negatively affecting our cash flow and profitability.

MDA SPACE ANNUAL INFORMATION FORM 46

**Our ability to obtain additional debt or equity financing or government grants to finance operating working capital requirements and growth initiatives may be limited or difficult to obtain, which could adversely affect our operations and financial condition.**

We require capital to finance operating working capital requirements, future growth, and to pay outstanding debt obligations as they come due. If the cash generated from our business, together with the credit available under existing bank facilities, is not sufficient to fund future capital requirements, we will require additional debt or equity financing. Our ability to access capital markets on terms that are acceptable will be dependent on prevailing market conditions, as well as our future financial condition. Further, our ability to increase our debt financing and/or renew existing facilities may be limited by our financial covenants, our credit objectives, or debt capital market conditions. There can be no assurance that capital will be available on suitable terms and conditions, or that borrowing costs will not be adversely affected.

Our current financing arrangements contain certain restrictive covenants that impact our future operating and financial flexibility. These financing arrangements also contain a series of positive and negative covenants with which we must comply, including the achievement or maintenance of stated financial ratios. If we fail to comply with any covenants and are unable to obtain a waiver, our lenders may be able to take certain actions with respect to the amounts owed under such agreements, including early payment thereof. Any such actions could have a material adverse effect on our financial condition. These covenants could also have the effect of limiting our flexibility in planning for or reacting to changes in our business and the markets in which we operate.

In addition, we enter into various financial derivative contracts with banks as counterparties. Failure of a counterparty to meet our obligations under a derivative contract could result in a material adverse effect to our results of operations and financial condition. We limit our counterparty exposure to that of large banks and monitor their financial standing.

We also depend on certain financing arrangements to be completed by some of our key customers. The inability by our customers to arrange satisfactory financing on a timely basis could have an impact on our business, results of operations and financial condition.

Furthermore, we have in the past, and may continue in the future to, receive government grants for research and development activities and other business initiatives. Any agreement or grant of this nature with government may be accompanied by contractual obligations applicable to us, which may result in the grant money becoming repayable if certain requirements are not met. A failure to meet contractual obligations under such agreements and grants and a consequent requirement to repay money received could negatively impact our results of operations and financial condition.

**Our indebtedness and other contractual obligations could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts and could divert our cash flow from operations for debt payments.**

Our level of indebtedness may increase the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on, or other amounts due with respect to our indebtedness. Our long-term debt under our first lien credit facilities bears interest at floating rates, plus a margin. As a result, our interest payment obligations on such indebtedness will increase if such interest rates increase. Our leverage and debt service obligations could adversely impact our business, including by:

· impairing
 our ability to meet one or more of the financial ratios contained in our credit facilities
 or to generate cash sufficient to pay interest or principal, including periodic principal
 payments;

· increasing
 our vulnerability to general adverse economic and industry conditions;

MDA SPACE ANNUAL INFORMATION FORM 47

· limiting
 our ability to obtain additional debt or equity financing on favorable terms, if at all;

· requiring
 the dedication of a portion of our cash flow from operations to service our debt, thereby
 reducing the amount of our cash flow available for other purposes, including capital expenditures
 or to pursue future business opportunities;

· requiring
 us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable
 terms, to meet payment obligations; and

· limiting
 our flexibility in planning for, or reacting to, changes in our business and the industries
 in which we compete.

Any of the forgoing factors could have negative consequences on our financial condition and results of operation.

**Our credit ratings are not conclusive and may be lowered or withdrawn.**

The credit rating assigned to our Notes may not reflect all risks associated therewith. The credit rating reflects an assessment by rating agencies of our ability to meet our financial obligations as of the date of the rating. Consequently, the ratings do not address other investment risks such as liquidity risk or market volatility risks.

While credit ratings are an independent measure of the credit quality of our Notes, they are subjective statements of opinion by nature and not statements of fact as to creditworthiness.

In addition, any rating assigned to our Notes may be lowered or withdrawn entirely by a rating agency due to our financial performance and other adverse changes to the Company in the rating agencies' judgement. A downgrade in rating could restrict our ability to access capital markets and increase borrowing costs.

**If tax laws change or if we experience adverse outcomes resulting from examination by the tax authorities of our income tax returns, our results of operations could be adversely affected.**

We are subject to federal, provincial, and local income taxes in Canada and in foreign jurisdictions. Our future effective tax rates and the value of deferred tax assets could be adversely affected by changes in tax laws. In addition, we are subject to the examination of our income tax returns by Canada Revenue Agency and other tax authorities and may be subject to assessments for additional taxes. In computing our tax obligations, we are required to take various tax accounting and reporting positions on matters that are not entirely free from doubt and for which we have not received rulings from the governing authorities. We regularly assess the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of our provision for income tax. Significant judgment is required in determining our worldwide provision for income taxes. Changes in the tax laws or challenges from tax authorities under existing tax laws could adversely affect our business, financial condition and results of operations.

**We routinely make accounting estimates and judgments. If these are proven to be incorrect, we could be required to restate our historical financial statements.**

Contract accounting requires us to exercise judgment when assessing risks, estimating contract revenues and costs, and making assumptions for scheduling and technical issues. Due to the nature of many of our contracts, the estimation of total revenues and costs at completion is complicated and subject to many variables. Incentives and penalties related to performance on contracts are considered in estimating revenue and profit rates and are recorded when there is sufficient information to reasonably assess anticipated performance. Suppliers' expected performance is also assessed and considered in estimating costs and profit rates.

Because of the significance of factors outside of our control in the estimation processes described above, it is possible that materially different amounts could be obtained if different assumptions were used or if the underlying circumstances or estimates were to change or ultimately be different from our

MDA SPACE ANNUAL INFORMATION FORM 48

expectations. Changes or inaccuracies in underlying assumptions, circumstances or estimates may have a material adverse effect upon the financial results of future periods.

**The adoption of new accounting standards or interpretations could adversely affect our financial results.**

Our implementation of and compliance with changes in accounting rules and interpretations could adversely affect our operating results or cause unanticipated fluctuations in our results in future periods. The accounting rules and regulations that we must comply with are complex and continually changing. We cannot predict the impact of future changes to accounting principles on our financial statements going forward.

**Failure to establish and maintain effective internal controls in accordance with NI 52-109 could have a material adverse effect on our business and the market price of the Common Shares.**

As a publicly-traded company with our Common Shares admitted to trading on the TSX, we are subject to reporting and other obligations under applicable Canadian securities laws and the rules of the TSX, including National Instrument 52-109 – *Certification of Disclosure in Issuers' Annual and Interim Filing* ("**NI 52-109**"). These reporting and other obligations place significant demands on our management, administrative, operational and accounting resources. In order to meet such requirements, we have, among other things, established systems, implemented financial and management controls, reporting systems and procedures and may, if necessary, hire qualified accounting and finance staff. However, if we are unable to accomplish any such necessary objectives in a timely and effective manner, our ability to comply with our financial reporting obligations and other rules applicable to reporting issuers could be impaired. Moreover, any failure to maintain effective internal controls could result in our inability to satisfy our reporting obligations or result in material misstatements in our financial statements. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results could be materially adversely affected which could also cause investors to lose confidence in our reported financial information, which could result in a reduction in the trading price of the Common Shares.

We do not expect that our disclosure controls and procedures and internal controls over financial reporting will prevent all error and fraud. A control system, no matter how well-designed and implemented, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues within an organization are detected. The inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by individual acts of certain persons, by collusion of two or more people or by management override of the controls. Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected in a timely manner or at all.

**Epidemics, pandemics or other crises or public health concerns could impact or disrupt our business.**

The future emergence and spread of infectious diseases, epidemics, pandemics, viruses or other crises or public health concerns, could have a material adverse effect on global economic conditions and adversely impact our business and operations, as well as the operations of our suppliers and service providers, and impact the demand for raw materials. The global effects of an epidemic, pandemic or other crises or public health concern could have impacts to revenue, earnings and cash flows, increased volatility in financial markets and foreign currency exchange rates. The effects could have a negative impact on aluminum and titanium prices and result in governmental actions to contain the outbreak which may impact our ability to transport or market our deliverables or cause disruptions in our supply chains or interruption to the production of our products.

MDA SPACE ANNUAL INFORMATION FORM 49

**We have provided, and may provide in the future, partial financing of working capital to or on behalf of our customers to remain competitive in certain contracts.**

We have in the past, or currently, implemented investments in the form of work-in-progress, performance guarantees, or bridge financing indemnification of third-party lenders. We may also arrange for partial or full third-party financing with Export Credit Agencies to be provided to our customers, which we may partially guarantee. If a customer defaults on an obligation or to an indemnified third party, this could have a significant impact on our business and results of operations. Financing provided or third-party financing arranged by us may be linked to our ability to deliver a product or could cause delay. If we cannot achieve a successful delivery, we could be liable for repayment of amounts received from third party finance providers and could forfeit amounts financed and any future amounts that would otherwise have been earned. We undertake significant customer due diligence prior to providing any financial support to customers and may attempt to limit our exposure through the use of insurance products and other contractual measures but there can be no assurance that such products will be available or will be at a cost that is economically viable.

**Future satellites may be subject to construction and launch delays, launch failures, damage or destruction during launch, the occurrence of which could materially and adversely affect our operations.**

Delays in the construction of future satellites and the procurement of requisite components and launch vehicles, limited availability of appropriate launch windows, possible delays in obtaining regulatory approvals, satellite damage or destruction during launch, launch failures, or incorrect orbital placement could have a material adverse effect on our business, financial condition and results of operations. The loss of, or damage to, a future satellite due to a launch failure could result in significant delays in anticipated revenue to be generated by that satellite. Any significant delay in the commencement of service of a satellite would delay or potentially permanently reduce the revenue anticipated to be generated by that satellite. In addition, if the loss of a satellite were to occur, we may not be able to accommodate affected customers with our other satellites or data from another source until a replacement satellite is available, and we may not have on hand, or be able to obtain in a timely manner, the necessary funds to cover the cost of any necessary satellite replacement. Any launch delay, launch failure, underperformance, delay or perceived delay could have a material adverse effect on our results of operations, business prospects and financial condition. Delays may also allow customers to terminate their contracts subject to the applicable terms of such contracts. Any such termination may require us to (among other things) refund any prepayment received in connection with the contract, pay liquidated damages, result in a reduction of contracted backlog and prevent us from securing the associated commercial benefits of the new satellite. In addition, we may not be able to secure new contracts to offset the revenue or backlog lost as a result of any termination of customer contracts. The loss of one or more large contracts could have a material adverse impact on our business, financial condition, results of operations and cash flows.

**Our continued growth in the commercial satellite market is dependent on the growth in the sales of services provided by our customers as well as the development by our customers of new services.**

Our growth in the commercial satellite market is dependent on the growth in the sales of services provided by our customers as well as the development by our customers of new services. If we fail to anticipate changes in the businesses of our customers and their changing needs, or fail to successfully identify and enter new markets, our results of operations and financial position could be adversely affected. A decline in demand in one or several end-user markets of our customers could have a material adverse effect on the demand for our products and services and have a material adverse effect on our business, results of operations and financial condition.

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**Our business strategy is in part dependent on our ability to formulate corporate alliances with leading companies.**

A key element of our business strategy is the formation of corporate alliances with leading companies. We invest significant resources to develop these relationships. We believe that our success in penetrating new markets for our products will depend in part on our ability to maintain these relationships and to cultivate additional or alternative relationships. There can be no assurance that we will be able to develop additional corporate alliances with such companies, that existing relationships will continue or be successful in achieving their purposes or that such companies will not form competing arrangements. Any elimination or change of alliances or the formation by others of competing alliances could have an adverse effect on our revenues and financial condition.

**Estimates on projected growth of the market and industry are not certain.**

The markets we serve may not grow in the future and we may not be able to maintain adequate gross margins or profits in these markets. While estimates of market and industry growth are made in good faith and based on assumptions and benefits that are believed to be reasonable, they may prove to be inaccurate. Developments that we anticipate will support the growth in demand for our products and services may not materialize to the extent projected or occur entirely, leading to oversupply. An oversupply may place competitive pressures to decrease prices and rates charged, which could negatively affect our cash flows and profitability.

**We have certain fixed costs, which may reduce flexibility to make certain reductions or changes in the event of a slowdown or downturn in the business.**

We require a large staff of highly skilled and specialized workers, as well as specialized manufacturing and test facilities in order to perform under our satellite construction contracts. In order to maintain our ability to compete as one of the prime contractors for technologically advanced space satellites, we must continuously retain the services of a core group of specialists in a wide variety of disciplines for each phase of the design, development, manufacture, and testing of our products. This reduces our flexibility to reduce workforce costs in the event of a slowdown or downturn in our business. In addition, the manufacturing and test facilities that we own or lease under long-term agreements are fixed costs that cannot be adjusted quickly to account for significant variance in production requirements or economic conditions.

**Many of our customers have specific security requirements that can change quickly and with little notice.**

Many of our customers, including governments, have specific security clearances, protocols and other requirements relating to the work that can be performed for them. These requirements can change quickly and with little notice causing reduction or even elimination of potential work and our ability to participate in future business. Any reduction or elimination of work could have an adverse effect on our revenues and margins.

**Fluctuations in foreign exchange rates could have a negative impact on our business.**

Our financial results are reported in Canadian dollars. A substantial portion of our revenues and expenses are denominated in U.S. dollars.

We use hedging strategies to manage and minimize the impact of exchange rate fluctuations on its cash flow and economic profits. There are complexities inherent in determining whether and when foreign exchange exposures will materialize, in particular given the possibility of unpredictable revenue variations arising from schedule delays and contract postponements. Furthermore, we could be exposed to the risk of non-performance of our hedging counterparties. We may also have difficulty in fully implementing our hedging strategy depending on the willingness of hedging counterparties to extend credit. Accordingly,

MDA SPACE ANNUAL INFORMATION FORM 51

no assurances may be given that our exchange rate hedging strategy will protect us from significant changes or fluctuations in revenues and expenses denominated in non-Canadian dollars.

Our revenues, expenses, assets, and liabilities denominated in currencies other than the Canadian dollar are translated into Canadian dollars for the purposes of compiling our consolidated financial statements. Changes in the value of these currencies relative to the Canadian dollar will have an effect on the Canadian dollar value of our reported consolidated revenues, expenses, assets, liabilities, and earnings. In addition, the strengthening of the Canadian dollar relative to other foreign currencies may negatively impact our competitiveness and increase pressure on margins for new work.

**Our business involves significant risks and uncertainties that may not be covered by insurance.**

We maintain an extensive program of insurance coverage in the normal course of business, consistent with similar businesses. In addition, the insurance program covers some of the unique risks we encounter. There can be no assurance that such insurance will remain available at commercially reasonable rates or that the amount of such coverage will be adequate to cover all liability incurred. If we are held liable for amounts exceeding the limits of our insurance coverage or for claims outside the scope of that coverage, our business, results of operations, and financial condition could be adversely affected.

The price and availability of insurance fluctuates significantly, and we may not be able to obtain insurance coverage for in-orbit satellites in the future. Any determination that we make as to whether to obtain insurance coverage will depend on a variety of factors, including the availability of insurance in the market, the cost of available insurance, and the redundancy of any operating satellites. Insurance market conditions or factors outside our control at the time we are in the market for the required insurance, such as failure of a satellite using similar components, could cause premiums to be significantly higher than current estimates and could reduce amounts of available coverage. The cost of our insurance may increase in the future. Higher premiums on insurance policies will reduce our operating income by the amount of such increased premiums. If the terms of in-orbit insurance policies become less favorable than those currently available, there may be limits on the amount of coverage that we can obtain or we may not be able to obtain insurance at all.

**Current or future litigation could substantially harm our business.**

In the course of our business, we are, and in the future may be, party to legal proceedings, investigations and other claims or disputes, which have related and may relate to subjects including commercial transactions, intellectual property, securities, employee relations, or compliance with applicable laws and regulations. The outcome of legal proceedings, investigations and other claims and disputes are inherently difficult to predict and as a result there is the risk that an unfavourable outcome could negatively affect our business, results of operations and financial condition. In addition, litigation can result in substantial costs and diversion of the resources. Insurance may not cover such investigations and claims, may not be sufficient for one or more such investigations or claims and may not continue to be available on acceptable terms.

In connection with any government investigations, in the event the government takes action against us or the parties resolve or settle the matter, we may be required to pay substantial fines or civil and criminal penalties and/or be subject to equitable remedies, including disgorgement or injunctive relief. Other legal or regulatory proceedings, including lawsuits filed by private litigants, may also follow as a consequence. These matters are likely to be expensive and time consuming to defend, settle and/or resolve, and may require us to implement certain remedial measures that could prove costly or disruptive to our business and operations. They may also cause damage to our business reputation. The unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows.

MDA SPACE ANNUAL INFORMATION FORM 52

**Some of our contracts are classified, which may limit investor insight into portions of our business.**

We derive a portion of our revenues from programs with governments that are subject to security restrictions that preclude the dissemination of information that is classified for national security purposes or other reasons. We are limited in our ability to provide details about these classified programs, the risks, or any disputes or claims relating to such programs. As a result, investors and others might have less insight into our classified programs than our other businesses and, therefore, less ability to fully evaluate the risks related to our classified business.

**We are required to post letters of credit or other forms of bonds and parental guarantees under a number of our contracts.**

Under some of our contracts, letters of credit or other forms of bonds and parental guarantees are required to be posted to cover advance payments or progress payments we receive, or to cover our performance obligations. If these letters of credit or other bonds or parental guarantees are called in accordance with the terms and conditions included therein, the effect of such calls could have an adverse effect on our results of operations and financial condition.

**The forward-looking information contained herein may prove to be incorrect.**

The forward-looking information relating to, among other things, our future results, performance, achievements, prospects, or opportunities included in this AIF are based on opinions, assumptions and estimates in light of our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Actual results in the future may vary significantly from our historical and estimated results and those variations may be material. We make no representation that actual results achieved in the future will be the same, in whole or in part, as those included in this AIF. See "Introduction – Forward-Looking Information" above for a discussion on the forward-looking information in this AIF.

**Growth may place significant demands on our management and infrastructure.**

Our growth may place significant demands on our management and our operational and financial infrastructure. The expansion of our infrastructure, including the development our improved satellite production facility in Sainte-Anne-de-Bellevue, Quebec, may require the commitment of financial, operational, and technical resources in advance of an increase in the volume of business, with no assurance that the volume of business will actually increase or that our expanded facilities and increased manufacturing capabilities will actually operate as planned. Continued growth could also strain our ability to maintain reliable products and service levels for our clients, develop and improve our operational, financial and management controls, enhance our reporting systems and procedures, and recruit, train, and retain highly-skilled personnel. Managing our growth will require expenditures and allocation of valuable management resources. Failure to effectively manage growth could result in difficulty or delays in serving clients, declines in quality or client satisfaction, increases in costs, difficulties in introducing new features or other operational difficulties, and any of these difficulties could adversely impact our business performance and results of operations.

**We incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could harm our operating results.**

As a public company, we incur significant legal, accounting, and other costs to ensure our ongoing compliance with public company requirements. We are subject to the reporting requirements of the Ontario Securities Commission ("**OSC**") and the rules and regulations of the TSX. These requirements have increased and will continue to increase our legal, accounting, and financial compliance costs and have made, and will continue to make, some activities more time-consuming and costly. These rules and regulations make it more expensive for us to obtain director and officer liability insurance on an ongoing basis, and we may in the future be required to accept reduced policy limits and coverage or incur

MDA SPACE ANNUAL INFORMATION FORM 53

substantially higher costs to maintain the same or similar coverage. It may also be more difficult for us to attract and retain qualified individuals to serve on our Board or as our executive officers. As a result of the foregoing, we expect to incur legal, accounting, insurance and certain other expenses, which may negatively impact our financial performance and could cause our results of operations and financial condition to suffer.

**Our safety protocols may not protect against all risks of accidents in the workplace.**

While we are committed to maintaining a safe working environment for our employees and subcontractors, individuals may be exposed to hazardous situations in the course of their work, particularly where manufacturing is involved. Notwithstanding compliance with strict safety protocols, there is an inherent risk of accidents, potentially resulting in serious injury or death to impacted individuals, within our workplace. Such incidents could result in operational disruptions, liabilities, increased costs, and reputational harm.

**If MDA Space cannot maintain its corporate culture, MDA Space could lose valuable qualities from its workforce.**

MDA Space believes that its corporate culture is a critical component of its success. As MDA Space continues to grow, we may find it difficult to maintain these valuable aspects of our corporate culture. Failure to preserve MDA Space's corporate culture could negatively impact our future success, including our ability to attract and retain employees, encourage innovation and teamwork and effectively focus on and pursue our corporate objectives.

**Increased public awareness and growing concerns about climate change and the global transition to a low carbon economy could result in a broad range of impacts and may adversely impact our operations.**

Increased public awareness and growing concerns about climate change and the global transition to a low carbon economy could result in a broad range of impacts, including potential strategic, reputational, and structural related risks for us and our business partners, and the emergence and evolvement of additional environmental and climate change regulations, frameworks, and guidance. Increasing regulatory expectations and policy guidelines from proxy advisory services create a new set of compliance risks that need to be managed. Global climate change also results in regulatory risks which vary according to the national and local requirements implemented by each jurisdiction in which we operate.

**Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to it.**

We have indemnification agreements with each of our directors and officers. The indemnification agreements require that we indemnify and hold the indemnitees harmless to the fullest extent permitted by law for liabilities arising out of the indemnitees' service as directors and officers, provided that the indemnitees acted honestly and in good faith with a view to the best interests of the Company and in the case of a criminal or administrative proceeding that is enforced by a monetary penalty, the indemnitees' had reasonable grounds for believing that his or her conduct was lawful. The indemnification agreements will also provide for the advancement of defence expenses to the indemnitees by the Company, provided that the indemnitees must repay all advances if it is finally determined that the indemnitees are not entitled to indemnification under the agreements or the payment of any costs is prohibited by applicable law. The obligation to repay advances of defence expenses will be unsecured and no interest will be charged thereon. Any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to it.

MDA SPACE ANNUAL INFORMATION FORM 54

**We may not realize our anticipated return on capital commitments made to expand our capabilities.**

From time to time, we make significant capital expenditures to implement new processes and to increase both efficiency and capacity. Some of these projects require additional training for our employees and not all projects may be implemented as anticipated. If any of these projects do not achieve the anticipated increase in efficiency or capacity, our returns on these capital expenditures may not be as expected.

**Negative publicity could result in a decline in our client growth and our business could suffer.**

There has been a marked increase in the use of social media platforms and similar channels, including weblogs (blogs), social media websites and other forms of Internet-based communications that provide individuals with access to a broad audience of consumers and other interested persons. The availability and impact of information on social media platforms is virtually immediate, and the accuracy of such information is not independently verified. The opportunity for dissemination of information, including inaccurate information, is seemingly limitless and readily available. Our reputation is very important to attracting new clients as well as reaching additional agreements with existing clients. There can be no assurance that we will continue to maintain good relationships with clients or avoid negative publicity. Any damage to our reputation, whether arising from our conduct of business, negative publicity, regulatory, supervisory or enforcement actions, matters affecting our financial reporting or compliance with the OSC and TSX listing requirements, security breaches, or otherwise could have a material adverse effect on our business.

**Our risk management efforts may not be effective.**

We could incur substantial losses, and our business operations could be disrupted if we are unable to effectively identify, manage, monitor, and mitigate financial risks, such as credit risk, interest rate risk, liquidity risk, and other market-related risk, as well as operational risks related to our business, assets, and liabilities. Our risk management policies, procedures, and techniques may not be sufficient to identify all of the risks we are exposed to, mitigate the risks that we have identified, or identify concentrations of risk or additional risks to which we may become subject in the future.

**We may incur operating losses in the future.**

We expect our operating expenses to increase in the future as we expand our operations. Furthermore, as a public company, we incur legal, accounting, and other expenses that a private company may not incur. See the risk factor entitled "We incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could harm our operating results" above. If our revenue does not grow to offset these increased expenses, we may not be profitable. We cannot assure investors that we will be able to achieve or maintain profitability. Investors should not consider current or historical revenue growth as indicative of our future performance.

**Pension and other postretirement benefit obligations may materially impact our earnings, shareholders' equity and cash flows from operations, and could have a significant adverse impact in future periods.**

We maintain defined benefit, pension, and other postretirement benefits plans for some of our employees. Potential pension contributions include discretionary contributions to improve the plans' funded status. The extent of future contributions depends heavily on market factors such as the discount rate and the actual return on plan assets. We estimate future contributions to these plans using assumptions with respect to these and other items. Changes to those assumptions could have a significant effect on future contributions, annual pension and other postretirement costs, the value of plan assets and our benefit obligations.

Significant changes in actual return on pension assets, discount rates, and other factors could adversely affect our results of operations and require cash pension contributions in future periods. Changes in discount rates and actual asset returns different than our expected asset returns can result in significant

MDA SPACE ANNUAL INFORMATION FORM 55

non-cash actuarial gains or losses which we record in the fourth quarter of each fiscal year, and, if applicable, in any quarter in which an interim re-measurement is triggered. With regard to cash pension contributions, funding requirements for our pension plans are largely dependent upon interest rates, actual investment returns on pension assets and the impact of legislative or regulatory changes related to pension funding obligations.

We also provide other postretirement benefits to certain employees, consisting principally of health care and dental and life insurance for eligible retirees and qualifying dependents. Our estimates of future costs associated with these benefits are also subject to assumptions, including estimates of the level of medical cost increases and discount rates.

**Our by-laws provide that any derivative actions, actions relating to breach of fiduciary duties and other matters relating to our internal affairs will be required to be litigated in Canada, which could limit an investor's ability to obtain a favourable judicial forum for disputes.**

Our by-laws include a forum selection provision that provides that, unless we consent in writing to the selection of an alternative forum, the Superior Court of Justice of the Province of Ontario, Canada, and appellate Courts therefrom (or, failing such Court, any other "court" (as defined in the OBCA) having jurisdiction and the appellate Courts therefrom), shall, to the fullest extent permitted by law, be the sole and exclusive forum for: (a) any derivative action or proceeding brought on our behalf; (b) any action or proceeding asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, or other employees; (c) any action or proceeding asserting a claim arising pursuant to any provision of the OBCA or our articles or the by-laws (as either may be amended from time to time); or (d) any action or proceeding asserting a claim otherwise related to the relationships among us, our affiliates and their respective shareholders, directors, and/or officers, but excluding claims related to our business carried on by us or our affiliates and their respective shareholders, directors and/or officers. Our by-laws also provide that our shareholders are deemed to have consented to personal jurisdiction in the Province of Ontario and to service of process on their counsel in any foreign action initiated in violation of our by-laws. Therefore, it may not be possible for shareholders to litigate any action relating to the foregoing matters outside of the Province of Ontario. While forum selection clauses in corporate charters and by-laws are becoming more commonplace for public companies in the U.S. and have been upheld by courts in certain states, they are untested in Canada. It is possible that the validity of our forum selection by-law could be challenged and that a court could rule that such by-law is inapplicable or unenforceable. If a court were to find our forum selection by-law inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions and we may not obtain the benefits of limiting jurisdiction to the courts selected.

**It may be difficult or impossible for investors to enforce judgements against foreign subsidiaries and our non-Canadian resident directors or officers.**

Certain of our wholly-owned subsidiaries are organized under the laws of foreign jurisdictions and certain of our directors and officers are residents of countries other than Canada. As a result, it may be difficult or impossible for investors to effect service within Canada upon such persons, or to realize against them in Canada upon judgments of courts of Canada predicated upon the civil liability provisions of applicable Canadian provincial securities laws. There is some doubt as to the enforceability in the United States or other foreign courts by a court in original actions, or in actions to enforce judgments of Canadian courts, of civil liabilities predicated upon such applicable Canadian provincial securities laws.

MDA SPACE ANNUAL INFORMATION FORM 56

**RISKS RELATED TO OUR COMMON SHARES**

**There is no guarantee that our Common Shares will earn any positive return in the short term or long term.**

A holding of our Common Shares is speculative and involves a high degree of risk and should be undertaken only by holders whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. A holding of our Common Shares is appropriate only for holders who have the capacity to absorb a loss of some or all of their holdings.

**The price of our Common Shares may be volatile and may decline regardless of our operating performance.**

The price of our Common Shares has fluctuated in the past and we expect it to fluctuate in the future, and it may decline. The trading prices of securities of companies in the aerospace and technology space have been, and we expect them to continue to be, highly volatile. The market price of our Common Shares may fluctuate significantly in response to numerous factors, many of which are beyond our control, including, among others:

· actual
 or anticipated fluctuations in our revenue and other results of operations, including as
 a result of the addition or loss of any number of customers;

· announcements
 by us or our competitors of significant technical innovations, acquisitions, strategic partnerships,
 joint ventures, or capital commitments;

· actual
 or anticipated government actions or decisions that impact funding of space or defence initiatives,
 programs, and trade relations;

· the
 financial projections we may provide to the public, any changes in these projections, or
 our failure to meet these projections;

· failure
 of securities analysts to initiate or maintain coverage of us, changes in ratings and financial
 estimates and the publication of other news by any securities analysts who follow our company,
 or our failure to meet these estimates or the expectations of investors;

· the
 size of our public float;

· price
 and volume fluctuations in the trading of our Common Shares and in the overall stock market,
 including as a result of trends in the economy as a whole;

· changes
 in global financial markets and global economies and general market conditions, such as interest
 rates;

· new
 laws or regulations or new interpretations of existing laws or regulations applicable to
 our business or industry, including data privacy, data protection, information security and
 the application of import and export duties and taxes;

· lawsuits
 threatened or filed against us for claims relating to intellectual property, employment issues,
 or otherwise;

· changes
 in our Board or management;

· short
 sales, hedging, and other derivative transactions involving our Common Shares;

· sales
 or perceived sales, or announcement of potential future sales, of our Common Shares including
 sales by our executive officers, directors, and significant shareholders;

· sales
 or perceived sales of additional Common Shares;

MDA SPACE ANNUAL INFORMATION FORM 57

· release
 or expiration of transfer restrictions on outstanding Common Shares (including Common Shares
 subject to lock-up restrictions);

· news
 reports relating to trends, concerns, technological or competitive developments, regulatory
 changes and other related issues in our industry or target markets; and

· other
 events or factors, including changes in general economic, industry, political, social, and
 market conditions, and trends, as well as any natural disasters, which may affect our operations.

In addition, the stock markets have experienced price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. Share prices of many companies in the aerospace and technology space have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, shareholders have instituted securities class action litigation following periods of market volatility. We also are currently the subject of a potential securities class action as described under the heading "Legal Proceedings and Regulatory Actions". Such securities class action and other securities litigation, could subject us to substantial costs, divert resources and the attention of management, and harm our business.

**Future sales, or the perception of future sales of Common Shares by existing shareholders could cause the price of our Common Shares to decline.**

In addition, certain holders of options and other share-based awards will have an immediate income inclusion for tax purposes when they exercise their options or when their other awards are share-settled (that is, tax is not deferred until they sell the underlying Common Shares). As a result, these holders may need to sell Common Shares purchased on the exercise of options or issued upon share settlement of share-based awards in the same year that they exercise their options or in which their share-based awards are share-settled. This might result in a greater number of Common Shares being sold in the public market and reduced long-term holdings of Common Shares by our management and employees.

**If securities or industry analysts do not publish research or reports about our business, or if they downgrade our Common Shares, the price of our Common Shares could decline.**

The trading market for our Common Shares depends, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If one or more of the analysts who cover us downgrade our stock or publish inaccurate or unfavorable research about our business, the price of our Common Shares would likely decline. In addition, if our results of operations fail to meet the forecast of analysts, the price of our Common Shares would likely decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our Common Shares could decrease, which might cause the price and trading volume of our Common Shares to decline.

**Our constating documents permit us to issue additional securities in the future, including Common Shares, without additional shareholder approval, and our issuance of additional Common Shares or other securities that are convertible or exchangeable into Common Shares in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute other shareholders.**

Our articles permit us to issue an unlimited number of Common Shares. We anticipate that we will, from time to time, issue additional Common Shares, including in connection with potential acquisitions. Subject to the requirements of the TSX, we will not be required to obtain the approval of shareholders for the issuance of Common Shares.

We expect to continue to issue additional securities in the future that will result in dilution to other shareholders. We expect to grant equity awards to employees, directors, and consultants under our omnibus equity incentive plan (the "**Omnibus Plan**"). As part of our business strategy, we may acquire or make investments in complementary companies, products, or technologies, and issue equity securities

MDA SPACE ANNUAL INFORMATION FORM 58

to pay for any such acquisitions or investments. Any such issuances of additional Common Shares or other securities that are convertible or exchangeable into Common Shares may cause shareholders to experience significant dilution of their ownership interests and the per share value of our Common Shares to decline.

We may also raise capital through equity financings in the future. Any additional capital raised through the sale of equity may dilute existing shareholders' voting power and percentage ownership of our Common Shares and shareholders could be asked in the future to approve the creation of new equity securities which could have rights, preferences and privileges superior to those of holders of our Common Shares. Capital raised through debt financing would require us to make periodic interest payments and may impose restrictive covenants on the conduct of our business. Furthermore, additional financings may not be available on terms favourable to us, or at all. A failure to obtain additional funding could prevent us from making expenditures that may be required to implement our growth strategy and grow or maintain our operations.

**We generally do not intend to pay dividends for the foreseeable future.**

We generally do not intend to pay dividends to the holders of our Common Shares for the foreseeable future. Our ability to pay dividends on our Common Shares is limited by our existing indebtedness and may be further restricted by the terms of any future debt incurred or preferred securities issued by us or our subsidiaries or law. Payments of future dividends, if any, will be at the discretion of our Board after taking into account various factors, including our business, financial condition, results of operations, current and anticipated cash needs, plans for expansion, and any legal or contractual limitation on our ability to pay dividends. As a result, any capital appreciation in the price of our Common Shares may be your only source of gain on your investment in our Common Shares.

**Shareholders have limited control over our operations.**

Shareholders have limited control over changes in our policies and operations, which increases the uncertainty and risks of an investment in our Common Shares. The Board determines major policies, including policies regarding financing, growth, debt capitalization and any future dividends to shareholders. Generally, the Board may amend or revise these and other policies without a vote of the shareholders. Shareholders only have a right to vote in certain circumstances. The Board's broad discretion in setting policies and the limited ability of shareholders to exert control over those policies increases the uncertainty and risks of an investment in our shares.

**Dividends**

We currently intend to retain any future earnings to fund the development and growth of our business and/or to pay down debt and do not currently anticipate paying dividends on the Common Shares. Any determination to pay dividends in the future will be at the sole discretion of our Board and will be dependent upon our results of operations, financial condition, cash requirements, contractual restrictions and financing agreement covenants, solvency tests imposed by applicable corporate law and other relevant factors. We cannot assure investors as to the amount or timing of any dividends in the future.

**Description of Capital Structure**

The following description of our share capital summarizes certain provisions contained in our articles and by-laws. These summaries do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all of the provisions of our articles and by-laws, which have been filed under our profile on SEDAR+ at www.sedarplus.ca.

MDA SPACE ANNUAL INFORMATION FORM 59

**SHARE CAPITAL INFORMATION OF MDA SPACE**

We are currently authorized to issue an unlimited number of Common Shares. As of December 31, 2025, there were 126,321,001 Common Shares issued and outstanding.

**RIGHTS OF HOLDERS OF COMMON SHARES**

The holders of the Common Shares are entitled to receive notice of and to attend any shareholders' meetings and are entitled to one vote in respect of each Common Share held at such meetings.

The holders of the Common Shares are entitled to participate equally in dividends, if any, declared in the Common Shares.

In the event of the liquidation, dissolution, or wind-up of the Company or other distribution of assets among shareholders for the purpose of winding-up the Company's affairs, the Common Shares shall rank equally as to priority of distribution. Such distribution shall be made in equal amount per Common Share on all the Common Shares outstanding without preference or distinction.

**NOTES**

On December 23, 2025, we issued $250 million aggregate principal amount of senior unsecured notes due 2030. The Notes will mature on December 23, 2030 and will accrue interest at the rate of 7.00% per annum, payable in cash in equal payments semi-annually in arrears on June 23 and December 23 of each year, commencing on June 23, 2026. The Notes are senior unsecured obligations of the Company and will rank *pari passu* in right of payment with all existing and future senior unsecured Indebtedness of the Company and are guaranteed, jointly and severally, by certain of our subsidiaries in accordance with the terms of the trust indenture between the Company and TSX Trust Company dated December 23, 2025 (the "**Trust Indenture**").

At any time prior to December 23, 2027, we may on any one or more occasions redeem all or any part of the Notes, upon not less than 10 nor more than 60 days' notice, at a redemption price equal to 100% of the aggregate principal amount of the Notes redeemed *plus* the Applicable Premium and accrued and unpaid interest, if any, to but excluding the date of redemption (subject to the right of holders of Notes on the relevant record date to receive interest on the relevant interest payment date).

On or after December 23, 2027, we may on any one or more occasions redeem all or any part of the Notes, upon not less than 10 nor more than 60 days' notice, at the redemption prices set forth in the Trust Indenture, *plus* accrued and unpaid interest, if any, to but excluding the applicable date of redemption (subject to the right of holders of Notes on the relevant record date to receive interest on the relevant interest payment date).

At any time prior to December 23, 2027, we may, on any one or more occasions, redeem up to 40% of the aggregate principal amount of the Notes issued under the Trust Indenture, upon not less than 10 nor more than 60 days' notice, at a redemption price equal to 107.00% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption (subject to the right of holders of Notes on the relevant record date to receive interest on the relevant interest payment date), with the Net Cash Proceeds of one or more Equity Offerings by the Company; provided that: (i) at least 60% of the aggregate principal amount of Notes originally issued under the Trust Indenture (excluding Notes held by the Company and certain of our subsidiaries) remains outstanding immediately after the occurrence of such redemption; and (ii) the redemption occurs within 180 days of the date of the closing of such Equity Offering.

In addition, upon the occurrence of a Change of Control Triggering Event, the holders of the Notes may require us to repurchase the Notes at a purchase price equal to 101% of the aggregate principal amount of the Notes plus accrued and unpaid interest (but excluding any optional redemption premium), if any,

MDA SPACE ANNUAL INFORMATION FORM 60

on the Notes repurchased to but excluding the date of purchase (subject to the right of holders of Notes on the relevant record date to receive interest due on the relevant interest payment date).

The Notes are:

· senior
 unsecured obligations of the Company;

· *pari passu* in right of payment with all existing and future senior unsecured Indebtedness
 of the Company;

· senior
 in right of payment to any Subordinated Indebtedness of the Company;

· unconditionally
 guaranteed by the Guarantors;

· effectively
 subordinated to all senior secured Indebtedness incurred from time to time by the Company,
 including Indebtedness under the Credit Agreement and the IQ Loan, to the extent of the value
 of the assets of the Company securing such Indebtedness; and

· structurally
 subordinated to all Indebtedness and other liabilities of the Company's subsidiaries
 that do not guarantee the Notes.

We may issue additional Notes in an unlimited principal amount under the Trust Indenture from time to time after the Issue Date, having the same terms (other than the issue price and the first interest payment date) as the Notes issued in the Offering. The Notes and any Additional Notes subsequently issued under the Trust Indenture will be treated as a single class for all purposes under the Trust Indenture, including, without limitation, waivers, amendments, consents, redemptions and offers to purchase.

The description of Notes set out above is a summary of their material attributes and characteristics, which does not purport to be complete and is qualified in entirety by reference to the Trust Indenture. Capitalized terms used in this section which are not otherwise defined herein have the meaning ascribed thereto in the Trust Indenture. For full particulars, please refer to the Trust Indenture.

**Market for Securities**

**Common Shares**

The Common Shares are listed and posted for trading on the TSX under the symbol "MDA". The following table shows the monthly range of high and low prices per Common Share and total monthly volumes traded on the TSX for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| Month | High (C$) | Low (C$) | Volume |
| January 2025 | 30.00 | 19.96 | 10963377 |
| February 2025 | 25.84 | 20.11 | 9348345 |
| March 2025 | 29.23 | 20.22 | 12809071 |
| April 2025 | 27.99 | 22.01 | 7496684 |
| May 2025 | 29.33 | 21.77 | 9932463 |
| June 2025 | 36.26 | 27.62 | 9834289 |
| July 2025 | 45.10 | 34.86 | 11696053 |
| August 2025 | 48.31 | 41.49 | 13961167 |

---

MDA SPACE ANNUAL INFORMATION FORM 61

---

| | | | |
|:---|:---|:---|:---|
| Month | High (C$) | Low (C$) | Volume |
| September 2025 | 44.81 | 30.57 | 24390188 |
| October 2025 | 38.59 | 26.66 | 17644919 |
| November 2025 | 28.54 | 20.85 | 19764032 |
| December 2025 | 27.58 | 22.69 | 20152238 |

---

**Prior Sales**

During the year ended December 31, 2025, we did not grant any stock options to acquire Common Shares.

During the year ended December 31, 2025, we granted an aggregate of 517,714 restricted share units with a weighted average issue price of $27.09, an aggregate of 38,983 deferred share units with a weighted average issue price of $29.16 and an aggregate of 166,905 performance share units with a weighted average issue price of $24.94.

**Escrowed Securities and Securities Subject to Contractual Restriction on Transfer**

**EMPLOYEE TRUST**

In connection with the IPO, we settled the Employee Share Trust Agreement arrangement (the "**Employee Trust**"), the beneficiaries of which are certain executive officers and employees as of the date of closing of the IPO. The Employee Trust was established in consideration for past and ongoing services to the Company by such executive officers and employees and in some cases in furtherance of agreements in offers of employment to such executive officers and employees. The Common Shares held in the Employee Trust vest in tranches over time from the date of the closing of the IPO until December 31, 2025, and are subject to certain other vesting conditions and forfeiture upon the occurrence of certain events, including termination for cause, resignation, termination without cause, disability, death, or retirement, in a manner similar to the vesting of awards and the impact on awards as a result of the occurrence of such events under our Omnibus Plan. As at December 31, 2025, all Common Shares held in the Employee Trust have been released to its participants.

**Directors and Executive Officers**

Pursuant to our articles, our Board shall consist of a minimum of three and a maximum of 20 directors. Our directors shall hold office until the next annual meeting of shareholders or until their resignation or removal or until their respective successors have been duly elected or appointed.

**NAME, OCCUPATION AND SECURITY HOLDINGS**

The following are the names and municipalities of residence of our directors and executive officers as of December 31, 2025, their positions and offices and corresponding start dates, and their principal occupations during the last five years:

MDA SPACE ANNUAL INFORMATION FORM 62

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Name, Province <br> or State and Country of<br> Residence | &nbsp;&nbsp;Office held <br> with MDA Space | &nbsp;&nbsp;Director <br> and/or <br> Executive<br> Officer since | &nbsp;&nbsp;Present principal <br> occupation and<br> positions held<sup>(2)</sup> |
| &nbsp;&nbsp;**Directors** | &nbsp;&nbsp;**Directors** | &nbsp;&nbsp;**Directors** | &nbsp;&nbsp;**Directors** |
| &nbsp;&nbsp;**Alison Alfers**<sup>(6)(7)</sup><br> Wyoming, United States | &nbsp;&nbsp;Director | &nbsp;&nbsp;May 11, 2022 | &nbsp;&nbsp;Corporate Director |
| &nbsp;&nbsp;**Yaprak Baltacioğlu, CM, ICD.D**<sup>(5)(6)(8)</sup><br> Ontario, Canada | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Corporate Director |
| &nbsp;&nbsp;**Darren Farber**<sup>(4)</sup><br> Maryland, United States | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Founder and Managing Partner of Albion River LLC |
| &nbsp;&nbsp;**Michael Greenley**<sup>(1)(9)</sup><br> Ontario, Canada | &nbsp;&nbsp;Chief Executive Officer and Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Chief Executive Officer and Director of MDA Space |
| &nbsp;&nbsp;**Brendan Paddick, ICD.D**<sup>(3)</sup><br> Freeport, Bahamas | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Chief Executive Officer of Columbus Capital Corporation |
| &nbsp;&nbsp;**John Risley**<sup>(5)</sup><br> Nova Scotia, Canada | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Chief Executive Officer of CFFI Ventures Inc. |
| &nbsp;&nbsp;**Jill Smith**<sup>(5)(6)(10)</sup><br> Massachusetts, United States | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 18, 2021 | &nbsp;&nbsp;Corporate Director |
| &nbsp;&nbsp;**Karl Smith**<sup>(4)(11)</sup><br> Newfoundland, Canada | &nbsp;&nbsp;Director | &nbsp;&nbsp;July 2, 2024 | &nbsp;&nbsp;Corporate Director |
| &nbsp;&nbsp;**Yung Wu, ICD.D**<sup>(4)(12)</sup><br> Ontario, Canada | &nbsp;&nbsp;Director | &nbsp;&nbsp;February 14, 2024 | &nbsp;&nbsp;Chair of NFQ Ventures Ltd. |
| &nbsp;&nbsp;**Officers** | &nbsp;&nbsp;**Officers** | &nbsp;&nbsp;**Officers** | &nbsp;&nbsp;**Officers** |
| &nbsp;&nbsp;**Guillaume Lavoie**<sup>(13)</sup><br> Ontario, Canada | &nbsp;&nbsp;Chief Financial Officer | &nbsp;&nbsp;November 4, 2024 | &nbsp;&nbsp;Chief Financial Officer of MDA Space |
| &nbsp;&nbsp;**Luigi Pozzebon**<sup>(14)</sup><br> Quebec, Canada | &nbsp;&nbsp;Vice President, Satellite Systems | &nbsp;&nbsp;April 24, 2023 | &nbsp;&nbsp;Vice President, Satellite Systems of MDA Space |
| &nbsp;&nbsp;**Holly Johnson**<sup>(15)</sup><br> Ontario, Canada | &nbsp;&nbsp;Vice President, Robotics & Space Operations | &nbsp;&nbsp;June 23, 2022 | &nbsp;&nbsp;Vice President, Robotics & Space Operations of MDA Space |
| &nbsp;&nbsp;**Minda Suchan**<sup>(16)</sup><br> British Columbia, Canada | &nbsp;&nbsp;Vice President, Geointelligence | &nbsp;&nbsp;November 9, 2020 | &nbsp;&nbsp;Vice President, Geointelligence of MDA Space |

---

MDA SPACE ANNUAL INFORMATION FORM 63

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Name, Province <br> or State and Country of<br> Residence | &nbsp;&nbsp;Office held <br> with MDA Space | &nbsp;&nbsp;Director <br> and/or <br> Executive<br> Officer since | &nbsp;&nbsp;Present principal <br> occupation and<br> positions held<sup>(2)</sup> |
| &nbsp;&nbsp;**David Snarch**<sup>(17)</sup><br> British Columbia, Canada | &nbsp;&nbsp;Vice President, General Counsel & Corporate Secretary | &nbsp;&nbsp;November 2, 2023 | &nbsp;&nbsp;Vice President, General Counsel & Corporate Secretary of MDA Space |
| &nbsp;&nbsp;**Other Executive Officers** | &nbsp;&nbsp;**Other Executive Officers** | &nbsp;&nbsp;**Other Executive Officers** | &nbsp;&nbsp;**Other Executive Officers** |
| &nbsp;&nbsp;**Stephanie McDonald**<sup>(18)</sup><br> Ontario, Canada | &nbsp;&nbsp;Chief People, Culture and Transformation Officer | &nbsp;&nbsp;July 4, 2023 | &nbsp;&nbsp;Chief People, Culture and Transformation Officer of MDA Space |

---

**Notes:**

(1) The
 Board has determined that Michael Greenley, the Chief Executive Officer of MDA Space, is
 not considered independent.

(2) Each
 of the persons has held these positions for five years other than as described below.

(3) Chair
 of the Board.

(4) Member
 of the Audit Committee.

(5) Member
 of the Nominating & Governance Committee.

(6) Member
 of the Human Resources, Development & Compensation Committee.

(7) Alison
 Alfers most recently served as Chief Legal and Risk Officer for Study Group. Prior to joining
 Study Group, Ms. Alfers held executive positions including Chief Legal and Administrative
 Officer for HawkEye 360 Inc., General Counsel and VP Defense and Intelligence for Digital
 Globe, Inc., General Counsel for Space Imaging, Inc., and Chief Legal Officer for
 Cherwell Software. As announced by the Company, Ms. Alfers has resigned from our Board
 due to unexpected family circumstances effective March 3, 2026.

(8) Yaprak
 Baltacioğlu was the Deputy Minister of a number of Federal Government Departments,
 including the Treasury Board, Transport and Infrastructure from 2004-2018.

(9) Prior
 to becoming the Chief Executive Officer and Director of MDA Space, Michael Greenley was Group
 President of MDA (subsidiary of Maxar Technologies ULC) from January 2018 to April 2020,
 Sector President of L-3 WESCAM from September 2016 to January 2018, and Vice President
 and General Manager of CAE Canada from September 2013 to September 2016.

(10) Jill
 Smith was the Chair, Chief Executive Officer, and President of DigitalGlobe, Inc. from
 November 2005 to April 2011 and President and Chief Executive Officer of Allied
 Minds Inc. from May 2017 to April 2019.

(11) Prior
 to becoming a Director of MDA Space, Karl Smith served as Executive Vice President and Chief
 Financial Officer at Fortis Inc.

(12) Yung
 Wu is the former CEO of MaRS Discovery District, one of the world's largest innovation
 hubs with over 1,200 companies in the health, cleantech, fintech, and platform technologies
 sectors, at all stages of growth and scale.

(13) Prior
 to becoming the Chief Financial Officer of MDA Space, Guillaume Lavoie was the Executive
 Vice President and Chief Financial Officer of Sofina Foods Inc.

(14) Prior
 to becoming the Vice President, Satellite Systems of MDA Space, Luigi Pozzebon was Vice President,
 Payloads at MDA Space for 16 years.

MDA SPACE ANNUAL INFORMATION FORM 64

(15) Prior
 to becoming the Vice President, Robotics & Space Operations of MDA Space, Holly
 Johnson was Acting Vice President, Robotics & Space Operations, and previously held
 various positions of increasing responsibility within MDA Space, including Vice President,
 Operations.

(16) Prior
 to becoming the Vice President, Geointelligence of MDA Space, Minda Suchan was the managing
 director at Riverside Research.

(17) Prior
 to becoming the Vice President, General Counsel, and Corporate Secretary of MDA Space, David
 Snarch was Assistant General Counsel of MDA Space and previously held various positions of
 increasing responsibility within MDA Space.

(18) Prior
 to becoming the Chief People, Culture, and Transformation Officer of MDA Space, Stephanie
 McDonald most recently served as Chief Human Resources Officer at Ontex, a leading global
 manufacturer of personal hygiene products with over 9,000 employees and customers in more
 than 110 countries. Prior to Ontex, she served in several executive and leadership roles
 within international companies including Parkland Corporation and Holcim.

MDA SPACE ANNUAL INFORMATION FORM 65

**Security Holdings**

As of March 2, 2026, as a group, the directors and executive officers owned, controlled, or directed, directly or indirectly, 1,510,016 Common Shares, representing approximately 1.19% of the issued and outstanding Common Shares. The foregoing does not take into account Common Shares to be issued upon the potential exercise of stock options, or Common Shares held by the Employee Trust.

**DIRECTORS**

**Alison Alfers**

Ms. Alfers most recently served as Chief Legal and Compliance Officer for Study Group Ltd., a global higher education company based in London, England. Prior to joining Study Group, Ms. Alfers spent more than fifteen years in the commercial space and software sectors. Ms. Alfers has held various executive positions, including Chief Legal and Administrative Officer for HawkEye 360, Inc., an early-stage growth company in spectrum-based radio frequency analytics, General Counsel and VP Defense and Intelligence for Digital Globe, Inc., General Counsel for Space Imaging, Inc., as well as Chief Legal Officer for Cherwell Software. Ms. Alfers holds a Juris Doctor from the University of Arizona, a Master of Public Health from George Washington University and a Bachelor of Arts from Arizona State University.

**Yaprak Baltacioğlu, CM, ICD.D**

Ms. Baltacioğlu has had a distinguished public service career that spans more than 25 years within the federal government. She has directly impacted the direction of government affairs through shaping policy, directing programs and overseeing operations. Ms. Baltacioğlu was the Secretary of the Treasury Board from 2012 and 2018, and under her direction, the Treasury Board of Canada Secretariat was recognized as one of Canada's Top 100 Employers. She has also served as Deputy Minister of Transport, Infrastructure and Communities, Deputy Minister of Agriculture and Agri-Food and Deputy Secretary Operations to Cabinet. Ms. Baltacioğlu is a member of the Order of Canada and a member of the IFRS Foundation Trustees. Ms. Baltacioğlu holds a Bachelor of Law from Istanbul University, an ICD.D designation from the Rotman School of Management at the University of Toronto, as well as a Master of Arts from the Carleton University, School of Public Administration.

**Darren Farber**

Mr. Farber currently serves on a number of boards and is the Founder and Managing Partner of Albion River, a private direct investment firm that focuses on Aerospace, Defense, and Government related businesses. Previously, Mr. Farber was Co-Founder of NAWAH LLC, a Pritzker Organization enterprise focused on project finance in the Middle East and Southwest Asia. Mr. Farber was formerly a special advisor to the Deputy Under Secretary of Defense – Business Transformation and a member of the U.S. Department of Defense Task Force for Business and Stability Operations where he received the Secretary of Defense Medal for Outstanding Public Service. Mr. Farber holds a Quebec Diploma of College Studies from Dawson College.

**Michael Greenley**

Mr. Greenley is the Chief Executive Officer of MDA Space. With over 30 years of executive experience in the defence and security business, Mr. Greenley has deep expertise in the land, air, maritime, public safety and space sectors. Prior to MDA Space, Mr. Greenley was Sector President of L-3 WESCAM. He also served as Vice President and General Manager of CAE Canada, Vice President, Strategy and Business Development for General Dynamics (GD) Canada, and Vice President, International for GD Mission Systems. Prior to GD he was Vice President of the modeling and simulation business at CAE. Mr. Greenley is Chair of Space Canada's board of directors, a member of the Business Council of Canada, and a member of the Global Satellite Operators Association (GSOA). He has served as the Vice-Chair of the Government of Canada's Economic Strategy Table for Advanced Manufacturing, a Board member of the Aerospace Industries Association of Canada (AIAC) and of the Ontario Aerospace Council. Previously he

MDA SPACE ANNUAL INFORMATION FORM 66

served as Chair of the Advisory Board for Defence and Security Export to the Department of Foreign Affairs and International Trade (DFAIT) in Canada, as a member of the Industry Advisory Boards to the Department of National Defence, Defence R&D Canada, and Public Services and Procurement Canada and to the CEO of Export Development Canada (EDC). Mr. Greenley has also served on a number of non-profit boards including six years as the Chair of the Board of the Canadian Association of Defence and Security Industries (CADSI), and Chair of the Board for the Elmwood School for Girls. Mr. Greenley received the 2023 Satellite Executive of the Year award at the Satellite 2024 Conference and the 2024 Innovator of the Year award and recognition as one of Canada's Top CEOs by the Globe and Mail's Report on Business. Earlier in his career, Mr. Greenley was recognized as an Ottawa Top 40 under 40 business leader, and a PROFIT 100 CEO for leading one of Canada's fastest growing companies. Mr. Greenley holds a Bachelor of Science and a Master of Science from the University of Waterloo, as well as an Executive Leadership Development certificate from The Wharton School.

**Brendan Paddick, ICD.D**

Mr. Paddick is the Chief Executive Officer of Columbus Capital Corporation and the Founder and former Chief Executive Officer of Columbus Communications Inc. Mr. Paddick is the former Chair of the Board of Directors of Nalcor Energy and Churchill Falls (Labrador) Corporation from 2016 to 2022 and is a director and member of the audit committee of Liberty Latin America Ltd. (Nasdaq: LILA), a leading telecommunications company with operations in over 40 countries across Latin America and the Caribbean. He is also a director and chair of the audit committee of Bahamas Telecommunications Corporations (BTC). Mr. Paddick has also served on the board and as a member of the audit committee of Clearwater Seafoods (formerly listed on the TSX) and Cable & Wireless Communications PLC (formerly listed on the London Stock Exchange). He has been recognized through a variety of awards, including Canada's Top 40 under 40 in 2000, induction into the Junior Achievement Newfoundland and Labrador Business Hall of Fame in 2018, and received EY Canada's Special Citation Award for Master Entrepreneur in 2019 for his career body of work. He was invested into the Order of Canada in 2025. Mr. Paddick holds Bachelor of Commerce and Master of Business Administration degrees from Memorial University of Newfoundland (Alumnus of the Year in 2013) and graduated from the Advanced Management Program at Harvard University. Mr. Paddick also holds his ICD.D designation from the Rotman School of Management/Institute of Corporate Directors. In 2025, Mr. Paddick also received the degree of Doctor of Laws *honoris causa* in recognition of his entrepreneurial success and unwavering support of Memorial.

**John Risley**

Mr. Risley was the co-founder of Clearwater Seafoods and serves as Chairman, President and Chief Executive Officer of CFFI Ventures Inc., an active investment and holding company with its major investments in renewable energy, financial services ventures and Northern Private Capital, an investment fund co-formed by CFFI Ventures Inc. Mr. Risley has been recognized with a number of awards, including Atlantic Canadian Entrepreneur of the Year and a Canada Award for Business Excellence in Entrepreneurship. He was named an Officer of the Order of Canada and was inducted into the Nova Scotia Junior Achievement Business Hall of Fame in 1997. Mr. Risley is a graduate of Harvard University's President's Program on Leadership.

**Jill Smith**

Ms. Smith brings more than 25 years of experience as an international business leader, including 17 years as chief executive officer of private and public companies in the technology and information services markets. Most recently, Ms. Smith served as the President and Chief Executive Officer of Allied Minds, a technology commercialization company, and prior to that she served as Chairman, Chief Executive Officer and President of DigitalGlobe Inc., a global provider of satellite imagery products and services. Ms. Smith started her career as a consultant at Bain & Company, where she rose to become Partner. She subsequently joined Sara Lee as Vice President and went on to serve as President and Chief Executive Officer of SRDS, a business-to-business publishing firm, and eDial, a VoIP collaboration company. She

MDA SPACE ANNUAL INFORMATION FORM 67

also served as Chief Operating Officer of Micron Electronics, and co-founded Treacy & Company, a consulting and boutique investment business. Ms. Smith currently serves as a director of Check Point Software Technologies Ltd, Securitas AB and Evolent. She previously served as a director of Aspen Technology Inc., R1 RCM, Circor International Inc., Gemalto NV, Endo International, and Hexagon AB. Ms. Smith earned a Master of Science in Management from MIT Sloan School of Management.

**Karl Smith**

Mr. Smith held a variety of executive roles over a career spanning more than 30 years. Mr. Smith was President and Chief Executive Officer of FortisAlberta and President and Chief Executive Officer of Newfoundland Power. As Executive Vice President and Chief Financial Officer of Fortis Inc., as part of the company's growth strategy, Mr. Smith helped to secure its New York Stock Exchange listing and was actively involved in and led the financial strategy for a number of significant acquisitions. Mr. Smith began his career with five years at Deloitte as a Chartered Public Accountant. Mr. Smith currently serves as a member on the Board at Raleigh Solar Tech and CSA (formerly the Canadian Standards Association). He also sits on the Board of the Genesis Centre in St. John's, Newfoundland where he chairs the Audit and Risk Committee, and was Co-Chair of the St. John's 2025 Summer Games. Mr. Smith earned a Bachelor of Commerce (Honours) from Memorial University of Newfoundland.

**Yung Wu, ICD.D**

Mr. Wu is a serial entrepreneur, private equity investor, and former CEO of MaRS Discovery District. With decades of experience founding, scaling and investing into technology companies, he has led organizations through major cycles of growth and transformation. Mr. Wu deeply engaged in Canada's business community as the recent Chair of the Toronto Region Board of Trade, a member of the Mayor of Toronto's Economic Action Team, an inaugural member of Canada's Net Zero Advisory Body (NZAB) and a Director on the Board of the OMERS Pension Plan. Mr. Wu has previously been recognized as one of Canada's "Top 40 under 40" and for leading one of Canada's "50 Best Managed Private Companies". He holds a B.Sc. in Computer Science, Economics and Mathematics from the University of Toronto and is a graduate of the Entrepreneurial Masters Program at the Massachusetts Institute of Technology. Mr. Wu is also a member of MENSA, the Young Presidents Organization (YPO), the Institute of Corporate Directors (ICD.D) and the National Association of Corporate Directors (NACD.DC). Mr. Wu holds a Bachelor of Science in Computer Science, Economics and Mathematics from the University of Toronto and is a graduate of the Entrepreneurial Masters Program from the Massachusetts Institute of Technology.

**OFFICERS**

**Guillaume Lavoie, Chief Financial Officer**

Mr. Lavoie joined MDA Space in November 2024, bringing over 20 years of financial expertise from large publicly traded and privately owned companies with proven experience as a CFO and expertise across financial and business functions, including strategic and financial planning, mergers and acquisitions, investor relations, capital deployment, business transformation, and P&L ownership. Mr. Lavoie joined MDA Space from Sofina Foods Inc., a global food manufacturer, where he served as Executive Vice President and CFO and played an instrumental role in executing the company's growth strategy, including the integration of Sofina Europe. Prior to Sofina Foods Inc., Mr. Lavoie served as Senior Vice President and CFO of the Woodbridge Group, a global automotive supplier where he delivered significant free cash flow improvements for the business by executing key business projects, in addition to renegotiating financing for the company. Prior to this, Mr. Lavoie was the Vice President and CFO for Bombardier Transportation, a global leader in rail transportation, from 2018 to 2020 and the Vice President of Financial Planning & Analysis at Bombardier Inc. from 2015 to 2018. Mr. Lavoie is a Chartered Professional Accountant (CPA) and holds a Bachelor of Business Administration from the Université du Québec à Montréal.

MDA SPACE ANNUAL INFORMATION FORM 68

**Luigi Pozzebon, Vice President, Satellite Systems**

Mr. Pozzebon is a long-term member of MDA Space's Satellite Systems engineering and management team and is a widely respected executive in the global satellite industry. Mr. Pozzebon brings more than 33 years of experience to his current role as MDA Space's Vice-President of Satellite Systems. He is responsible for MDA Space's state-of-the art satellite design and manufacturing facilities, including its high-volume satellite production facility. In his decades-long career, he has played an instrumental role in some of the most complex satellite technology programs that have fundamentally changed the space industry in the fields of robotics, SAR, navigation, and satellite communications, in a wide range of functions including digital engineering, system engineering, engineering management, chief architect, business execution, business leadership and strategy development. Prior to working at MDA Space, he was Project Engineer at CMC Electronics where he was responsible for the design of an all-glass large-format high resolution cockpit display product, with night vision (NVIS) option, and a family of Flight Management Systems products for modern digital cockpits in fixed and rotary wing aircraft for both civil and military applications. In April 2024, Mr. Pozzebon was named to the prestigious "Best Executives" list by the Globe and Mail's Report on Business, a program established to celebrate exceptional non-CEO leaders at Canadian corporations. Mr. Pozzebon holds an Honours Bachelor of Engineering degree from McGill University.

**Holly Johnson, Vice President, Robotics & Space Operations**

Ms. Johnson has had an extensive 15-year career in the robotics and space operations industry, with experience in systems engineering, business development, business leadership, operations management and strategy development. In 2022, she was appointed Vice President, Robotics and Space Operations at MDA Space. Prior to that, Ms. Johnson led business transformation initiatives as the Vice President of Operations at MDA Space, working with the executive leadership team to modernize and harmonize practices and systems in human resources, finance, information technology, marketing and business operations. During her tenure in the Operations group, Ms. Johnson played a key role in corporate development initiatives, including the sale of MDA Space in 2019 to a Canadian-based private equity group, the subsequent divestiture and establishment of stand-alone operations as a private company, taking MDA Space through its initial public offering and other mergers and acquisitions activity. Ms. Johnson started her career at MDA Space in 2010 as a systems engineer working on Canadarm space robotics programs, medical robotics technology and early design concepts for Canadarm3 and other large projects. Following this, she leveraged her engineering skills and industry expertise as Business Development Manager in the robotics division, where she engaged with commercial space customers to develop solutions for on-orbit robotics systems and interfaces. Ms. Johnson has a Bachelor of Applied Science degree in Mechanical Engineering from the University of Toronto and is a member of Professional Engineers Ontario. In 2023, Ms. Johnson was named to the prestigious "Best Executives" list by the Globe and Mail's Report on Business, a program established to celebrate exceptional non-CEO leaders at Canadian corporations. In 2019, Ms. Johnson received a top 40 under 40 recognition and was presented with the University of Toronto Alumni Network's Early Career Award. She was also recognized for her professional accomplishments in 2016 when she received the Northern Lights Aero Foundation Rising Star Award.

**Dr. Minda Suchan, Vice President, Geointelligence**

Dr. Suchan has an extensive leadership background in the U.S. defence and intelligence community with over 30 years of experience in business operations, strategy and development, acquisition integration, engineering management, and technology portfolio investments. Prior to joining MDA Space in 2020, Dr. Suchan was the managing director at Riverside Research, where she led a team advancing critical capabilities in the U.S. Intelligence Community. Prior to Riverside Research, she was the Vice President of Technology, Strategy & Business Development for Harris Electronic Systems segment and the executive business director for Harris Geospatial Government Systems. Earlier in her career, Dr. Suchan was responsible for capturing new business opportunities in the area of Intelligence, Surveillance and

MDA SPACE ANNUAL INFORMATION FORM 69

Reconnaissance (ISR) and served as the deputy director for Center for Innovation, Technology and Development where she coordinated a multifunctional team involving advocacy, planning and analysis, strategic operations, corporate strategy, investment innovation development and marketing communications. Dr. Suchan also held a number of roles with the Raytheon Company, beginning as a senior physics engineer specializing in novel electro-optical sensors, serving as National Reconnaissance Office (NRO) Technology Fellow at various government sites, holding progressively senior positions in business development and strategy, including the National Reconnaissance Office account manager with Raytheon Corporate U.S. business development. Currently Dr. Suchan sits on the Board of Trustees for St. Catherine University, as well as on the H.R. Macmillan Space Centre Board of Directors in addition to being a member of the Canadian Defence Industry Advisory Group. Dr. Suchan earned a Bachelor of Arts Degree from the College of St. Catherine, followed by a Ph.D. at the University of Southern California.

**Stephanie McDonald, Chief People, Culture and Transformation Officer**

Ms. McDonald joined MDA Space in July 2023 in a newly created executive role with a mandate to drive MDA Space's transformation strategy and initiatives. With global responsibility for MDA Space's people, culture and transformation agenda and associated functions, Ms. McDonald brings a demonstrated track record of long-term strategic planning and value creation in publicly traded companies. A seasoned executive with a background in large multinationals undergoing transformation, Ms. McDonald has served in multiple executive and leadership roles as a trusted strategic business leader. Before joining MDA Space, Ms. McDonald was the Chief Human Resources Officer at Ontex, a global private label manufacturer of personal hygiene products. Previously, she was the Senior Vice President of People & Culture at Parkland, an international fuel distributor and retailer with operations in 25 countries. Ms. McDonald also spent over 16 years in progressive leadership roles while working at Holcim, a global leader in sustainable construction. Throughout her career, Ms. McDonald has led a series of organizations through a variety of significant transformations and corporate events, including rapid scaling and growth, complex business integrations and corporate turnarounds. Ms. McDonald is a past Committee Chair and former Board Member for HR People & Strategy (HRPS), now called the SHRM Executive Network, an exclusive community of practicing senior HR leaders dedicated to revolutionizing the world of work. In 2025, Ms. McDonald was named one of Canada's best executives by the Globe & Mail's Report on Business Magazine. Ms. McDonald holds a Master of Business Administration (Academic Distinction) from Georgetown University in Washington, DC, and a Bachelor of Commerce from the University of Saskatchewan. She is also a certified Culture Coach from the Maslow Research Center.

**David Snarch, Vice President, General Counsel and Corporate Secretary**

Mr. Snarch has an extensive background in corporate law, with experience in mergers & acquisitions, corporate securities, financing transactions, regulatory matters, litigation, and general corporate and commercial law. Mr. Snarch joined MDA Space in April 2016 and has held various positions of increasing responsibility within MDA Space's Legal team. Prior to joining MDA Space in 2016, Mr. Snarch was a practicing corporate lawyer at a leading Canadian law firm. Mr. Snarch received a Bachelor of Arts degree in International Relations from the University of British Columbia in 2006 and a Juris Doctor degree from the University of Ottawa Law School in 2011. He was admitted to the British Columbia Bar in 2012. Mr. Snarch was named as a finalist for the 2025 Canadian General Counsel Awards in the Deal Making award category.

**AUDIT COMMITTEE INFORMATION**

As of the date of this AIF, our Audit Committee consists of Karl Smith (Chair), Darren Farber, and Yung Wu, each of whom is and must be at all times financially literate. All of the Audit Committee members are considered independent within the meaning of National Instrument 52-110 – *Audit Committees*. In addition to each member's general business experience, the relevant education and experience of each member of the Audit Committee is described as part of their respective biographies above under "Directors and Executive Officers – Directors". Each of the Audit Committee members has adequate

MDA SPACE ANNUAL INFORMATION FORM 70

education and/or experience that will be relevant to his performance as an Audit Committee member, including broad experience reviewing financial statements and dealing with related accounting and auditing issues.

Our Board has adopted a written Charter for the Audit Committee, which sets out the Audit Committee's responsibility in reviewing and approving our financial statements and public disclosure documents containing financial information and reporting on such review to the Board, ensuring that adequate procedures are in place for the reviewing of our public disclosure documents that contain financial information, overseeing the work and reviewing the independence of the external auditors. The text of the current Charter of the Audit Committee is appended hereto as Appendix A.

The members of the Audit Committee will be appointed annually by the Board, and each member of the Audit Committee will serve at the request of our Board until the member resigns, is removed, or ceases to be a member of the Board.

All non-audit services exceeding $50,000 in any fiscal year to be provided by our external auditor are required to be pre-approved by the Audit Committee.

**EXTERNAL AUDIT SERVICE FEES**

The fees billed by our auditor for fiscal 2025 and fiscal 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Year | Audit Fees<sup>(1)</sup> | Audit-Related Fees<sup>(2)</sup> | Tax Fees<sup>(3)</sup> | All Other Fees<sup>(4)</sup> |
| **2025** | $2089759 | $105490 | $165319 | $66000 |
| **2024** | $1698794 | $46795 | $84544 | $150033 |

---

**Notes:**

(1) Total
 fees incurred for professional services provided by the external auditor for the review of
 the interim financial statements, audits of the annual financial statements, the review of
 financial accounting and reporting matters and auditor involvement with filings. Annual audit
 fees are reported in the above table as billed.

(2) Total
 fees incurred for special assurance services and agreed upon procedures engagements.

(3) The
 aggregate fees incurred for professional services rendered for tax compliance, tax advice
 and tax planning, including the preparation of corporate tax returns and general tax advisory
 services.

(4) The
 aggregate fees incurred for products and services other than set out under the headings,
 "Audit Fees", "Audit Related Fees" and "Tax Fees". For
 2025, "All Other Fees" is comprised of fees related to strategic transaction
 activities and other projects of a one-time nature.

**CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS**

To our knowledge, except as set forth below:

(a) no
 director or executive officer of MDA Space (or a personal holding company of such person)
 is, as at the date of this AIF or was within the last 10 years, a director, chief executive
 officer or chief financial officer of any company (including MDA Space) that was subject
 to a cease trade order or similar order, or an order that denied the relevant company access
 to any exemption under securities legislation, that was in effect for a period of more than
 30 consecutive days that was issued: (i) while the person was acting in the capacity
 as director, chief executive officer or chief financial officer; or (ii) after the person
 ceased to be a director, chief executive officer or chief financial officer and which resulted
 from an event that occurred while that person was acting in the capacity as director, chief
 executive officer or chief financial officer;

MDA SPACE ANNUAL INFORMATION FORM 71

(b) no
 director or executive officer of MDA Space, and no shareholder holding a sufficient number
 of securities of MDA Space to affect materially the control of MDA Space, (i) is, as
 at the date of this AIF, or has been within the last 10 years, a director or executive officer
 of any company (including MDA Space) that, while that person was acting in that capacity,
 or within a year of that person ceasing to act in that capacity, became bankrupt, made a
 proposal under any legislation relating to bankruptcy or insolvency or was subject to or
 instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver
 manager or trustee appointed to hold its assets; (ii) has in the last 10 years before
 the date of this AIF, become bankrupt, made a proposal under any legislation relating to
 bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement
 or compromise with creditors, or had a receiver, receiver manager or trustee appointed to
 hold such person's assets; (iii) has been subject to any penalties or sanctions
 imposed by a court relating to securities legislation or by a securities regulatory authority
 or has entered into a settlement agreement with a securities regulatory authority; or (iv) has
 been subject to any other penalties or sanctions imposed by a court or regulatory body that
 would likely be considered important to a reasonable investor in making an investment decision.

On July 13, 2018, two holding companies (directly or indirectly) controlled by John Risley, entered into a settlement agreement with the United States Securities and Exchange Commission with respect to a failure to timely file a report under the reporting provisions of Section 13(d) of the *Securities Exchange Act of 1934*. The settlement agreement included a cease and desist order and a fine of US$92,383 for each entity.

Yung Wu served as a director of Antibe Therapeutics Inc. ("**Antibe**"), a clinical-stage biotech company developing a non-addictive opioid replacement drug candidate. Antibe, a reporting issuer listed on the TSX, initiated proceedings under the Companies' Creditors Arrangement Act (CCAA) on April 9, 2024. The Ontario Superior Court of Justice appointed a receiver and manager, without security, of the assets, undertakings and properties of Antibe, effective April 22, 2024. All directors, including Yung Wu resigned as directors of Antibe on April 22, 2024 to allow the court-appointed receiver to assume control. Antibe's shares were suspended from trading on April 9, 2024 and delisted on May 24, 2024. On January 16, 2025, Sun Pharmaceutical Industries Limited, through its subsidiary Taro Pharmaceuticals Inc., entered into an agreement to acquire a 100% stake in Antibe. The acquisition was completed on March 18, 2025.

**CONFLICTS OF INTEREST**

To our knowledge, there are no existing or potentially material conflicts of interest between us or a subsidiary and any director or officer of ours or a subsidiary, other than as described elsewhere in this AIF.

**Legal Proceedings and Regulatory Actions**

We were served with a Statement of Claim that was filed in the Ontario Superior Court of Justice on November 17, 2025 seeking certification of a proposed class action against the Company, our CEO, CFO and the Board of Directors. The allegations in the claim relate to the Company's announcement and subsequent cancellation of the EchoStar constellation contract that we announced in September 2025 and the sales by certain insiders of shares after the announcement of the contract and before its termination. The plaintiffs seek damages for statutory and/or common law misrepresentation estimated in the amount of $225 million, punitive damages in the amount of $25 million, and damages against certain insiders for insider trading estimated in the amount of $90 million. The Company believes that all of the allegations that have been made in the claim are unfounded and without merit. The claims for damages have also not been substantiated. The Company intends to vigorously defend itself and the individual defendants. Due to the inherent uncertainties of litigation, it is not possible to predict the outcome of this proposed class action or determine the amount of potential losses, if any.

MDA SPACE ANNUAL INFORMATION FORM 72

We are otherwise from time to time involved in legal proceedings of a nature considered normal to our business. We believe that none of the litigation in which we are currently involved, including the shareholder class action claim described above, or have been involved since the beginning of the most recently completed financial year, individually or in the aggregate, is material to our consolidated financial condition or results of operations. There are similarly no regulatory actions in which we are currently involved, or have been involved since the beginning of the most recently completed financial year, individually or in the aggregate, that would be material to our consolidated financial condition or results of operations.

**Interest of Management and Others in Material Transactions**

To our knowledge, there are no material interests, direct or indirect, of any of our directors or executive officers, any shareholder that beneficially owns, or controls or directs (directly or indirectly), more than 10% of any class or series of our outstanding voting securities, or any associate or affiliate of any of the foregoing persons, in any transaction within the three years before the date hereof that has materially affected or is reasonably expected to materially affect us or any of our subsidiaries.

**Transfer Agent and Registrar**

Our transfer agent and registrar is TSX Trust Company located at 100 Adelaide Street West, Suite 301, Toronto, Ontario M5H 4H1.

**Material Contracts**

This AIF includes a summary description of certain of our material contracts. The summary describes the material attributes of each of the material contracts and is subject to and qualified by reference to the terms of the relevant material contract, which have been filed with the Canadian securities regulatory authorities and made available under our profile on SEDAR+ at www.sedarplus.ca.

The following are the only material agreements we entered into within the last financial year or which are still in effect, other than contracts entered into in the ordinary course of business:

· the
 second amended and restated credit agreement between Neptune Operations Ltd. and a syndicate
 of lenders dated November 25, 2025, for a revolving term credit facility in the aggregate
 amount of $700,000,000, as may be amended from time to time; and

· the
 Trust Indenture in respect of the Notes, described under the heading "Description of
 Capital Structure – Notes".

**Experts**

Our auditor, KPMG LLP, Chartered Accountants, located at 100 New Park Place, Suite 1400, Vaughan, ON, L4K 0J3 has audited our consolidated financial statements as at December 31, 2025 and for the year then ended. KPMG LLP has advised us that they are independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations.

To our knowledge, none of the experts so named (or any of the designated professionals thereof) held securities representing more than 1% of all issued and outstanding Common Shares as at the date of the statement, report, or valuation in question.

MDA SPACE ANNUAL INFORMATION FORM 73

**Additional Information**

Additional information may be found on SEDAR+, which can be accessed at www.sedarplus.ca. Additional information, including directors' and officers' remuneration and indebtedness, principal holders of our securities and securities authorized for issuance under equity compensation plans, if applicable, will be contained in our information circular for our upcoming annual meeting of shareholders. Additional financial information is provided in our financial statements and management's discussion and analysis for the financial year ending December 31, 2025.

MDA SPACE ANNUAL INFORMATION FORM 74

**Glossary of Terms**

"**AIF**" means this Annual Information Form.

"**Board**" means the board of directors of MDA Space.

"**Common Shares**" means the common shares of MDA Space.

"**Company**" or "**MDA Space**" means MDA Space Ltd., its subsidiaries or its predecessors, as the context requires.

"**CSA**" means the Canadian Space Agency.

"**EO**" means Earth observation.

"**forward-looking information**" has the meaning set out under the heading "Introduction – Forward-Looking Information".

"**GEO**" means geosynchronous equatorial orbit.

"**Globalstar**" means Globalstar Inc.

"**IoT**" has the meaning set out under the heading "Description of the Business – Industry Overview And Trends".

"**ISAM**" means in-space servicing, assembly and manufacturing.

"**ISS**" means International Space Station.

"**IPO**" refers to MDA Space's initial public offering of our Common Shares on April 7, 2021, following which the Common Shares began trading on the Toronto Stock Exchange under the symbol "MDA". At closing of the IPO, MDA Space issued 28,571,500 Common Shares at a price of $14.00 per Common Share for total gross proceeds of $400 million. On April 14, 2021, MDA Space closed on the full exercise of the over-allotment option granted in connection with the IPO, issuing an additional 4,285,725 Common Shares for additional proceeds of $60 million to the company.

"**IUU**" means illegal, unreported and unregulated.

"**LEO**" means low Earth orbit.

"**LiDAR**" has the meaning set out under the heading "Description of the Business – Robotics & Space Operations".

"**MEO**" means medium Earth orbit.

"**NI 52-109**" means National Instrument 52-109 – Certification of Disclosure in Issuers' Annual and Interim Filing.

"**Notes**" has the meaning set out under the heading "General Development of the Business".

"**OBCA**" means the *Business Corporations Act* (Ontario).

"**Offering**" has the meaning set out under the heading "General Development of the Business".

"**Omnibus Plan**" means MDA Space's omnibus equity incentive plan, pursuant to which MDA Space may grant long-term incentives consisting of stock options, performance share units and/or restricted share units to our executive officers and employees.

MDA SPACE ANNUAL INFORMATION FORM 75

"**OSC**" means the Ontario Securities Commission.

"**R&D**" means research & development.

"**SAR**" means Synthetic Aperture Radar.

"**SDA**" means the U.S. Department of Defense Space Development Agency.

"**Trust Indenture**" has the meaning set out under the heading "Description of Capital Structure – Notes".

"**TSX**" means the Toronto Stock Exchange.

"**UAV**" means uncrewed aerial vehicle.

"**VDOP**" means new vessel detection onboard processing system.

MDA SPACE ANNUAL INFORMATION FORM 76

**Appendix A<br> Charter of the Audit Committee**

This Charter of the Audit Committee (the "**Charter**") was adopted by the board of directors of MDA Space Ltd. (the "**Corporation**") on January 1, 2022, as amended on November 10, 2022 and August 7, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Purpose** 

The Audit Committee (the "**Committee**") is a committee of the Board of Directors (the "**Board**") of the Corporation. The members of the Committee and the chair of the Committee (the "**Chair**") are appointed by the Board on an annual basis (or until their successors are duly appointed) for the purpose of overseeing the Corporation's financial controls and reporting and monitoring whether the Corporation complies with financial covenants and legal and regulatory requirements governing financial disclosure matters and financial risk management.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Composition** 

The Committee should be comprised of a minimum of three directors of the Corporation.

All members of the Committee must (except to the extent permitted by NI 52-110 – *Audit Committees*, as it may be amended or replaced from time to time ("**NI 52-110**")) be independent (as defined by NI 52-110), and free from any relationship that, in the view of the Board, could be reasonably expected to interfere with the exercise of his or her independent judgment as a member of the Committee.

No members of the Committee shall receive, other than for service on the Board or the Committee or other committees of the Board, any consulting, advisory, or other compensatory fee from the Corporation or any of its subsidiaries.

All members of the Committee must be financially literate (which is defined as the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Corporation's financial statements).

Any member of the Committee may be removed or replaced at any time by the Board and will cease to be a member of the Committee on ceasing to be a director of the Corporation. The Board may fill vacancies on the Committee by election from among the Board. If and whenever a vacancy will exist on the Committee, the remaining members may exercise all powers of the Committee so long as a quorum remains.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Limitations on Committee's Duties** 

In contributing to the Committee's discharge of its duties under this Charter, each member of the Committee will be obliged only to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Nothing in this Charter is intended or may be construed as imposing on any member of the Committee a standard of care or diligence that is in any way more onerous or extensive than the standard to which any member of the Board may be otherwise subject.

Members of the Committee are entitled to rely, absent actual knowledge to the contrary, on (a) the integrity of the persons and organizations from whom they receive information, (b) the accuracy and completeness of the information provided, (c) representations made by the Chief Executive Officer and each of the other individuals who are from time to time appointed to offices of the Corporation by resolution of the Board (together with the Chief Executive Officer, collectively, the "**Executive Officers**") as to the non-audit services provided to the Corporation by the external auditor, (d) financial statements of the Corporation represented to them by an Executive Officer or in a written report of the external auditors to present fairly the financial position of the Corporation in accordance with applicable generally

MDA SPACE ANNUAL INFORMATION FORM A-1

accepted accounting principles, and (e) any report of a lawyer, accountant, engineer, appraiser or other person whose profession lends credibility to a statement made by any such person.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Meetings** 

The Committee shall meet regularly, but not less frequently than quarterly. A quorum for the transaction of business at any meeting of the Committee will be a majority of the members of the Committee or such greater number as the Committee will by resolution determine. The Committee will keep minutes of each meeting of the Committee. A copy of the minutes will be provided to each member of the Committee.

Meetings of the Committee will be held from time to time and at such place as any member of the Committee will determine upon two days' prior notice to each of the other Committee members. The members of the Committee may waive the requirement for notice. In addition, each of the Chief Executive Officer, the Chief Financial Officer and the external auditor will be entitled to request that the Chair call a meeting.

The Chief Financial Officer and the Director, Internal Audit are required to attend all meetings of the Committee.

The Committee may ask the Executive Officers and employees of the Corporation (including, for greater certainty, its affiliates and subsidiaries) or others (including the external auditor) to attend meetings and provide such information as the Committee requests. Members of the Committee will have full access to information of the Corporation (including, for greater certainty, its affiliates, subsidiaries and their respective operations) and will be permitted to discuss such information and any other matters relating to the results of operations and financial position of the Corporation with the Executive Officers, employees, the external auditor and others as they consider appropriate.

The Committee or its Chair should meet at least once per year with the Executive Officers, the Director, Internal Audit, and the external auditor in separate sessions to discuss any matters that the Committee or either of these groups desires to discuss privately. In addition, the Committee or its Chair should meet with the Executive Officers quarterly in connection with the Corporation's interim financial statements. The Committee shall hold executive sessions without management present at each Committee meeting.

The Chair will determine any desired agenda items in consultation with the members of the Committee, the Chief Financial Officer, and the Director, Internal Audit.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Committee Activities** 

As part of its function in assisting the Board in fulfilling its oversight responsibilities (and without limiting the generality of the Committee's role), the Committee will have the power and authority to:

&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Financial Disclosure** 

(a) Review
 and recommend for Board approval the Corporation's interim financial statements, including
 any certification, report, opinion or review rendered by the external auditor and, if applicable,
 the related management's discussion & analysis and press release;

(b) Review
 and recommend for Board approval the Corporation's annual financial statements, including,
 if applicable, any certification, report, opinion or review rendered by the external auditor,
 the annual information form and the related management's discussion & analysis
 and press release;

(c) Review
 and recommend for Board approval any other material press releases that contain financial
 information and such other financial information of the Corporation provided to the public
 or any governmental body as the Committee requires;

MDA SPACE ANNUAL INFORMATION FORM A-2

(d) Satisfy
 itself that adequate procedures have been put in place by the Executive Officers for the
 review of the Corporation's public disclosure of financial information extracted or
 derived from the Corporation's financial statements and the related management's
 discussion & analysis;

(e) Review
 any litigation, claim or other contingency and any regulatory or accounting initiatives that
 could have a material effect upon the financial position or operating results of the Corporation
 and the appropriateness of the disclosure thereof in the documents reviewed by the Committee;
 and

(f) Receive
 periodically reports from the Executive Officers assessing the adequacy and effectiveness
 of the Corporation's disclosure controls and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Internal Control and Oversight of the Corporation's Enterprise and Financial Risk Management** 

(a) Review,
 monitor, report and, where appropriate, provide recommendations to the Board on the Corporation's
 major enterprise and financial risk exposures and the guidelines, policies and practices
 regarding enterprise and financial risk assessment and management, including the Corporation's
 processes for identifying, assessing and managing an effective and comprehensive risk management
 framework that covers financial, operational, and strategic risks (including regarding those
 risks related to information security, cyber security and data protection), and crisis management
 and business continuity planning, and the steps taken by the Corporation to monitor and control
 such risk exposures;

(b) Review,
 monitor, report and, where appropriate, provide recommendations to the Board on the Corporation's
 compliance with internal policies and practices regarding enterprise and financial risk assessment
 and management and the Corporation's progress in remedying any material deficiencies
 thereto;

(c) Review
 the effectiveness of the internal control systems for monitoring compliance with financial
 disclosure matters, enterprise and financial risk management, laws and regulations;

(d) Review
 with the Executive Officers the credit worthiness, liquidity and important treasury matters
 including financial plans and strategies of the Corporation;

(e) Review
 the Corporation's tax strategy, including its tax planning and compliance with applicable
 tax laws;

(f) Review
 with the Executive Officers any hedging strategy that may be in place from time to time,
 including with respect to foreign exchange and interest rate hedging, financial or physical,
 intended to manage, mitigate or eliminate risks relation to foreign exchange and interest
 rate fluctuations;

(g) Receive
 periodical reports from the Executive Officers assessing the adequacy and effectiveness of
 the Corporation's internal control systems;

(h) Assess
 the overall effectiveness of the internal control and enterprise risk management frameworks
 through discussions with the Chief Financial Officer, the Director, Internal Audit,
 other applicable Executive Officers, and the external auditors and assess whether recommendations
 made by the Chief Financial Officer, the Director, Internal Audit or the external auditors
 have been effectively implemented by the Executive Officers;

(i) Review
 an annual report on the Executive Officers' implementation and maintenance of an appropriate
 enterprise wide risk management process from the Director, Internal Audit; and

(j) To
 obtain reasonable assurance with respect to the organization's procedures for the prevention
 and detection of fraud, the Committee will:

MDA SPACE ANNUAL INFORMATION FORM A-3

(A) oversee
 management's processes and controls for the prevention, detection and prosecution of
 fraud;

(B) ensure
 that appropriate action is taken against known perpetrators of fraud; and

(C) challenge
 the Executive Officers and internal and external auditors to ensure that the Corporation
 has appropriate antifraud programs and controls in place to identify potential fraud and
 ensure that investigations are undertaken if fraud is detected.

&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Relationship with the External Auditor** 

(a) Recommend
 to the Board the selection of the external auditor and the fees and other compensation to
 be paid to the external auditor;

(b) Have
 the authority to communicate directly with the external auditor independent of management,
 and arrange for the external auditor to be available to the Committee and the Board as needed;

(c) Advise
 the external auditor that it is required to report to the Committee and not to the Executive
 Officers;

(d) Monitor
 the relationship between the Executive Officers and the external auditor, including reviewing
 any Executive Officer letters or other reports of the external auditor discussing any material
 differences of opinion between the Executive Officers and the external auditor, and resolving
 disagreements between the external auditor and the Executive Officers;

(e) Review
 and discuss with the external auditor all critical accounting policies and practices to be
 used in the Corporation's financial statements, all alternative treatments of financial
 information within generally accepted accounting principles that have been discussed with
 management, the ramifications of the use of such alternative treatments and the treatment
 preferred by the external auditor;

(f) Review
 any material issues regarding accounting principles and financial statement presentation
 with the external auditor and management, including any significant changes in the Corporation's
 selection or application of accounting principles and any significant financial reporting
 issues and judgments made in connection with the preparation of the Corporation's financial
 statements;

(g) If
 considered appropriate, establish separate systems of reporting to the Committee by each
 of the Executive Officers and the external auditor;

(h) Review
 and discuss on an annual basis with the external auditor all significant relationships they
 have with the Corporation, the Executive Officers, the external asset manager or employees
 that might interfere with the independence of the external auditor;

(i) Approve
 all non-audit services provided by the external auditor and the associated fees (or delegate
 such approval, as the Committee may determine and as permitted by applicable laws) in accordance
 with the Board Administrative and Approval Guidelines dated March 16, 2022 (as amended
 on May 9, 2022, and as may be further amended from time to time);

(j) Review
 the performance of the external auditor and recommend any discharge of the external auditor
 when the Committee determines that circumstances warrant;

MDA SPACE ANNUAL INFORMATION FORM A-4

(k) Periodically
 consult with the external auditor without the Executive Officers present about (i) any
 significant risks or exposures facing the Corporation, (ii) internal controls and other
 steps that the Executive Officers have taken to control such risks, and (iii) the fullness
 and accuracy of the financial statements of the Corporation, including the adequacy of internal
 controls to expose any payments, transactions or procedures that might be deemed illegal
 or otherwise improper; and (iv) and any other matters deemed appropriate by the Committee;
 and

(l) Review
 and approve any proposed hiring of current or former partners or employees of the current
 (and any former) external auditor of the Corporation that worked on the Corporation's
 account.

&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Audit Process** 

(a) Review
 the scope, plan and results of the external auditor's audit and reviews, including
 the auditor's engagement letter, the post-audit management letter, if any, and the
 form of the audit report. The Committee may authorize the external auditor to perform supplemental
 reviews, audits or other work as deemed desirable;

(b) Following
 completion of the annual audit and quarterly reviews, review separately with each of the
 Executive Officers and the external auditor any significant changes to planned procedures,
 any difficulties encountered during the course of the audit and, if applicable, reviews,
 including any restrictions on the scope of work or access to required information and the
 cooperation that the external auditor received during the course of the audit and, if applicable,
 reviews;

(c) Review
 any significant disagreements among the Executive Officers and the external auditor in connection
 with the preparation of the financial statements;

(d) Where
 there are significant unsettled issues between the Executive Officers and the external auditor
 that do not affect the audited financial statements, the Committee will seek to ensure that
 there is an agreed course of action leading to the resolution of such matters;

(e) Review
 with the external auditor and the Executive Officers significant findings and the extent
 to which changes or improvements in financial or accounting practices, as approved by the
 Committee, have been implemented;

(f) If
 applicable, review the system in place to seek to ensure that the financial statements, management's
 discussion & analysis and other financial information disseminated to regulatory
 authorities and the public satisfy applicable requirements; and

(g) Review
 the external auditors' proposed audit scope and approach, including coordination of
 audit effort with the internal audit activity.

&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Oversight of Internal Audit Activity** 

(a) Review
 and approve the annual internal audit plan, including the charter, staffing, scope and objectives
 of the internal audit activity, and receiving regular reports on the internal audit results
 and access to all internal audit reports, including the status of all findings;

(b) Annually
 review the budget of the internal audit activity;

(c) Annually
 review the performance and independence of the internal audit activity;

(d) Inquire
 of the Director, Internal Audit about steps taken to ensure that the internal audit
 activity conforms with The IIA's International Standards for the Professional Practice
 of Internal Auditing (Standards); and

(e) Review
 the results of an independent external quality assurance review, performed every five years
 by a qualified assessor or assessment team, of the internal audit activity's conformance
 with The

MDA SPACE ANNUAL INFORMATION FORM A-5

IIA's International Standards for the Professional Practice of Internal Auditing (Standards) and monitor the implementation of the internal audit activity's action plans to address any recommendations.

&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Financial Reporting Processes** 

(a) Review
 the integrity of the Corporation's financial reporting processes, both internal and
 external, in consultation with the external auditor;

(b) Approve
 any changes to the internal auditor, if applicable, or to the reporting lines of the internal
 auditor;

(c) Review
 all material financial statement issues, off balance sheet issues, material contingent obligations
 and material related party transactions; and

(d) Review
 with the Executive Officers and the external auditor the Corporation's accounting policies
 and any changes that are proposed to be made thereto, including all critical accounting policies
 and practices used, any alternative treatments of financial information that have been discussed
 with the Executive Officers, the ramification of their use and the external auditor's
 preferred treatment and any other material communications with the Executive Officers with
 respect thereto. Review the disclosure and impact of contingencies and the reasonableness
 of the provisions, reserves and estimates that may have a material impact on financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Pension/Retirement Plans** 

(a) Review
 and oversee the Corporation's pension plans, the coverage afforded by the plans and
 changes to the plans;

(b) Review
 the funding policies for the Corporation's defined benefit plans and where appropriate,
 recommend the Board's approval of these policies;

(c) Review
 the level of the Corporation's contributions to its defined contribution plans and
 any proposed changes thereto and where appropriate recommend approval of such changes to
 the Board;

(d) Overseeing
 the Corporation's administration of each of the pension plans in accordance with the
 terms of the plans and applicable law;

(e) Review
 compliance with minimum funding requirements (if any) prescribed by applicable law and the
 policies and procedures in place in respect thereof, including requisitioning and reviewing
 actuarial reports;

(f) Review
 and monitor the investment of pension fund assets (in the case of a defined benefit plan),
 including the policies and procedures in place in respect thereof; and

(g) Review
 and monitor the performance of the investment managers chosen by the Executive Officers,
 including the process established for the selection, retention or replacement of any investment
 manager or advisors.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **General** 

(a) Inform
 the Board of matters that may significantly impact on the financial condition or affairs
 of the business;

(b) Respond
 to requests by the Board with respect to the functions and activities that the Board requests
 the Committee to perform;

MDA SPACE ANNUAL INFORMATION FORM A-6

(c) Annually
 review this Charter and, if the Committee deems appropriate, recommend to the Board changes
 to this Charter;

(d) If
 applicable, review the public disclosure regarding the Committee required from time to time
 by NI 52-110;

(e) The
 Committee may at its discretion retain independent counsel, accountants and other professionals
 to assist it in the conduct of its activities and to set and pay (as an expense of the Corporation)
 the compensation for any such advisors;

(f) Review
 in advance, and consult in, the hiring and appointment of the Corporation's internal
 auditor, if applicable; and

(g) Perform
 any other activities as the Committee or the Board deems necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Complaint Procedures** 

(a) In
 accordance with the procedures contained in the Corporation's Whistleblower Policy,
 anyone may submit a complaint regarding conduct by the Corporation or its employees or agents
 (including its external auditor) reasonably believed to involve questionable accounting,
 internal accounting controls, auditing, ethical or other matters which such person believes
 is in violation of the Corporation's Code of Business Conduct and Ethics;

(b) The
 Committee should endeavour to keep the identity of the complainant confidential;

(c) All
 complaints will be directed to the Chair who will have the power and authority to lead the
 review and investigation of a complaint in accordance with the procedures contained in the
 Corporation's Whistleblower Policy. The Committee should retain a record of all complaints
 received;

(d) The
 General Counsel, Vice President Legal & Corporate Secretary will provide the Committee
 with a status review of all complaints and report to the Committee (and where appropriate,
 to the Board of Directors) on a quarterly basis with respect to the investigation and evaluation
 of all active complaints, as well as on any proposed remedial action or disciplinary action;

(e) The
 Committee will serve as the primary point of escalation for any matters involving internal
 accounting controls, auditing, ethical violations or other material matters; and

(f) The
 Committee will annually review the Corporation's whistleblower reporting process.

MDA SPACE ANNUAL INFORMATION FORM A-7

## Exhibit 4.2

**Exhibit 4.2**

![](tm266080d2_ex4-2sp1img01.jpg)

**MDA Space Ltd.**

**Consolidated Financial Statements**

For the years ended December 31, 2025 and 2024

(In millions of Canadian dollars)

![](tm266080d2_ex4-2sp1img02.jpg)

KPMG LLP

100 New Park Place, Suite 1400<br> Vaughan, ON L4K 0J3

Canada

Tel 905 265 5900

Fax 905 265 6390

**INDEPENDENT AUDITOR'S REPORT**

To the Shareholders of MDA Space Ltd.

***Opinion***

We have audited the consolidated financial statements of MDA Space Ltd. (the Entity), which comprise:

· the
 consolidated statements of financial position as at December 31, 2025 and December 31,
 2024

· the
 consolidated statements of comprehensive income for the years then ended

· the
 consolidated statements of changes in shareholders' equity for the years then ended

· the
 consolidated statements of cash flows for the years then ended

· and
 notes to the consolidated financial statements, including a summary of material accounting
 policy information

(Hereinafter referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Entity as at December 31, 2025 and December 31, 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

***Basis for Opinion***

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the ***"Auditor's Responsibilities for the Audit of the Financial Statements"*** section of our auditor's report.

We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. KPMG Canada provides services to KPMG LLP.

![](tm266080d2_ex4-2sp1img02.jpg)

***Key Audit Matters***

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our auditor's report.

***Evaluation of total estimated costs to complete contracts for revenue recognition Description of the matter***

We draw attention to notes 2(c), 3(c), and 7 to the financial statements. The Entity recorded revenue from contracts with customers for the year ended December 31, 2025 of $1,633.2 million. The Entity recognizes revenues from fixed-price contracts and cost-plus contracts with ceilings using a percentage of completion method based on the ratio of contract costs incurred to date to total estimated costs.

Estimating total costs requires judgments to be made around items including, but not limited to, labour productivity, complexity and scope of work to be performed, cost of materials, the length of time to complete the work, and execution by subcontractors.

***Why the matter is a key audit matter***

We identified the evaluation of total estimated costs to complete contracts for revenue recognition as a key audit matter. This matter represented an area of significant risk of material misstatement due to the magnitude of the balance and the high degree of subjectivity and estimation uncertainty in determining the total estimated costs to be incurred for each performance obligation. Significant auditor judgment was required in evaluating the results of our audit procedures.

***How the matter was addressed in the audit***

The primary procedures we performed to address this key audit matter included the following:

We evaluated the design and tested the operating effectiveness of certain controls over the Entity's review of total expected costs to complete contracts for revenue recognition. These controls included management review controls over the budgeting and monitoring of total costs to complete.

We compared the Entity's original and prior period estimate of total costs to be incurred to the actual costs incurred for a selection of completed contracts to assess the Entity's ability to accurately estimate costs.

For a selection of revenue contracts, we interviewed operational personnel of the Entity in charge of the project about the project status to evaluate progress to date and inspected source documentation such as contracts, change orders and correspondence, and underlying records to assess the total expected costs by performance obligation with respect to the contract.

![](tm266080d2_ex4-2sp1img02.jpg)

For a selection of revenue contracts, we evaluated the total expected costs to be incurred on the remaining performance obligations by comparing the costs incurred subsequent to year-end to the expected costs.

***Evaluation of the fair value of acquired proprietary technology intangible assets from the SatixFy Communications Ltd. acquisition***

***Description of the matter***

We draw attention to notes 2(c), 3(m), and 5 to the financial statements. On July 2, 2025, the Entity acquired all of the outstanding shares of SatixFy Communications Ltd. for total consideration of $448.3 million. Proprietary technology intangible assets were identified with a fair value of $298.7 million. The Entity estimated the fair value of the proprietary technology intangible assets acquired in the acquisition of SatixFy Communications Ltd. using the replacement cost method. The replacement cost method is a valuation technique that estimates the fair value of an intangible asset based on the estimated costs required to create or acquire a comparable asset at the transaction date.

Significant assumptions include costs to develop, obsolescence factors, expected developer's profit margins, and required rate of return.

***Why the matter is a key audit matter***

We identified the evaluation of the fair value of acquired proprietary technology intangible assets from the SatixFy Communications Ltd. acquisition as a key audit matter. This matter represented an area of significant risk of material misstatement due to the magnitude of the balance and the high degree of estimation uncertainty in the selection of assumptions. Significant auditor judgment and the involvement of professionals with specialized skills and knowledge was required in evaluating the methodology and certain assumptions.

***How the matter was addressed in the audit***

The primary procedures we performed to address this key audit matter included the following:

We reconciled a selection of historical costs to develop to the underlying records of SatixFy Communications Ltd.

We evaluated the obsolescence factors by considering both functional and economic obsolescence. This included evaluating the appropriateness of management's assessment of certain components of the technology that were no longer required or expected to be replaced, and assessing the consistency of the assumed level of obsolescence with the expected remaining economic life of the technology.

We evaluated the expected developer's profit margins assumption by comparing it to publicly available market data for entities with comparable technology and to the Entity's historical profit margins for products supported by comparable technology.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluating
 the appropriateness of the valuation methodology

![](tm266080d2_ex4-2sp1img02.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluating
 the required rate of return assumption by comparing to ranges that were independently developed
 using publicly available market data including available data for comparable entities.

***Evaluation of the impairment assessment of goodwill of the Geointelligence cash generating unit***

***Description of the matter***

We draw attention to Notes 2(c), 3(k), 3(l), and 16 to the financial statements. The Entity has a goodwill balance of $800.4 million, of which $285.9 million relates to the Geointelligence cash generating unit ("CGU"). Impairment testing of goodwill is performed at least annually, at December 31, and is conducted at the level of the minimum grouping of CGUs to which goodwill relates.

When the impairment test is performed, the recoverable amount of the CGU is assessed by reference to the higher of i) the value in use and ii) the fair value less costs of disposal. The value in use of CGUs at which goodwill is tested for impairment has been estimated using the forecasts prepared by the Entity for the next five years. In preparing the forecasts, the Entity uses significant assumptions about revenue growth, earnings before interest, taxes, depreciation and amortization, terminal growth rate and discount rate.

***Why the matter is a key audit matter***

We identified the evaluation of the impairment assessment of goodwill of the Geointelligence CGU as a key audit matter. This matter represented an area of significant risk of material misstatement due to the magnitude of the balance and the high degree of estimation uncertainty in assessing the value in use. Significant auditor attention and significant auditor judgment and the involvement of those professionals with specialized skills and knowledge were required in evaluating the results of our audit procedures.

***How the matter was addressed in the audit***

The primary procedures we performed to address this key audit matter included the following:

We compared the expected revenue growth and earnings before interest, taxes, depreciation and amortization assumptions to the actual historical revenue growth and earnings before interest, taxes, depreciation and amortization of the CGU to assess the Entity's ability to accurately predict these cash flow assumptions. We compared the revenue growth assumptions to existing firm contracts on a sample basis.

We considered changes in conditions and events to assess the assumptions made in arriving at the expected future revenue estimates.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluating
 the terminal growth rate assumption by comparing to long-term inflation expectations

![](tm266080d2_ex4-2sp1img02.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;· Assessing
 the appropriateness of the discount rate assumption by comparing to discount rate ranges
 that were independently developed using publicly available market data including available
 data for comparable entities.

***Other Information***

Management is responsible for the other information. Other information comprises:

· the
 information included in Management's Discussion and Analysis.

· the
 information, other than the financial statements and the auditor's report thereon,
 included in a document likely to be entitled "2025 Annual Report".

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit and remain alert for indications that the other information appears to be materially misstated.

We obtained the information included in Management's Discussion and Analysis as at the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in the auditor's report.

We have nothing to report in this regard.

The information, other than the financial statements and the auditor's report thereon, included in a document likely to be entitled "2025 Annual Report" is expected to be made available to us after the date of this auditor's report. If, based on the work we will perform on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact to those charged with governance.

***Responsibilities of Management and Those Charged with Governance for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.

![](tm266080d2_ex4-2sp1img02.jpg)

Those charged with governance are responsible for overseeing the Entity's financial reporting process.

***Auditor's Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

· Identify
 and assess the risks of material misstatement of the financial statements, whether due to
 fraud or error, design and perform audit procedures responsive to those risks, and obtain
 audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain
 an understanding of internal control relevant to the audit in order to design audit procedures
 that are appropriate in the circumstances, but not for the purpose of expressing an opinion
 on the effectiveness of the Entity's internal control.

· Evaluate
 the appropriateness of accounting policies used and the reasonableness of accounting estimates
 and related disclosures made by management.

· Conclude
 on the appropriateness of management's use of the going concern basis of accounting and,
 based on the audit evidence obtained, whether a material uncertainty exists related to events
 or conditions that may cast significant doubt on the Entity's ability to continue as a going
 concern. If we conclude that a material uncertainty exists, we are required to draw attention
 in our auditor's report to the related disclosures in the financial statements or,
 if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
 audit evidence obtained up to the date of our auditor's report. However, future events
 or conditions may cause the Entity to cease to continue as a going concern.

![](tm266080d2_ex4-2sp1img02.jpg)

· Evaluate
 the overall presentation, structure and content of the financial statements, including the
 disclosures, and whether the financial statements represent the underlying transactions and
 events in a manner that achieves fair presentation.

· Communicate
 with those charged with governance regarding, among other matters, the planned scope and
 timing of the audit and significant audit findings, including any significant deficiencies
 in internal control that we identify during our audit.

· Provide
 those charged with governance with a statement that we have complied with relevant ethical
 requirements regarding independence, and communicate with them all relationships and other
 matters that may reasonably be thought to bear on our independence, and where applicable,
 related safeguards.

· Plan
 and perform the group audit to obtain sufficient appropriate audit evidence regarding the
 financial information of the entities or business units within the group as a basis for forming
 an opinion on the group financial statements. We are responsible for the direction, supervision
 and review of the audit work performed for the purposes of the group audit. We remain solely
 responsible for our audit opinion.

· Determine,
 from the matters communicated with those charged with governance, those matters that were
 of most significance in the audit of the financial statements of the current period and are
 therefore the key audit matters. We describe these matters in our auditor's report
 unless law or regulation precludes public disclosure about the matter or when, in extremely
 rare circumstances, we determine that a matter should not be communicated in our auditor's
 report because the adverse consequences of doing so would reasonably be expected to outweigh
 the public interest benefits of such communication.

![](tm266080d2_ex4-2sp1img04.jpg)

Chartered Professional Accountants, Licensed Public Accountants

The engagement partner on the audit resulting in this auditor's report is Laura Price.

Vaughan, Canada

March 3, 2026

**MDA Space Ltd.**

Consolidated Statement of Comprehensive Income<br> For the years ended December 31, 2025 and 2024<br> (In millions of Canadian dollars except per share figures)

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **December 31, 2025** | **December 31, 2024** |
| Revenue | <br>7, 8 | $1633.2 | $1080.1 |
| **Cost of revenue** |  |  |  |
| <br> Materials, labour and subcontractors | 9 | (1168.6) | (754.6) |
| Depreciation and amortization of assets | 14, 15, 16 | (54.9) | (43.8) |
| **Gross profit** |  | **409.7** | **281.7** |
| **Operating expenses** |  |  |  |
| <br> Selling, general and administration | 9 | (111.5) | (78.6) |
| Research and development, net | 9 | (38.1) | (36.9) |
| Amortization of intangible assets | 16 | (84.6) | (47.0) |
| Share-based compensation | 21 | (17.7) | (12.4) |
| **Operating income** |  | **157.8** | **106.8** |
| **Other income (expenses)** |  |  |  |
| <br> Unrealized gain on financial instruments |  | 5 | 1.2 |
| Foreign exchange (loss) gain |  | (2.2) | 17.5 |
| Finance income | 18 | 7.8 | 7 |
| Finance costs | 18 | (17.0) | (28.0) |
| Other income |  | 1 | 6.5 |
| **Income before taxes** |  | **152.4** | **111.0** |
| Income tax expense | 26 | (43.9) | (31.6) |
| **Net income** |  | **108.5** | **79.4** |
| **Other comprehensive income** |  |  |  |
| <br>Gain (loss) on translation of foreign operations |  | 0.9 | (1.2) |
| Gain on cash flow hedges (net of tax recovery of nil in 2025 and $0.4 in 2024) |  |  | 1 |
| Remeasurement gain on defined benefit plans (net of tax expense of $1.6 in 2025 and $1.8 in 2024) |  | 4.7 | 5.1 |
| **Total comprehensive income** |  | $**114.1** | $**84.3** |
| &nbsp;&nbsp;&nbsp;**Earnings per share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;<br>Basic | 27 | $0.87 | $0.66 |
| &nbsp;&nbsp;&nbsp;Diluted | 27 | 0.84 | 0.63 |
| &nbsp;&nbsp;&nbsp;**Weighted-average common shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;<br> Basic | 27 | 124247299 | 120088519 |
| &nbsp;&nbsp;&nbsp;Diluted | 27 | 129711641 | 126049042 |

---

*The accompanying notes are an integral part of these consolidated financial statements*

**MDA Space Ltd.**

Consolidated Statement of Financial Position

December 31, 2025 and 2024

(In millions of Canadian dollars)

---

| | | | |
|:---|:---|:---|:---|
| **As at** | **Note** | **December 31, 2025** | **December 31, 2024** |
| **Assets** | | | |
| Current assets: |  |  |  |
| Cash |  | $152.0 | $166.7 |
| Trade and other receivables | 10 | 145.3 | 75.9 |
| Unbilled receivables | 11 | 187.5 | 250.1 |
| Inventories | 12 | 23.5 | 8.1 |
| Income taxes receivable |  | 52.9 | 54.0 |
| Other current assets | 13 | 53.3 | 71.7 |
|  |  | **614.5** | **626.5** |
| Non-current assets: |  |  |  |
| Property, plant and equipment | 14 | 649.6 | 496.6 |
| Right-of-use assets | 15 | 114.5 | 115.4 |
| Intangible assets | 16 | 876.7 | 580.0 |
| Goodwill | 16 | 800.4 | 441.0 |
| Equity-accounted investees | 23 | 11.3 |  |
| Deferred income tax assets | 26(d) | 10.0 | 9.9 |
| Other non-current assets | 13 | 279.2 | 328.1 |
|  |  | **2741.7** | **1971.0** |
| **Total assets** |  | $**3356.2** | $**2597.5** |
| **Liabilities and shareholders' equity** |  |  |  |
| Current liabilities: |  |  |  |
| Accounts payable and accrued liabilities |  | $391.4 | $248.7 |
| Income taxes payable |  | 11.0 | 1.9 |
| Contract liabilities | 7(d) | 798.9 | 761.3 |
| Current portion of net employee benefit payable | 19 | 77.1 | 60.2 |
| Current portion of lease liabilities | 15 | 20.2 | 16.2 |
| Other current liabilities | 20 | 19.2 | 2.7 |
|  |  | **1317.8** | **1091.0** |
| Non-current liabilities: |  |  |  |
| Net employee defined benefit payable | 19 | 23.4 | 23.7 |
| Lease liabilities | 15 | 118.9 | 120.6 |
| Long-term debt | 17 | 272.0 |  |
| Deferred income tax liabilities | 26(d) | 245.7 | 185.4 |
| Other non-current liabilities | 20 | 23.4 | 0.8 |
|  |  | **683.4** | **330.5** |
| **Total liabilities** |  | **2001.2** | **1421.5** |
| **Shareholders' equity** |  |  |  |
| Common shares | 25(b) | 1042.7 | 975.8 |
| Contributed surplus |  | 36.0 | 38.0 |
| Accumulated other comprehensive income |  | 29.1 | 23.5 |
| Retained earnings |  | 247.2 | 138.7 |
| **Total equity** |  | **1355.0** | **1176.0** |
| **Total liabilities and equity** |  | $**3356.2** | $**2597.5** |

---

*The accompanying notes are an integral part of these consolidated financial statements*

**MDA Space Ltd.**

Consolidated Statement of Changes in Shareholders' Equity <br> For the years ended December 31, 2025 and 2024

(In millions of Canadian dollars)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Common Shares** | **Common Shares** | | | | |
|  |<br>**Note** | **Number** | **Amount** | **Contributed**<br>**Surplus** | **Accumulated other<br> comprehensive**<br>**income** | **Retained**<br>**earnings** | **Total<br> shareholders'**<br>**equity** |
| As at January 1, 2025 |  | 121531699 | $975.8 | $38.0 | $23.5 | $138.7 | $1176.0 |
| Share-based awards common shares issuance | 21 | 4789302 | 66.9 | (16.9) |  |  | 50.0 |
| Net income |  |  |  |  |  | 108.5 | 108.5 |
| Other comprehensive income |  |  |  |  | 5.6 |  | 5.6 |
| Equity-settled share-based compensation | 21 |  |  | 12.8 |  |  | 12.8 |
| Tax effect of share-based compensation |  |  |  | 2.1 |  |  | 2.1 |
| **As at December 31, 2025** |  | 126321001 | $**1042.7** | $**36.0** | $**29.1** | $**247.2** | $**1355.0** |
| As at January 1, 2024 |  | 119514919 | $956.1 | $31.3 | $18.6 | $58.7 | $1064.7 |
| Share-based awards common shares issuance | 21 | 2016780 | 19.7 | (7.9) |  |  | 11.8 |
| Net income |  |  |  |  |  | 79.4 | 79.4 |
| Other comprehensive income |  |  |  |  | 5.5 |  | 5.5 |
| Equity-settled share-based compensation | 21 |  |  | 10.4 |  |  | 10.4 |
| Tax effect of share-based compensation |  |  |  | 4.2 |  |  | 4.2 |
| Dissolution of inactive subsidiary |  |  |  |  | (0.6) | 0.6 |  |
| **As at December 31, 2024** |  | 121531699 | $**975.8** | $**38.0** | $**23.5** | $**138.7** | $**1176.0** |

---

*The accompanying notes are an integral part of these consolidated financial statements*

**MDA Space Ltd.**

Consolidated Statement of Cash Flows<br> For the years ended December 31, 2025 and 2024

(In millions of Canadian dollars)

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Note** | **Years ended**<br>**December 31, 2025** | **Years ended**<br>**December 31, 2024** |
| **Cash flows from operating activities** |  |  |  |
| Net income |  | $108.5 | $79.4 |
| Items not affecting cash: |  |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 43.9 | 31.6 |
| &nbsp;&nbsp;&nbsp;Depreciation of property, plant, and equipment | 14 | 29.0 | 19.8 |
| &nbsp;&nbsp;&nbsp;Depreciation of right-of-use assets | 15 | 13.3 | 11.9 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 16 | 98.3 | 59.3 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of assets | 6 |  | (5.8) |
| &nbsp;&nbsp;&nbsp;Write-down of assets |  |  | 3.3 |
| &nbsp;&nbsp;&nbsp;Equity-settled share-based compensation | 21(a) | 12.8 | 10.4 |
| &nbsp;&nbsp;&nbsp;Investment tax credits accrued |  | (46.1) | (42.6) |
| &nbsp;&nbsp;&nbsp;Finance costs, net | 18 | 9.2 | 21.0 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on financial instruments |  | (5.0) | (1.2) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities | 29 | 154.3 | 636.5 |
|  |  | **418.2** | **823.6** |
| &nbsp;&nbsp;&nbsp;Interest paid |  | (15.0) | (25.4) |
| &nbsp;&nbsp;&nbsp;Income tax received, net |  | 4.3 | 14.5 |
| **Net cash generated in operating activities** |  | **407.5** | **812.7** |
| **Cash flows from investing activities** |  |  |  |
| Purchases of property and equipment | 14 | (175.3) | (141.2) |
| Purchases/development of intangible assets | 16 | (100.1) | (63.7) |
| Government grants on capital expenditure |  | 33.2 | 7.0 |
| Proceeds from disposal of assets | 6 | 0.2 | 7.4 |
| Acquisition of subsidiaries, net of cash | 5 | (362.6) | (27.3) |
| Investment in equity securities |  |  | (9.2) |
| Investment in equity-accounted associate | 22 | (10.0) |  |
| **Net cash used in investing activities** |  | **(614.6)** | **(227.0)** |
| **Cash flows from financing activities** |  |  |  |
| Proceeds from senior credit facility | 17(d) | 395.0 | 110.0 |
| Proceeds from issuance of senior unsecured notes | 17(d) | 250.0 |  |
| Repayments of loans from financial institutions |  | (468.2) | (550.0) |
| Transaction costs related to loans and borrowings |  | (8.3) |  |
| Payment of lease liability (principal portion) | 15 | (10.2) | (7.9) |
| Payments on SatixFy warrants |  | (12.0) |  |
| Proceeds from stock options exercised |  | 50.0 | 11.8 |
| **Net cash generated in financing activities** |  | **196.3** | **(436.1)** |
| **Net increase (decrease) in cash** |  | **(10.8)** | **149.6** |
| Net foreign exchange difference on cash |  | (3.9) | (5.4) |
| Cash, beginning of period |  | 166.7 | 22.5 |
| **Cash, end of period** |  | $**152.0** | $**166.7** |

---

*The accompanying notes are an integral part of these consolidated financial statements*

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**1.** **Nature of operations** 

MDA Space Ltd. and its subsidiaries (collectively "MDA Space" or the "Company") is a trusted mission partner of leading-edge space missions. The Company's recognized engineering capabilities, portfolio of space technologies, and space mission expertise make it a trusted partner of choice for a broad range of customers worldwide. The Company leverages its capabilities to enable next generation space exploration and infrastructure, space-based communication, and both earth and space observation missions. The Company's space technology solutions and services enable governments and businesses to develop and operate critical space infrastructure used for exploration and space-based science, to research, develop and operate space-based communications supporting our connected world, and to monitor global activities including climate change, illegal and unregulated fishing, and detection of oil spills. The Company's technologies and solutions are also deployed for defence and intelligence applications and space observation missions. MDA Space operates across three business areas: Geointelligence, Robotics & Space Operations, and Satellite Systems, with facilities and sites in Canada, United Kingdom, United States, Israel and Bulgaria. The Company collaborates and partners with governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry.

MDA Space Ltd. was incorporated pursuant to a series of legal entity restructuring. On April 8, 2020, Neptune Acquisition Inc. ("NAI"), an affiliate of Northern Private Capital Ltd. purchased 100% of the equity interest in MDA GP Holdings Ltd., MDA Systems Inc., and Maxar Technologies ULC from Maxar Technologies Inc. The consideration for this transaction was $1 billion. Immediately after closing, NAI amalgamated with Maxar Technologies ULC, and changed its name to Neptune Operations Ltd. ("NOL"). On June 2, 2020, Neptune Acquisition Holdings Inc. ("NAHI") was formed under the laws of the Province of Ontario and became the parent of its wholly owned subsidiary NOL. In March 2021, NAHI changed its name to MDA Ltd., and again to MDA Space Ltd. in April 2024.

MDA Space Ltd. is incorporated and domiciled in Canada, with its head office located at 7500 Financial Drive, Brampton, Ontario L6Y 6K7, Canada. MDA Space's common shares are traded on the Toronto Stock Exchange under the symbol "MDA".

**2.** **Basis of preparation** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Statement
 of compliance

These consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB").

The consolidated financial statements were approved by the Board of Directors of MDA Space on March 3, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Basis
 of measurement

The consolidated financial statements of the Company have been prepared on the historical cost basis except for pension plan assets and liabilities and the following assets and liabilities which are measured at fair value: financial instruments at fair value through profit or loss ("FVTPL"), derivative financial instruments, and initial recognition of assets acquired and liabilities assumed in a business combination. Pension plan assets and liabilities are recognized as the present value of the defined benefit liabilities net of the fair value of the plan assets. Other post-retirement benefit liabilities are recognized as the present value of the defined benefit liability.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Critical
 accounting estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS Accounting Standards requires management to make estimates and judgments that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Information about critical judgments in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Revenue*:
 The Company recognizes revenues from fixed-price contracts and cost-plus contracts with ceilings
 using a percentage of completion method based on the ratio of contract costs incurred to
 date to total estimated costs. On a monthly basis, the Company reviews the costs incurred
 to date and the estimated costs to complete for each project to determine whether the percentage
 of completion remains appropriate. Estimating total costs requires judgments to be made around
 items including, but not limited to, labour productivity, complexity and scope of work to
 be performed, cost of materials, the length of time to complete the work, and execution by
 subcontractors. This estimate directly affects revenue recognized in each reporting period
 as well as the balances of unbilled receivables and contract liabilities at the reporting
 date. Changes in estimates are recognized on a cumulative catch-up basis and could lead to
 reversals to revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Impairment of non-financial assets:* The value in use ("VIU") of cash generating units
 at which goodwill and intangible assets are tested for impairment has been estimated using
 the forecasts prepared by management for the next five years. In preparing the forecasts,
 management uses significant assumptions about revenue growth, earnings before interest, taxes,
 depreciation and amortization, and terminal growth rate. These estimates are based on past
 experience and management's expectations of future changes in the market and planned
 growth initiatives. Actual results could vary from these estimated future cash flows which
 may cause significant adjustments to the assets in subsequent reporting periods. Estimation
 uncertainty in calculating the VIU also include the determination of appropriate discount
 rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Investment tax credits*: Investment tax credits, whether or not recognized in the consolidated financial
 statements, may be carried forward to reduce future Canadian Federal and Provincial income
 taxes payable. The Company applies judgment when determining whether the reasonable assurance
 threshold has been met to recognize investment tax credits in the consolidated financial
 statements. The Company must interpret eligibility requirements in accordance with Canadian
 income tax laws and must assess whether future taxable income will be available against which
 the investment tax credits can be utilized. For investment tax credits that have not met
 the criteria to be recognized in the consolidated financial statements, management continually
 reviews these interpretations and assessments and recognizes the investment tax credits relating
 to prior period expenses in the period when the reasonable assurance criteria have been met.
 Any changes in the interpretations and assessments could have an impact on the amount and
 timing of investment tax credits recognized in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Income taxes*: The calculation of current and deferred income taxes requires management to make
 certain judgments in interpreting tax rules and regulations. The application of judgment
 is also required to evaluate whether the Company can recover a deferred tax asset based on
 management's assessment of existing tax laws, estimates of future profitability, and tax
 planning strategies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Business Combination:* In a business combination, the identifiable assets acquired and liabilities
 assumed are recognized at their fair values. The Company estimated the fair value of proprietary
 technology intangible assets acquired in the acquisition of SatixFy Communications Ltd. using
 the replacement cost method. The replacement cost method is a valuation technique that estimates
 the fair value of an intangible asset based on the estimated costs required to create or
 acquire a comparable asset at the transaction date. Significant estimates used to estimate
 the fair value of the proprietary technology intangible assets acquired include significant
 unobservable assumptions such as costs to develop, obsolescence factors, expected developer's
 profit margins, and required rate of return. Obsolescence factors are inherently uncertain
 because they depend on an assessment of functional and economic obsolescence for technology
 subject to rapid technological changes. Small changes in one or more of these significant
 assumptions could result

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

in a materially different fair value measurement. Given the next generation nature of the proprietary technologies acquired and the absence of observable market transactions for comparable assets, the fair value measurement is subject to significant estimation uncertainty.

**3.** **Summary of material accounting policies** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Principles
 of consolidation

The consolidated financial statements comprise the accounts of the Company and entities controlled by the Company. The Company controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. All subsidiaries of the Company are wholly owned. The financial results of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intercompany balances and transactions are eliminated upon consolidation.

The table below lists the Company's most material subsidiaries for the years ended December 31, 2025 and 2024 based on revenues. The Company held 100% of the interest in all the subsidiaries listed below.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Entity | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Country of incorporation |
| &nbsp;&nbsp;&nbsp;MacDonald, Dettwiler and Associates Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada |
| &nbsp;&nbsp;&nbsp;MacDonald, Dettwiler and Associates Corporation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada |
| &nbsp;&nbsp;&nbsp;MDA Geospatial Services Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada |
| &nbsp;&nbsp;&nbsp;MDA Systems Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b) Translation
 of foreign operations and foreign currency transactions

The consolidated financial statements are presented in Canadian dollars, which is the Company's functional currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Transactions and balances* 

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates in effect at the reporting date. Non-monetary assets and liabilities, and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Foreign operations translation* 

Assets and liabilities of subsidiaries that have a functional currency other than Canadian dollars are translated into Canadian dollars at exchange rates in effect at the reporting date. Revenue and expenses are translated at the average exchange rates. The resulting translation adjustments are included in other comprehensive income ("OCI").

&nbsp;&nbsp;&nbsp;&nbsp;(c) Revenue
 recognition

The Company enters into contracts with customers to provide development of customized systems, construction of robotics and satellite components, satellite imagery data and related analyses, and maintenance and support services.

The Company accounts for a contract when enforceable rights and obligations between the Company and its customer are present, the contract has commercial substance, the rights of the parties and payment terms are identified, collectability of consideration is probable, and both parties have approved the contract. Two or more contracts with the same customer entered into at or near the same time are combined for revenue recognition accounting when the contracts are negotiated as a package with a single commercial objective or when the goods or services in the contracts are a single performance obligation.

A performance obligation is a promise in the contract to transfer a distinct good or service to the customer. The Company's contracts generally have a single performance obligation, as the promise to transfer the individual

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

goods or services are not separately identifiable from each other and therefore are not distinct. An amendment made to an existing contract is accounted for in combination with the existing contract unless it adds goods or services distinct from the goods or services promised in the existing contract at stand alone selling prices.

Revenue is measured based on the consideration specified in the contract. The Company recognizes revenue as it fulfills its performance obligations by transferring control of the promised goods or services to the customer.

The Company's revenues are derived mainly from the following types of contracts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from fixed-price contracts and cost-plus contracts with ceilings are generally recognized
 over time using a percentage of completion method based on the ratio of contract costs incurred
 to date to total estimated costs. These contracts generally consist of a single performance
 obligation due to the integrated nature of the goods or services. The consideration in these
 contracts include the stated contractual price and the expected variable amounts related
 to incentive payments and liquidated damages using either a probability-weighted average
 or a most likely estimate. Variable amounts are included in the consideration to the extent
 that it is highly probable that a significant reversal in the amount of cumulative revenue
 recognized will not occur when the uncertainty associated with the variable amounts is subsequently
 resolved. The Company typically bills milestone payments to its customers under these types
 of contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from time and materials contracts are recognized over time as the Company incurs the labour
 hours and material costs at the contractual billing rates for each unit of labour and material
 incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenue
 from unit of delivery contracts are recognized at the point in time the Company delivers
 the product to the customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenue
 from contracts whereby the Company stands ready to provide services are recognized on a straight-line
 basis over the enforceable term of the contract, as the Company's provides the access
 evenly over the period.

Contract costs include direct costs such as materials, labour, and subcontract costs as well as indirect costs such as overhead costs that relate directly to satisfying the performance obligations under the contract. Costs are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Unbilled
 receivables and contract liabilities

Unbilled receivables represent the Company's right to consideration for goods or services transferred to the customer but not billed at the reporting date. Unbilled receivables are transferred to trade receivables when the rights to the amounts become unconditional. This usually occurs when the Company issues an invoice to the customer. Unbilled receivables are adjusted for expected credit losses.

Contract liabilities relate to advance consideration received from customers in excess of revenue recognized under the contract.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Cash

Cash consist of cash on hand and deposits held with banks.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Property,
 plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes any amounts incurred in constructing and testing the asset as well as any other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation expense is recognized on a straight-line basis over the estimated useful life of the related asset to its residual value. Expected useful lives and depreciation methods are reviewed annually.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

The estimated useful lives of the Company's various classes of property, plant and equipment are as follows:

---

| | |
|:---|:---|
| | Estimated useful life |
| &nbsp;&nbsp;&nbsp;Buildings | 50 years |
| &nbsp;&nbsp;&nbsp;Building improvements | 10 years |
| &nbsp;&nbsp;&nbsp;Leasehold improvements | Lesser of useful life or lease term |
| &nbsp;&nbsp;&nbsp;Equipment | 5 years |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures | 10 years |
| &nbsp;&nbsp;&nbsp;Computer hardware | 3 years |

---

&nbsp;&nbsp;&nbsp;&nbsp;(g) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognizes right-of-use assets and lease liabilities for all leases, except for leases of low-value assets and short-term leases with a term of 12 months or less. The Company recognizes the lease payments associated with low-value and short-term leases as an expense on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Right-of-use assets* 

The Company recognizes right-of-use assets at the commencement date of the lease and initially measured at cost, which is comprised of the amount of the initial lease liability recognized less any incentives received from the lessor. The initial cost also includes any initial direct costs incurred, lease payments made before the commencement date, and estimated restoration costs, if any. The right-of-use asset is subsequently depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. The right-of- use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Lease liabilities* 

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term, discounted using the Company's incremental discount rate. The lease term includes all contractual non-cancellable periods of the lease plus enforceable periods covered by an option to renew if the Company is reasonably certain to exercise that option.

Lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. If applicable, the lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

The Company also has certain leases which include payments that do not relate to the transfer of goods or services by the lessor to the Company (e.g. cleaning the common areas of a building, fees or other administrative costs) and are considered non-lease components. These amounts are not included in lease payments.

Subsequent to initial measurement, the Company measures lease liabilities at amortized cost using the effective interest method. Lease liabilities are remeasured when there is a change in the lease term, change in the future lease payments resulting from a change in an index or rate, or a change in the assessment of an option to purchase the underlying asset.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Intangible
 assets

Intangible assets acquired separately are measured at cost on initial recognition. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

The cost of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Amortization is calculated over the estimated useful lives of the assets on a straight-line basis as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Intangible asset | Estimated useful life |
| &nbsp;&nbsp;&nbsp;Proprietary technologies | 3 to 20 years |
| &nbsp;&nbsp;&nbsp;Customer relationships | 13 to 18 years |
| &nbsp;&nbsp;&nbsp;Contractual backlog | 2 to 4 years |
| &nbsp;&nbsp;&nbsp;Software | 2 to 10 years |
| &nbsp;&nbsp;&nbsp;MDA trademark | 20 years |
| Amortization methods and useful lives are reviewed annually. |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) Capitalized
 interest

Interest expense is capitalized on qualifying assets. Qualifying assets are assets that take a substantial period of time to prepare for their intended use and include property, plant and equipment in construction and intangible assets in development. Capitalized interest is a component of the cost of the qualifying asset. Where the funds used to finance a qualifying asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to the relevant borrowings during the period. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Capitalization ceases when the asset is substantially complete or if active construction or development ceases.

&nbsp;&nbsp;&nbsp;&nbsp;(j) Research
 and development

Research costs are expensed as incurred. Development costs are also expensed as incurred unless they meet all of the capitalization criteria established in IAS 38, *Intangible Assets*. Amortization of capitalized development costs commences when the asset is available for use.

&nbsp;&nbsp;&nbsp;&nbsp;(k) Goodwill

Goodwill is measured at cost less accumulated impairment losses, if any.

Goodwill arises on the acquisition of subsidiaries. Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquiree at the acquisition date.

&nbsp;&nbsp;&nbsp;&nbsp;(l) Impairment
 of non-financial assets

At each reporting date, the Company assesses for any indication of impairment of its property, plant and equipment, intangible assets, right-of-use assets and goodwill. If any indication exists, the Company tests the assets for impairment. Impairment testing of goodwill is performed at least annually, at December 31, regardless of any indications of impairment.

Impairment testing is conducted at the level of the asset, a cash generating unit ("CGU"). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Impairment testing of goodwill is conducted at the level of the minimum grouping of CGUs to which goodwill relates.

The Company tests for impairment by comparing the carrying amount of an asset, CGU to its recoverable amount. The recoverable amount of each CGU is assessed by reference to the higher of i) the VIU and ii) the fair value less costs of disposal ("FVLCD"). If the carrying amount exceeds the recoverable amount, an impairment loss in the amount of the excess is recognized in the consolidated statement of comprehensive income. Impairment losses are first allocated to reduce the carrying amount of any goodwill related to the CGU, the remaining amount of an impairment loss is allocated pro rata to other assets in the CGU, without reducing the carrying amount of the assets below the highest of their value of FVLCD, their VIU, and zero.

Except for goodwill, any reversal of an impairment loss is recognized immediately in the consolidated statement of comprehensive income. A reversal of an impairment loss for a CGU is allocated pro rata to the assets of the CGU. The recoverable amount of an asset increased by reversal of an impairment loss may not exceed the carrying amount that would have been determined, net of depreciation and amortization to date, if no impairment loss had been recognized for the asset in prior years.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

&nbsp;&nbsp;&nbsp;&nbsp;(m) Business
 combinations

Business combinations are accounted for using the acquisition method. Under this method, the identifiable assets acquired and liabilities assumed are recognized in the consolidated statement of financial position at their respective acquisition-date fair values. The results of operations after the date of acquisition are included in the consolidated statement of comprehensive income. Acquisition-related costs are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;(n) Provisions

Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation.

Provisions for estimated contract losses are recognized as an onerous contract provision in the period in which the loss is determined. Contract losses are measured at the amount by which the estimated costs of fulfilling the contract exceed the estimated total revenue from the contract. When measuring onerous contract provisions, estimated costs of fulfilling the contract include both incremental costs and an allocation of costs directly related to contract activities.

&nbsp;&nbsp;&nbsp;&nbsp;(o) Employee
 benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Defined benefit pension plans and other post-retirement benefit plans* 

The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The defined benefit obligations are determined by an actuary for each plan using the projected unit credit method, which takes into account the expected salary increases as the basis for future benefit increases for the pension plans. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Company's obligations and that are denominated in the same currency in which the benefits are expected to be paid. Actuarial assumptions for discount rates, expected salary increases and the projected age of employees upon retirement reflect historical experience and the Company's assessment of future expectations.

When the calculation results in a benefit to the Company, the employee benefit asset recognized is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. Minimum funding requirements may give rise to an additional liability to the extent that they require the Company to pay contributions to cover an existing shortfall in that particular plan. An economic benefit is available to the Company if it is realizable during the life of the plan, or on settlement of the plan liabilities. The fair value of plan assets is based on market price information.

The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense (income) is recognized as a component of finance costs (income). The Company recognizes service cost and administrative expenses relating to defined benefit plans as a component of cost of revenue and selling, general and administration expense. Actuarial gains and losses from experience adjustments, changes in actuarial assumptions, return on plan assets (excluding amounts included in net interest expense) and the effect of any asset ceilings (excluding interest) are recognized in other comprehensive income in the period in which they arise.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in the net benefit liability that relates to past service or the gain or loss on curtailment is recognized immediately in the consolidated statement of comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Defined contribution pension plans* 

The Company maintains defined contribution plans for some of its employees whereby the Company pays contributions based on a percentage of the employees' annual salary. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in the consolidated statement of comprehensive income as the services are provided.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii)* *Termination benefits* 

Termination benefits are expensed when the Company has demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are expensed if the Company has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.

&nbsp;&nbsp;&nbsp;&nbsp;(p) Income
 taxes

Income tax expense is comprised of current and deferred tax. An income tax expense is recognized in income except to the extent that it relates to items recognized in OCI or equity, in which case it is recognized in OCI or equity, respectively.

Current tax is the expected tax payable to or receivable from tax authorities on the taxable income or loss reflected in the consolidated statement of comprehensive income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reserves are made to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

The Company recognizes uncertain tax positions when the Company believes that it is probable that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these recognized uncertain tax positions when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as any related interest and penalties.

&nbsp;&nbsp;&nbsp;&nbsp;(q) Government
 assistance

The Company's government assistance includes funding from government bodies to support the Company's research and development ("R&D") activities and to acquire or develop assets and investment tax credits ("ITCs").

Government grants are recognized net of the related costs they are intended to compensate on a systematic basis over the periods that the related costs are expensed. Government grants related to the acquisition of assets are recognized as a reduction of the cost of the related asset.

If government assistance becomes repayable, the inception to date impact of assistance previously recognized in the consolidated statement of comprehensive income is reversed immediately in the period that the assistance becomes repayable.

ITCs expected to be recovered beyond 12 months are classified as non-current assets. ITCs are deemed to be equivalent to government assistance. This government assistance is claimed for eligible costs incurred in R&D projects.

&nbsp;&nbsp;&nbsp;&nbsp;(r) Share-based
 compensation

In 2021, the Company established an Omnibus Long-term Incentive Plan ("Omnibus Plan"). The Omnibus Plan is a share-based plan, under which the Company receives services from directors and employees as consideration for equity instruments of the Company. The Company can issue stock options, deferred share units ("DSUs"),

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

restricted share units ("RSUs"), and performance share units ("PSUs") pursuant to the terms and conditions of the Omnibus Plan and the related award agreements entered into thereunder.

The Company also has in place an Employee Share Trust Agreement arrangement, where eligible employees are issued shares held in a company trust ("Trustee Shares") and released upon meeting prescribed conditions.

All of the above Company's share-based awards are equity-settled and are measured based on the grant date fair value without subsequent remeasurement. Non-market vesting conditions are included in assumptions about the number of equity awards that are expected to vest. The grant date fair value of each award, net of estimated forfeitures, is recognized as an expense on a graded basis over the respective vesting period with a corresponding increase to contributed surplus. Forfeitures are estimated at the grant date and are revised to reflect changes in expected or actual forfeitures. Incremental fair value as a result of a modification that is beneficial to the employee is recognized over the remaining vesting period. Upon settlement of share-based awards, the amount recognized in contributed surplus for the award plus any cash received upon settlement is recognized as an increase in share capital.

In 2024, the Company established Employee Share Purchase Plan ("ESPP"). The ESPP is a cash-settled share- based payment plan, whereby employees of the Company can acquire common shares through regular payroll deductions. Company-matched employee contributions, up to a maximum of five thousand dollars per annum, are restricted to a one-year holding period. The employee and Company's contributions are remitted to an independent plan administrator who is responsible for purchasing common shares on the market on behalf of the employee.

&nbsp;&nbsp;&nbsp;&nbsp;(s) Share
 capital

Common shares are classified as equity. Issuance costs directly attributable to the issuance of the shares are recognized as a deduction from equity, net of income tax effects.

&nbsp;&nbsp;&nbsp;&nbsp;(t) Financial
 instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Initial recognition, classification, and derecognition* 

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument. All financial instruments are initially measured at fair value. Financial instruments are subsequently measured based on their classification as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Financial
 instruments measured at amortized cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Financial
 instruments measured at FVTPL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Financial
 instruments measured at fair value through other comprehensive income ("FVOCI").

Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in acquisition, transaction and integration costs on the consolidated statement of comprehensive income.

A financial asset is derecognized when the contractual rights to the cash flows from the financial asset expire. A financial liability is derecognized when it is extinguished, discharged, cancelled, or expires. Where a legally enforceable right to offset exists for recognized financial assets and financial liabilities and there is an intention to settle the liability and realize the asset simultaneously, or to settle on a net basis, such related financial assets and financial liabilities are offset.

On initial recognition, the Company classifies financial assets as measured at amortized cost when both of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· it
 is held within a business model whose objective is to hold assets to collect contractual
 cash flows; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· its
 contractual terms give rise on specified dates to cash flows that are solely payments of
 principal and interest on the principal amount outstanding.

Financial assets at amortized cost are subsequently measured using the effective interest rate method and are subject to impairment.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Financial assets are classified as held for trading if they are managed with the objective of realizing cash flows through the sale. Derivatives, including separate embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets at FVTPL are carried in the consolidated statement of financial position at fair value with net changes in fair value recognized in the consolidated statement of comprehensive income.

Financial assets at FVOCI include instruments such as equity investments the Company has irrevocably elected to classify at FVOCI and derivatives designated as effective hedging instruments.

Financial liabilities are classified as financial liabilities at FVTPL or amortized cost as appropriate. The Company determines the classification of its financial liabilities at initial recognition. Subsequent to initial recognition, financial liabilities at amortized cost are measured using the effective interest method with the accretion of interest recognized in finance costs. Financial liabilities at FVTPL are carried in the consolidated statement of financial position at fair value with net changes in fair value recognized in the consolidated statement of comprehensive income.

The Company classifies its financial assets and liabilities depending on the purpose for which the financial instruments were acquired, their characteristics and management intent as outlined below:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Financial asset or liability | IFRS 9 classification and measurement |
| &nbsp;&nbsp;&nbsp;Cash | Amortized cost |
| &nbsp;&nbsp;&nbsp;Trade and other receivables | Amortized cost |
| &nbsp;&nbsp;&nbsp;Investments in equity securities | FVTPL |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | Amortized cost |
| &nbsp;&nbsp;&nbsp;Long-term debt | Amortized cost |
| &nbsp;&nbsp;&nbsp;Derivatives – no hedge accounting applied | FVTPL |
| &nbsp;&nbsp;&nbsp;Derivatives – hedge accounting applied | FVOCI |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* *Impairment of financial assets* 

The Company recognizes loss allowances for expected credit losses ("ECLs") on financial assets measured at amortized cost. The Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The carrying amount of these assets in the consolidated statement of financial position is stated net of any loss allowance.

A loss allowance is estimated from a review of the current and expected economic conditions and counterparty specific facts. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii)* *Offsetting of financial assets and financial liabilities.* 

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position when the Company has an unconditional and legally enforceable right to offset the recognized amounts and intends to settle on a net basis or to realize the asset and settle the liability simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iv)* *Fair value* 

Financial assets and financial liabilities are measured at fair value using a valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs reflecting the assumptions that market participants would use, and are based on the best information available in the circumstances.

The hierarchy is broken down into three levels based on the reliability of inputs as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 1: Valuations based on quoted prices in active markets for identical assets or liabilities
 that a company has the ability to access at the measurement date.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 2: Valuations based on quoted inputs other than quoted prices included within Level 1, that
 are observable for the asset or liability, either directly or indirectly through corroboration
 with observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 3: Valuations based on inputs that are unobservable and significant to the overall fair value
 measurement.

&nbsp;&nbsp;&nbsp;&nbsp;(u) Derivatives
 and hedge accounting

The Company enters into interest rate swap agreements to mitigate interest rate risk on long-term debt. The Company also from time to time enters into foreign exchange forward contracts to hedge a portion of exposure arising from expected foreign currency denominated cash flows. Hedge accounting is applied to those hedge relationships that are considered effective and designated by management. Management assesses the effectiveness of hedges by comparing actual outcomes against estimates on a regular basis. Subsequent changes in cash flows arising from forecasted transactions, if significant, may result in the discontinuation of hedge accounting for that hedge. The Company does not enter into derivative contracts for speculative purposes.

At the inception of a hedging relationship, management formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objectives and strategy for undertaking the hedge. Management also assesses, both at inception of a hedge and at the end of each quarter, whether the derivatives used in hedged transactions are highly effective in offsetting changes in cash flows of the hedged items. For effective hedging relationships, fair value changes in the hedging instrument are recognized in other comprehensive income.

When cash flow hedges are discontinued, they cease to meet the qualifying criteria required for a hedging relationship. Cash flow hedges where the future cash outflow is still expected to occur, accumulated amounts in accumulated other comprehensive income remain there until such time that the cash outflow occurs or if the amount is a loss that is not expected to be recovered. If the loss is not expected to recover, the Company immediately reclassifies it into net income. Cash flow hedges where the future cash flow is not expected to occur, the Company immediately reclassifies accumulated amounts in other comprehensive income to net income under finance cost.

&nbsp;&nbsp;&nbsp;&nbsp;(v) Equity-accounted
 investees

The Company's interests in equity-accounted investees represent investments in entities over which the Company has significant influence, but neither control nor joint control. These investments are accounted for using the equity method. They are initially recognized at cost, including transaction costs. Subsequent to initial recognition the consolidated financial statements include the Company's share of the profit or loss and other comprehensive income of equity accounted investees.

&nbsp;&nbsp;&nbsp;&nbsp;(w) Earnings
 per share

Basic earnings per share ("EPS") is calculated by dividing the net income for the period attributable to equity holders by the weighted average number of common shares outstanding during the period.

Diluted EPS is calculated by dividing the net income attributable to equity holders by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued upon exercise of share-based compensation arrangements, to the extent they are considered dilutive.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**4.** **Accounting pronouncements issued but not yet effective** 

Amendments of IFRS 9 *Financial Instruments* and IFRS 7 *Financial Instruments: Disclosures*

IASB has amended IFRS 9 *Financial Instruments* and IFRS 7 *Financial Instruments: Disclosures* to clarify the timing in the recognition and derecognition of financial assets and the settlement of financial liabilities. These amendments change the timing of recognition or derecognition of financial assets or liabilities from the payment initiation date to the settlement date. Any derecognition of liability earlier than the settlement date would be subject to certain criteria being met, and only applicable to financial liabilities settled using an electronic payment system. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted. Management expects a reclassification impact on the consolidated statement of financial position, affecting current assets and current liabilities.

Forthcoming Issuance of IFRS 18 *Presentation and Disclosure in Financial Statements* replacing IAS 1, *Presentation of Financial Statements*

IFRS 18 aims to achieve comparability of the financial performance of similar entities and will impact the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently assessing the impact of adopting IFRS 18 on its consolidated financial statements.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**5.** **Acquisitions** 

**Acquisition of SatixFy Communications Ltd.**

On July 2, 2025, the Company acquired all of the outstanding shares of SatixFy Communications Ltd. ("SatixFy") in an all-cash transaction. SatixFy is a supplier of cutting-edge semiconductors and solutions for the space and the satellite communications value chain. SatixFy's technology enables satellite broadband and direct-to-device constellations and are designed to meet the needs of the next generation of satellite constellations. SatixFy's space grade chips are used in digital communication satellites to support payload and antenna operations, and are designed to significantly improve satellite performance and decrease cost. The transaction brings to the Company a differentiated technology portfolio including more than 60 patents issued and pending, as well as a talented and largely specialized technical employee base of approximately 165 people globally. The acquisition has been accounted for using the acquisition method. The consolidated financial statements include the results of SatixFy for the approximate 6-months period from the acquisition date.

The fair values of the identifiable assets and liabilities of SatixFy as at the date of acquisition were:

---

| | |
|:---|:---|
|  | **Fair value**<br>**recognized on**<br>**acquisition** |
| **Assets** |  |
| Cash | $20.6 |
| Trade and other receivables | 2.8 |
| Unbilled receivables | 4.8 |
| Other current assets | 2.6 |
| Government departments and agencies receivables | 8.1 |
| Inventories | 2.9 |
| Right-of-use assets | 3.1 |
| Property, plant and equipment | 3.9 |
| Intangible assets | 298.7 |
| Other non-current assets | 1.7 |
|  | $349.2 |
| **Liabilities** |  |
| Accounts payable and accrued liabilities | $38.1 |
| Contract liabilities | 9.9 |
| European Space Agency ("ESA") advance payments | 1.4 |
| Net employee benefit payable | 4.1 |
| Lease liabilities | 3.1 |
| Short-term loans from financial institutions | 103.2 |
| Contingent liability | 1.7 |
| Deferred income tax liabilities | 74.7 |
| Other non-current liabilities | 21.5 |
|  | $257.7 |
| **Total identifiable net assets at fair value** | $91.5 |
| Goodwill arising on acquisition | $356.8 |
| **Purchase consideration transferred** | $448.3 |
| **Analysis of cash flows on acquisition:** |  |
| Net cash acquired with the subsidiary (included in cash flows from investing activities) | $(20.6) |
| Cash paid | 380.4 |
| **Net cash flow on acquisition** | $359.8 |
| **Purchase consideration transferred** |  |
| Cash | $380.4 |
| Settlement of pre-existing relationships | 67.9 |
| **Total purchase consideration transferred** | $448.3 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

As a result of the inherent complexity associated with the valuation of net assets acquired the valuation is provisional and has not been completed by the date the consolidated financial statements were approved for issue by the Board of Directors. Thus, assets and liabilities may need to be subsequently adjusted, with a corresponding adjustment to goodwill when available and no later than July 1, 2026 (one year after the transaction).

The goodwill has been adjusted by $10.6 since it was last reported for the three and nine months ending September 30, 2025 for the fair value of intangible assets acquired and its related deferred tax effect, additional settlement of pre- existing relationships, and the reclassification in presentation of asset items in the table above.

Pre-existing relationship consists mainly of an agreement between the Company and SatixFy for the purchase of SatixFy's space grade chips. The amount of consideration transferred includes the effective settlement of the pre- existing relationship between the Company and SatixFy as the relationship became an intercompany relationship on acquisition. The Company determined that the fair value of the advance payments against future orders of chips at acquisition is similar to their carrying value.

The acquisition date fair value of trade and other receivable amounts to $2.8 which is also the gross amount receivable as it is expected that the full contractual amounts will be collected.

The acquisition date fair value of unbilled receivables amounts to $4.8 which is also the gross amount unbilled receivable as it is expected that the full contractual amounts will be billed and collected.

The acquisition date fair value of government departments and agencies receivables amounts to $8.1 which is also the gross amount receivables as it is expected that the full amounts will be collected.

The Company measured the acquired lease liabilities using the present value of the remaining lease payments at the date of acquisition. The right-of-use assets were measured at an amount equal to the lease liabilities. No adjustment was required for favourable or unfavourable terms since the leases were at market rates.

From the date of acquisition, SatixFy has contributed $8.4 of revenue and $13.3 of loss before taxes to the results of the Company.

If the acquisition had taken place at January 1, 2025, management estimates that the Company's combined revenue would have been $1,645.4 and income before taxes for the period would have been $87.8. Income before taxes includes the additional amortization of intangible assets of $76.5 related to this acquisition.

The goodwill recognized is primarily attributed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Enhancing
 the Company's end-to-end capabilities in digital communication satellites to continue
 to meet evolving customer needs in the satellite communications market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Vertically
 integrating a key and differentiated technology provider to enhance competitive position
 and ensure future space chip development is aligned with the Company's digital satellite
 technology roadmap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Expanding
 offerings into new potential markets by leveraging SatixFy's product portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adding
 a highly specialized and complementary technical team.

The goodwill is not deductible for income tax purposes.

Other non-current liabilities include accrued income taxes, sales tax and other tax liabilities as at acquisition date.

Acquisition-related costs in 2025 of $10.9 for fees related to bank advisors, legal advisors, and other due diligence professionals and advisors have been expensed and are included in selling, general and administrative costs in the consolidated statement of comprehensive income.

**Acquisition of SatixFy Space Systems UK Ltd.**

On October 31, 2023, the Company acquired 100% share of SatixFy Space Systems UK Ltd ("SSS"), the digital payload division of SatixFy Communications Ltd. to strengthen MDA's global leadership position in the growing market for digital satellite communications solutions. The acquired division, based in the United Kingdom, has been integrated into MDA UK, the company's existing UK subsidiary. The final holdback of $2.8 ($2.0 USD) was released to the seller in the second quarter of 2025.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**6.** **Sale of Terrestrial Nuclear Services Assets** 

On March 5, 2024, the Company completed the sale of its terrestrial nuclear services assets for a total consideration of $7.6 and a gain of $5.8. The Company received $7.4 in 2024, and the remaining $0.2 in escrow was received in 2025. The gain was recognized on the consolidated statement of comprehensive income as part of other income.

**7.** **Revenue from contracts with customers** 

&nbsp;&nbsp;&nbsp;&nbsp;a. Disaggregation
 of revenue

Disaggregation of revenue from contracts with customers by business areas are presented in the table below:

---

| | | |
|:---|:---|:---|
|  | Years ended<br>December 31,<br>2025 | Years ended<br>December 31,<br>2024 |
| Business Areas |  |  |
| Geointelligence | $214.4 | $202.1 |
| Robotics and space operations | 309.3 | 279.8 |
| Satellite systems | 1109.5 | 598.2 |
|  | $1633.2 | $1080.1 |

---

&nbsp;&nbsp;&nbsp;&nbsp;b. Revenue
 concentration

For the year ended December 31, 2025, there were 3 customers that individually comprised more than 10.0% of revenue and 77.6% in total. For the year ended December 31, 2024, there were 3 customers that individually comprised more than 10.0% of revenue and 63.6% in total.

&nbsp;&nbsp;&nbsp;&nbsp;c. Remaining
 performance obligations

As at December 31, 2025, the Company had remaining performance obligations of $4,012.9 (December 31, 2024 - $4,385.5), which represents the transaction price of firm orders less inception to date revenue recognized. Remaining performance obligations exclude unexercised contract options and indefinite delivery or indefinite quantity contracts. The Company expects to recognize approximately 38% of its remaining performance obligations as revenue in 2026 and 29% in 2027 and the balance thereafter (December 31, 2024 - 28% in 2025, and 24% in 2026 and the balance thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;d. Contract
 liabilities

Of the opening contract liabilities balance at January 1, 2025, $567.1 has been recognized as revenue in 2025 (2024 - $58.8).

**8.** **Geographic information** 

Segmented information is reported in a manner consistent with the internal reporting provided to the chief operating decision maker ("CODM"), and reflects the way the CODM evaluates performance of, and allocates resources within, the business. The Company operates substantially all of its activities in one reportable segment, which includes the

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Geointelligence, Robotics and Space Operations and Satellite Systems operating segments. The reportable segment earns revenue by providing space solutions to customers in a similar market and is managed by the CODM.

Revenues are attributed to geographical regions based on the location of customers as follows:

---

| | | |
|:---|:---|:---|
|  | Years ended <br>December 31,<br>2025 | Years ended <br>December 31,<br>2024 |
| *Revenue* |  |  |
| Canada | $1021.9 | $625.0 |
| United States | 497.8 | 387.7 |
| Europe | 78.0 | 41.5 |
| Asia and Middle East | 33.4 | 18.8 |
| Other | 2.1 | 7.1 |
|  | $1633.2 | $1080.1 |

---

The Company's property, plant and equipment, right-of-use assets, intangible assets and goodwill are attributed to geographical regions based on the location of the assets as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Canada | $2357.7 | $1564.0 |
| Other | 83.5 | 69.0 |
|  | $2441.2 | $1633.0 |

---

**9.** **Cost of revenue and operating expenses** 

The following table shows the breakdown of materials, labour and subcontractors costs included in cost of revenue:

---

| | | |
|:---|:---|:---|
|  | Years ended <br>December 31,<br>2025 | Years ended <br>December 31,<br>2024 |
| Labour, materials and other | $626.6 | $449.5 |
| Subcontractors | 586.4 | 347.4 |
| Investment tax credits recognized | (44.4) | (42.3) |
|  | $1168.6 | $754.6 |

---

The following tables show the breakdowns of selling, general and administration expenses and research and development, net included in operating expenses:

---

| | | |
|:---|:---|:---|
|  | Years ended<br>December 31,<br>2025 | Years ended<br>December 31,<br>2024 |
| Selling, general and administration |  |  |
| General and administration | $65.1 | $43.5 |
| Selling and marketing | 46.4 | 35.1 |
|  | $111.5 | $78.6 |
| Research and development, net |  |  |
| Research and development expense | $47.1 | $43.4 |
| Research and development expense recovery | (9.0) | (6.5) |
|  | $38.1 | $36.9 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**10.** **Trade and other receivables** 

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Trade receivables, gross | $85.5 | $71.0 |
| Other receivables, gross | 63.2 | 27.4 |
| Credit loss allowance | (3.4) | (22.5) |
|  | $145.3 | $75.9 |

---

Trade receivables are non-interest bearing, unless specifically agreed upon with the customer, and are generally on terms of 15 to 60 days.

**11.** **Unbilled receivables** 

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Unbilled receivables, gross | $189.8 | $253.4 |
| Credit loss allowance | (2.3) | (3.3) |
|  | $187.5 | $250.1 |

---

**12.** **Inventories** 

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Raw materials | $15.7 | $6.1 |
| Work in progress | 6.4 | 2.3 |
| Finished goods | 2.4 |  |
| Provisions | (1.0) | (0.3) |
|  | $23.5 | $8.1 |

---

During the year ended December 31, 2025, inventories have been reduced by $0.7 (December 31, 2024 - $0.3) as a result of the write-down to net realizable value. This write down was recognized as an expense and included in cost of revenue.

**13.** **Other assets** 

---

| | | | |
|:---|:---|:---|:---|
|  | Note | December 31, 2025 | December 31, 2024 |
| Prepaid expenses and advances to suppliers |  | $125.2 | $194.7 |
| Investment tax credits receivable |  | 146.7 | 149.2 |
| Investment in equity securities | 22 | 17.7 | 13.2 |
| Derivative financial assets | 22 | 22.0 | 3.4 |
| Pension plan assets | 19 (a) | 15.4 | 16.2 |
| Long-term unbilled receivable | 2.9 | 22.0 |  |
| Other | 2.6 | 1.1 |  |
|  |  | $332.5 | $399.8 |
| Current portion |  | $53.3 | $71.7 |
| Non-current portion |  | $279.2 | $328.1 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**14.** **Property, plant and equipment** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |<br><br>Note | Land,<br>buildings and<br>leasehold<br>improvements |<br><br>Equipment | Furniture,<br>fixtures and<br>computer<br>hardware |<br>Capital in<br>progress |<br><br>Total |
| Cost |  |  |  |  |  |  |
| As at January 1, 2025 |  | $142.5 | $66.7 | $38.8 | $305.0 | $553.0 |
| &nbsp;&nbsp;&nbsp;Additions |  | 16.7 | 2.3 | 9.1 | 150.1 | 178.2 |
| &nbsp;&nbsp;&nbsp;Additions from acquisition | 5 | 0.3 | 2.3 | 1.3 |  | 3.9 |
| &nbsp;&nbsp;&nbsp;Disposals |  |  | (0.5) | (0.2) |  | (0.7) |
| &nbsp;&nbsp;&nbsp;Transfers |  | 41.2 | 5.1 | 3.2 | (49.5) |  |
| As at December 31, 2025 |  | $200.7 | $75.9 | $52.2 | $405.6 | $734.4 |
| Accumulated depreciation |  |  |  |  |  |  |
| As at January 1, 2025 |  | $(20.1) | $(17.8) | $(18.5) |  | $(56.4) |
| &nbsp;&nbsp;&nbsp;Depreciation expense |  | (8.6) | (12.6) | (7.8) |  | (29.0) |
| &nbsp;&nbsp;&nbsp;Disposals |  |  | 0.4 | 0.2 |  | 0.6 |
| As at December 31, 2025 |  | $(28.7) | $(30.0) | $(26.1) | $— | $(84.8) |
| Net book value |  |  |  |  |  |  |
| As at December 31, 2025 |  | $172.0 | $45.9 | $26.1 | $405.6 | $649.6 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Land,<br>buildings and<br>leasehold<br>improvements |<br><br>Equipment | Furniture,<br>fixtures and<br>computer<br>hardware |<br>Capital in<br>progress |<br><br>Total |
| Cost |  |  |  |  |  |
| As at January 1, 2024 | $86.0 | $28.1 | $23.6 | $268.0 | $405.7 |
| &nbsp;&nbsp;&nbsp;Additions | 17.6 | 16.0 | 10.1 | 103.6 | 147.3 |
| &nbsp;&nbsp;&nbsp;Transfers | 38.9 | 22.6 | 5.1 | (66.6) |  |
| As at December 31, 2024 | $142.5 | $66.7 | $38.8 | $305.0 | $553.0 |
| Accumulated depreciation |  |  |  |  |  |
| As at January 1, 2024 | $(13.0) | $(11.7) | $(11.9) | $— | $(36.6) |
| &nbsp;&nbsp;&nbsp;Depreciation expense | (7.1) | (6.1) | (6.6) |  | (19.8) |
| As at December 31, 2024 | $(20.1) | $(17.8) | $(18.5) | $— | $(56.4) |
| Net book value |  |  |  |  |  |
| As at December 31, 2024 | $122.4 | $48.9 | $20.3 | $305.0 | $496.6 |

---

Depreciation expense included in cost of revenue for the year ended December 31, 2025 is $28.4 (December 31, 2024 - $19.8). Depreciation expense relating to all other property, plant and equipment of $0.6 (December 31, 2024 - nil) is included in operating expenses.

As at December 31, 2025 and December 31, 2024, the Company recognized no impairment under amortization and depreciation of assets on the consolidated statement of comprehensive income.

**15.** **Leases** 

The Company has lease contracts for buildings, equipment, furniture and fixtures and computer hardware used in its operations. Leases of buildings generally have lease terms between 5 and 20 years, while equipment, furniture and

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

fixtures and computer hardware generally have lease terms between 1 and 5 years. Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Note | Buildings | Equipment | Total |
| As at January 1, 2025 |  | $111.8 | $3.6 | $115.4 |
| Additions from acquisitions | 5 | 3.1 |  | 3.1 |
| Additions |  | 9.2 |  | 9.2 |
| Depreciation expense |  | (11.9) | (1.4) | (13.3) |
| Effect of movements in exchange |  | 0.1 |  | 0.1 |
| As at December 31, 2025 |  | $112.3 | $2.2 | $114.5 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Buildings | Equipment | Total |
| As at January 1, 2024 | $69.4 | $2.4 | $71.8 |
| Additions | 53.3 | 2.1 | 55.4 |
| Depreciation expense | (11.0) | (0.9) | (11.9) |
| Effect of movements in exchange | 0.1 |  | 0.1 |
| As at December 31, 2024 | $111.8 | $3.6 | $115.4 |

---

The Company also has certain leases of small office and IT equipment such as laptops with lease terms of 12 months or less, some of which are also low value leases.

Depreciation expense included in cost of revenue for the year ended December 31, 2025 is $12.8 (December 31, 2024 - $11.9). Depreciation expense relating to all other right-of use assets of $0.5 (December 31, 2024 - nil) is included in operating expenses.

The following are the amounts recognized in profit or loss for the leases:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Depreciation expense included in cost of revenue | $12.8 | $11.9 |
| Interest expense on lease liability | 9.0 | 9.1 |
| Expense relating to short-term lease | 8.0 | 6.5 |
| Expense relating to leases of low-value assets | 0.6 | 0.8 |
|  | $30.4 | $28.3 |

---

Set out below are the carrying amounts of lease liabilities and the movements:

---

| | | | |
|:---|:---|:---|:---|
|  | Note | 2025 | 2024 |
| Opening |  | $136.8 | $86.1 |
| Additions |  | 9.3 | 58.5 |
| Additions from acquisitions | 5 | 3.1 |  |
| Accretion of interest |  | 9.0 | 9.1 |
| Payments |  | (19.2) | (17.0) |
| Effect of movements in exchange rates |  | 0.1 | 0.1 |
| Ending |  | $139.1 | $136.8 |
| Current portion |  | $20.2 | $16.2 |
| Non-current portion |  | $118.9 | $120.6 |

---

The Company had total cash outflows for leases of $27.8 in the current period (December 31, 2024 - $24.3).

The maturity analysis of lease liabilities is disclosed in note 22, financial instruments and fair value disclosures.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**16.** **Intangible assets and goodwill** 

(a) Reconciliation
 of carrying amount

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |<br>Goodwill | Proprietary<br>technologies | Contractual<br>backlog | Customer<br>relationships | MDA<br>trademark |<br>Software |<br>Total |
| Cost |  |  |  |  |  |  |  |
| As at January 1, 2025 | $441.0 | $281.0 | $41.0 | $458.5 | $25.6 | $51.7 | $1298.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |  | 89.7 |  |  |  | 3.6 | 93.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Addition from acquisitions | 356.8 | 298.7 |  |  |  |  | 655.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers |  | 0.2 |  |  |  | (0.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of movements in exchange rates | 2.6 | 2.8 |  |  |  |  | 5.4 |
| As at December 31, 2025 | $800.4 | $672.4 | $41.0 | $458.5 | $25.6 | $55.1 | $2053.0 |
| Accumulated amortization |  |  |  |  |  |  |  |
| As at January 1, 2025 | $— | $(50.6) | $(41.0) | $(153.8) | $(6.0) | $(26.4) | $(277.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense |  | (55.8) |  | (32.5) | (1.3) | (8.7) | (98.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of movements in exchange rates |  | 0.2 |  |  |  |  | 0.2 |
| As at December 31, 2025 | $— | $(106.2) | $(41.0) | $(186.3) | $(7.3) | $(35.1) | $(375.9) |
| Net book value |  |  |  |  |  |  |  |
| As at December 31, 2025 | $800.4 | $566.2 | $— | $272.2 | $18.3 | $20.0 | $1677.1 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |<br>Goodwill | Proprietary<br>technologies | Contractual<br>backlog | Customer<br>relationships | MDA<br>trademark |<br>Software |<br>Total |
| Cost |  |  |  |  |  |  |  |
| As at January 1, 2024 | $439.8 | $228.7 | $41.2 | $459.9 | $25.6 | $46.4 | $1241.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |  | 49.0 |  |  |  | 5.3 | 54.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals |  |  | (0.2) | (1.4) |  |  | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments | (0.2) |  |  |  |  |  | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of movements in exchange rates | 1.4 | 3.3 |  |  |  |  | 4.7 |
| As at December 31, 2024 | $441.0 | $281.0 | $41.0 | $458.5 | $25.6 | $51.7 | $1298.8 |
| Accumulated amortization |  |  |  |  |  |  |  |
| As at January 1, 2024 | $— | $(33.7) | $(40.3) | $(121.7) | $(4.8) | $(18.8) | $(219.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense |  | (17.1) | (0.9) | (32.5) | (1.2) | (7.6) | (59.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals |  |  | 0.2 | 0.4 |  |  | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of movements in exchange rates |  | 0.2 |  |  |  |  | 0.2 |
| As at December 31, 2024 | $— | $(50.6) | $(41.0) | $(153.8) | $(6.0) | $(26.4) | $(277.8) |
| Net book value |  |  |  |  |  |  |  |
| As at December 31, 2024 | $441.0 | $230.4 | $— | $304.7 | $19.6 | $25.3 | $1021.0 |

---

For the year ended December 31, 2025, additions of proprietary technologies and software included $89.7 and nil of development costs incurred on internally generated intangible assets, respectively (December 31, 2024 - $37.3 and nil). As at December 31, 2025, these assets are still under development, and therefore the amortization thereof has not commenced.

For the year ended December 31, 2025, the amortization expense related to software of $13.7 (December 31, 2024 - $12.1) is included in cost of revenue. For the year ended December 31, 2025, the amortization expense related to all other intangible assets of $84.6 (December 31, 2024 - $47.0) is included in operating expenses.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

For the year ended December 31, 2025, the Company did not recognize impairment under amortization and depreciation of assets on the consolidated statement of comprehensive income. (December 31, 2024 - nil).

(b) Impairment
 test

The Company performed its annual goodwill impairment test as at December 31, 2025. Goodwill is monitored at the CGUs level, which represents the lowest level within the Company for which information about goodwill is available and monitored for internal management purposes. The following table presents the goodwill by CGU:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Geointelligence | $285.9 | $285.9 |
| Robotics and Space Operations | 25.1 | 25.1 |
| Satellite Systems | 489.4 | 130.0 |
|  | $800.4 | $441.0 |

---

For each CGU, the recoverable amount was determined based on its value in use, calculated by discounting estimated future cash flows to their present value. Estimated cash flow projections are based on the Company's five- year strategic growth plan. Based on the impairment test performed, the recoverable amount of Geointelligence, Robotics and Space Operations and Satellite Systems were in excess of their carrying amounts. Accordingly, there is no impairment of the carrying value of goodwill.

The following key assumptions were used for the period in determining the recoverable amount for each CGU:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenue
 and earnings before interest, taxes, depreciation and amortization over a five year forecast
 horizon are based on the expected timing of the Company's performance under enforceable
 contracts and anticipated future contracts, expected costs, as well as forecasted growth
 rate of the Company's recurring services and goods provided to its customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Discount
 rates represent the current market assessment of the risks specific to each CGU taking into
 consideration the time value of money and individual risks of the underlying assets that
 have not been incorporated in the cash flow estimates. The discount rates are post-tax measures
 based on normalized weighted-average costs of capital. The discount rates used in determining
 recoverable amounts of each CGU at December 31, 2025 reflect each CGU's specific
 risks and market conditions and ranged from 10.0% to 10.5% (December 31, 2024 - 10.0%
 to 11.0%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Terminal
 growth rate represents the cash flows beyond the five years included in the cash flow forecast.
 Rates are based on market and industry trends researched and identified by management. A
 terminal growth rate of 2.5% was used in the value in use calculation at December 31,
 2025 (December 31, 2024 - 2.5%).

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**17.** **Long-term debt** 

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Senior revolving credit facility | $27.5 | $— |
| Senior unsecured notes | 244.5 |  |
|  | $272.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

---

(a) Senior
 revolving credit facility

On March 22, 2024, the Company, through its wholly owned subsidiary NOL, exercised the accordion feature of its senior revolving credit facility which increased available capacity of the senior credit facility from $600.0 to $700.0. The Company also amended the existing interest rate base references from CDOR to CORRA in anticipation of the discontinuance of CDOR. Individual Bankers' Acceptances continued to reference CDOR until their first renewal after March 18, 2024. All other terms of the senior credit facility remain unchanged. Transaction costs incurred totaled $0.4 and was recognized on the consolidated statement of financial position.

On November 25, 2025, the Company amended its senior revolving credit facility to extend the maturity date to November 30, 2030. The facility continues to bear interest at the bank's prime rate or alternate base rate Canada, plus an amended applicable margin range of 45 to 150 basis points ("bps"), from the original range of 45 to 175 bps. CORRA loans under the senior credit facility have an amended applicable margin of 145 to 250 bps, from the original 145 to 275 bps. Other terms and conditions have also been amended. Transaction costs incurred totaled $2.0 and were recognized on the consolidated statement of financial position.

As at December 31, 2025, the weighted average interest rate was 4.00% (December 31, 2024 - nil). The Company also had $0.7 letters of credit outstanding at December 31, 2025 (December 31, 2024 - $6.8), bearing an applicable margin of 97 bps plus a fronting fee of 25 bps.

As at December 31, 2025, the Company through NOL has borrowings of $30.0 (December 31, 2024 - nil) under the senior revolving credit facility in the form of CORRA loans, which is recorded at a carrying amount of $27.5 (December 31, 2024 - nil) on the consolidated statement of financial position. In 2024, capitalized transaction costs were recognized under other non-current assets as there were no borrowings under the senior credit facility as at December 31, 2024. In December 2024 the Company also settled hedges related to its long-term debt discussed in note 22(c).

(b) Senior
 unsecured notes

On December 23, 2025, the Company issued senior unsecured notes ("Notes") through MDA Space Ltd., with an aggregate principal amount of $250.0 due December 23, 2030. The notes bear interest of 7.00% per annum, payable semi-annually in arrears. The Company has a number of early redemption options at various exercise prices ranging from 100% to 107%.

Repurchase of notes may be required upon change of control. As at December 31, 2025, none of these options have been redeemed and no change of control event has occurred. At inception, transactions costs were $6.3 and value of the redemption option was $0.8.

As at December 31, 2025, the notes are recorded at a carrying value of $244.5 on the consolidated statement of financial position. The redemption options are bifurcated and recognized at fair value through profit loss and are separately discussed in note 22(b).

(c) Security
 and guarantees

The senior revolving credit facility is guaranteed by all subsidiaries of NOL other than certain excluded subsidiaries, (immaterial subsidiaries, non-wholly owned subsidiaries and minority shareholding entities) and secured by all of the present and future assets, property and undertakings of NOL and its subsidiary guarantors, as well as a limited recourse guarantee and pledge of NOL from the Company.

The Company must satisfy certain financial covenants as defined by the credit agreement, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company is required to maintain an interest coverage ratio of at least 3.0 to 1 at all times

· The
 Company is required to maintain a specified total debt to EBITDA ratio of less than or equal
 to 4.0 to 1 at all times

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company is required to maintain a senior secured leverage covenant of less 3.0 to 1 at all
 times

The Investisement Québec Forgivable Loan is accounted for as government assistance in note 28(b). The forgivable loan is guaranteed by the same security as the note above for the senior revolving credit facility, albeit on a subordinated basis. The Company must satisfy the same financial covenants as defined by the senior revolving credit facility.

The Notes are fully and unconditionally guaranteed by the Company.

The Company was in compliance with these covenants at all times during the year ended December 31, 2025.

(d) Cash
 flows arising from long-term borrowings

The following table reconciles the changes in cash flows from financing activities for long-term borrowings:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Opening | $— | $438.9 |
| Proceeds from senior credit facility | 395 | 110 |
| Proceeds from issuance of senior unsecured notes | 250 |  |
| Short-term loan from financial institution acquired on business combination | 103.2 |  |
| Principal repayments | (468.2) | (550.0) |
| Transaction costs related to loans and borrowings | (8.3) | (0.4) |
| Value of redemption option at issuance | 0.8 |  |
| Interest expense incurred on credit facilities | 1 | 0.4 |
| Reallocation of capitalized costs (from) to Other Assets | $(1.1) | 1.1 |
| Closing | $272.4 | $— |
| Current portion | $0.4 | $— |
| Non-current portion | $272 | $— |

---

(e) Commitments
 related to long-term debt

The Company has the discretion to roll over the principal of the senior revolving credit facility in full to the facility's maturity date in 2030. The senior unsecured notes mature in 2030, with the Company's discretion on early redemption.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**18.** **Finance income and costs** 

---

| | | | |
|:---|:---|:---|:---|
|  | Note | 2025 | 2024 |
| Interest on credit facilities<sup>(1)</sup> |  | $6.6 | $30.0 |
| Other interest and borrowing fees |  | 4.4 | 2.6 |
| Interest on lease liabilities |  | 9.0 | 9.1 |
| Capitalized interest<sup>(2)</sup> |  | (3.0) | (13.7) |
| Total finance costs |  | $17.0 | $28.0 |

---

<sup>(1)</sup> Net interest accrual for 2024 on interest rate swaps is presented as an adjustment to finance costs because the designated hedged item is an interest-bearing liability, which is further discussed in Note 22(c).

<sup>(2)</sup> Interest expense is capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. Capitalized interest is a component of both property, plant and equipment and intangible assets. The capitalization rate used to capitalize interest is 4.42% (December 31, 2024 - 6.79%).

Finance income of $7.8 during the year (December 31, 2024 - $7.0) is interest earned on the cash balance in the bank, tax interest income and interest income from defined benefit pension plans.

**19.** **Employee benefits** 

(a) Employee
 benefits liabilities

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Salary and benefits payable | 75.0 | 55.6 |
| Obligations under defined benefit pension plans and post-retirement benefit plans | 24.0 | 24.2 |
| Accrued liabilities for other retirement benefits | 1.5 | 4.1 |
|  | $100.5 | $83.9 |
| Current | $77.1 | $60.2 |
| Non-current | $23.4 | $23.7 |

---

Excluded from the pension plan liabilities as at December 31, 2025 are pension plan asset totaling $15.4 (December 31, 2024 - $16.2). Pension plan assets are recorded in other non-current assets as presented in note 13.

(b) Defined
 contribution pension plans

The Company maintains defined contribution pension plans and incurred $11.4 in expenses during the year (December 31, 2024 - $7.9).

(c) Defined
 benefit pension plans and post-retirement benefit plans

*Defined benefit pension plans*

The Company's defined benefit plans provide pension benefits based on various factors including earnings and length of service.

The plans are funded and the Company's funding requirements are based on each of the plans' actuarial measurement frameworks as established by the plan agreements or applicable laws. Employees are required to contribute to some of the funded plans. The total estimated employer contributions expected to be paid to the plans in the year ending December 31, 2026 are $2.9.

The funded plan assets are legally separated from the Company and are held by an independent trustee. The trustee is responsible for ensuring that the funds are protected as per applicable laws.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Movement in net defined benefit pension liability (asset) for the year ended December 31, 2025 is set out below:

---

| | | | |
|:---|:---|:---|:---|
|  | Defined benefit<br> liability | Fair value of<br> plan assets | Net defined<br> benefit liability<br> (asset) |
| Defined benefit liability (asset) as at January 1, 2025 | $119.4 | $(135.4) | $(16.0) |
| Effect of asset ceiling in prior year in equity |  | (24.6) | (24.6) |
| Recognized in net income |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service cost | 6.7 |  | 6.7 |
| &nbsp;&nbsp;&nbsp;Administrative expenses |  | 0.8 | 0.8 |
| &nbsp;&nbsp;&nbsp;Interest cost (income) | 5.6 | (7.6) | (2.0) |
|  | $12.3 | $(6.8) | $5.5 |
| Recognized in net equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Actuarial gain arising from: |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial assumptions | (2.9) |  | (2.9) |
| &nbsp;&nbsp;&nbsp;Experience adjustment | (0.2) |  | (0.2) |
| &nbsp;&nbsp;&nbsp;Return on plan assets excluding interest income |  | (5.6) | (5.6) |
| &nbsp;&nbsp;&nbsp;Administrative expenses paid from fund |  | 0.8 | 0.8 |
|  | $(3.1) | $(4.8) | $(7.9) |
| Other |  |  |  |
| &nbsp;&nbsp;&nbsp;Employer contributions |  | (0.4) | (0.4) |
| &nbsp;&nbsp;&nbsp;Plan participant contributions | 2.6 | (2.6) |  |
| &nbsp;&nbsp;&nbsp;Benefit payments | (6.4) | 6.4 |  |
|  | $(3.8) | $3.4 | $(0.4) |
| Effect of asset ceiling in equity |  | 28.3 | 28.3 |
| Defined benefit liability (asset) as at December 31, 2025 | $124.8 | $(139.9) | $(15.1) |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Movement in net defined benefit pension liability (asset) for the year ended December 31, 2024 is set out below:

---

| | | | |
|:---|:---|:---|:---|
|  | Defined benefit<br> liability | Fair value of<br> plan assets | Net defined<br> benefit liability<br> (asset) |
| Defined benefit liability (asset) as at January 1, 2024 | $111.9 | $(123.8) | $(11.9) |
| Effect of asset ceiling in prior year in equity | $— | $(16.7) | $(16.7) |
| Recognized in net income |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service cost | 5.2 |  | 5.2 |
| &nbsp;&nbsp;&nbsp;Past service cost | 0.2 |  | 0.2 |
| &nbsp;&nbsp;&nbsp;Administrative expenses |  | 0.7 | 0.7 |
| &nbsp;&nbsp;&nbsp;Interest cost (income) | 5.3 | (6.7) | (1.4) |
|  | $10.7 | $(6.0) | $4.7 |
| Recognized in net equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Actuarial loss (gain) arising from: |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial assumptions | (1.0) |  | (1.0) |
| &nbsp;&nbsp;&nbsp;Experience adjustment | 1.9 |  | 1.9 |
| &nbsp;&nbsp;&nbsp;Return on plan assets excluding interest income |  | (15.1) | (15.1) |
| &nbsp;&nbsp;&nbsp;Administrative expenses paid from fund |  | 0.4 | 0.4 |
|  | $0.9 | $(14.7) | $(13.8) |
| Other |  |  |  |
| &nbsp;&nbsp;&nbsp;Employer contributions |  | (2.9) | (2.9) |
| &nbsp;&nbsp;&nbsp;Plan participant contributions | 2.3 | (2.3) |  |
| &nbsp;&nbsp;&nbsp;Benefit payments | (6.4) | 6.4 |  |
|  | $(4.1) | $1.2 | $(2.9) |
| Effect of asset ceiling in equity |  | 24.6 | 24.6 |
| Defined benefit liability (asset) as at December 31, 2024 | $119.4 | $(135.4) | $(16.0) |

---

Plan assets comprise the following:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Domestic equity | $42.5 | $40.9 |
| Foreign equity | 33.7 | 32.3 |
| Fixed income assets | 55.7 | 53.7 |
| Other | 35.3 | 32.4 |
| Cash and short-term investments | 1 | 0.7 |
| Total plan assets | $168.2 | $160 |

---

*Other post-retirement benefit plans*

The Company provides other post-retirement benefits, including extended health benefits, dental care and life insurance covering a portion of its employees in Canada. The cost of these benefits is funded primarily out of cash from operations.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Movement in net other post-retirement benefit liability for the year ended December 31, 2025 is set out below:

---

| | | | |
|:---|:---|:---|:---|
|  | Benefit<br>liability | Fair value of<br>plan assets | Net benefit<br>liability |
| Benefit liability as at January 1, 2025 | $24 | $— | $24 |
| Recognized in net income |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service cost | 0.3 |  | 0.3 |
| &nbsp;&nbsp;&nbsp;Interest cost | 1.1 |  | 1.1 |
|  | $1.4 | $— | $1.4 |
| Recognized in net equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Actuarial gain arising from: |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial assumptions | (0.8) |  | (0.8) |
|  | $(0.8) | $— | $(0.8) |
| Other |  |  |  |
| &nbsp;&nbsp;&nbsp;Employer contributions |  | (1.0) | (1.0) |
| &nbsp;&nbsp;&nbsp;Benefit payments | (1.0) | 1 |  |
|  | $(1.0) | $— | $(1.0) |
| Benefit liability as at December 31, 2025 | $23.6 | $— | $23.6 |

---

Movement in net other post-retirement benefit liability for the year ended December 31, 2024 is set out below:

---

| | | | |
|:---|:---|:---|:---|
|  | Benefit<br>liability | Fair value of<br>plan assets | Net benefit<br>liability |
| Benefit liability as at January 1, 2024 | $23.7 | $— | $23.7 |
| Recognized in net income |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service cost | 0.3 |  | 0.3 |
| &nbsp;&nbsp;&nbsp;Interest cost | 1.1 |  | 1.1 |
|  | $1.4 | $— | $1.4 |
| Recognized in net equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Actuarial gain arising from: |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial assumptions | (0.3) |  | (0.3) |
|  | $(0.3) | $— | $(0.3) |
| Other |  |  |  |
| &nbsp;&nbsp;&nbsp;Employer contributions |  | (0.8) | (0.8) |
| &nbsp;&nbsp;&nbsp;Benefit payments | (0.8) | 0.8 |  |
|  | $(0.8) | $— | $(0.8) |
| Benefit liability as at December 31, 2024 | $24.0 | $— | $24.0 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

*Actuarial assumptions*

The following represents the weighted average of the principle actuarial assumptions used in calculating the defined benefit plans and other post-retirement plans at the reporting date.

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Discount rate | 5.0% | 4.8% |
| Future salary increases | 3.5% | 3.5% |
| Health care trend (Other Post Retirement Benefit Plans) | 5.5% | 5.6% |
| Longevity at age 65 for current pensioners: |  |  |
| &nbsp;&nbsp;&nbsp;Males | 22.2 | 22.1 |
| &nbsp;&nbsp;&nbsp;Females | 24.5 | 24.4 |
| Longevity at age 65 for current pensioners aged 45: |  |  |
| &nbsp;&nbsp;&nbsp;Males | 23.2 | 23.1 |
| &nbsp;&nbsp;&nbsp;Females | 25.5 | 25.3 |

---

As at December 31, 2025, the weighted-average duration of the defined benefit obligation was 12.3 years (December 31, 2024 - 12.5).

*Sensitivity analysis*

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have increase (decrease) the defined benefit plans and other post-retirement plans obligations by the amounts shown below.

---

| | | |
|:---|:---|:---|
| As at December 31, 2025 | Increase of 1% | Decrease of 1% |
| Discount rate | $(16.6) | $20.5 |
| Future salary growth | $0.9 | $(1.1) |
| Health care trends rate | $3.0 | $(2.4) |
| Future mortality | $(0.3) | $0.3 |

---

**20.** **Other liabilities** 

---

| | | | |
|:---|:---|:---|:---|
|  | Note | December 31, 2025 | December 31, 2024 |
| Derivative financial liabilities | 22 (b) | $2.2 | $— |
| Onerous contracts |  | 16.7 | 3.5 |
| Other provisions |  | 23.7 |  |
|  |  | $42.6 | $3.5 |
| Current portion |  | $19.2 | $2.7 |
| Non-current portion |  | $23.4 | $0.8 |

---

The majority of the amount in Other was related to the provisions in respect of tax exposures relating to pre-acquisition periods of the acquired subsidiaries presented in note 5. These provisions are based on management's best estimate and are reviewed as additional information becomes available.

Set out below are the carrying amounts of onerous contracts and its movements:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| As at January 1, 2025 | $3.5 | $2.5 |
| Arising during the year | 15.4 | 1.9 |
| Utilized | (2.2) | (0.9) |
| As at December 31, 2025 | $16.7 | $3.5 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**21.** **Share-based compensation** 

The Company has equity-settled and cash-settled share-based compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Equity-settled
 share-based compensation plans

In 2021, the Company established an Omnibus Long-term Incentive Plan ("Omnibus Plan"). The Omnibus Plan is a share-based plan, under which the Company receives services from directors and employees as consideration for equity instruments of the Company. The Company can issue stock options, deferred share units ("DSUs"), restricted share units ("RSUs"), and performance share units ("PSUs") pursuant to the terms and conditions of the Omnibus Plan and the related award agreements entered into thereunder.

The Company also has in place an Employee Share Trust Agreement arrangement, where eligible employees are issued shares held in a company trust ("Trustee Shares") and released upon meeting prescribed conditions.

*Stock Options*

The Company did not grant any stock options for the year ended December 31, 2025. Stock options granted in prior years have graded vesting schedules ranging from 3 to 4 years from the grant date. Vesting is conditional on continuous employment from the grant date to the vesting date. The stock options have a maximum term of 10 years.

Stock options are measured at fair value using the Black-Scholes option pricing model on the grant date and subsequently expensed on a graded basis over the vesting period. The amount expensed for the year ended December 31, 2025 was $0.6 (for the year ended December 31, 2024 - $2.2).

The table below shows the movement in the number of stock options outstanding and the related weighted average exercise price.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Number of <br>stock options | Weighted average <br>exercise price | Number of stock <br>options | Weighted average <br>exercise price |
| Opening | 7616195 | $11.79 | 9187881 | $11.15 |
| Granted |  |  |  |  |
| Forfeited |  |  | (80156) | 8.95 |
| Exercised | (4133638) | 12.08 | (1491530) | 7.98 |
| Closing | 3482557 | $11.45 | 7616195 | $11.79 |
| Stock options exercisable | 3308638 | $11.50 | 7177377 | $11.82 |

---

During the year ended December 31, 2025, the weighted average market share price for stock options exercised was $34.03 (December 31, 2024 - $24.09).

The information regarding the stock options outstanding and exercisable as at December 31, 2025 is summarized below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Outstanding options | Outstanding options | Outstanding options | Exercisable options | Exercisable options |
| Range of exercise prices | Number of<br> stock options | Weighted average<br> remaining contractual<br> life (years) | Weighted<br> average<br> exercise price | Number of <br> stock options | Weighted <br> average<br> exercise price |
| $6.00 - $11.55 | 2057542 | 5.73 | $8.69 | 1901623 | $8.61 |
| $14.00 - $18.00 | 1395027 | 5.02 | 15.25 | 1383027 | 15.25 |
| $21.65 - $26.88 | 29988 | 6.32 | 23.92 | 23988 | 24.49 |
|  | 3482557 | 5.45 | $11.45 | 3308638 | $11.50 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

The information regarding the stock options outstanding and exercisable as at December 31, 2024 is summarized below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Outstanding options | Outstanding options | Outstanding options | Exercisable options | Exercisable options |
| Range of exercise prices | Number of<br> stock options | Weighted average<br> remaining contractual <br>life (years) | Weighted <br>average<br> exercise price | Number of<br> stock options | Weighted <br>average<br> exercise price |
| $6.00 - $11.55 | 4942630 | 6.37 | $8.39 | 4614124 | $8.30 |
| $14.00 - $18.00 | 2091410 | 6.05 | 15.03 | 2001790 | 15.03 |
| $21.65 - $30.00 | 582155 | 6.29 | 29.02 | 561463 | 29.26 |
|  | 7616195 | 6.28 | $11.79 | 7177377 | $11.82 |

---

*Trustee Shares*

Immediately prior to the IPO in 2021, the Company transferred from the Omnibus Plan a total of 547,292 stock options to Trustee Shares for certain employees, which vest on the same basis as the originating stock options. No additional Trustee Shares have been granted subsequently. The amount expensed for the year ended December 31, 2025 was $0.1 (for the year ended December 31, 2024 - $0.2).

All vested Trustee Shares have been distributed to employees as at December 31, 2025.

*DSUs*

The Company offers DSUs to the Company's independent directors, where they are entitled to receive all or a portion of their annual compensation in the form of DSUs in place of cash commencing in 2022. The DSUs vest immediately upon grant and are equity-settled, entitling participants to receive one common share for each DSU. DSUs settle upon a director's separation from service. The amount expensed for the year ended December 31, 2025 is $1.5 (for the year ended December 31, 2024 - $1.4). The weighted average fair value of DSUs granted during the year ended December 31, 2025 was $29.16 (December 31, 2024 - $16.50).

*RSUs and PSUs*

The Company grants RSUs and PSUs to eligible employees. The RSUs vest over 1 to 3 years in annual installments from the grant date. Vesting is conditional on continuous employment from the grant date to the vesting date. The PSUs vest 3 years from the grant date and are conditional on continuous employment as well as attainment of performance targets. The amount expensed for the year ended December 31, 2025 is $10.6 (for the year ended December 31, 2024 - $6.6). The weighted average fair value of RSUs and PSUs granted during the year ended December 31, 2025 were $27.09 and $24.94, respectively (December 31, 2024 - $14.44 and $14.12, respectively).

*Award units continuity - Trustee Shares, DSUs, RSUs and PSUs*

The table below shows the movement in the award units outstanding over the year ended December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Trustee Shares | DSUs | RSUs | PSUs |
| As at January 1, 2025 | 19529 | 266146 | 1088312 | 526748 |
| Granted |  | 38983 | 517714 | 166905 |
| Forfeited/Cancelled |  |  | (47019) | (67151) |
| Exercised/Converted | (19529) |  | (560420) | (75715) |
| As at December 31, 2025 |  | 305129 | 998587 | 550787 |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

The table below shows the movement in the award units outstanding over the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Trustee Shares | DSUs | RSUs | PSUs |
| As at January 1, 2024 | 79383 | 215163 | 1126871 | 452777 |
| Granted |  | 84890 | 511484 | 205185 |
| Forfeited/Cancelled |  |  | (118554) | (131214) |
| Exercised/Converted | (59854) | (33907) | (431489) |  |
| As at December 31, 2024 | 19529 | 266146 | 1088312 | 526748 |

---

(b) Cash-settled
 share-based compensation plan

In 2024, the Company established Employee Share Purchase Plan ("ESPP"). The ESPP is a cash-settled share- based payment plan, whereby employees of the Company can acquire common shares through regular payroll deductions. Company-matched employee contributions, up to a maximum of five thousand dollars per annum, are restricted to a one year holding period. The employee and Company's contributions are remitted to an independent plan administrator who is responsible for purchasing common shares on the market on behalf of the employee.

The amount expensed for the year ended December 31, 2025 is $4.9 (for the year ended December 31, 2024 - $2.0).

**22.** **Financial instruments and fair value disclosures** 

(a) Financial
 instruments by category:

The classification of financial instruments and their carrying amounts are as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Financial assets (liabilities) measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;Derivative financial assets | $22.0 | $3.4 |
| &nbsp;&nbsp;&nbsp;Derivative financial liabilities | (2.2) |  |
| &nbsp;&nbsp;&nbsp;Investment in equity securities | 17.7 | 13.2 |
| *Financial assets (liabilities) measured at amortized cost* |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $152.0 | $166.7 |
| &nbsp;&nbsp;&nbsp;Trade and other receivables | 145.3 | 75.9 |
| &nbsp;&nbsp;&nbsp;Unbilled receivables | 187.5 | 250.1 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (391.4) | (248.7) |
| &nbsp;&nbsp;&nbsp;Long-term debt | (272.0) |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b) Fair
 value of financial instruments:

The table below shows the fair values of financial instruments along with their levels in the fair value hierarchy. It does not include fair values of those financial instruments measured at amortized cost for which the carrying amount is a reasonable approximation of fair value, which include cash, trade and other receivables, unbilled receivables, accounts payable and accrued liabilities, and non-trade payables.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| Assets |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative financial instruments | $— | $21.1 | $0.9 | $22.0 | $— | $3.4 | $— | $3.4 |
| &nbsp;&nbsp;&nbsp;Investment in equity securities | 7.9 | 9.8 |  | 17.7 | 3.5 | 9.7 |  | 13.2 |
| Liabilities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative financial instruments | $0.1 | $2.1 | $— | $2.2 | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;Long-term debt |  | 280.0 |  | 280.0 |  |  |  |  |

---

During the year, no transfers occurred between the different levels.

Level 2 derivative financial instruments comprise foreign exchange embedded derivatives within revenue and purchase contracts. The Company determines fair value of its derivative financial instruments based on management estimates and observable market-based inputs. The fair value of foreign exchange embedded derivatives include management assumptions concerning the amount and timing of estimated future cash flows and observable market- based inputs such as currency spot and forward rates.

Level 2 investment in equity securities comprise a 0.8% equity ownership in a private foreign company purchased in USD. The Company determines the fair value based on the value per share of the same class of shares issued to income investors as this company is still in its growth phase. Management estimates include assumptions concerning the amount and timing of estimated future cash flows, which are not observable market-based inputs. Observable market-based inputs are sourced from third parties and include currency spot rates.

Level 2 long-term debt comprise the senior credit facility and senior unsecured notes discussed in note 17. Its fair value was determined using a present value of future cash flows model. A key estimate used in this calculation is the market yield, which is derived from inputs such as corporate bond credit spread and risk free rate.

The embedded derivative redemption feature as part of the senior unsecured notes is classified as a Level 3 security. The fair value change on this instrument was recorded in the consolidated statement of comprehensive income. Below is the reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy:

---

| | |
|:---|:---|
|  | Embedded derivative<br>asset (Level 3) |
| As at January 1, 2025 | $— |
| Additions | 0.8 |
| Unrealized gain recognized in the consolidated statement of comprehensive income | 0.1 |
| As at December 31, 2025 | $0.9 |

---

The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as at December 31, 2025 are show below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Valuation <br>technique | Significant <br>unobservable | Input | Amount |
| Embedded derivative asset | Income approach - Callable bond model | Credit spread | December 31, 2025: 3.96% | December 31, 2025: 0.25% increase or decrease in the credit spread would result in a decrease of fair value by $0.2, and an increase of fair value by $0.3, respectively |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

(c) Interest
 Rate Risk

The Company was exposed to interest rate risk from fluctuations in interest rates on its floating rate debt on its senior revolving credit facility.

The Company manages interest rate risk by monitoring the mix of fixed and floating rate debt in the respective environment and takes action as necessary to maintain an appropriate balance considering current market conditions.

During the year-ended December 31, 2024, the Company had 3 interest rate swap contracts, expiring December 15, 2027, to mitigate exposure to interest rate fluctuations on borrowings under its senior revolving facility. Under the swap contracts, the Company paid interest at a fixed rate of 3.46% for $150.0 and 4.14% for $75.0 of debt, and received interest at a variable rate equal to the 3-month CDOR for each 90 day period. As at December 31, 2024, the Company repaid all of its borrowings and exited all related interest rate swap contracts. As a result of the derecognition of hedges, the Company reversed all amounts previously recorded into other comprehensive income of

$5.7, before tax, to arrive at an ending nil fair value balance in the statement of financial position. A total of $4.7 was paid to settle these hedges, recognized under finance cost on the statement of comprehensive income. At December 31, 2024, the Company had no interest rate swap contracts as there were no external borrowings under its senior revolving credit facility.

As at December 31, 2025, there was $30.0 of total borrowings that was subject to floating interest rates. (December 31, 2024 - nil). Based on the total outstanding borrowings as at December 31, 2025, an increase or decrease in 1.0% in the average interest rate on our borrowings would have resulted in insignificant changes to income before taxes. The impact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount of our borrowings at the time.

(d) Credit
 risk

The Company is exposed to credit risk resulting from the possibility that counterparties may default on their financial obligations to the Company. The Company is primarily exposed to credit risk through its trade and other receivables and unbilled receivables.

The Company's credit exposure through receivables relates to a diverse group of customers, including government and commercial customers, in multiple geographic regions purchasing a wide variety of products and services from the Company, and is therefore mitigated by a reduced concentration of risk. The due date of these amounts can vary by agreement but in general balances over 90 days are considered past due.

The Company applies the simplified model of recognizing lifetime expected credit losses for all trade, unbilled and other receivables. In monitoring credit risk, customers are grouped according to their credit characteristics, including whether the customer program is funded by a government or a commercial entity, the Company's credit history with the customer, and existence of previous or current financial challenges. Credit limits or maximum exposures under revenue contracts are identified, approved and monitored.

Set out below is the movement in the allowance for credit losses on trade and other receivables and unbilled receivables:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Opening | $(25.8) | $(11.9) |
| (Provision)/reversal of prior provision for credit losses | 17.2 | (14.6) |
| Write-offs | 2.9 | 0.7 |
| Ending | $(5.7) | $(25.8) |

---

The gross amount of trade and other receivables disclosed in note 10 and the gross amount of unbilled receivables disclosed in note 11 represent their respective maximum credit exposures.

(e) Liquidity
 risk:

The Company's liquidity risk is the risk it may not be able to meet its contractual obligations associated with financial liabilities as they come due. The Company's principal sources of liquidity are cash provided by operations and access to credit facilities. The Company's short-term cash requirements are primarily to fund working capital, with medium- term requirements to service and repay debt, invest in capital and intangible assets, and research and development for growth initiatives. Cash is also used to finance other long-term strategic initiatives. For the foreseeable future, the Company believes that these principal sources of liquidity are sufficient to maintain the Company's capacity and to meet planned growth and development activities.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

The maturities of the contractual cash flows of the Company's financial liabilities as at December 31, 2025 are shown in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Carrying<br> amount | Contractual<br> cash flows | Maturing in<br> less than 1 <br>year | Maturing in 1 <br>to 5 years | Maturing<br> beyond 5 <br>years |
| *Non-derivative financial liabilities:* |  |  |  |  |  |
| Trade and other payables | $391.4 | $391.4 | $391.4 | $— | $— |
| Non-trades payables | 0.3 | 0.3 | 0.2 | 0.1 |  |
| Lease liabilities | 139.1 | 223.7 | 20.4 | 56.7 | 146.6 |
| Long-term debt | 272 | 280 |  | 280 |  |
|  | $802.8 | $895.4 | $412 | $336.8 | $146.6 |
| Derivative instruments | 2.2 | 2.2 | 1.2 | 1 |  |
|  | $2.2 | $2.2 | $1.2 | $1 | $— |
|  | $805 | $897.6 | $413.2 | $337.8 | $146.6 |

---

The maturities of the contractual cash flows of the Company's financial liabilities as at December 31, 2024 are shown in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Carrying<br> amount | Contractual<br> cash flows | Maturing in <br> less than 1 <br>year | Maturing in 1 <br>to 5 years | Maturing<br> beyond 5 <br>years |
| *Non-derivative financial liabilities:* |  |  |  |  |  |
| Trade and other payables | $248.7 | $248.7 | $248.7 | $— | $— |
| Other payables | 0.3 | 0.3 | 0.1 | 0.1 | 0.1 |
| Lease liabilities | 136.8 | 234.0 | 16.1 | 65.1 | 152.8 |
|  | $385.8 | $483.0 | $264.9 | $65.2 | $152.9 |

---

(f) Foreign
 exchange risk:

The Company is exposed to foreign exchange risk on sales contracts, purchase contracts as well as cash, receivable and payable balances denominated in currencies other than the functional currency of the Company's contracting entity. The currencies in which these transactions are primarily denominated are United States dollar ("USD") and Euro, with USD representing the more significant exposure. The Company is also exposed to foreign currency risk on the net assets of its foreign operations.

The Company mitigates its foreign exchange risk through reducing mismatches between currencies in its foreign currency revenue contracts and the related purchase contracts to create natural economic hedges. The Company also utilizes foreign exchange forward contracts to supplement its natural hedge strategy, where needed, to further reduce the exposure arising from expected foreign currency denominated cash flows. The term of the foreign exchange forward contracts can range from less than one month to several years. At December 31, 2025, the Company had foreign exchange forward contracts to sell $90.0 USD, which mature in less than 1 year. The forward contracts locks in a foreign exchange rate range of 1.3692 to 1.3669. A loss of $0.1 has been recognized on the statement of comprehensive income under unrealized gain on financial instruments. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes and does not have any qualifying hedges for accounting purposes.

**23.** **Equity-accounted investees** 

The below table shows a breakdown of all equity-accounted investees:

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Interest in Maritime Launch Services Inc. | 10.0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Interest in Jet Talk Limited | 1.3 |  |
|  | $11.3 | $— |

---

On November 3rd, 2025, the Company made an investment of $10.0 in Maritime Launch Services Inc. ("Maritime Launch"). The Company owns less than 20% of the equity interests and voting rights, but the Company has determined that it has significant influence due to meaningful representation on the Board of Directors of the associate. Consequently, the investment in Maritime Launch is accounted for in accordance with the equity method under IAS 28, Investments in Associates and Joint Ventures ("IAS 28").The total comprehensive income proportionate to the Company's ownership since acquisition and until December 31, 2025 is insignificant.

The Company acquired an interest in the Jet Talk Limited joint venture ("Jet Talk") with the acquisition of SatixFy, described in note 5. The Company has a 51% percent ownership interest, but no unilateral influence over all of the investee's most relevant operations and hence the Company has no control over the investee. Consequently, the investment in Jet Talk is accounted for in accordance with the equity method under IAS 28. There is no amount of total comprehensive income to be recognized from the date of acquisition of SatixFy.

**24.** **Capital management** 

The Company defines its capital as the aggregate of long-term debt and shareholder's equity. The Company's primary capital management objectives are to provide an appropriate return to shareholders, safeguard working capital over the annual operating cycle, provide financial resources to grow operations to meet long-term customer demand, and comply with financial covenants under credit facilities.

The Company's strategy to managing its capital structure is to utilize its borrowing arrangements to obtain operating credit facilities in support of its working capital and planned capital expenditures. When needed, the Company has access to capital markets to raise equity financing. As at December 31, 2025, in addition to equity, the Company also had $669.3 of available liquidity under its revolving credit facility, net of outstanding letters of credit (December 31, 2024 - $693.2). The Company continually assesses the adequacy of its capital structure and capacity and makes adjustments within the context of the Company's strategy, economic conditions, and the risk characteristics of the business.

The Company's performance against its financial covenants is discussed in detail in note 17. The Company was in compliance with the financial covenants under the Company's credit facilities throughout the year ended December 31, 2025.

**25.** **Share Capital** 

(a) Authorized

The Company is authorized to issue an unlimited number of common shares without par value. Each common share entitles the holder of record to one vote at shareholder meetings and to participate in dividends if declared.

(b) Issued
 and outstanding

---

| | | | |
|:---|:---|:---|:---|
| | | Number of <br>common shares | Amount |
| As at January 1, 2024 |  | 119514919 | $956.1 |
| Conversion of share-based awards to common shares |  | 2016780 | 19.7 |
| As at December 31, 2024 |  | 121531699 | $975.8 |
| Conversion of share-based awards to common shares | 20 (a) | 4789302 | 66.9 |
| As at December 31, 2025 |  | 126321001 | $1042.7 |

---

All issued common shares are fully paid.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

**26.** **Income taxes** 

(a) Income
 tax expense

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Current tax expense: |  |  |
| Current period | $56.6 | $23.7 |
| Change in estimate for prior periods | 2.1 | (2.8) |
|  | $58.7 | $20.9 |
| Deferred tax expense: |  |  |
| Origination and reversal of temporary difference | (13.2) | 9.3 |
| Change in estimate for prior periods | (4.1) | 1.7 |
| Change in unrecognized deductible temporary differences | 2.5 | (0.3) |
|  | $(14.8) | $10.7 |
| Income tax expense | $43.9 | $31.6 |

---

(b) Income
 taxes recognized in OCI

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Opening | $(9.2) | $(7.0) |
| Income tax expense on remeasurement of defined benefit pension plans | (1.6) | (1.8) |
| Other |  | (0.4) |
| Closing | $(10.8) | $(9.2) |

---

(c) Income
 tax rate reconciliation

A reconciliation of income taxes at statutory rates to actual income tax expense is as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Statutory Federal and Provincial tax rate in Canada | 26.5% | 26.5% |
| Income tax expense at statutory tax rates | $40.4 | $29.4 |
| Earnings subject to different rates | 1.3 | 0.5 |
| Change in unrecognized deferred tax assets | 2.5 | 2.8 |
| Share-based compensation | 0.9 | 0.8 |
| Change in estimate for prior periods | (2.0) | (1.1) |
| Other, including permanent differences | 0.8 | (0.8) |
|  | $43.9 | $31.6 |

---

(d) Recognized
 deferred tax assets and liabilities

Deferred tax assets and liabilities as at December 31, 2025 are attributable to the following:

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

---

| | | | |
|:---|:---|:---|:---|
|  | Assets | Liabilities | Net |
| Unbilled receivables and contract liabilities | $— | $11.5 | $(11.5) |
| Property, plant and equipment | 1 | 23.7 | (22.7) |
| Intangible assets |  | 161.8 | (161.8) |
| Investment tax credits | 30 | 92.1 | (62.1) |
| Trade and other payables | 5.6 |  | 5.6 |
| Employee benefits | 10.6 | 2.2 | 8.4 |
| Tax loss carry forwards | 4.8 |  | 4.8 |
| Other items, including financing fees | 6 | 2.4 | 3.6 |
| Tax assets (liabilities) | $58 | $293.7 | $(235.7) |
| Set off of tax | (48.0) | (48.0) |  |
| Net tax assets (liabilities) | $10 | $245.7 | $(235.7) |

---

Deferred tax assets and liabilities as at December 31, 2024 are attributable to the following:

---

| | | | |
|:---|:---|:---|:---|
|  | Assets | Liabilities | Net |
| Unbilled receivables and contract liabilities | $— | $15.8 | $(15.8) |
| Property, plant and equipment | 2.2 | 22.9 | (20.7) |
| Intangible assets |  | 125.1 | (125.1) |
| Investment tax credits | 27.8 | 56.1 | (28.3) |
| Trade and other payables | 0.9 |  | 0.9 |
| Employee benefits | 8.5 |  | 8.5 |
| Tax loss carry forwards | 5.9 |  | 5.9 |
| Other items, including financing fees | 3.8 | 4.7 | (0.9) |
| Tax assets (liabilities) | $49.1 | $224.6 | $(175.5) |
| Set off of tax | (39.2) | (39.2) |  |
| Net tax assets (liabilities) | $9.9 | $185.4 | $(175.5) |

---

(e) Unrecognized
 deferred tax assets

Deferred tax assets have not been recognized in respect of tax losses of $223.7 as at December 31, 2025 (December 31, 2024 - $55.1). These tax losses have no expiry date. At December 31 2025, the Company did not have unrecognized deferred tax assets in respect of capital losses (December 31, 2024 - $2.7).

(f) Movement
 in deferred taxes

Movement in deferred taxes for the year ended December 31, 2025 is set out below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at<br> January 1, <br> 2025 | Recognized<br> in net income<br> in year | Recognized <br> in OCI | Recognized<br> in equity in <br> year | Recognized<br> in business<br> combination | As at<br> December 31,<br> 2025 |
| Unbilled receivables and contract liabilities | $(15.8) | $4.3 | $— | $— | $— | (11.5) |
| Property, plant and equipment | (20.7) | (2.0) |  |  |  | (22.7) |
| Intangible assets | (125.1) | 38.0 |  |  | (74.7) | (161.8) |
| Investment tax credits | (28.3) | (33.8) |  |  |  | (62.1) |
| Trade and other payables | 0.9 | 4.7 |  |  |  | 5.6 |
| Employee benefits | 8.5 | (0.6) | (1.6) | 2.1 |  | 8.4 |
| Tax loss carry forwards | 5.9 | (1.1) |  |  |  | 4.8 |
| Other items, including financing fees | (0.9) | 5.3 |  | (0.8) |  | 3.6 |
|  | $(175.5) | $14.8 | $(1.6) | $1.3 | $(74.7) | $(235.7) |

---

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

Movement in deferred taxes for the year ended December 31, 2024 is set out below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As at <br> January 1,<br> 2024 | Recognized in<br> net income in<br> year | Recognized in<br> equity in year | Recognized in<br> goodwill in<br> year | As at <br> December 31,<br> 2024 |
| Unbilled receivables and contract liabilities | $(11.1) | $(4.7) | $— | $— | $(15.8) |
| Property, plant and equipment | (18.4) | (2.3) |  |  | (20.7) |
| Intangible assets and goodwill | (131.3) | 6.2 |  |  | (125.1) |
| Investment tax credits | (34.6) | 6.3 |  |  | (28.3) |
| Trade and other payables | 2.1 | (1.2) |  |  | 0.9 |
| Employee benefits | 5.2 | 0.9 | (1.8) | 4.2 | 8.5 |
| Tax loss carry forwards | 20.4 | (14.5) |  |  | 5.9 |
| Other items, including financing fees | 1.8 | (1.4) | (0.5) | (0.8) | (0.9) |
|  | $(165.9) | $(10.7) | $(2.3) | $3.4 | $(175.5) |

---

As at December 31, 2025, the Company had no taxable temporary differences relating to investments in subsidiaries.

**27.** **Earnings per share** 

The following table reflects the net income and share data used in the basic and diluted earnings per share calculations:

---

| | | |
|:---|:---|:---|
|  | Years ended <br>December 31,<br>2025 | Years ended <br>December 31,<br>2024 |
| Net income | $108.5 | $79.4 |
| Weighted average shares outstanding – basic | 124247299 | 120088519 |
| *Adjustments for* |  |  |
| &nbsp;&nbsp;&nbsp;Employee stock options | 3502488 | 3712059 |
| &nbsp;&nbsp;&nbsp;Trustee shares | 19529 | 358327 |
| &nbsp;&nbsp;&nbsp;DSUs | 285327 | 219742 |
| &nbsp;&nbsp;&nbsp;RSUs and PSUs | 1656998 | 1670395 |
| Weighted average shares outstanding – diluted | 129711641 | 126049042 |
| Basic earnings per share | $0.87 | $0.66 |
| Diluted earnings per share | 0.84 | 0.63 |

---

At December 31, 2025, no material items (December 31, 2024 - no material items) were excluded from the diluted weighted average number of ordinary shares calculation because their effect would have been anti-dilutive.

**28.** **Government assistance** 

(a) Investment
 tax credits

During the year ended December 31, 2025, the Company recognized investment tax credits related to its Canadian operations of $44.9 (December 31, 2024 - $42.6) as a reduction in cost of materials, labour and subcontractors, and research and development, net, on the consolidated statement of comprehensive income. In addition, the Company recognized $5.1 (December 31, 2024 - $11.3) as a deduction in the carrying amount of related assets on the consolidated statement of financial position. Of these recognized amounts, $11.1 (December 31, 2024 - $16.1) is related to expenses incurred in prior years.

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

As at December 31, 2025, the Company has investment tax credits of approximately $189.4 (December 31, 2024 - $179.9) available to offset future Canadian Federal and Provincial income taxes payable which expire between 2030 and 2045. Investment tax credits are only recognized in the consolidated financial statements when the recognition criteria have been met as described in note 3(q).

(b) Long
 Term Economic Benefits to Province of Ontario Grant (the "Ontario Grant"):

The Ontario Grant was awarded to the Company in March 2022 by the Minister of Economic Development, Job Creation and Trade to encourage investment in Ontario, which will benefit Ontario's economic growth. Under this grant agreement, the Ontario Government will fund 24.74% of eligible spending to a maximum of $25.0, conditional on the Company investing a minimum of $101.0 in eligible project expenditures. The Company will use the funding received under the grant towards the building of its centre of control and excellence in Brampton, Ontario, as well as development of proprietary technology. For the years ended December 31, 2025, the Company has not recorded any recoveries (December 31, 2024 - $0.6 against cost of revenue and $4.1 against long term assets). The Company has received $4.0 proceeds in connection with this grant for the years ended December 31, 2025 (December 31, 2024 - $8.1).

(c) Investissement
 Québec Forgivable Loan (the "IQ Loan"):

The Company entered into a definitive agreement with Investissement Québec in respect of the IQ Loan in February 2025. The forgiveable loan, in an amount up to $75.0 is intended to support with infrastructure projects and the expansion of development capabilities to design and produce satellites at the Company's facilities in Québec. The loan will be forgiven if certain requirements related mainly to procurement and hiring in Québec for these projects are met. During the year ended December 31, 2025, the Company has recorded recoveries of $18.5 against cost of revenues, $3.2 against research and development, net, and $51.5 against long-term assets. During the year ended December 31, 2025, the Company received $43.5 proceeds in connection with the IQ Loan.

**29.** **Supplementary cash flow information** 

The below table provides changes in operating assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | Years ended<br>December 31,<br>2025 | Years ended<br>December 31,<br>2024 |
| Trade and other receivables | $(31.9) | $95.7 |
| Unbilled receivables | 86.5 | (89.0) |
| Inventories | (12.5) | (1.5) |
| Prepaid expenses and advances to suppliers | 17.7 | (94.5) |
| Other assets | (17.2) | (2.0) |
| Trade and other payables | 50.9 | 43.0 |
| Contract liabilities | 26.0 | 684.4 |
| Employee benefits | 19.1 | 6.1 |
| Other liabilities | 15.7 | (5.7) |
|  | $154.3 | $636.5 |

---

**30.** **Related party transactions** 

The Company's related parties are its key management personnel. In 2024 the Company revised its assessment of key management personnel. As a result, key management personnel consist of leaders reporting directly to Company's CEO and Company's Board of Directors.

The Company's related party transactions comprises compensation expense incurred in relation to its key management personnel, as summarized below:

**MDA Space Ltd.**

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)

------

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Short-term and post-employment benefits | $10.7 | $9.2 |
| Share-based compensation expense | 6.0 | 5.3 |
| Total key management personnel compensation | $16.7 | $14.5 |

---

31. Contingencies
 and commitments

(a) As
 at December 31, 2025, the Company is committed under legally enforceable agreements
 for purchases relating to property, plant and equipment and intangible assets of $94.6 in
 2026 and $1.0 thereafter.

(b) The
 Company enters into agreements in the ordinary course of business with resellers and others.
 Most of these agreements require the Company to indemnify the other party against third-party
 claims alleging that one of its products infringes or misappropriates a patent, copyright,
 trademark, trade secret or other intellectual property right. Certain of these agreements
 require the Company to indemnify the other party against claims relating to property damage,
 personal injury or acts or omissions by the Company, its employees, agents or representatives.

(c) From
 time to time, the Company has made guarantees regarding the performance of its systems to
 its customers. The Company evaluates and estimates potential losses from such indemnification
 based on the likelihood that the future event will occur. To date, the Company has not incurred
 any material costs as a result of such obligations and has not accrued any liabilities related
 to such indemnification and guarantees in the consolidated financial statements.

(d) The
 Company has entered into industrial cooperation agreements, sometimes referred to as offset
 agreements, as a condition to entering into contracts for its products and services. These
 agreements are designed to return economic value to the designated country and may be satisfied
 through activities that do not require a direct cash payment, including transferring technology,
 providing manufacturing, training, job creation and other consulting support to in- country
 projects. These agreements may provide for penalties in the event the Company fails to perform
 in accordance with offset requirements. The Company has historically not been required to
 pay any such penalties.

(e) The
 Company is a party to various other legal proceedings and claims that arise in the ordinary
 course of business as either a plaintiff or defendant. The Company analyzes all legal proceedings
 and the allegations therein. The outcome of any of these other proceedings, either individually
 or in the aggregate, is not expected to have a material adverse effect on the Company's
 financial position, results of operations or liquidity.

(f) The
 Company has been served with a Statement of Claim that was filed in the Ontario Superior
 Court of Justice on November 17, 2025 seeking certification of a proposed class action
 against the Company, the CEO, CFO and the Board of Directors. The allegations in the claim
 relate to the Company's announcement and subsequent cancellation of the EchoStar constellation
 contract that the Company announced in September 2025 and the sales by certain insiders
 of shares after the announcement of the contract and before its termination. The plaintiffs
 seek damages for statutory and/or common law misrepresentation estimated in the amount of
 $225 million, punitive damages in the amount of $25 million, and damages against certain
 insiders for insider trading estimated in the amount of $90 million. The Company believes
 that all of the allegations that have been made in the claim are unfounded and without merit.
 The claims for damages have also not been substantiated. The Company intends to vigorously
 defend itself and the individual defendants. Due to the inherent uncertainties of litigation,
 it is not possible to predict the outcome of this proposed class action or determine the
 amount of potential losses, if any.

## Exhibit 4.3

**Exhibit 4.3**

![](tm266080d2_ex4-3img001.jpg)

**MDA Space Ltd.**

**Management's Discussion and Analysis**

For the Fourth Quarters and Years Ended<br> December 31, 2025 and 2024

**Table of Contents**

---

| | |
|:---|:---|
| **CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION** | 3 |
| **NON-IFRS FINANCIAL MEASURES** | 4 |
| **COMPANY OVERVIEW** | 6 |
| **INDUSTRY OVERVIEW AND TRENDS** | 7 |
| **BUSINESS AREAS** | 7 |
| **COMPETITIVE STRENGTHS** | 11 |
| **GROWTH STRATEGIES** | 11 |
| **FULL YEAR AND FOURTH QUARTER HIGHLIGHTS** | 12 |
| **FINANCIAL OVERVIEW** | 15 |
| **RESULTS OF OPERATIONS** | 17 |
| **FINANCIAL CONDITION, LIQUIDITY & CAPITAL RESOURCES** | 22 |
| **FINANCIAL INSTRUMENTS** | 24 |
| **OFF-BALANCE SHEET ARRANGEMENTS** | 26 |
| **TRANSACTIONS BETWEEN RELATED PARTIES** | 26 |
| **SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, AND JUDGMENTS** | 26 |
| **RECENT ACCOUNTING PRONOUNCEMENTS** | 27 |
| **SUMMARY OF QUARTERLY RESULTS** | 28 |
| **CONTROLS AND PROCEDURES** | 28 |
| **RISK FACTORS** | 29 |
| **OUTSTANDING SHARE INFORMATION** | 29 |
| **ADDITIONAL INFORMATION** | 30 |
| **GLOSSARY OF TERMS** | 31 |

---

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-2

**Management's Discussion and Analysis**

*The following Management's Discussion and Analysis (MD&A) provides information management believes is relevant to an assessment and understanding of the consolidated financial condition of MDA Space Ltd. (the "Company", "we", "MDA Space" or "MDA") as at December 31, 2025 and its consolidated operating results for the fourth quarters and years ended December 31, 2025 and 2024. The MD&A should be read in conjunction with the cautionary statement regarding forward-looking information below, as well as the audited consolidated financial statements of the Company for the years ended December 31, 2025 and 2024 (2025 Financial Statements) filed on the System for Electronic Document Analysis and Retrieval (SEDAR+) at <u>www.sedarplus.ca</u>. All dollar amounts are expressed in Canadian Dollars (CAD) except where otherwise specified and all numbers are in millions, unless otherwise specified or for per share amounts or ratios. References to "Q4 2025" or "this quarter" are to the fiscal quarter ended December 31, 2025 and references to "Q4 2024" are to the fiscal quarter ended December 31, 2024. The MD&A is current to March 3, 2026, unless otherwise noted.*

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION**

This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, information with respect to the Company's objectives and strategies to achieve these objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates, intentions and views of future events. Discussions containing forward-looking information may be found, among other places, under the headings "Industry Trends", "Outlook", "Growth Strategies" and "Financial Overview" in this MD&A. In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward- looking information. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward- looking information are not historical facts. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs.

Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate and are subject to risks and uncertainties. These assumptions include, among others, our ability to maintain and expand the scope of our business; our ability to execute on our growth strategies; assumptions relating to government support and funding levels for space programs and missions; continued and accelerated growth in the global space economy; the impact of competition; our ability to retain key personnel; our ability to obtain and maintain existing financing on acceptable terms; changes and trends in our industry or the global economy; currency exchange and interest rates; and changes in laws, rules, regulations.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. For additional information with respect to certain of these risks or factors, reference should be made to those described in this MD&A and to the 2025 Audited Consolidated Financial Statements, together with those described and listed under the heading "Risk Factors" in the Company's Annual Information Form (AIF) available on SEDAR+ at <u>www.sedarplus.ca</u>.

The Company cautions investors that statements containing forward-looking information are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this MD&A. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking information contained in this MD&A, those results or developments may not be indicative of results or developments in subsequent periods.

Given these risks and uncertainties, investors are cautioned not to place undue reliance on the forward-looking information. Any forward-looking information that is made in this MD&A speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-3

applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

**NON-IFRS FINANCIAL MEASURES**

This MD&A refers to certain non-IFRS measures. These measures are not recognized measures under IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS), do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Share, Order Bookings, Net Debt and Free Cash Flow to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

<u>EBITDA, Adjusted EBITDA and Adjusted EBITDA margin</u>

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are supplemental measures used by management and other users of our financial statements including our lenders and investors, to assess the financial performance of our business without regard to financing methods or capital structure. Adjusted EBITDA is also a key metric that management uses to assess the impact of potential strategic investing or financing opportunities. For example, management uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions. In addition, Adjusted EBITDA is used by financial institutions to measure borrowing capacity.

We define EBITDA as net income (loss) before: i) depreciation and amortization expenses, ii) provision for (recovery of) income taxes, and iii) finance costs. Adjusted EBITDA is calculated by adding to and deducting from EBITDA, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) unrealized foreign exchange gain or loss, ii) unrealized gain or loss on financial instruments, iii) share-based compensation expenses, and iv) other items that may arise from time to time. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis reflecting factors and trends affecting our business.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. We use Adjusted EBITDA margin to facilitate a comparison of the operating performance on a consistent basis reflecting factors and trends affecting our business.

For a reconciliation of Adjusted EBITDA to the most directly comparable measure calculated in accordance with IFRS see the section entitled "Reconciliation of Non-IFRS Measures".

<u>Adjusted Net Income and Adjusted Earnings per Share</u>

Adjusted Net Income and Adjusted Earnings per Share (Adjusted EPS) are supplemental measures used by management and other users of our financial statements to assess the financial performance of our business adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) amortization of intangible assets related to business combinations, ii) unrealized foreign exchange gain or loss, iii) unrealized gain or loss on financial instruments, iv) share-based compensation expenses, and v) other items that may arise from time to time.

For a reconciliation of Adjusted Net Income to the most directly comparable measure calculated in accordance with IFRS see the section entitled "Results of Operations".

Adjusted Earnings per Share represents Adjusted Net Income divided by the weighted average number of shares outstanding.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-4

<u>Order Bookings</u>

Order Bookings is the dollar sum of contract values of firm customer contracts. Order Bookings is indicative of firm future revenues; however, it does not provide a guarantee of future net income and provides no information about the timing of future revenue.

<u>Net Debt</u>

Net Debt is the total carrying amount of long-term debt including current portions, as presented in the 2025 Audited Financial Statements, less cash and excluding any lease liabilities. Net Debt is a liquidity metric used to determine how well the Company can pay its debt obligations if they were due immediately.

<u>Free Cash Flow</u>

Free Cash Flow is a supplemental measure used by management and other users of our financial statements to monitor the availability of discretionary cash generated, and available to the Company to repay debt, make strategic investments, and meet other payment obligations. We define Free Cash Flow as operating cash flows less net capital expenditures.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-5

**COMPANY OVERVIEW**

We are a trusted mission partner for the world's most advanced space programs, delivering a suite of dual-use technology and services to civil, commercial, defence and national security customers. Our deep engineering expertise, broad portfolio of space system capabilities, and end-to-end mission experience make us the partner of choice for government and private-sector clients. We leverage these capabilities to enable next-generation space-based communications that empower our hyper-connected world; to build and operate critical space infrastructure for exploration, scientific research and on-orbit servicing; and to develop, operate and deliver data and analytic services from both Earth and space observation satellites and ground infrastructure. In an era where industries, technologies, people, and places are impacted every day by space technology, our mission is to build the space between proven and possible and to provide the space economy with our trusted flight-tested, and human-rated solutions.

We have three business areas: Satellite Systems, Robotics & Space Operations, and Geointelligence. Our diversified portfolio of solutions position our customers to achieve mission success. We are differentiated by factors including:

&nbsp;&nbsp;&nbsp;&nbsp;· our
 long track record of mission success and innovation in space spanning over 55 plus years
 and more than 450 successful space missions;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 global reach, with operations and significant customer base in Canada and the United States
 and expanding customer base in the United Kingdom, and other markets;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 profitable operations, strong liquidity and disciplined capital structure that enables pursuit
 of market growth opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 breadth of our customer relationships, with a diversified civil government, defence and commercial
 customer base;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 experienced team of over 4,000 colleagues, comprised of experienced space engineers, scientists,
 technicians, business and space industry leaders which includes approximately 2,000 engineers;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 extensive portfolio of intellectual property and technologies including over 60 trademarks
 and over 700 patents which underpin our development capabilities and products, systems and
 services;

&nbsp;&nbsp;&nbsp;&nbsp;· consistent
 investment in research and development (R&D) and innovation, ranking us in the top 35
 corporate R&D investors in Canada; and

&nbsp;&nbsp;&nbsp;&nbsp;· some
 of the most advanced equipment and facilities in the industry.

In Satellite Systems, we partner or prime space communication missions across low Earth orbit (LEO), medium Earth orbit (MEO), and geosynchronous equatorial orbit (GEO), in addition to providing a range of satellite subsystems and communication systems for human rated spacecraft. These missions span a growing number of applications including broadband access, direct-to-device satellite communication, and Internet of Things (IoT) connectivity across the full communication frequency spectrum. In Robotics & Space Operations, we partner on space infrastructure missions to facilitate the exploration and development of space. We provide autonomous robotics and rover solutions along with proximity operation sensors that are used to operate in orbit and on the surface of the Moon and Mars, as well as operational services to plan, support and operate these missions remotely. In Geointelligence, we develop, build and operate Earth observation (EO) and space observation missions, as well as providing key products in the areas of EO synthetic aperture radar (SAR) data and services, EO ground stations and multi-sensor fusion-based analytics products and services. All of these activities serve a wide range of use cases, including in the areas of national security, maritime surveillance, and climate change monitoring.

Our established position as a trusted mission partner can be traced to our investment in our people as well as our broad suite of technology and full lifecycle services. We work collaboratively with our customers in the early engineering phases of product and program development and provide services throughout a mission's life, including engineering, manufacturing, integration, mission operation, and ongoing maintenance services, enabling valuable customer intimacy that drives repeat revenue opportunities.

Our market position allows us to serve a broad range of customers, including governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry. Our long and proven track record enables us to compete successfully for major space projects globally and to continue to grow our customer base beyond Canada. As an independent supplier of space technology products, we are also able to pursue a larger set of opportunities with U.S. prime contractors, which we believe can meaningfully enhance our revenue potential from U.S. government space programs.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-6

**INDUSTRY OVERVIEW AND TRENDS**

All over the world, governments, defence agencies and corporations are finding new and valuable ways of using the capabilities of space to make the world a safer, healthier and more connected place. The benefits of space-based solutions are expected to grow significantly in the coming years, driven by continuous government and commercial investment in the increasing capabilities enabled by a burgeoning space economy. The space economy reached US$626<sup>1</sup> billion in 2025 and is projected to surpass US$1.8 trillion by 2035.<sup>2</sup> This growth is driven by a confluence of factors, including significant commercial and government investment, private sector innovation, and a profound transformation in the global economic and geopolitical landscape. As the world becomes increasingly interconnected and reliant on data-driven technologies, the strategic importance of space is intensifying.

Key trends that are impacting the space industry include:

&nbsp;&nbsp;&nbsp;&nbsp;· Lower
 costs and new technologies are driving the commercialization of space;

&nbsp;&nbsp;&nbsp;&nbsp;· Space
 is enabling global connectivity;

&nbsp;&nbsp;&nbsp;&nbsp;· Space
 is critical to national defence and security;

&nbsp;&nbsp;&nbsp;&nbsp;· Robotics
 and on-orbit infrastructure is critical to the expanding Earth to Moon economy and future
 of space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Earth
 observation is critical to improving global sustainability and economic productivity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Space
 exploration is becoming interplanetary.

**BUSINESS AREAS**

We offer solutions and capabilities to meet global market demand through three business areas: Satellite Systems, Robotics & Space Operations and Geointelligence. Below is a brief description of each business area.

**SATELLITE SYSTEMS**

Satellite communications have transformed the way people connect and communicate on Earth and have continued to evolve and improve global connectivity across the globe. We serve our commercial and government mission partners worldwide as a prime contractor and supplier of satellite systems and sub-systems for communication networks in LEO, MEO and GEO. With our acquisition of SatixFy complete and our space grade ASICs now in production in-house, our commercial digital satellite business is highly vertically integrated, down to the silicon chip level, further strengthening our competitive advantage and solidifying our industry lead.These communication missions span a growing number of use cases including space-based broadband Internet, direct-to-device satellite communication, and IoT connectivity across the full communication frequency spectrum. Our technology has been integrated into more than 350 satellite missions, and we expect this number to continue to grow.

We have provided satellite subsystems to enable next generation military and commercial LEO communication constellations for end-users including the US Space Development Agency as well as for O3b mPower, Iridium Next, and OneWeb. The next generation LEO communication segment of the communication satellite market is driving meaningful growth for the Company. To support these high-volume satellite customers, we have continually adapted our satellite manufacturing base, which now includes Industry 5.0 robotics-based technologies capable of manufacturing dozens of satellites and satellite sub-systems each month.

As we continue to evolve the Satellite Systems business, we are doubling our manufacturing capacity to meet growing global demand, adding high-volume satellite production capabilities with capacity for large-scale standardized satellite production. At the end of December 2025, construction on a 185,000 square foot expansion at our satellite production facility in Montreal, Quebec was nearing completion. Once operational, it will be one of the world's largest high-volume manufacturing facilities in its class. This new facility is also designed to be a LEED (Leadership in Energy and Environmental Design) certified building and the production line at this facility will start ramping-up operations in 2026.

*<sup>1</sup> Source: Global Space Economy Reaches $626 Billion, Marking a New Phase of Growth, Spacenews, January 29, 2026*

*<sup>2</sup> Source: World Economic Forum: The $1.8 Trillion Opportunity for Global Economic Growthomic Forum, April 8, 2024*

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-7

In 2025, we assumed operations of David Florida Laboratory in Ottawa, Ontario, ensuring this world-class testing facility remained open to industry and under sovereign Canadian control. The facility houses essential infrastructure that enables the assembly, integration and testing of spacecraft and satellite systems and subsystems to ensure their ability to operate in the harsh conditions of space. We also made a $10 million equity investment in Maritime Launch Services Inc., to accelerate Spaceport Nova Scotia's readiness for orbital launch operations and development of reliable sovereign Canadian launch capability for commercial, civil, government and defence clients.

In addition to leveraging fifty years of accumulated background intellectual property in space hardware manufacturing, our industry-leading satellite manufacturing facilities also integrate automated production lines and robots, cobots and high-skilled assemblers using augmented reality to accelerate mass production. Our advanced manufacturing environment also contains one of the largest near field ranges and largest compact ranges for satellite testing in the world. In addition, this facility includes a wide range of thermal, environmental, Passive Inter Modulation (PIM) and vibration test facilities.

Our continued transition to a satellite prime contractor for LEO and MEO constellations has been enabled by the development of MDA AURORA™, our new leading-edge software-defined digital satellite product line. Designed to meet the changing and highly competitive technical and business requirements of the satellite industry, the fully integrated MDA AURORA™ portfolio provides operators with exceptional flexibility and functionality. These software defined, dynamic beam forming satellites provide a new level of performance and efficiency in space-based networks for our customers. Our fully integrated digital satellite capability includes a complete range of modular digital products and components for space-based communication solutions coupled with advanced high-volume manufacturing production capability – dramatically enhancing constellation performance while reducing production costs and time to market.

Through our participation in multiple major satellite constellations, and investments in our new state-of-the art high volume satellite production facility in Montreal, we have solidified our position as a trusted mission partner for space communications. Our strong market position is reflected in a series of recent key contract awards including our selection in 2025 by Globalstar as the prime contractor for the satellite operator's next generation LEO constellation of more than 50 satellites, our selection in 2023 as the prime contractor for Telesat's LEO satellite constellation Telesat Lightspeed (198 satellites) and our selection in 2022 as the prime contractor to expand Globalstar's existing LEO constellation with an additional 17 satellites. In 2025, we also signed a partnership agreement with the Government of Canada and Telesat Corporation to develop and deliver Arctic military satellite communications (MILSATCOM) capabilities as part of the Enhanced Satellite Communications Project - Polar (ESCP-P), one of the key procurements being led by Canada's newly formed Defence Investment Agency.

---

| | |
|:---|:---|
| ⮚ | **Key Program – Globalstar LEO Constellation Expansion:** In 2022, Globalstar announced that MDA Space has been selected as the prime contractor for Globalstar's new LEO satellites. Globalstar is a provider of Mobile Satellite Services including customizable satellite IoT solutions for individuals and businesses globally. Globalstar's contract with MDA Space, valued at US$327 million (~$415 million) includes the design, manufacture, assembly and test of 17 satellites, with options for Globalstar to purchase up to nine additional satellites. The satellites built by MDA Space will integrate with Globalstar's existing constellation. In 2022, Globalstar disclosed that Apple Inc. is the primary customer for its current and future satellite network capacity which will support new satellite-enabled services for certain of Apple's products. |

---

---

| | |
|:---|:---|
| ⮚ | **Key Program – Telesat Lightspeed Constellation:** In 2023, Telesat announced that MDA Space has been selected as the prime contractor for the Telesat Lightspeed program, Telesat's revolutionary LEO satellite constellation. Valued at approximately $2.4 billion, MDA's contract includes the design, manufacture, assembly and test of 198 satellites with options for Telesat to purchase up to 100 additional satellites. The Telesat Lightspeed satellites will be built, assembled and tested at MDA Space's state-of-the-art high volume satellite manufacturing facilities in Montreal and will leverage MDA's strategic investments in new digital satellite product portfolio and advanced manufacturing capability to deliver significant cost and schedule benefits to the program. |

---

---

| | |
|:---|:---|
| ⮚ | **Key Program – Globalstar Next Generation LEO Constellation:** In 2025, MDA Space announced that it has been selected by Globalstar to be the prime contractor for the satellite operator's next generation LEO constellation, with a total contract value of approximately $1.1 billion. As part of the contract, MDA Space will manufacture more than 50 MDA AURORATM software-defined digital satellites for Globalstar. The contract is a follow-on to an initial Authorization to Proceed (ATP) contract with Globalstar, previously announced on November 17, 2023. A contract value of approximately $750 million was added to the Company's backlog in the first quarter of fiscal 2025. This amount is in addition to the ATP value of approximately $350 million that was |

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MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-8

previously added to backlog, for a total value of $1.1 billion under the contract. The satellites built by MDA Space will provide Globalstar with more capacity and flexibility to address its customers' needs. On November 1, 2024, Globalstar disclosed that it has entered into an agreement with its customer, Apple Inc., to deliver expanded services to the customer over a new mobile satellite services network, including a new satellite constellation.

**ROBOTICS & SPACE OPERATIONS**

In our Robotics & Space Operations business, we partner with customers in critical, leading-edge space infrastructure missions. We facilitate the exploration and development of space by providing autonomous robotics systems and services used to operate in space and on the surfaces of the Moon and Mars. We are a world leader in space-based robotics including partnering on over 90 space shuttle missions, contributing to the assembly of the ISS, managing life- cycle operation of the ISS, and delivering our rover technology on Mars. The space infrastructure missions we partner on span broad space-based applications, including space station operations, ISAM (in-space servicing, assembly and manufacturing), and the emerging markets of space tourism and space mining. Our differentiated capabilities include robotic systems, robotic interfaces, tooling, robotic ground control stations and operations services, electro-optic and light detection and ranging (LiDAR) sensors, vision and targeting systems, guidance, navigation and control subsystems and planetary rover locomotion subsystems. Our LiDAR sensors are critical to proximity operations supporting mission elements such as rendezvous, docking, inspection, and landing activities as part of on-orbit and planetary missions. Our LiDAR sensors are critical to proximity operations supporting mission elements such as rendezvous, docking, inspection and landing activities as part of on-orbit and planetary missions, in addition to future military space control applications.

We are also developing commercial space robotic solutions that serve the evolving needs of the new space market. This includes MDA SKYMAKER™, a new suite of space robotics announced in 2024 that are purpose-built to meet the diverse needs of our customers' most ambitious missions. Derived from Canadarm technology, MDA SKYMAKER™ provides our customers with solutions based on the world's most flight-proven space robotics solutions and services, supporting a range of missions including lunar surface rovers and landers, space stations, satellite servicing in all orbits, and ISAM. Our products and services support logistics delivery, satellite servicing, debris removal, asset relocation, and infrastructure maintenance. Through focused investment in R&D, we have developed integrated space robotic systems, technologies, interfaces, tools, operational techniques, and control algorithms to enable on-orbit servicing solutions for commercial space businesses. We have completed multiple commercial sales of products derived from Canadarm3 technology. We are also a strategic partner and equity owner in Starlab Space LLC, a global joint venture that is designing and building the Starlab commercial space station provide the full range of MDA SKYMAKER™ external robotics, robotics interfaces and robotics mission operations to the station.

Demand for space robotics and mission-support services is primarily driven by increasing activity in LEO, lunar and deep space exploration, all of which are expected to expand with the introduction of new commercial space stations and commercial planetary missions in the coming years. The increase in the number of satellites and other spacecraft is driving demand for emerging solutions in on-orbit servicing (e.g., the upgrade and repair, relocation and refueling of satellites in orbit) and manufacturing. Our long history in space robotics includes development of the Canadarm for NASA's Space Shuttle program, and Canadarm2, which is currently in service on the ISS.

We are continuing to work on the Canadarm3 program, our third generation Canadarm that will provide autonomous and uncrewed robotics for the NASA-led Gateway, the lunar-orbiting outpost of the Artemis program. Current projects, including Canadarm3, are expanding our mission partner scope to now include on-orbit mission operations. We moved into our new headquarters and Space Robotics Centre of Excellence in March 2024. Our investment and construction of these new facilities included the creation of multiple mission control centers enabling us to provide on-orbit mission operations for our customers in the future.

We have developed technology for multiple Mars missions, including the Phoenix Lander, the Curiosity Rover and the ExoMars Rover, with our sensors first operating on Mars in 2008. We also built the LiDAR instrument for the OSIRIS- Rex mission that completed the world's first 3D scan of an asteroid from an orbiting spacecraft.

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| | |
|:---|:---|
| ⮚ | **Key Program – Canadarm3:** Canadarm3, the third-generation robotic technology developed by MDA Space, will be designed and built over a multi-year period and is expected to generate approximately $1.8 billion of potential total revenue to the Company, including fifteen years of ongoing service and support revenue. MDA was awarded the Phase B contract ($269 million) in March 2022 to complete the preliminary design of the Canadarm3 robotic arm and awarded Phases C/D contract ($1 billion) in June 2024 to finalize the design and |

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MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-9

carry out the construction, system assembly and integration and test. This advanced AI-enabled robotic system will be highly autonomous, allowing the robotic elements to perform operations and make decisions during long periods when there is no contact with the Canada-based ground control operations centre. We are also working on commercializing the Canadarm3 robotic arm capabilities for applications in the growing on-orbit servicing and in-space manufacturing and assembly markets.

---

| | |
|:---|:---|
| ⮚ | **Key Program – Supporting Robotics Operations on the International Space Station (ISS):** In 2024, MDA Space received a $250 million contract extension from the Canadian Space Agency (CSA) to continue supporting robotics operations on the ISS from 2025 to 2030. As part of the contract, MDA Space will now fulfill robotics flight controller duties to support mission operations on the ISS. Since 2001, MDA Space has worked alongside the CSA and its international partners to provide operational readiness of the Mobile Servicing System, which comprises Canadarm2, Dextre and the Mobile Base System. MDA Space also provides training to the robotic operators and supports mission planning, engineering support and real-time operations. |

---

**GEOINTELLIGENCE**

As a Geointelligence mission partner, we are an owner, operator, and prime contractor for both EO and space observation missions, in addition to providing key technologies and products. We also use satellite-generated imagery and data to deliver critical and value-added insights for a wide range of end uses, including in the areas of national security, climate change monitoring and maritime surveillance.

Our Geointelligence business is a leader in SAR EO missions, which we both own and operate ourselves as well as deliver to customers and operate for them. We have designed and built three generations of SAR satellites (RADARSAT-1, RADARSAT-2, and the RADARSAT Constellation Mission (RCM)). As part of the RADARSAT+ initiative, in 2025 we were awarded an initial contract by the CSA to support the RCM replenishment satellite development, with the Government of Canada announcing its intention to contract MDA Space to build, test, and launch this additional satellite.

We also specialize in space observation satellites including the Sapphire mission that we developed and delivered to Canada's Department of National Defence. Following delivery of observation missions to customers, we are regularly entrusted to operate those missions for customers. We are currently operating most of the Canadian government's Earth and space observation satellites.

A key enabling product suite in EO is our full range of multi-satellite ground stations that receive, process, distribute, archive, and exploit imagery from RADARSAT-2, our own commercial EO satellite, as well as other satellites. We have installed more than 70 receiving ground stations in more than 25 different countries, which have processed data from over 20 different satellites.

Our EO business includes the collection, processing and dissemination of Earth imagery data from space. As the operator and owner of global commercial data distribution for the RADARSAT-2 satellite we are one of the largest radar information providers worldwide. Our extensive data archive is comprised of approximately 110 billion square kilometers of Earth imagery data and more than one million images of Earth. We also distribute high resolution optical imagery, satellite-based Automatic Identification System (AIS) data, and Radio-Frequency (RF) data from many other third party missions. Our analytics-based information products regularly fuse these different sensor types into the information our customers require. As a result, our imagery solutions provide customers with timely, accurate and mission-critical information about our changing planet and support a wide variety of uses and sectors.

The largest market for our EO data and services today is maritime domain awareness, where governments and commercial organizations rely on us for real-time data. The data is used to track maritime activity, visualize maritime crime patterns, identify and monitor illegal, unreported and unregulated fishing, track ice floes, shorelines and ocean winds, detect possible oil spills and monitor vessels. We have been a provider of these mission critical data and services for over 25 years and we play an integral role in our customers' surveillance strategies. We have also developed the Maritime Insights analytics platform that provides users with a software to monitor maritime areas of interest through the fusion and display of multiple sensor inputs.

We also provide a number of defence C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions, including command and control systems and airborne surveillance solutions, for which we are the original solution provider of many of these systems. Part of our offerings include advanced aeronautical navigation information solutions that increase safety and efficiency of aircraft landings and

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-10

departures. We also operate a long endurance uncrewed aerial vehicle (UAV) surveillance service that provides real- time, multi-sensor intelligence to support critical operations for the Royal Canadian Air Force as a partner with General Atomics for Canada's Remotely Piloted Aircraft System (RPAS). Additionally, we are the prime contractor for the Royal Canadian Navy to enhance maritime operations for the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft Systems (ISTAR UAS) project as well as a key contributor to the River-class Destroyer program. While these defence services and offerings were historically operated as part of our Geointelligence business, we announced in February 2026 that we had launched 49North, a Canada-focused defence business to deliver secure, multi-domain C4ISR and mission critical capabilities for Canada's national defence priorities outside the space domain.

---

| | |
|:---|:---|
| ⮚ | **Key Development Initiative – MDA CHORUSTM**: We are currently developing MDA CHORUS™, our next- generation collaborative multi-sensor satellite constellation that will provide data continuity for RADARSAT-2 and is expected to expand our SAR solutions offering. MDA CHORUS™ will enable us to fuse data from multiple sensors and to leverage machine learning in order to manage larger volumes of data and provide enhanced analytics services. MDA CHORUS™ is expected to operate in an inclined LEO and will provide frequent radar imaging day or night and in all weather conditions over the areas of most interest to our customers. The mission is expected to include significant innovations that result in improved access, better revisit, broader swath coverage, lower noise, less data compression, faster data rates, high-resolution and tip- and-cue capabilities. The MDA CHORUS™ constellation will include a powerful C-band SAR satellite that will provide broad area coverage in concert with a smaller trailing X-band SAR satellite for higher resolution data collection and near real-time cross-cueing. MDA CHORUS™ will also enable us to offer customers a cloud- based ground station solution as a next-generation offering. The capital expenditure for MDA CHORUSTM is substantially complete. |

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**COMPETITIVE STRENGTHS**

While the markets we serve are competitive, we believe that we are well positioned to provide differentiated solutions to customers, driven by the following competitive strengths:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A
 trusted mission partner with a track record of execution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Specific
 expertise and technological resources tailored for the new space economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Agility
 and scale position us to serve customers of all levels of size and experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Deep
 team with a winning culture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Entrepreneurial
 go-to-market strategy.

**GROWTH STRATEGIES**

With established industry leadership in diverse space markets, we are currently executing on specific strategies that will allow us to capitalize on the multiple waves of growth in the expanding space market. The primary pillars of our strategy include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investing
 in next generation space technology and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Expanding
 our presence in attractive markets and geographies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Scaling
 and expanding operations, skills and talent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Leveraging
 strategic mergers and acquisitions to complement organic growth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Incumbent
 position as Canada's national defence and space champion and a trusted supplier to
 partners and allies globally

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-11

**FULL YEAR AND FOURTH QUARTER HIGHLIGHTS**

**FULL YEAR 2025 HIGHLIGHTS**

**<u>Financial Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· Backlog
 of $4.0 billion as of December 31, 2025 provides revenue visibility for 2026 and compares
 to $4.4 billion as of December 31, 2024 as a result of strong execution in converting
 backlog into revenue.

&nbsp;&nbsp;&nbsp;&nbsp;· Record
 annual revenue of $1,633.2 million were up 51.2% year-over-year, finishing at the high end
 of the Company's full year revenue guidance of $1,570 - $1,630 million. The year-over-year
 increase was primarily driven by our Satellite Systems business.

&nbsp;&nbsp;&nbsp;&nbsp;· Record
 annual adjusted EBITDA of $323.9 million was up 49.2% year-over-year driven by higher volumes
 of work performed. Adjusted EBITDA margin of 19.8% in 2025 was in line with the Company's
 full year margin guidance of 19%-20%, and compares to 20.1% in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Annual
 net income of $108.5 million was up 36.6% year-over-year due to higher operating income.
 Diluted earnings per share of $0.84 in 2025 were up 33.3% compared to 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Annual
 adjusted net income of $189.9 million was up 70.9% year-over-year driven by higher operating
 income. Adjusted diluted earnings per share of $1.46 in 2025 were up 65.9% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;· Operating
 cash flow of $407.5 million in 2025 compared to $812.7 million in the prior year. The year-over-year
 decrease in operating cash flow was primarily driven by lower working capital contributions.

&nbsp;&nbsp;&nbsp;&nbsp;· Free
 cash flow of $165.3 million in 2025 compared to $614.8 million in 2024. The year-over-year
 decrease was driven by reduced operating cash flow as a result of the aforementioned lower
 working capital contributions as well as higher capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;· Net
 debt to adjusted EBITDA ratio of 0.4x at year-end compared to (0.8)x as of December 31,
 2024 as the Company completed the acquisition of SatixFy Communications Ltd.

**<u>Operational Highlights</u>**

Satellite Systems Business Area

&nbsp;&nbsp;&nbsp;&nbsp;· Awarded
 an approximate $1.1 billion contract with Globalstar to be the prime contractor for the satellite
 operator's next generation LEO constellation. The contract includes the manufacturing of
 more than 50 MDA AURORATM software-defined digital satellites for the constellation. This
 followed an Authorization to Proceed (ATP) contract entered into in November 2023 to
 immediately commence engineering and programmatic activities, including procurement of long-lead
 items for this Globalstar constellation.

&nbsp;&nbsp;&nbsp;&nbsp;· Completed
 the acquisition of SatixFy Communications Ltd., a leader in next-generation satellite communications
 solutions based on in-house-designed chipsets. SatixFy's operations and full technology portfolio
 have been integrated into our Satellite Systems business, further enhancing the Company's
 end-to- end satellite offering.

&nbsp;&nbsp;&nbsp;&nbsp;· Selected
 as the prime contractor for SkyPhi, a mission that will enable regenerative 5G direct-to-device
 (D2D) satellite communications from low Earth orbit (LEO). The mission is funded by the European
 Space Agency and the United Kingdom Space Agency and is part of the ARTES (Advanced Research
 in Telecommunications Systems) program.

&nbsp;&nbsp;&nbsp;&nbsp;· Selected
 by EchoStar as the prime contractor for EchoStar's non-terrestrial network LEO direct-to-device
 satellite constellation. The initial contract, valued at approximately US$1.3 billion, included
 the design, manufacturing, and testing of over 100 software-defined MDA AURORA™ direct-to-device
 satellites. In September 2025, the Company received a termination for convenience notification
 from EchoStar Corporation related to the constellation contract announced on August 1,
 2025. The contract termination was the result of a sudden change to EchoStar's business
 strategy and plan in the wake of spectrum allocation discussions with the Federal Communications
 Commission in the United States. The contract termination process with EchoStar is now completed
 and the Company has received payment for all termination amounts that it was entitled to
 receive under the terms of the original contract.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-12

&nbsp;&nbsp;&nbsp;&nbsp;· Determined
 that the projected delivery dates for satellites under the satellite procurement agreement
 that it entered into with Globalstar in February 2022 for the delivery of 17 satellites
 to replace Globalstar's HIBLEO-4 U.S.-licensed system will be later than the dates
 originally set out under the satellite procurement agreement. This delay is the result of
 a number of factors, including delays that have arisen in the Company's supply chain
 with certain key suppliers, however work on this program is well advanced. As disclosed in
 Q3, under the terms of the satellite procurement agreement, Globalstar is entitled to claim
 liquidated damages as a result of this delivery delay. The Company is similarly entitled
 to claim liquidated damages against its suppliers that have contributed to these delays.
 The Company continues to discuss the potential application of liquidated damages with Globalstar.

&nbsp;&nbsp;&nbsp;&nbsp;· Signed
 a strategic partnership agreement with the Government of Canada and Telesat Corporation to
 develop and deliver military satellite communications (MILSATCOM) capabilities as part of
 the Enhanced Satellite Communication Project – Polar (ESCP-P). The project will support
 Canada and North America defence and security with enhanced ability to conduct sovereignty
 operations in the Arctic.

Robotics and Space Operations Business Area

&nbsp;&nbsp;&nbsp;&nbsp;· Selected
 by the Canadian Space Agency to conduct an early-phase study for Canada's proposed Lunar
 Utility Vehicle (LUV). A team led by MDA Space brings together best-in-class Canadian expertise
 and is a critical first step in defining the LUV mission concept and technology development
 plan to provide scalable, autonomous mobility solutions on the lunar surface to deliver operations
 in challenging lunar environments.

Geointelligence Business Area

&nbsp;&nbsp;&nbsp;&nbsp;· Awarded
 $60 million in next phase contracts for the delivery and integration of two critical sensor
 systems for the Royal Canadian Navy's River-class Destroyer program. The contracts
 are for the delivery and integration of sensor systems for the first three ships that improve
 situational awareness and protect the ships against laser and optical guided threats.

&nbsp;&nbsp;&nbsp;&nbsp;· Awarded
 a contract extension with the Department of Fisheries and Oceans Canada (DFO) to provide
 continuous space-based maritime awareness and security. As part of the contract renewal,
 DFO also amended its contract with MDA Space to enable future utilization of data and services
 from MDA CHORUS™, the Company's next generation Earth observation constellation.

&nbsp;&nbsp;&nbsp;&nbsp;· Awarded
 two contracts to equip the Royal Canadian Navy's (RCN) Halifax-class ships with up
 to six new Uncrewed Aircraft Systems. Part of the Intelligence, Surveillance, Target
 Acquisition and Reconnaissance Uncrewed Aircraft Systems (ISTAR UAS) project, these new systems
 will enhance the RCN's ability to detect and monitor potential maritime threats, both at
 home and abroad.

&nbsp;&nbsp;&nbsp;&nbsp;· Selected
 to deliver enhanced space situational awareness data services to the Canadian Department
 of National Defence. The standing offer, in partnership with Canadian-based ThothX Group,
 underscores the growing importance of Space Domain Awareness in safeguarding Canada's critical
 space assets amid an evolving and increasingly congested orbital environment.

&nbsp;&nbsp;&nbsp;&nbsp;· Continued
 to advance the manufacturing of MDA CHORUSTM including advancing the spacecraft's electrical
 integration and testing activities and characterizing the synthetic aperture radar antenna
 panels. On the ground segment side, the Company continues to track to development and release
 plans. Construction work continues for a new mission control center from where MDA CHORUSTM
 will be operated. While the Company is pleased overall with the performance of our supply
 chain, we have experienced delays related to certain units which are impacting the program
 timeline. As disclosed in Q3, as a result of these delays and to provide additional time
 for testing, MDA Space is now targeting a launch window for MDA CHORUSTM in late 2026.

&nbsp;&nbsp;&nbsp;&nbsp;· Awarded
 a contract by Public Services and Procurement Canada on behalf of the Canadian Space Agency
 valued at $44.7 million to procure long lead parts in support of RADARSAT Constellation Mission
 (RCM) replenishment satellite development. The Government of Canada also announced its intention
 to contract MDA Space to build, test, and launch this additional satellite for RCM. These
 contracts are part of the Government's $1.012 billion RADARSAT+ initiative, a 15-year
 investment announced in October 2023 to support immediate and future satellite Earth
 observation needs.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-13

**<u>Other Notable Developments</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· MDA
 Space made a $10 million equity investment in Maritime Launch Services Inc., becoming an
 equity owner and strategic partner. The equity investment will accelerate the Spaceport Nova
 Scotia's readiness for orbital launch operations, providing reliable domestic launch
 capability for commercial, civil government, and defence clients in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company has been served with a Statement of Claim that was filed in the Ontario Superior
 Court of Justice on November 17, 2025 seeking certification of a proposed class action
 against the Company, the CEO, CFO and the Board of Directors. The allegations in the claim
 relate to the Company's announcement and subsequent cancellation of the EchoStar constellation
 contract that the Company announced in September 2025 and the sales by certain insiders
 of shares after the announcement of the contract and before its termination. The plaintiffs
 seek damages for statutory and/or common law misrepresentation estimated in the amount of
 $225 million, punitive damages in the amount of $25 million, and damages against certain
 insiders for insider trading estimated in the amount of $90 million. The Company believes
 that all of the allegations that have been made in the claim are unfounded and without merit.
 The claims for damages have also not been substantiated. The Company intends to vigorously
 defend itself and the individual defendants. Due to the inherent uncertainties of litigation,
 it is not possible to predict the outcome of this proposed class action or determine the
 amount of potential losses, if any.

&nbsp;&nbsp;&nbsp;&nbsp;· MDA
 space completed a private placement offering (the Offering) of $250 million principal amount
 of 7.00% senior unsecured notes due 2030 (the Notes). The Notes are senior unsecured obligations,
 ranking *pari passu* in right of payment with all of our existing and future senior
 unsecured indebtedness and guaranteed by certain of our subsidiaries. We also announced that
 we entered into a second Amended and Restated Credit Agreement providing for a $150 million
 accordion feature, potentially increasing the aggregate credit facilities to $850
 million if exercised in the future.

**<u>Subsequent to Year-End, Notable Developments Include the Following:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· MDA
 Space received an indefinite deliver/indefinite quantity (IDIQ) contract from the Missile
 Defense Agency for the U.S. Scalable Homeland Innovative Enterprise Layered Defense (SHIELD)
 program. This contract award positions MDA Space to bid on future tasks and services that
 support the expansive U.S. defence initiative, which covers a broad range of work to strengthen
 defence against threats from land, sea, air, cyberspace and space.

&nbsp;&nbsp;&nbsp;&nbsp;· MDA
 Space announced the signing of a Memorandum of Understanding (MOU) with Hanwha Systems Co., Ltd.
 (Hanwha), a global leader in smart technologies and aerospace solutions. Through this MOU,
 MDA Space and Hanwha will explore opportunities to collaborate on the development of Korea's
 sovereign Low Earth Orbit (K-LEO) defence constellation, leveraging MDA's AURORA™ software-defined
 digital satellites.

&nbsp;&nbsp;&nbsp;&nbsp;· MDA
 Space announced that it has launched 49North, a Canada-focused defence business to deliver
 secure, multi-domain C4ISR and mission critical capabilities for Canada's national
 defence priorities outside the space domain.

**FOURTH QUARTER 2025 HIGHLIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;· Record
 quarter for revenues of $499.1 million in Q4 2025 were up 44.0% year-over-year largely driven
 by strong contributions from our Satellite Systems business.

&nbsp;&nbsp;&nbsp;&nbsp;· Record
 quarter for adjusted EBITDA of $96.2 million in Q4 2025 was up 35.7% year-over-year driven
 by higher volume of work as we execute on our backlog. Adjusted EBITDA margin of 19.3% in
 Q4 2025 was in line with the Company's full year margin guidance of 19%-20%, and compares
 to 20.5% margin reported in Q4 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Net
 income of $24.0 million in Q4 2025 was down 4.4% year-over-year driven primarily by the impact
 of foreign exchange loss offset by the increase in operating income. Diluted earnings per
 share of $0.18 were down 10.0% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted
 net income of $58.5 million in Q4 2025 was up 66.7% year-over-year primarily due to higher
 operating income. Adjusted diluted earnings per share of $0.45 were up 60.7% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;· Operating
 cash flow was $50.6 million in Q4 2025 compared to $375.8 million in Q4 2024. The year-over-year
 decrease in operating cash flow was primarily driven by lower working capital contributions.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-14

**FINANCIAL OVERVIEW**

**KEY INDICATORS SUMMARY**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars, except per share data) | **2025** | **2024** | **2025** | **2024** |
| Revenues | $499.1 | $346.6 | $1633.2 | $1080.1 |
| Gross profit | 127.1 | 81.9 | 409.7 | 281.7 |
| Gross margin | 25.5% | 23.6% | 25.1% | 26.1% |
| Adjusted EBITDA | 96.2 | 70.9 | 323.9 | 217.1 |
| Adjusted EBITDA margin | 19.3% | 20.5% | 19.8% | 20.1% |
| Adjusted Net Income | 58.5 | 35.1 | 189.9 | 111.1 |
| Adjusted Diluted EPS | $0.45 | $0.28 | $1.46 | $0.88 |

---

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| | | | |
|:---|:---|:---|:---|
|  | **As at** | **As at** |  |
| (in millions of Canadian dollars, except for ratios) | **December 31, 2025** | **December 31, 2024** |  |
| Backlog | $4012.9 | $4385.5 |  |
| Net debt to Adjusted TTM EBITDA ratio | 0.4 x | (0.8) |)x |

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**REVENUES BY BUSINESS AREA**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars) | **2025** | **2024** | **2025** | **2024** |
| Geointelligence | $62.0 | $47.4 | $214.4 | $202.1 |
| Robotics & Space Operations | 65.7 | 64.7 | 309.3 | 279.8 |
| Satellite Systems | 371.4 | 234.5 | 1109.5 | 598.2 |
| Consolidated revenues | $499.1 | $346.6 | $1633.2 | $1080.1 |

---

**Revenues**

Consolidated revenues for the fourth quarter of 2025 were $499.1 million, representing an increase of $152.5 million (or 44.0%) from the fourth quarter of 2024. The year-over-year increase in revenues was primarily driven by higher volumes of work performed in our Satellite Systems business, including the impact of the EchoStar termination agreement.

By business area, revenues in Geointelligence for the fourth quarter of 2025 were $62.0 million, which represents an increase of $14.6 million (or 30.8%) from the same period in 2024 due to volume of work on programs. Revenues in Robotics & Space Operations for the fourth quarter of 2025 were $65.7 million, which represents an increase of $1.0 million (or 1.5%) from the same period in 2024. Revenues in Satellite Systems for the fourth quarter of 2025 were $371.4 million, which represents an increase of $136.9 million (or 58.4%) from the same period in 2024 driven by the increase in volume of work on the Telesat Lightspeed program and the Globalstar next generation LEO constellation program, and the impact of the EchoStar termination agreement.

Consolidated revenues for the years ended December 31, 2025 were $1,633.2 million, representing an increase of $553.1 million (or 51.2%) from the same period of 2024. The year-over-year increase in revenues was driven by higher volumes of work performed, primarily in our Satellite Systems business.

By business area, revenues in Geointelligence for the year ended December 31, 2025 were $214.4 million, which represents an increase of $12.3 million (or 6.1%) from the same period in 2024 due to volume of work on programs. Revenues in Robotics & Space Operations for the year ended December 31, 2025 were $309.3 million, which represents an increase of $29.5 million (or 10.5%) from the same period in 2024. The year-over-year increase is

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-15

primarily driven by the higher volume of work performed on the Canadarm3 program as volume of work on Phase C activity increased throughout the year. Revenues in Satellite Systems for the year ended December 31, 2025 were $1,109.5 million, which represents an increase of $511.3 million (or 85.5%) from the same period in 2024 driven by the increased volume of work on the Telesat Lightspeed program and the Globalstar next generation LEO constellation program.

**Gross Profit and Gross Margin**

Gross profit reflects our revenues less cost of revenues. Q4 2025 gross profit of $127.1 million represents a $45.2 million (or 55.2%) increase over Q4 2024 driven by higher volumes of work performed in our Satellite Systems and Geointelligence businesses. Gross margin in Q4 2025 was 25.5%, which is in line with the Company's expectations, and compares to a gross margin of 23.6% in Q4 2024.

For the years ended December 31, 2025, gross profit of $409.7 million represents a $128.0 million (or 45.4%) increase over 2024 levels driven primarily by higher volumes of work performed in our Satellite Systems business. Gross margin for the years ended December 31, 2025 was 25.1% which is in line with the Company's expectations and compares to 26.1% in 2024. The year-over-year change in gross margin is driven by evolving program mix.

**Adjusted EBITDA and Adjusted EBITDA Margin**

Adjusted EBITDA for the fourth quarter of 2025 was $96.2 million compared with $70.9 million for the fourth quarter of 2024, representing an increase of $25.3 million (or 35.7%) year-over-year driven by higher work volumes as we continue to convert our backlog. Adjusted EBITDA margin was 19.3% in the fourth quarter of 2025 compared to 20.5% adjusted EBITDA margin reported in the fourth quarter of 2024. The decline in margins quarter over quarter are attributable to our changing mix of programs and the impact of realized foreign exchange recognized in quarter.

Adjusted EBITDA for the years ended December 31, 2025 was $323.9 million compared with $217.1 million for the same period in 2024, representing an increase of $106.8 million (or 49.2%) year-over-year. The improvement was driven by higher volumes of work performed year-over-year. Adjusted EBITDA margin was 19.8% for the years ended December 31, 2025 compared with 20.1% in 2024 driven by evolving program mix and the impact of realized foreign exchange recognized in year.

**Adjusted Net Income**

Adjusted net income for the fourth quarter of 2025 was $58.5 million compared with $35.1 million for the fourth quarter of 2024, representing an increase of $23.4 million (or 66.7%) year-over-year primarily driven by higher operating income in the quarter.

Adjusted net income for the years ended December 31, 2025 was $189.9 million compared with $111.1 million for the same period in 2024, representing an increase of $78.8 million (or 70.9%) year-over-year largely due to higher operating income in 2025.

**Backlog**

Backlog is comprised of our remaining performance obligations which represents the transaction price of firm orders less inception to date revenue recognized and excludes unexercised contract options and indefinite delivery or indefinite quantity contracts. Backlog as at December 31, 2025 was $4,012.9 million, a decrease of $372.6 million compared with the backlog at December 31, 2024 driven by continued conversion of our backlog into revenue. The following table

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-16

shows the build up of backlog for the three months and years ended December 31, 2025 as compared with the same periods in 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars) | **2025** | **2024** | **2025** | **2024** |
| Opening Backlog | $4392.8 | $4578.1 | $4385.5 | $3097.0 |
| Less: Revenue recognized | (499.1) | (346.6) | (1633.2) | (1080.1) |
| Add: Order Bookings | 119.2 | 154.0 | 1200.1 | 2368.6 |
| Add: Adjustment <sup>(1)</sup> |  |  | 60.5 |  |
| Ending Backlog | $4012.9 | $4385.5 | $4012.9 | $4385.5 |

---

*<sup>(1)</sup> Backlog adjustment arising from the inclusion of the opening backlog of recently acquired SatixFy Communications Ltd. (acquisition completed on July 2, 2025)*

**RESULTS OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars, except per share data) | **2025** | **2024** | **2025** | **2024** |
| Revenues | $499.1 | $346.6 | $1633.2 | $1080.1 |
| Materials, labour and subcontractors costs | (357.9) | (252.0) | (1168.6) | (754.6) |
| Depreciation and amortization of assets | (14.1) | (12.7) | (54.9) | (43.8) |
| Gross profit | 127.1 | 81.9 | 409.7 | 281.7 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administration | (30.5) | (20.7) | (111.5) | (78.6) |
| &nbsp;&nbsp;&nbsp;Research and development, net | (14.7) | (11.9) | (38.1) | (36.9) |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | (31.3) | (11.5) | (84.6) | (47.0) |
| &nbsp;&nbsp;&nbsp;Share-based compensation | (4.8) | (3.8) | (17.7) | (12.4) |
| Operating income | 45.8 | 34.0 | 157.8 | 106.8 |
| Other income/(expense) | (10.4) | 8.7 | 3.8 | 25.2 |
| Finance income | 0.7 | 3.3 | 7.8 | 7.0 |
| Finance costs | (3.6) | (9.6) | (17.0) | (28.0) |
| Income before income taxes | 32.5 | 36.4 | 152.4 | 111.0 |
| Income tax expense | (8.5) | (11.3) | (43.9) | (31.6) |
| Net income | 24.0 | 25.1 | 108.5 | 79.4 |
| Basic earnings per share | $0.19 | $0.21 | $0.87 | $0.66 |
| Diluted earnings per share | 0.18 | 0.20 | 0.84 | 0.63 |

---

**Revenues**

Consolidated revenues for the fourth quarter of 2025 were $499.1 million, representing an increase of $152.5 million (or 44.0%) compared with the fourth quarter of 2024. For the years ended December 31, 2025, consolidated revenues were $1,633.2 million, which were $553.1 million (or 51.2%) higher than the same period in 2024. Please refer to 'Financial Overview' for a detailed discussion of revenue drivers for the fourth quarter and twelve months ended December 31, 2025.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-17

**Materials, labour and subcontractors costs**

Materials, labour and subcontractor costs for the fourth quarter of 2025 were $357.9 million, representing a $105.9 million (or 42.0%) increase compared to the same quarter of 2024. The increase is due to higher volume of work performed as we execute on our backlog.

Materials, labour and subcontractor costs for the years ended December 31, 2025 were $1,168.6 million, representing an increase of $414.0 million (or 54.9%) over the years ended December 31, 2024. The increase reflects higher volume of work performed during this period as we execute on our backlog.

**Depreciation and amortization of assets**

Included in this line item are the depreciation and amortization costs of those assets directly used to support our revenues. These assets are depreciated and amortized on a straight-line basis over their useful lives. Fourth quarter costs of $14.1 million represents an increase of $1.4 million (or 11.0%) compared with the fourth quarter of 2024. The year-over-year increase is due to the depreciation and amortization of assets placed into service throughout the period.

Depreciation and amortization costs for the years ended December 31, 2025 were $54.9 million, representing an increase of $11.1 million (or 25.3%) over the same period in 2024. The year-over-year increase is due to the depreciation and amortization of assets placed into service.

**Selling, general and administration (SG&A)**

SG&A expenses include administrative support functions, as well as business development and bids and proposals costs. In addition, audit fees, public company expenses, recruitment, consulting fees and costs related to M&A or other corporate projects costs are included in this line item. SG&A expenses for the fourth quarter of 2025 were $30.5 million, representing an increase of $9.8 million (or 47.3%) over the same quarter in 2024. The increase in SG&A expenses in Q4 2025 reflects an expansion of our SG&A functions and the addition of SG&A costs attributable to the acquisition of SatixFy Communications Ltd. For the three months ended December 31, 2025, SG&A expenses were 6.1% of revenues compared to 6.0% for the same period in 2024, reflecting the aforementioned expansion of our SG&A functions and the addition of expenses related to acquisition.

SG&A expenses for the years ended December 31, 2025 were $111.5 million, representing an increase of $32.9 million (or 41.9%) over the same period in 2024. The increase in SG&A expenses year-over-year reflects an expansion of our SG&A functions, costs related to the acquisition of SatixFy Communications Ltd., and corporate project related costs incurred during the period. For the years ended December 31, 2025, SG&A expenses were 6.8% of revenues compared to 7.3% for the same period in 2024, reflecting economies of scale as work volume grows.

**Research and development (R&D)**

R&D expenses are comprised of costs incurred on R&D activities that are expensed to the statement of comprehensive income in the period, offset by funding received on certain R&D programs. The Company expenses research costs as they are incurred. Development costs are expensed when they do not meet the asset capitalization criteria (e.g. when technical feasibility and/or a market has not yet been established), or the costs are not directly attributable to developing the asset.

Net R&D expense for the fourth quarter of 2025 was $14.7 million, representing an increase of $2.8 million (or 23.5%) from the same quarter in 2024 primarily driven by incremental R&D activities in our Satellite Systems segment as a result of the acquisition of SatixFy Communications Ltd. For the years ended December 31, 2025, net R&D expense of $38.1 million represents a $1.2 million (or 3.3%) increase over the same period in 2024. The increase in R&D expense is primarily due to the increase in activities in our Satellite Systems business as a result of the acquisition of SatixFy Communications Ltd.

**Amortization of intangible assets**

This line item includes the straight-line amortization of intangible assets recognized as part of acquisitions. Intangible assets are comprised of contractual backlog, customer relationships, proprietary technologies, software and the MDA trademark. These intangible assets are amortized over their useful lives, ranging from 2 to 20 years. The amount expensed in the fourth quarter of 2025 was $31.3 million, representing an increase of $19.8 million (or 172.2%) compared with the fourth quarter of 2024. The year-over-year increase is attributable to the acquisition of SatixFy

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-18

Communications Ltd., with associated intangibles being amortized over 2 to 5 years. For the years ended December 31, 2025, the amortization expense of $84.6 million represents a $37.6 million (or 80.0%) increase compared with the same period in 2024. The year-over-year increase is attributable to the aforementioned amortization of intangible assets recognized as part of the acquisition of SatixFy Communication Ltd. on July 2, 2025.

**Share-based compensation**

In April 2021, the Company established an Omnibus Long-term Incentive Plan (Omnibus Plan). The Omnibus Plan is a share-based plan, under which the Company can issue stock options, deferred share units (DSUs), restricted share units (RSUs), and performance share units (PSUs) to directors and employees. The Company also has in place an Employee Share Trust Agreement arrangement, where eligible employees are issued shares held in a company trust (Trustee Shares) and released upon meeting prescribed conditions.

Further, in the second quarter of 2024, the Company established an employee share purchase plan (ESPP). The ESPP is a cash-settled share-based payment plan whereby employees of the Company can acquire common shares through regular payroll deductions. The Company-matched employee contributions, up to a maximum of five thousand dollars per annum, are restricted to a one year holding period.

Share-based compensation expense represents the vesting of the Company's share-based awards on a graded basis over the awards' respective vesting periods.

Share-based compensation expense for the fourth quarter of 2025 was $4.8 million, which represents an increase of $1.0 million (or 26.3%) over the fourth quarter of 2024. This increase is mainly due to an increase in the employee population enrolled in the ESPP program.

Share-based compensation expense for the years ended December 31, 2025 was $17.7 million, which represents an increase of $5.3 million (or 42.7%) over the same period in 2024. This increase is mainly due to the introduction of the ESPP in Q2 2024.

**Other income (expenses)**

Other income (expenses) includes amounts related to unrealized and realized foreign exchange gains (losses), unrealized gains (losses) on financial instruments and other financial adjustments not related to our core business practices.

During the fourth quarter of 2025, other expense was $10.4 million, comprising of $17.4 million of foreign exchange loss (mainly unrealized foreign exchange loss), net of $7.0 million unrealized gain on financial instruments. The foreign exchange loss is due to the appreciation of Canadian dollar compared to the US dollar. The unrealized gain on financial instruments is due to the change in fair value of investment in equity securities and in foreign exchange hedges. During the fourth quarter of 2024, other income was $8.7 million, comprising mainly of $8.8 million in foreign exchange gain.

During the years ended December 31, 2025, other income was $3.8 million, comprising $2.2 million of foreign exchange loss, $5.0 million unrealized gain on financial instruments, and $1.0 million of other income. The foreign exchange loss is due to the appreciation of Canadian dollar compared to the US dollar. The unrealized gain on financial instruments is due to the change in fair value of investment in equity securities. During the years ended December 31, 2024, other income was $25.2 million, comprising mainly of $17.5 million of foreign exchange gain, $1.2 million of unrealized gain on financial instruments, $5.8 million of financial gain related to the sale of the Company's terrestrial nuclear services assets in Q1 2024.

**Finance income**

Finance income represents the interest income earned on deposits, tax interest income and interest income on assets of defined benefit pension plans.

Finance income for fourth quarter of 2025 was $0.7 million, compared to $3.3 million for the fourth quarter of 2024, mainly reflecting impact of tax interest true-ups. Finance income for the years ended December 31, 2025 was $7.8 million, compared to $7.0 million for the years ended December 31, 2024, driven by higher cash balances, net of lower tax interest true-ups.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-19

**Finance costs**

The Company's finance costs may include interest expense, interest on lease liabilities, net interest accrual on interest rate swaps, borrowing fees, and gains or losses on modifications of debt facilities, net of capitalized interest expense on certain qualifying capital assets under internal development.

Finance costs for the fourth quarter of 2025 were $3.6 million, net of $1.7 million of capitalized interest expense. Finance costs for the fourth quarter of 2024 were $9.6 million, net of $1.4 million of capitalized interest expense. The year-over-year decrease of $6.0 million is driven primarily by non-recurring cost to settle hedges in the same period in 2024.

Finance costs for the years ended December 31, 2025 was $17.0 million, net of $3.0 million of capitalized interest expense. Finance costs for the years ended December 31, 2024 was $28.0 million, net of $13.7 million of capitalized interest expense. The year-over-year decrease of $11.0 million is due to lower borrowing costs and non-recurring cost to settle hedges in 2024 partially offset by lower capitalized interest expense in the twelve month period ended December 31, 2025.

**Income Tax Expense**

Income tax expense represents current and deferred taxes. For the fourth quarter of 2025, the Company recognized an income tax expense of $8.5 million on income before income taxes of $32.5 million representing an effective tax rate of 26.2% . For the fourth quarter of 2024, income tax expense was $11.3 million recorded on income before income taxes of $36.4 million, representing an effective tax rate of 31.0%. The higher effective tax rate for the fourth quarter of 2024 was primarily due to the impact of non-deductible permanent costs and the non-recognition of certain tax assets related to the period.

For the years ended December 31, 2025, the Company recognized an income tax expense of $43.9 million on income before income taxes of $152.4 million and representing an effective tax rate of 28.8%. For the years ended December 31, 2024, income tax expense was $31.6 million recorded on income before income taxes of $111.0 million, representing an effective tax rate of 28.5%. The effective tax rate was comparable between the two years. The effective tax rates of both years were higher than the statutory tax rate due to the impact of the non-deductible permanent costs and the non-recognition of tax assets.

**Net income**

Net income for the fourth quarter of 2025 was $24.0 million compared to $25.1 million of net income reported in the fourth quarter of 2024. The year-over-year decrease of $1.1 million (or 4.4%) in Q4 2025 was driven primarily by the impact of foreign exchange loss offset by the increase in operating income quarter over quarter.

Net income for the years ended December 31, 2025 was $108.5 million compared to $79.4 million of net income reported in the years ended December 31, 2024. The year-over-year increase of $29.1 million (or 36.6%) was driven by higher operating income compared to the year ended December 31, 2024.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-20

**RECONCILIATION OF NON-IFRS MEASURES**

The following tables provide a reconciliation of net income to EBITDA, adjusted EBITDA, and adjusted net income:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars) | **2025** | **2024** | **2025** | **2024** |
| Net income | $24.0 | $25.1 | $108.5 | $79.4 |
| Depreciation and amortization of assets | 15.0 | 12.7 | 56.0 | 43.8 |
| Amortization of intangible assets related to business combination | 31.3 | 11.5 | 84.6 | 47.0 |
| Income tax expense | 8.5 | 11.3 | 43.9 | 31.6 |
| Finance income | (0.7) | (3.3) | (7.8) | (7.0) |
| Finance costs | 3.6 | 9.6 | 17.0 | 28.0 |
| EBITDA | 81.7 | 66.9 | 302.2 | 222.8 |
| Unrealized foreign exchange loss (gain) | 15.3 | (3.6) | (2.3) | (14.0) |
| Unrealized gain on financial instruments | (7.0) |  | (5.0) | (1.2) |
| Impairment of assets |  | 3.3 |  | 3.3 |
| Gain on disposal of assets |  |  |  | (5.8) |
| Acquisition, integration and reorganization costs | 2.7 | 1.6 | 16.2 | 1.6 |
| Equity-settled share-based compensation | 3.5 | 2.7 | 12.8 | 10.4 |
| Adjusted EBITDA | $96.2 | $70.9 | $323.9 | $217.1 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars except for adjusted <br> earnings per share) | **2025** | **2024** | **2025** | **2024** |
| Net income | $24.0 | $25.1 | $108.5 | $79.4 |
| Amortization of intangible assets related to business combination | 31.3 | 11.5 | 84.6 | 47.0 |
| Impairment of assets |  | 3.3 |  | 3.3 |
| Acquisition, integration and reorganization costs | 2.7 | 1.6 | 16.2 | 1.6 |
| Gain on disposal of assets |  |  |  | (5.8) |
| Unrealized gain on financial instruments | (7.0) |  | (5.0) | (1.2) |
| Net foreign exchange loss (gain) | 17.4 | (8.8) | 2.2 | (17.5) |
| Embedded derivative effects | (0.9) | (1.4) |  | 0.8 |
| Hedge derecognition cost |  | 4.7 |  | 4.7 |
| Equity-settled share-based compensation | 3.5 | 2.7 | 12.8 | 10.4 |
| Income taxes related to the above items <sup>(1)</sup> | (12.5) | (3.6) | (29.4) | (11.6) |
| Adjusted net income | 58.5 | 35.1 | 189.9 | 111.1 |
| Weighted average number of shares outstanding - diluted | 130025960 | 127435524 | 129711641 | 126049042 |
| Adjusted earnings per share - diluted | $0.45 | $0.28 | $1.46 | $0.88 |

---

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-21

*(1) Statutory income tax rate of 26.5% applied*

**FINANCIAL CONDITION, LIQUIDITY & CAPITAL RESOURCES**

**Financial Condition**

Total assets of the Company as at December 31, 2025 were $3,356.2 million, representing a $758.7 million increase from $2,597.5 million as at December 31, 2024. The increase in asset balances reflects our continued investments to support our growth initiatives both organically and via M&A and the commensurate increase in our property, plant and equipment, intangible assets and goodwill.

Total liabilities as at December 31, 2025 of $2,001.2 million increased by $579.7 million compared with $1,421.5 million as at December 31, 2024 primarily driven by the increase in our long-term debt, related to our recent acquisition of SatixFy Communications Ltd., higher deferred tax liabilities, increased accounts payable and increased contract liabilities.

The following table represents our working capital position as at December 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| <br>(in millions of Canadian dollars) | **December 31, 2025** | **December 31, 2024** |
| Non-cash current assets | $462.5 | $459.8 |
| Current liabilities | 1317.8 | 1091.0 |
| Net Working Capital | $(855.3) | $(631.2) |

---

Our Net Working Capital decreased by $224.1 million from December 31, 2024 to December 31, 2025. This decrease is largely due to higher contract liabilities and accounts payable offset partially by higher trade receivables at December 31, 2025 relative to December 31, 2024.

Management monitors net working capital levels on a continuous basis, to ensure the Company has sufficient liquidity to fund its short-term usages of cash necessary in the normal course of operations.

**Cash Flows**

The Company's consolidated cash flows are summarized in the table below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fourth Quarters Ended<br> December 31,** | **Fourth Quarters Ended<br> December 31,** | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| <br>(in millions of Canadian dollars) | **2025** | **2024** | **2025** | **2024** | **2024** |
| Cash, beginning of period | $195.7 | $139.2 | $166.7 | $— | 22.5 |
| Total cash provided by (used in): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | 50.6 | 375.8 | 407.5 |  | 812.7 |
| &nbsp;&nbsp;&nbsp;Investing activities | (80.1) | (61.0) | (614.6) |  | (227.0) |
| &nbsp;&nbsp;&nbsp;Financing activities | (20.9) | (288.0) | 196.3 |  | (436.1) |
| Net foreign exchange difference | 6.7 | 0.7 | (3.9 |  | (5.4) |
| Increase (decrease) in cash | (43.7) | 27.5 | (14.7 |  | 144.2 |
| Cash, end of period | $152.0 | $166.7 | $152.0 | $— | 166.7 |

---

For the fourth quarter of 2025, the net decrease in cash was $43.7 million compared to a net increase in cash of $27.5 million for Q4 2024. Operating activities in the latest quarter generated $50.6 million of cash compared to $375.8 million in Q4 2024. The year-over-year decrease in operating cash flow is primarily driven by lower working capital contributions in the latest quarter. Cash used in investing activities was $80.1 million in Q4 2025 comprised of $70.1 million related to capital expenditures and $10.0 million related to the Company's investment in Maritime Launch Systems. In Q4 2024, cash used in investing activities was $61.0 million related to capital expenditures. Cash outflows from financing activities in the latest quarter were $20.9 million which reflects net repayments made to our revolving

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-22

credit facility and transaction costs related to loans and borrowing. In Q4 2024 cash used in financing activities was $288.0 million driven by payments made against our revolving credit facility.

For the years ended December 31, 2025, the net decrease in cash was $14.7 million compared to a net increase of $144.2 million for the years ended December 31, 2024. Operating activities during the years ended December 31, 2025 generated $407.5 million of cash compared to $812.7 million for the same period in 2024. The year-over-year decrease in operating cash flow for the years ended December 31, 2025 is primarily driven by lower working capital contributions due to higher advance payments received in 2024. Cash used in investing activities was $614.6 million for the years ended December 31, 2025, and was mainly comprised of $242.2 million related to capital expenditures, net of government grants, and payments of 362.6 million related to the acquisition of SatixFy Communications Ltd and to the release of a final holdback related to 2023 acquisition of SatixFy Space Systems UK Ltd. in the second quarter of 2025. For the years ended December 31, 2024, cash used in investing activities was $227.0 million and comprised of $197.9 million related to capital expenditures, $27.3 million related to the acquisition of SatixFy Space Systems UK Ltd., $9.2 million related to the Company's equity investment in Starlab Space LLC, offset by proceeds of $7.4 million related to the disposal of our terrestrial nuclear services assets. Cash flows from financing activities in the years ended December 31, 2025 were an inflow of $196.3 million driven primarily by the bond issuance in quarter compared with an outflow of $436.1 million in the years ended December 31, 2024, which reflects payments made against our revolving credit facility.

**Capital Management**

The Company defines its capital as the aggregate of long-term debt and shareholder's equity. The Company's primary capital management objectives are to provide an appropriate return to shareholders, safeguard working capital over the annual operating cycle, provide financial resources to grow operations to meet long-term customer demand, and comply with financial covenants under credit facilities.

The Company's strategy to manage its capital structure is to utilize its borrowing arrangements to obtain operating credit facilities in support of its working capital and planned capital expenditures. When needed, the Company also has access to capital markets to raise equity financing. At December 31, 2025, the Company's outstanding debt stood at $272.0 million, compared to nil at December 31, 2024.

As at December 31, 2025, the Company's net debt (cash) was $120.0 million representing a net debt to adjusted trailing twelve month (TTM) EBITDA ratio of 0.4x, compared with (0.8)x as at December 31, 2024.

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| <br>(in millions of Canadian dollars, except for ratios) | **December 31, 2025** | **December 31, 2024** |
| Long-term debt | $272.0 | $— |
| Less: Cash | (152.0 | (166.7 |
| Net Debt (Cash) | 120.0 | (166.7 |
| Adjusted TTM EBITDA | $323.9 | $217.1 |
| Net Debt to Adjusted TTM EBITDA | 0.4 | (0.8 |

---

As at December 31, 2025, the Company had total liquidity of $821.3 million, which includes cash of $152.0 million, and $669.3 million of available liquidity under its revolving credit facility, net of outstanding letters of credit. The Company continually assesses the adequacy of its capital structure and capacity and makes adjustments within the context of the Company's strategy, economic conditions, and the risk characteristics of the business. The Company has ample liquidity to fund working capital requirements of its operations, capital expenditures, debt service costs, and general corporate costs.

As at December 31, 2025, the Company was in compliance with the financial covenants under the Company's credit facilities.

Equity was $1,355.0 million as at December 31, 2025 compared with $1,176.0 million as at December 31, 2024.

As at December 31, 2025, the Company had commitments of $95.6 million (December 31, 2024 – $66.2 million) relating to purchase of property, plant and equipment, and intangible assets and nil (December 31, 2024 – $8.7 million over 10 years) relating to leases not yet commenced.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-23

**FINANCIAL INSTRUMENTS**

The Company's financial assets include cash, trade and other receivables, investments in equity securities, and derivative assets. Financial liabilities include accounts payable and accrued liabilities, long-term debt, and derivative liabilities.

The Company's activities expose its financial instruments to a variety of risks: interest rate risk, liquidity risk, foreign exchange risk, and credit risk. Risk management is carried out by the Company by identifying and evaluating the financial risks inherent within its operations. The Company's overall risk management activities seek to minimize potential adverse effects on the Company's financial performance.

*Interest Rate Risk*

The Company was exposed to interest rate risk from fluctuations in interest rates on its floating rate debt on its senior revolving credit facility.

The Company manages interest rate risk by monitoring the mix of fixed and floating rate debt in the respective environment and takes action as necessary to maintain an appropriate balance considering current market conditions.

During the year-ended December 31, 2024, the Company had 3 interest rate swap contracts, expiring December 15, 2027, to mitigate exposure to interest rate fluctuations on borrowings under its senior revolving facility. Under the swap contracts, the Company paid interest at a fixed rate of 3.46% for $150.0 million and 4.14% for $75.0 million of debt, and received interest at a variable rate equal to the 3-month CDOR for each 90 day period. As at December 31, 2024, the Company repaid all of its borrowings and exited all related interest rate swap contracts. As a result of the derecognition of hedges, the Company reversed all amounts previously recorded into other comprehensive income of $5.7 million, before tax, to arrive at an ending nil fair value balance in the statement of financial position. A total of $4.7 million was paid to settle these hedges, recognized under finance cost on the statement of comprehensive income. At December 31, 2024, the Company has no interest rate swap contracts as there were no external borrowings under its senior revolving credit facility.

As at December 31, 2025, there was 30.0 million of total borrowings that was subject to floating interest rates (December 31, 2024 - nil). Based on the total outstanding borrowings as at December 31, 2025, an increase or decrease in 1.0% in the average interest rate on our borrowings would have resulted in insignificant changes to income before taxes. The impact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount of our borrowings at the time.

*Liquidity Risk*

The Company's liquidity risk is the risk it may not be able to meet its contractual obligations associated with financial liabilities as they come due. The Company's principal sources of liquidity are cash provided by operations and access to credit facilities. The Company's short-term cash requirements are primarily to fund working capital, with medium term requirements to service and repay debt, and invest in capital and intangible assets, and research and development for growth initiatives. Cash is also used to finance other long-term strategic initiatives. For the foreseeable future, the Company believes that these principal sources of liquidity are sufficient to maintain the Company's capacity and to meet planned growth and development activities.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-24

The maturities of the contractual cash flows of the Company's financial liabilities as at December 31, 2025 are shown in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Canadian dollars)* | **Carrying<br> amount** | **Contractual<br> cash flows** | **Maturing in<br> less than 1<br> year** | **Maturing in 1<br> to 5 years** | **Maturing<br> beyond 5<br> years** |
| Non-derivative financial liabilities: |  |  |  |  |  |
| Trade and other payables | $391.4 | $391.4 | $391.4 | $— | $— |
| Non-trades payables | 0.3 | 0.3 | 0.2 | 0.1 |  |
| Lease liabilities | 139.1 | 223.7 | 20.4 | 56.7 | 146.6 |
| Long-term debt | 272 | 280 |  | 280 |  |
|  | $802.8 | $895.4 | $412 | $336.8 | $146.6 |
| Derivative instruments | 2.2 | 2.2 | 1.2 | 1 |  |
|  | $805 | $897.6 | $413.2 | $337.8 | $146.6 |

---

The maturities of the contractual cash flows of the Company's financial liabilities as at December 31, 2024 are shown in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Canadian dollars)* | **Carrying<br> amount** | **Contractual<br> cash flows** | **Maturing in<br> less than 1<br> year** | **Maturing in 1<br> to 5 years** | **Maturing<br> beyond 5<br> years** |
| Non-derivative financial liabilities: |  |  |  |  |  |
| Trade and other payables | $248.7 | $248.7 | $248.7 | $— | $— |
| Non-trades payables | 0.3 | 0.3 | 0.1 | 0.1 | 0.1 |
|  | $249.0 | $249.0 | $248.8 | $0.1 | $0.1 |
| Lease liabilities | $136.8 | $234.0 | $16.1 | $65.1 | $152.8 |
|  | $136.8 | $234.0 | $16.1 | $65.1 | $152.8 |
|  | $385.8 | $483.0 | $264.9 | $65.2 | $152.9 |

---

*Foreign currency exchange risk*

The Company is exposed to foreign exchange risk on sales contracts, purchase contracts as well as cash, receivable, and payable balances denominated in currencies other than the functional currency of the Company's contracting entity. The currencies in which these transactions are primarily denominated are United States dollar (USD) and Euro, with USD representing the more significant exposure. The Company is also exposed to foreign currency risk on the net assets of its foreign operations.

The Company mitigates its foreign exchange risk through reducing mismatches between currencies in its foreign currency revenue contracts and the related purchase contracts to create natural economic hedges. The Company also utilizes foreign exchange forward contracts to supplement its natural hedge strategy, where needed, to further reduce the exposure arising from expected foreign currency denominated cash flows. The term of the foreign exchange forward contracts can range from less than one month to several years. At December 31, 2025, the Company had no outstanding foreign exchange forward contracts. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes and does not have any qualifying hedges for accounting purposes.

*Credit risk*

The Company is exposed to credit risk resulting from the possibility that counterparties may default on their financial obligations to the Company. The Company is primarily exposed to credit risk through its trade and other receivables and unbilled receivables.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-25

The Company's credit exposure through receivables relates to a diverse group of customers, including government customers, in multiple geographic regions purchasing a wide variety of products and services from the Company, and is therefore mitigated by a reduced concentration of risk. The due date of these amounts can vary by agreement but in general balances over 90 days are considered past due.

The Company applies the simplified model of recognizing lifetime expected credit losses for all trade, unbilled and other receivables. In monitoring credit risk, customers are grouped according to their credit characteristics, including whether the customer program is funded by a government or a non-government entity, the Company's credit history with the customer, and existence of previous or current financial challenges. Credit limits or maximum exposures under revenue contracts are identified, approved and monitored.

Set out below is the movement in the allowance for credit losses on trade and other receivables and unbilled receivables:

---

| | | |
|:---|:---|:---|
| (In millions of Canadian dollars) | **December 31, 2025** | **December 31, 2024** |
| Opening | $(25.8) | $(11.9) |
| Provision (reversal of prior provision) for credit losses | 17.2 | (14.6) |
| Write-offs | 2.9 | 0.7 |
| Ending | $(5.7) | $(25.8) |

---

**OFF-BALANCE SHEET ARRANGEMENTS**

The Company has off-balance sheet arrangements in the form of standby letters of credit used mainly in connection with obligations relating to performance and payment guarantees of customer contracts. As at December 31, 2025, the aggregate gross potential liability related to the Company's letters of credit was approximately $0.7 million (December 31, 2024 – $6.8 million).

As at December 31, 2025 and December 31, 2024, the Company had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**TRANSACTIONS BETWEEN RELATED PARTIES**

The Company's related parties are its key management personnel. Key management personnel have authority and responsibility for overseeing, planning, directing, and controlling its activities and consist of the members of the board and the senior members of the management team. In 2024, the Company revised its assessment of key management personnel. As a result, key management personnel consist of leaders reporting directly to the Company's CEO and Company's Board of Directors. For the years ended December 31, 2025, the Company's compensation expense incurred in relation to its key management personnel was $16.7 million (December 31, 2024: $14.5 million), which consisted of short-term, post-employment benefits and share-based compensation.

**SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, AND JUDGMENTS**

The Company's 2025 Audited Financial Statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). A summary of the Company's significant accounting policies is disclosed in note 3 of the 2025 Audited Financial Statements.

**Critical accounting estimates and judgments**

The preparation of the consolidated financial statements in conformity with IFRS Accounting Standards requires management to make estimates and judgments that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-26

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Information about critical judgments in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements included the following:

&nbsp;&nbsp;&nbsp;&nbsp;· *Revenue:* The Company recognizes revenues from fixed-price contracts and cost-plus contracts with
 ceilings using a percentage of completion method based on the ratio of contract costs incurred
 to date to total estimated costs. On a monthly basis, the Company reviews the costs incurred
 to date and the estimated costs to complete for each project to determine whether the percentage
 of completion remains appropriate. Estimating total costs requires judgments to be made around
 items including, but not limited to, labour productivity, complexity and scope of work to
 be performed, cost of materials, the length of time to complete the work, and execution by
 subcontractors. This estimate directly affects revenue recognized in each reporting period
 as well as the balances of unbilled receivables and contract liabilities at the reporting
 date. Changes in estimates are recognized on a cumulative catch-up basis and could lead to
 reversals to revenues.

&nbsp;&nbsp;&nbsp;&nbsp;· *Impairment of non-financial assets:* The value in use (VIU) of cash generating units at which goodwill
 and intangible assets are tested for impairment has been estimated using the forecasts prepared
 by management for the next five years. In preparing the forecasts, management uses significant
 assumptions about revenue growth, earnings before interest, taxes, depreciation and amortization,
 and terminal growth rate. These estimates are based on past experience and management's
 expectations of future changes in the market and planned growth initiatives. Actual results
 could vary from these estimated future cash flows which may cause significant adjustments
 to the assets in subsequent reporting periods. Estimation uncertainty in calculating the
 VIU also include the determination of appropriate discount rates.

&nbsp;&nbsp;&nbsp;&nbsp;· *Investment tax credits:* Investment tax credits, whether or not recognized in the consolidated financial
 statements, may be carried forward to reduce future Canadian Federal and Provincial income
 taxes payable. The Company applies judgment when determining whether the reasonable assurance
 threshold has been met to recognize investment tax credits in the consolidated financial
 statements. The Company must interpret eligibility requirements in accordance with Canadian
 income tax laws and must assess whether future taxable income will be available against which
 the investment tax credits can be utilized. For investment tax credits that have not met
 the criteria to be recognized in the consolidated financial statements, management continually
 reviews these interpretations and assessments and recognizes the investment tax credits relating
 to prior period expenses in the period when the reasonable assurance criteria have been met.
 Any changes in the interpretations and assessments could have an impact on the amount and
 timing of investment tax credits recognized in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· *Income taxes:* The calculation of current and deferred income taxes requires management to make
 certain judgments in interpreting tax rules and regulations. The application of judgment
 is also required to evaluate whether the Company can recover a deferred tax asset based on
 management's assessment of existing tax laws, estimates of future profitability, and tax
 planning strategies.

&nbsp;&nbsp;&nbsp;&nbsp;· *Business Combination:* In a business combination, the identifiable assets acquired and liabilities
 assumed are recognized at their fair values. The Company estimated the fair value of proprietary
 technology intangible assets acquired in the acquisition of SatixFy Communications Ltd. using
 the replacement cost method. The replacement cost method is a valuation technique that estimates
 the fair value of an intangible asset based on the estimated costs required to create or
 acquire a comparable asset at the transaction date. Significant estimates and judgments used
 to estimate the fair value of the acquired intangible assets include factors such as time
 and costs to redevelop, obsolescence, expected developer's profit margins, and opportunity
 costs. Changes in these estimates and judgments could result in significant changes to the
 valuation of the intangible assets.

**RECENT ACCOUNTING PRONOUNCEMENTS**

***Amendments of IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures***

IASB has amended IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to clarify the timing in the recognition and derecognition of financial assets and the settlement of financial liabilities. These amendments

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-27

change the timing of recognition or derecognition of financial assets or liabilities from the payment initiation date to the settlement date. Any derecognition of liability earlier than the settlement date would be subject to certain criteria being met, and only applicable to financial liabilities settled using an electronic payment system. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted. Management is currently assessing the impact of the amendments to IFRS 9 and IFRS 7 on its consolidated financial statements.

***Forthcoming Issuance of IFRS 18 Presentation and Disclosure in Financial Statements replacing IAS 1, Presentation of Financial Statements***

IFRS 18 aims to achieve comparability of the financial performance of similar entities and will impact the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently assessing the impact of adopting IFRS 18 on its consolidated financial statements.

**SUMMARY OF QUARTERLY RESULTS**

The following table provides select unaudited quarterly financial results for the eight most recently completed quarters.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** |
| <br>(in millions of Canadian dollars, <br> except per share data) | **Q4** | **Q3** | **Q2** | **Q1** | **Q4** | **Q3** | **Q2** | **Q1** |
| Backlog | $4012.9 | $4392.8 | $4567.9 | $4838.4 | $4385.5 | $4578.1 | $4596.0 | $3312.2 |
| Revenues | 499.1 | 409.8 | 373.3 | 351.0 | 346.6 | 282.4 | 242.0 | 209.1 |
| Gross profit | 127.1 | 108.1 | 94.8 | 79.7 | 81.9 | 75.7 | 66.2 | 57.9 |
| EBITDA | 81.7 | 85.9 | 60.8 | 73.8 | 66.9 | 64.0 | 44.2 | 47.7 |
| Adjusted EBITDA | 96.2 | 82.8 | 76.3 | 68.6 | 70.9 | 55.5 | 48.7 | 42.0 |
| Net income | 24.0 | 24.4 | 27.2 | 32.9 | 25.1 | 29.5 | 11.0 | 13.8 |
| Earnings per share |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 0.19 | 0.19 | 0.22 | 0.27 | 0.21 | 0.25 | 0.09 | 0.12 |
| &nbsp;&nbsp;&nbsp;Diluted | 0.18 | 0.19 | 0.21 | 0.26 | 0.20 | 0.24 | 0.09 | 0.11 |
| Adjusted net income | 58.5 | 46.1 | 48.1 | 37.2 | 35.1 | 34.7 | 23.0 | 18.3 |
| Adjusted Earnings per share |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.46 | $0.37 | $0.39 | $0.30 | $0.29 | $0.29 | $0.19 | $0.15 |
| &nbsp;&nbsp;&nbsp;Diluted | 0.45 | 0.35 | 0.38 | 0.29 | 0.28 | 0.28 | 0.19 | 0.15 |

---

The Company's operations historically have not experienced seasonality. The Company's revenues, gross profit, EBITDA, adjusted EBITDA, net income and adjusted net income period over period are affected by the stages of work on its programs and timing of backlog execution.

**CONTROLS AND PROCEDURES**

The Company's CEO and CFO are responsible for establishing and maintaining Disclosure Controls and Procedures (DC&P) and have caused them to be designed under their supervision to provide reasonable assurance that information required to be disclosed by the Company in annual filings, interim filings or other reports filed or submitted under applicable securities legislation is recorded, processed, summarized and reported within the time periods specified in such securities legislation. DC&P are designed to ensure that information required to be disclosed is accumulated and communicated to the CEO and CFO to allow timely decisions regarding required disclosure.

At December 31, 2025, the CEO and CFO, have limited the scope of their design and operation of the Company's DC&P to exclude controls, policies and procedures of SatixFy Communications Ltd. This company was acquired in July

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-28

2nd, 2025, for total purchase consideration of $448.3 million. The scope of limitation is primarily based on the time required to assess the acquired business's DC&P and control over financial reporting in a manner consistent with the Company's other operations. Further details related to the summary of financial information of this acquisition is disclosed in note 5 of the Company's consolidated financial statements for the periods ended December 31, 2025 and 2024. Except for the preceding change, based on investigation and advice of those under their supervision, the CEO and CFO have concluded that the design and operation of the Company's DC&P were effective and that material information relating to the Company, was made known to them and was recorded, processed, summarized, and reported within the time periods specified under applicable securities legislation.

The Company's CEO and CFO are also responsible for establishing and maintaining Internal Control over Financial Reporting (ICFR) and have caused ICFR to be designed under their supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Our ICFR includes policies and procedures that pertain to the maintenance of records that provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with IFRS. In completing the design, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in its 2013 version of Internal Control – Integrated Framework.

At December 31, 2025, the CEO and CFO, based on investigation and advice of those under their supervision, have concluded that the design and operation of the Company's ICFR were effective. The CEO and CFO have also evaluated the Company's ICFR, or caused it to be evaluated by those under their supervision, and concluded that there were no changes to the Company's ICFR during the year-ended December 31, 2025 that have materially affected, or reasonably likely to materially affect the Company's ICFR.

Due to the inherent limitations of DC&P and ICFR, no evaluations of controls can provide absolute assurance that all control issues, if any, within a company have been detected. Accordingly, management does not expect that DC&P and ICFR can prevent or detect all errors or fraud.

**RISK FACTORS**

We believe our performance and future success depend on a number of factors that present significant opportunities for us. These factors are also subject to a number of inherent risks and special considerations. For additional information with respect to certain of these risks or factors, reference should be made to those described and listed under the heading "Risk Factors", in the Company's AIF available on SEDAR+ at <u>www.sedarplus.ca</u>, which are incorporated by reference into this MD&A.

**OUTSTANDING SHARE INFORMATION**

The Company's common shares are traded on the Toronto Stock Exchange under the symbol "MDA". The Company is authorized to issue an unlimited number of common shares. At March 2, 2026, the Company had 126,488,396 common shares outstanding. At December 31, 2025, the details of the outstanding number of units of each type of instruments are as follows:

---

| | |
|:---|:---|
|  | **December 31, 2025** |
| Common shares outstanding | 126321001 |
| Outstanding instruments convertible into common shares: |  |
| &nbsp;&nbsp;&nbsp;Trustee shares |  |
| &nbsp;&nbsp;&nbsp;Stock options | 3482557 |
| &nbsp;&nbsp;&nbsp;Restricted share units | 998587 |
| &nbsp;&nbsp;&nbsp;Performance share units | 550787 |
| &nbsp;&nbsp;&nbsp;Deferred share units | 305129 |

---

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-29

**ADDITIONAL INFORMATION**

Additional information about the Company is available on SEDAR+ at <u>www.sedarplus.ca</u>.

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-30

**GLOSSARY OF TERMS**

*This glossary defines certain business, industry, technical and legal terms used in this MD&A for the convenience of the reader. It is not a comprehensive list of all defined terms used in this MD&A.*

*All references to the "Company", "MDA Space", "MDA", "we", "us" or "our" refer to MDA Space Ltd. together with its subsidiaries or its predecessors, as the context requires.*

"**Backlog**" means the dollar sum of revenue that is expected to be recognized from firm customer contracts and carries the same meaning as remaining performance obligations that is disclosed in note 7 of our 2025 Audited Financial Statements

"**EO**" means Earth observation

"**Free Cash Flow**" means operating cash flows less net capital expenditures "**GEO**" means geosynchronous orbit

"**Globalstar**" means Globalstar Inc.

"**ICFR**" means Internal Control over Financial Reporting

"**IFRS**" means IFRS Accounting Standards as issued by the International Accounting Standards Board "**IoT**" means Internet of Things

"**ISAM**" means in-space servicing, assembly and manufacturing "**ISS**" means International Space Station

"**LEO**" means low Earth orbit

"**LiDAR**" means light detection and ranging

"**MD&A**" means Management's Discussion and Analysis

"**MDA Space**" means MDA Space Ltd., its subsidiaries or its predecessors, as the context requires

"**MDA CHORUSTM**" means the Company's initiative to build our next generation commercial EO satellite mission providing SAR-based imagery, analytics, and information services

"**MEO**" means medium Earth orbit

"**Net Debt**" means the sum of the total carrying amount of long-term debt including current portions, as presented on the consolidated statement of financial position, less cash and excluding any lease liabilities

"**Omnibus Plan**" means the MDA Space omnibus equity incentive plan, pursuant to which MDA Space may grant long- term incentives consisting of stock options, performance share units and/or restricted share units to its executive officers and employees

"**Operating Income**" means the gross profit less operating expenses

"**Order Bookings**" means the dollar sum of contract values of firm customer contracts

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-31

"**R&D**" means research and development

"**RPAS**" means Remotely Piloted Aircraft Systems

"**SAR**" means Synthetic Aperture Radar

"**TTM**" means trailing twelve months

MDA Space Ltd. — Management's Discussion and Analysis <br> For the Fourth Quarters and Years Ended December 31, 2025 and 2024 M-32

## Exhibit 4.4

**Exhibit 4.4**

![](tm266080d2_ex4-4sp01img001.jpg)

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **Letter to Shareholders from the Chair of the Board and the Chief Executive Officer** | **1** |
| **Notice of Annual General Meeting of Shareholders to be Held on May 8, 2025** | **3** |
| **Management Information Circular** | **5** |
| **Voting Information** | **6** |
| &nbsp;&nbsp;&nbsp;**Solicitation of Proxies** | **6** |
| &nbsp;&nbsp;&nbsp;**Non-Registered Shareholders** | **6** |
| &nbsp;&nbsp;&nbsp;**Voting and Asking Questions at the Meeting** | **7** |
| &nbsp;&nbsp;&nbsp;**Registered Shareholders** | **8** |
| &nbsp;&nbsp;&nbsp;**Voting and Discretion of Proxies** | **11** |
| **Voting Shares and Principal Holders Thereof** | **11** |
| **Particulars of Matters to be Acted Upon** | **12** |
| &nbsp;&nbsp;&nbsp;**Financial Statements** | **12** |
| &nbsp;&nbsp;&nbsp;**Election of our Board of Directors** | **12** |
| &nbsp;&nbsp;&nbsp;**Appointment and Remuneration of Auditor** | **26** |
| &nbsp;&nbsp;&nbsp;**Advisory Vote on Executive Compensation (Say-On-Pay Vote)** | **26** |
| &nbsp;&nbsp;&nbsp;**Other Business** | **26** |
| **Interest of Certain Persons or Companies in Matters to be Acted Upon** | **27** |
| **Interest of Informed Persons in Material Transactions** | **27** |
| **Corporate Governance Disclosure** | **27** |
| &nbsp;&nbsp;&nbsp;**Governance Highlights** | **27** |
| &nbsp;&nbsp;&nbsp;**Director Independence** | **31** |
| &nbsp;&nbsp;&nbsp;**Board Responsibilities** | **32** |
| &nbsp;&nbsp;&nbsp;**Board Meetings** | **32** |
| &nbsp;&nbsp;&nbsp;**Position Descriptions** | **32** |
| &nbsp;&nbsp;&nbsp;**Orientation and Continuing Education** | **32** |
| &nbsp;&nbsp;&nbsp;**Ethical Business Conduct** | **33** |
| &nbsp;&nbsp;&nbsp;**Nomination of Directors** | **34** |

---

MDA SPACE MANAGEMENT INFORMATION CIRCULAR I

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Committees of the Board of Directors** | **34** |
| &nbsp;&nbsp;&nbsp;**Board Assessment** | **36** |
| &nbsp;&nbsp;&nbsp;**Director Term Limits and Other Mechanisms of Board Renewal** | **37** |
| &nbsp;&nbsp;&nbsp;**Succession Planning** | **37** |
| &nbsp;&nbsp;&nbsp;**Environmental, Social and Governance ("ESG")** | **37** |
| &nbsp;&nbsp;&nbsp;**Environmental** | **38** |
| &nbsp;&nbsp;&nbsp;**Social** | **38** |
| &nbsp;&nbsp;&nbsp;**Diversity** | **38** |
| &nbsp;&nbsp;&nbsp;**Health and Safety (H&S)** | **39** |
| &nbsp;&nbsp;&nbsp;**Cybersecurity** | **39** |
| &nbsp;&nbsp;&nbsp;**Governance** | **39** |
| &nbsp;&nbsp;&nbsp;**Shareholder Engagement** | **40** |
| &nbsp;&nbsp;&nbsp;**Strategic Management Oversight** | **41** |
| &nbsp;&nbsp;&nbsp;**Risk Oversight** | **41** |
| **Letter to Shareholders from Chair of Human Resources, Development & Compensation Committee** | **42** |
| **Executive Compensation** | **44** |
| &nbsp;&nbsp;&nbsp;**Compensation Discussion and Analysis** | **44** |
| &nbsp;&nbsp;&nbsp;**Pay Policies and Practices** | **48** |
| &nbsp;&nbsp;&nbsp;**Compensation-Setting Process** | **49** |
| &nbsp;&nbsp;&nbsp;**Components of Compensation** | **52** |
| &nbsp;&nbsp;&nbsp;**Benefit Plans** | **61** |
| **Performance Graph** | **62** |
| **Summary Compensation Table** | **63** |
| **Employment Agreements** | **65** |
| **Outstanding Option-Based Awards and Share-Based Awards** | **68** |
| **Incentive Plan Awards – Value Vested or Earned During the Year** | **69** |
| **Burn Rate** | **70** |
| **Pension Plan Benefits** | **70** |
| **Termination and Change of Control Benefits** | **71** |
| **Director Compensation** | **73** |
| &nbsp;&nbsp;&nbsp;**General** | **73** |

---

MDA SPACE MANAGEMENT INFORMATION CIRCULAR II

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Director Compensation Table** | **73** |
| &nbsp;&nbsp;&nbsp;**Outstanding Option-Based and Share-Based Awards** | **74** |
| &nbsp;&nbsp;&nbsp;**Incentive Plan Awards – Value Vested or Earned During the Year** | **75** |
| &nbsp;&nbsp;&nbsp;**Director Share Ownership Guidelines** | **75** |
| &nbsp;&nbsp;&nbsp;**Directors' and Officers' Liability Insurance** | **76** |
| **Securities Authorized for Issuance Under Equity Incentive Plans** | **76** |
| &nbsp;&nbsp;&nbsp;**Omnibus Plan** | **77** |
| &nbsp;&nbsp;&nbsp;**Employee Trust** | **82** |
| **Indebtedness of Directors and Executive Officers** | **82** |
| **Additional Information** | **83** |
| **Approval of Directors** | **84** |
| **Appendix A Charter of the Board of Directors** | **A-1** |

---

MDA SPACE MANAGEMENT INFORMATION CIRCULAR III

**Letter to Shareholders from the Chair of the Board and the Chief Executive Officer**

**Dear Shareholders,**

On behalf of the board and management team at MDA Space, we are pleased to invite you to attend our annual general meeting of shareholders, which will be held virtually on May 8, 2025 at 11:00 am (Toronto time). Your vote and your voice matter, and we encourage all of our shareholders to participate.

The Notice of the Annual General Meeting of Shareholders, Management Information Circular, and related materials are enclosed. These documents outline and describe the business to be conducted at the meeting, our approach to executive compensation and our governance practices. Information about the meeting is also available on our Investor Relations website at <u>https://mda-en.investorroom.com/annual-reports</u>.

2024 was a remarkable year for MDA Space as we began to see meaningful impact of our long-term strategic plan to pivot the business into the commercial global space market, and made meaningful progress against our growth plan, both financially and operationally. Investments in our next generation commercial product lines and manufacturing capacity at key facilities in Brampton and Montreal further reinforced our ability to meet growing customer demand in the rapidly expanding global space industry.

Financially, revenues grew to $1,080.1 million, up 33.7% year over year, and Adjusted EBITDA grew to $217.1 million, up 24.6% over the prior year<sup>1</sup> while Adjusted EBITDA Margin of 20.1% remained at a very healthy level.<sup>2</sup> Backlog at year-end stood at $4.4 billion, up 41.6% compared to December 31, 2023. We ended the year with strong market momentum and we remain focused on executing our strategy and growing our book of business.

Operationally, we achieved multiple milestones across all of our business areas, including:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 award of an approximately $1 billion contract by the Canadian Space Agency (the "**CSA** ")
 for the Phase C (final design) and Phase D (construction, system assembly, integration and
 test) of the full robotics system of the Canadarm3 program. Canadarm3 will be used aboard
 Gateway, a multinational collaboration led by NASA to establish a space station in lunar
 orbit to support human and robotic missions to the surface of the Moon – a key element
 of the Artemis program.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 introduction of MDA AURORA™, a new leading-edge software-defined digital satellite
 product, and the commencement of construction on a 185,000 square foot expansion at our satellite
 production facility in Sainte-Anne-de-Bellevue, Quebec, which will be the world's largest
 high-volume manufacturing facility in its class once completed. MDA AURORA™ is designed
 to meet the changing and highly competitive technical and business requirements of the satellite
 industry. The fully integrated MDA AURORA™ provides operators with unparalleled flexibility
 and functionality as these software-defined beam-forming satellites provide a new level of
 performance and efficiency, dramatically enhancing constellation performance while reducing
 production costs and time to market.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 introduction of MDA SKYMAKER™, a new suite of space robotics to meet the diverse needs
 of our customers' most ambitious missions. MDA SKYMAKER™ is derived from Canadarm
 technology and provides innovative space companies with solutions based on the world's
 most flight-proven space robotics solutions and services, supporting a diverse range of missions
 including lunar surface rovers and landers, space stations, satellite servicing in all orbits,
 and in-space assembly and manufacturing.

In 2024, we achieved multiple milestones on MDA CHORUS<sup>TM</sup>, our next-generation Earth observation constellation, including successfully completing the critical design review for the payload and all unit levels, completing the

<sup>1</sup> Adjusted EBITDA of $217.1 million in 2024 up 24.6% year over year compared to adjusted EBITDA of $174.2 million in 2023.

<sup>2</sup> Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not calculated in accordance with IFRS. For a reconciliation to the most directly comparable measure calculated in accordance with IFRS, see the section entitled "Reconciliation of Non-IFRS Measures" in MDA Space's latest Management Discussion and Analysis available on SEDAR+ at <u>www.sedarplus.ca</u>, which is hereby incorporated by reference.

MDA MANAGEMENT INFORMATION CIRCULAR 1

deployment test of the engineering model Synthetic Aperture Radar ("**SAR**") antenna deployment structure, and conducting multiple ground segment operations demonstrations. We are seeing strong interest in MDA CHORUS<sup>TM</sup> from both existing and prospective new end-users for data and services. Our momentum continues in 2025 with the award of a contract with Globalstar Inc. ("**Globalstar**") of approximately $1.1 billion to be the prime contractor for the satellite operator's next generation low Earth orbit ("**LEO**") constellation. As part of the definitive contract for the full LEO constellation, MDA Space will manufacture more than 50 MDA AURORA™ software-defined digital satellites for Globalstar.

These achievements were supported by a significant increase in hiring, with over 950 employees joining MDA Space in 2024. We want to express our heartfelt gratitude to the more than 3,400 MDA Space colleagues who have contributed to our mission to build the space between proven and possible. Day after day, these talented and hard-working individuals are delivering on customer commitments, developing world-leading new innovations, and leveraging our competitive strengths across the entire business.

Lastly, we also want to extend our sincerest thanks to our shareholders for your ongoing and continued support. As a result of our 12-month stock price performance in 2024, we were proud to end the year as one of the top five best performing stocks on the S&P/TSX Composite Index, based on share price appreciation percentage throughout the fiscal year. We look forward to updating you on our progress at the Annual General Meeting, and we look forward to another year of working together to build the space between the proven and the possible.

Sincerely,

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| | |
|:---|:---|
| "Brendan Paddick" | "Michael Greenley" |
| Brendan Paddick | Michael Greenley |
| Chair of the Board | Chief Executive Officer |

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MDA MANAGEMENT INFORMATION CIRCULAR 2

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MDA space LTD.

**Notice of Annual General Meeting of Shareholders to be Held on May 8, 2025**

**NOTICE IS HEREBY GIVEN** that an annual general meeting (the "**Meeting**") of the shareholders of MDA Space Ltd. ("**MDA Space**" or the "**Company**") will be held virtually via live audio webcast at <u>https://virtual-meetings.tsxtrust.com/1762</u> on May 8, 2025 at 11:00 am (Toronto time), for the following purposes, as more particularly described in the accompanying management information circular (the "**Circular**"):

**1.** to
 receive and consider the financial statements for the fiscal year ended December 31,
 2024 ()"**Fiscal 2024**") and the auditor's report thereon;

**2.** to
 elect the directors of MDA Space for the ensuing year;

**3.** to
 appoint an auditor for the ensuing year and to authorize the directors to fix the auditor's
 remuneration;

**4.** to
 consider and, if deemed advisable, approve a non-binding advisory resolution on MDA Space's
 approach to executive compensation disclosed herein; and

**5.** to
 transact such further and other business as may properly be brought before the Meeting or
 any adjournment thereof.

**The nature of the business to be transacted at the Meeting is described in further detail in the Circular. The Circular is deemed to form part of this notice of meeting. Please read the Circular carefully before you vote on the matters being transacted at the Meeting.**

Holders of common shares registered on the books of MDA Space at the close of business on March 28, 2025 (the "**Record Date**") are entitled to notice of, and to vote at, the Meeting.

The Company is using "notice-and-access" to deliver meeting materials, including the Circular and the form of proxy or the voting instruction form, as applicable. This means that instead of receiving paper copies of the meeting materials, shareholders will be able to access and review the meeting materials electronically. You will also find below information on how to request paper copies of these meeting materials if you prefer. Management believes that the principal benefit of using the notice-and-access system is that it is more environmentally friendly and cost-effective because it reduces paper use and the cost of printing and mailing the meeting materials to shareholders. The Company will send to shareholders of record as of the Record Date a notice (the "**N&A Notice**") that the meeting materials have been posted and containing instructions on how to access the meeting materials.

Electronic copies of the meeting materials can be viewed online under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u> or at <u>https://docs.tsxtrust.com/2463</u>.

If you have any questions regarding notice-and-access, please call the Company's transfer agent, TSX Trust Company at 1-866-600-5869 or email <u>tsxtis@tmx.com</u>.

Upon request, we will provide a paper copy of the meeting materials to any shareholder, free of charge, for a period of one year from the date the Circular is filed on SEDAR+. Requests may be made by contacting MDA Space at <u>investor.relations@mda.space</u>. In order to receive a paper copy in time to vote before the Meeting, your request should be received by April 29, 2025. The N&A Notice will also provide instructions on how to receive a paper copy of the meeting materials by mail.

MDA MANAGEMENT INFORMATION CIRCULAR 3

**A registered shareholder may attend the Meeting himself, herself or itself, or may be represented by proxy. Registered shareholders who are unable to attend the Meeting or any adjournment thereof are requested to date, sign and return the accompanying form of proxy for use at the Meeting or any adjournment thereof.**

Once again this year, the Meeting will be held in a virtual-only format, which will be conducted via live audio webcast over the Internet. Registered shareholders and duly appointed proxyholders will be entitled to attend, participate and vote at the Meeting from any location. Non-registered shareholders who have not duly appointed themselves as proxyholders may also virtually attend as guests. Guests will be able to virtually attend and listen to the Meeting but will not be able to vote or ask questions at the Meeting. To be valid, the enclosed proxy must be deposited with MDA Space's transfer agent, TSX Trust Company at 301-100 Adelaide Street West, Toronto, ON M5H 4H1 not later than 11:00 am (Toronto time) on May 6, 2025 (or at least 48 hours, excluding Saturdays, Sundays and statutory holidays in the Province of Ontario, Canada, prior to the time set for the Meeting or any adjournment(s) or postponement(s) thereof). Alternatively, shareholders may, and are encouraged to, vote their proxies online at <u>http://www.voteproxyonline.com/</u> or by fax to 416-595-9593 before such deadline.

A summary of the information shareholders will need to attend, participate and vote at our Meeting is provided in the Circular under "Voting Information".

Non-registered beneficial shareholders, whose shares are registered in the name of a broker, securities dealer, bank, trust company or similar entity (an "**Intermediary**"), should carefully follow the voting instructions provided by their Intermediary.

DATED this 30th day of March, 2025.

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| |
|:---|
| **BY ORDER OF THE BOARD OF DIRECTORS** |
| (signed) *" Brendan Paddick"* |
| Brendan Paddick |
| Chair of the Board |

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MDA MANAGEMENT INFORMATION CIRCULAR 4

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**ANNUAL GENERAL MEETING OF SHAREHOLDERS TO BE HELD MAY 8, 2025**

**Management Information Circular**

This management information circular ("**Circular**") is furnished in connection with the solicitation of proxies by management of MDA Space Ltd. (the "**Company**" or "**MDA Space**") for use at the annual general meeting of the shareholders of MDA Space (the "**Meeting**"), which will be held virtually via live audio webcast at <u>https://virtual-meetings.tsxtrust.com/1762</u> on May 8, 2025 at 11:00 am (Toronto time), subject to any adjournment(s) or postponement(s) thereof, for the purposes set forth in the accompanying notice of annual general meeting of shareholders (the "**Notice of Meeting**"). Unless otherwise stated, all information in this Circular is current as of March 30, 2025 and all references to dollars, "$" or "C$" are to Canadian dollars.

**BUSINESS OF THE MEETING**

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|:---|:---|
| **1.** Annual Financial statements<br>The financial statements for the year ended December 31, 2024 ("**Fiscal 2024**") and the auditor's report thereon accompanying this Circular will be placed before the shareholders at the Meeting. | <br>Financial statements for the year ended December 31, 2024 can be found on SEDAR+ at <u>www.sedarplus.ca</u>.<br>|
| **2.** Election of directors<br>You will be asked to elect nine (9) director nominees to serve on our board of directors (the "**Board**") until the earlier of the next annual meeting or the director's retirement from the Board. Our Board recommends that you vote **FOR** each director nominee. | <br>See page 13 for information about our director nominees.<br>|
| <br> **3.** Appointment of auditors<br>You will be asked to appoint KPMG LLP as the auditor of MDA Space. KPMG LLP has served as our auditor since June 2020. Our Board recommends that you vote **FOR** KPMG LLP as our auditor.  | <br>In 2024, KPMG LLP's appointment was passed with support of over 99.6% of votes cast.<br>|
| <br> **4.** Advisory Vote on Approach to Compensation<br>You will be asked to approve, on an advisory basis, a resolution on MDA Space's approach to executive compensation. As this "Say-On-Pay" vote is an advisory vote, the results are not binding on the Board. While the Board believes its executive compensation policies and practices are sound and support the future growth and success of the Company, the Board will take the results of the Say-On-Pay vote into account when considering our compensation policies, practices and decisions in the future. | <br>See page 26 for more information about our approach to compensation, as well as the full text of the Say-On-Pay resolution.<br>|

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**ATTENDING THE MEETING**

Once again this year, the Meeting will be held in a virtual-only format, which will be conducted via live audio webcast over the Internet. Shareholders will have an equal opportunity to participate at the Meeting regardless of their geographic location. A summary of the information that shareholders will need to attend and vote at the Meeting online is provided under "Voting Information – Voting and Asking Questions at the Meeting"

MDA MANAGEMENT INFORMATION CIRCULAR 5

**Voting Information**

**Solicitation of Proxies**

**The solicitation of proxies is being made by or on behalf of management of MDA Space.** It is expected that the solicitation of proxies will be made primarily by mail, subject to the use of the notice-and-access system in relation to the delivery of meeting materials but may be supplemented by telephone or other form of correspondence. The cost of solicitation of proxies will be borne by MDA Space. We will also pay the fees and costs of Intermediaries (as defined below) for their services in transmitting proxy-related material in accordance with National Instrument 54-101 – *Communication with Beneficial Owners of Securities of a Reporting Issuer* ("**National Instrument 54-101**"). This cost is expected to be nominal.

No person is authorized to give any information or to make any representation other than those contained in this Circular and, if given or made, such information or representation should not be relied upon as having been authorized by MDA Space. The delivery of this Circular shall not, under any circumstances, create an implication that there has not been any change in the information set forth herein since the date hereof.

**<br> Non-Registered Shareholders**

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Only registered shareholders of MDA Space (a "**Registered Shareholder**"), or the persons they appoint as their proxies, are entitled to attend and vote at the Meeting. However, in many cases, common shares of MDA Space ("**Common Shares**") beneficially owned by a person (a "**Non-Registered Shareholder**") are registered either:<br>&nbsp;&nbsp;&nbsp;&nbsp;(a) in the name of a broker, securities dealer, bank, trust company or similar entity (an "**Intermediary**") with whom the Non-Registered Shareholder deals in respect of the Common Shares; or<br>&nbsp;&nbsp;&nbsp;&nbsp;(b) in the name of a clearing agency (such as The Canadian Depository for Securities Limited) of which the Intermediary is a participant.<br>The meeting materials are being sent to both registered and non-registered owners of Common Shares. We are sending this Circular and the form of proxy or the voting instruction form, as applicable (collectively, the "**Meeting Materials**") directly to non-objecting beneficial owners under National Instrument 54-101.<br>In accordance with the requirements of National Instrument 54-101 and subject to the use of the notice-and-access system, we are sending the Meeting Materials to the Intermediaries and clearing agencies for onward distribution to objecting beneficial owners. Intermediaries are required to forward the Meeting Materials to objecting beneficial owners unless the objecting beneficial owners have waived the right to receive them. Intermediaries often use service companies to forward the Meeting Materials to objecting beneficial owners. MDA Space intends to pay for Intermediaries to forward the Meeting Materials to objecting beneficial owners under National Instrument 54-101. Generally, objecting beneficial owners who have not waived the right to receive Meeting Materials will either:<br>&nbsp;&nbsp;&nbsp;&nbsp;(a) be given a voting instruction form which is not signed by the Intermediary and which, when properly completed and signed by the objecting beneficial owners and returned to the Intermediary or its service company, will constitute voting instructions which the Intermediary must follow; or<br>| &nbsp;&nbsp;NON-REGISTERED SHAREHOLDERS |

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MDA MANAGEMENT INFORMATION CIRCULAR 6

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be given a form of proxy which has already been signed by the Intermediary, which is restricted as to the number of Common Shares beneficially owned by the objecting beneficial owners but which is otherwise not completed by the Intermediary. Because the Intermediary has already signed the form of proxy, this form of proxy is not required to be signed by the objecting beneficial owners when submitting the proxy.<br>The purpose of these procedures is to permit Non-Registered Shareholders to direct the voting of the Common Shares they beneficially own. **In either case, Non-Registered Shareholders should carefully follow the instructions of their Intermediaries and their service companies, including those regarding when and where the voting instruction form or the proxy is to be delivered.** | &nbsp;&nbsp;Non-Registered Shareholders |

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**Notice-and-Access**

As permitted by the Canadian securities regulators, the Company is using "notice-and-access", to deliver, to both Registered Shareholders and Non-Registered Shareholders, the Meeting Materials. This means that instead of receiving a paper copy of the Meeting Materials, shareholders as of the Record Date have access to the Meeting Materials electronically. The principal benefit of using the notice-and-access system is that it is more environmentally friendly and cost-effective because it reduces paper use and the cost of printing and mailing the Meeting Materials to shareholders.

Shareholders will receive a package by mail which includes the Notice of Meeting and a form of proxy (if you are a Registered Shareholder) or a voting instruction form (if you are a Non-Registered Shareholder) and each of the form of proxy and the voting instruction form includes instructions on how you can vote your Common Shares at the Meeting.

Electronic copies of the Meeting Materials can be viewed online under the Company's SEDAR+ profile at <u>www.sedarplus.ca/</u> or at <u>https://docs.tsxtrust.com/2463</u>.

Upon request, the Company will provide a paper copy of the Meeting Materials to any shareholder, free of charge, for a period of one year from the date the Circular is filed on SEDAR+. Requests may be made by contacting MDA Space at <u>investor.relations@mda.space</u>. In order to receive a paper copy in time to vote before the Meeting, your request should be received by April 29, 2025.

If you have any questions regarding notice-and-access, please call the Company's transfer agent, TSX Trust Company at 1-866-600-5869 or email <u>tsxtis@tmx.com</u>.

**Voting and Asking Questions at the Meeting**

MDA Space is holding the Meeting in a virtual format, which will be conducted via live audio webcast, where all shareholders, regardless of geographic location, will have an opportunity to participate.

Given this format, all shareholders are strongly advised to carefully read the voting instructions below that are applicable to them.

MDA MANAGEMENT INFORMATION CIRCULAR 7

**Registered Shareholders**

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|:---|:---|
| Registered Shareholders can vote in one of two ways:<br>**1.** At the virtual Meeting; or<br>**2.** Prior to the Meeting, by proxy, using the form of proxy provided as part of the Meeting Materials.<br>**How to vote at the virtual Meeting as a Registered Shareholder:**<br>**1.** Type in <u>https://virtual-meetings.tsxtrust.com/1762</u> on your browser at least 15 minutes before the Meeting starts.<br>**2.** Click on "I have a control number".<br>**3.** Enter your 12-digit control number (which is located on your form of proxy).<br>**4.** Enter the case-sensitive password: "mda2025".<br>**5.** When the voting opens, click the "Voting" icon on the left-hand side and elect your voting direction from the options shown on the screen and click "Submit". A confirmation message will appear to show your vote has been received.<br>**6.** If shareholders have additional control numbers to vote, click on "I have additional control numbers" at the top to enter the additional credential.<br>**7.** To change a vote, click "Refresh Voting Resolutions". Voting will remain open until the voting on the ballot is closed.<br>Shareholders must be connected to the Internet at all times to be able to vote – it is the shareholder's responsibility to stay connected for the entire Meeting.<br>**How to vote by proxy if you are a Registered Shareholder:**<br>**1.** Appoint a proxyholder<br>A form of proxy for use at the Meeting or any adjournment thereof was mailed to Registered Shareholders. The persons named as proxyholders in the form of proxy are directors and/or officers of MDA Space. **Each shareholder has the right to appoint a person other than the persons named in the accompanying form of proxy, who need not be a shareholder, to attend and act for and on behalf of such shareholder at the Meeting. Any shareholder wishing to exercise such right may do so by inserting in the space provided in the applicable form of proxy the name of the person such shareholder wishes to appoint as proxyholder and by duly delivering such proxy, or by duly completing and delivering another proper form of proxy to MDA Space's transfer agent, TSX Trust, within the time period and at the address set out under Section 4 – "Send in your proxy".**<br>**2.** Provide your voting instructions<br>Use the form of proxy to specify how you want to vote on each item of business. If you give direction on how to vote your Common Shares on your proxy form, your proxyholder must vote your Common Shares according to your instructions. If you have not specified how to vote on a particular matter on your form of proxy, your proxyholder can vote your Common Shares as he or she sees fit. If neither you nor your proxyholder gives specific instructions, your Common Shares will be voted as follows:<br>· **FOR** the election of each proposed nominee as a director;<br>· **FOR** the appointment of KPMG LLP as auditor of MDA Space for the ensuing year, and to authorize our Board to fix the auditor's remuneration; and<br>· **FOR** MDA Space's approach to executive compensation described in this Circular. | &nbsp;&nbsp;REGISTERED SHAREHOLDERS |

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MDA MANAGEMENT INFORMATION CIRCULAR 8

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|:---|:---|
| <br> **3.** Register your proxyholder<br>Registered Shareholders who wish to appoint a person other than the management nominees identified on the form of proxy, must carefully follow the instructions in this Circular and on their form of proxy. These instructions include the additional step of registering such proxyholder with our transfer agent, TSX Trust, by emailing <u>tsxtrustproxyvoting@tmx.com</u> the "Request for Control Number" form, which can be found at <u>https://tsxtrust.com/resource/en/75</u>, after submitting their form of proxy. **Failure to register the proxyholder with TSX Trust will result in the proxyholder not receiving a control number to participate in the Meeting and only being able to attend as a guest. Guests will not be permitted to vote or ask questions at the Meeting.**<br>**4.** Send in your proxy<br>Shareholders who are unable to attend the Meeting are requested to complete, sign and date the accompanying form of proxy and return such proxy in the envelope provided for that purpose. Completed proxies must be delivered to our transfer agent, TSX Trust, located at 100 Adelaide Street West, Suite 301, Toronto, Ontario, M5H 4H1, not later than 11:00 am (Toronto time) on May 6, 2025 (or at least 48 hours, excluding Saturdays, Sundays and holidays, prior to any reconvened meeting in the event of an adjournment of the Meeting). Alternatively, shareholders may, and are encouraged to, vote their proxies online at <u>http://www.voteproxyonline.com</u> or by fax to 416-595-9593. | &nbsp;&nbsp;Registered Shareholders |

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**How to change your vote if you are a Registered Shareholder:**

In addition to revocation in any other manner permitted by law, proxies given by Registered Shareholders for use at the Meeting may be revoked at any time prior to their use by depositing an instrument in writing executed by the shareholder or by his or her attorney authorized in writing or, if the shareholder is a company, by an officer or attorney thereof duly authorized, with TSX Trust located at 100 Adelaide Street West, Suite 301, Toronto, Ontario M5H 4H1 not later than 11:00 am (Toronto time) on May 6, 2025 (or at least 48 hours, excluding Saturdays, Sundays and holidays, prior to any reconvened meeting in the event of an adjournment of the Meeting). Late proxies may be accepted or rejected by the Chair of the Meeting in his or her discretion, and the Chair is under no obligation to accept or reject any particular late proxy. The deadline for the deposit of proxies may be waived or extended by the Chair of the Meeting at his or her discretion, without notice.

A shareholder may also revoke their proxy at the Meeting provided they are a Registered Shareholder whose name appeared on the shareholders' register of MDA Space as at the Record Date.

MDA MANAGEMENT INFORMATION CIRCULAR 9

**Non-Registered Shareholders**

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|:---|:---|
| Non-Registered Shareholders can vote in one of two ways:<br>**1.** At the virtual Meeting by duly appointing yourself as proxyholder; or<br>**2.** Prior to the Meeting, through your Intermediary, using the voting instruction form provided by your Intermediary.<br>**How to vote at the virtual Meeting as a Non-Registered Shareholder:**<br>**1.** Appoint yourself as proxyholder by writing your name in the space provided on the voting instruction form. Do not fill out your voting instructions.<br>**2.** Sign and send it to your intermediary, following the voting deadline and submission instructions on the voting instruction form.<br>**3.** Register with TSX Trust prior to the voting deadline, by emailing <u>tsxtrustproxyvoting@tmx.com</u> the "Request for Control Number" form, which can be found at <u>https://tsxtrust.com/resource/en/75</u>, after submitting your voting instruction form.<br>**4.** Type in <u>https://virtual-meetings.tsxtrust.com/1762</u> on your browser at least 15 minutes before the Meeting starts.<br>**5.** Click on "I have a control number".<br>**6.** Enter your 12-digit control number provided by <u>tsxtrustproxyvoting@tmx.com</u>.<br>**7.** Enter the case-sensitive password: "mda2025".<br>**8.** When the voting opens, click the "Voting" icon on the left-hand side and elect your voting direction from the options shown on the screen and click "Submit". A confirmation message will appear to show your vote has been received.<br>**9.** If shareholders have additional control numbers to vote, click on "I have additional control numbers" at the top to enter the additional credential.<br>**10.** To change a vote, click "Refresh Voting Resolutions". Voting will remain open until the voting on the ballot is closed.<br>Shareholders must be connected to the Internet at all times to be able to vote – it is the shareholder's responsibility to stay connected for the entire Meeting.<br>Non-Registered Shareholders who have not duly appointed themselves as proxyholder will not be able to vote or ask questions at the Meeting; however such Non-Registered Shareholders may still attend the Meeting as guests through the live audio webcast.<br>**How to vote by proxy if you are a Non-Registered Shareholder:**<br>A Non-Registered Shareholder should follow the instructions included on the voting instruction form provided by his or her Intermediary with respect to the procedures to be followed in order to permit the Non-Registered Shareholder to direct the voting of Common Shares beneficially owned by such shareholder.<br>**How to change your vote if you are a Non-Registered Shareholder:**<br>Non-Registered Shareholders who wish to change their vote must, in sufficient time in advance of the Meeting, arrange for their Intermediaries to change the vote and, if necessary, revoke their proxy. | &nbsp;&nbsp;NON-REGISTERED SHAREHOLDERS |

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**How to listen at the Meeting if you are a guest:**<br>Guests can also listen to the Meeting by following the steps below:<br>**1.** Type in <u>https://virtual-meetings.tsxtrust.com/1762</u> on your browser at least 15 minutes before the Meeting starts. Please do not do a Google search and do not use Internet Explorer.<br>**2.** Click on "I am a Guest".<br>

MDA MANAGEMENT INFORMATION CIRCULAR 10

**Asking questions at the Meeting:**

Registered Shareholders and Non-Registered Shareholders who have appointed themselves as proxyholder and obtained a control number are eligible to ask a question during the Q&A portion of the Meeting. In the event that any such shareholder wishes to ask a question, they should select the "Ask a Question" icon on the left and type their question within the chat box in the messaging screen. Once satisfied with the question, the shareholder should click the "Ask Now" button to submit the question to the Chair. All submitted questions will be moderated by the TSX Trust Virtual Meeting platform before being sent to the Chair. Questions can be submitted at any time during the Q&A session up until the Chair closes the session. We will address any appropriate general questions received from shareholders and duly appointed proxyholders regarding MDA Space. In order to facilitate a respectful and effective Meeting, questions of general interest to all shareholders will be answered. To ensure the Meeting is conducted in a manner that is fair to all shareholders, the Chair of the Meeting may exercise broad discretion in responding to questions, including the order in which the questions are answered, the grouping or editing of the questions and the amount of time devoted to any question.

**Assistance:**

Should a shareholder require assistance with the use of the virtual meeting platform, the shareholder can review the Virtual Meeting Guide mailed alongside this Circular. Furthermore, should a shareholder wish to speak with a TSX Trust representative, please contact the TSX Trust Company via:

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|:---|:---|:---|
| Phone: | North American Toll-Free: | 1-866-600-5869 |
|  | Collect Outside North America: | 416-342-1091 |
| Email: | <u>TSXTIS@tmx.com</u> |  |

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**Voting and Discretion of Proxies**

On any ballot that may be called for, Common Shares represented by proxies in favour of the persons named on the enclosed form of proxy will be voted for or withheld from voting in accordance with the instructions indicated therein.

When the shareholder has not specified in the form of proxy the manner in which the named proxy nominees are required to vote on any of the matters identified on the form of proxy, the shares represented by proxies in favour of MDA Space's nominees will be voted FOR the election of the director nominees identified in this Circular to our Board, FOR the appointment of the auditor identified in this Circular and the authorization of the directors to fix the auditor's remuneration and FOR MDA Space's approach to executive compensation described in this Circular.

The enclosed form of proxy confers discretionary authority upon the proxyholder named therein in respect of amendments or variations to matters identified in the Notice of Meeting and in respect of any other matters that may properly come before the Meeting. As at the date of this Circular, MDA Space management is not aware of any such amendments or other matters to be presented for action at the Meeting.

**Voting Shares and Principal Holders Thereof**

As at the time of close of business on March 28, 2025 (the "**Record Date**"), there were 122,692,279 fully paid and non-assessable Common Shares of MDA Space outstanding. Each Common Share carries the right to one vote per Common Share. Each holder of outstanding Common Shares of record at the time of close of business on the Record Date will be given notice of the Meeting and is entitled to vote at the Meeting the number of Common Shares of record held by him, her or it on the Record Date.

To the knowledge of the directors and senior officers of MDA Space, there are no persons who beneficially own, directly or indirectly, or exercise control or direction over shares carrying more than 10% of the voting rights attached to all outstanding Common Shares of MDA Space.

MDA MANAGEMENT INFORMATION CIRCULAR 11

**Particulars of Matters to be Acted Upon**

**Financial Statements**

The financial statements of MDA Space for the year ended December 31, 2024 and the auditor's report thereon accompanying this Circular will be placed before the shareholders at the Meeting. No formal action will be taken at the Meeting to approve the financial statements. If any shareholder has questions regarding such financial statements, such questions may be brought forward at the Meeting.

**Election of our Board of Directors**

The articles of MDA Space, as amended, provide that our Board shall consist of a minimum of three (3) and a maximum of twenty (20) directors. Unless authority to vote is withheld, the persons named in the accompanying form of proxy intend to vote FOR the election of the current nominees whose names are set forth below.

Management does not contemplate that any of the current nominees will not be able to serve as a director but, if that should occur for any reason prior to the Meeting, the persons named in the enclosed proxy instrument reserve the right to vote for another nominee at their discretion. The terms of office of MDA Space's current directors will expire as of the date of the Meeting. Each director elected at the Meeting will hold office until the next annual meeting of shareholders of MDA Space, or until their successors are elected or appointed in accordance with the provisions of the *Business Corporations Act* (Ontario).

**Advance Notice Policy**

Our by-laws (the "**By-Laws**") include certain advance notice provisions with respect to the election of directors (the "**Advance Notice Provisions**"). The Advance Notice Provisions are intended to (a) facilitate orderly and efficient annual general meetings or, where the need arises, special meetings; (b) ensure that all shareholders receive adequate notice of Board nominations and sufficient information with respect to all nominees; and (c) allow shareholders to register an informed vote. Only persons who are nominated by shareholders in accordance with the Advance Notice Provisions will be eligible for election as directors at any annual meeting of shareholders, or at any special meeting of shareholders if one of the purposes for which the special meeting was called was the election of directors.

Under the Advance Notice Provisions, a shareholder wishing to nominate a director would be required to provide MDA Space with notice, in the prescribed form, within the prescribed time periods. These time periods include, (a) in the case of an annual meeting of shareholders (including annual and special meetings), not less than 30 days prior to the date of the annual meeting of shareholders; provided, that if the first public announcement of the date of the annual meeting of shareholders (the "**Notice Date**") is less than 50 days before the meeting date, not later than the close of business on the 10th day following the Notice Date; and (b) in the case of a special meeting of shareholders (which is not also an annual meeting) called for any purpose which includes electing directors, not later than the close of business on the 15th day following the Notice Date.

As of the date hereof, no director nominations have been received by MDA Space from any shareholder in respect of the Meeting.

A copy of the By-Laws has been filed on SEDAR+ at <u>www.sedarplus.ca</u>.

**Majority Voting Policy**

MDA Space has adopted a majority voting policy. Pursuant to the policy, shareholders will vote for the election of individual directors at each annual meeting of shareholders, rather than for a fixed slate of directors. Further, in an uncontested election of directors at an applicable meeting of shareholders, the votes cast in favour of the election of a director nominee will be required to represent a majority of the Common Shares voted and withheld for the election of the director. If that is not the case, that director must tender his or her resignation to the Chair. The Nominating & Governance Committee will promptly consider such tendered resignation and recommend to our Board the action to be taken with respect to such tendered resignation, and our Board shall accept the resignation absent exceptional circumstances and it must promptly disclose its decision via press release.

MDA MANAGEMENT INFORMATION CIRCULAR 12

**Nominees**

There are 9 director nominees. With the exception of Karl Smith, each nominee was elected at the last annual meeting of shareholders on May 9, 2024. MDA Space practices routine director evaluations, which includes considering the composition of our Board and periodic Board refreshment to foster and encourage diverse perspectives and new strategies. As part of our

efforts to refresh the Board, John Risley stepped down as Chair of our Board in 2024 and Brendan Paddick was appointed as new Chair of our Board.

Information on each nominee starts at p. 13 of this Circular and is effective as of the date of this Circular. Below are key highlights about our Board composition if each nominee is elected by shareholders. For more information about the nomination of directors see "Corporate Governance Disclosure – Nomination of Directors" starting on p. 33 of this Circular.

---

| | |
|:---|:---|
| &nbsp;&nbsp;![](tm266080d2_ex4-4sp01img004.jpg) | &nbsp;&nbsp;![](tm266080d2_ex4-4sp01img005.jpg) |
| &nbsp;&nbsp;![](tm266080d2_ex4-4sp01img006.jpg) | &nbsp;&nbsp;![](tm266080d2_ex4-4sp01img007.jpg) |

---

MDA MANAGEMENT INFORMATION CIRCULAR 13

Set out below is biographical information about each of the nominees to our Board:

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| | | |
|:---|:---|:---|
| ![](tm266080d2_ez4-4sp2img001.jpg)  | **ALISON ALFERS,** Wyoming, USA<br>**Principal occupation:** Corporate Director<br>**Director Since:** May 11, 2022<br>**Age:** 58 | **INDEPENDENT** |

---

**Education:** Ms. Alfers holds a Juris Doctor from the University of Arizona, a Master of Public Health from George Washington University and a Bachelor of Arts from Arizona State University.<br>**Experience:** Ms. Alfers most recently served as Chief Legal and Compliance Officer for Study Group Ltd., a global higher education company based in London, England. Prior to joining Study Group, Ms. Alfers spent more than fifteen years in the commercial space and software sectors. Ms. Alfers has held various executive positions, including Chief Legal and Administrative Officer for HawkEye 360, Inc., an early-stage growth company in spectrum-based radio frequency analytics, General Counsel and VP Defense and Intelligence for Digital Globe, Inc., General Counsel for Space Imaging, Inc., as well as Chief Legal Officer for Cherwell Software.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 98.08% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall<br> Attendance |
| Board | 10/10 | 100% |
| Human Resources, Development & Compensation Committee | 4/4 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs<br> Held</u> <u>Options<br> Held</u> <u>Share Ownership Guidelines Met or <br> Target Date to Meet</u> <br> - 39,379 - Yes

MDA MANAGEMENT INFORMATION CIRCULAR 14

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| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img002.jpg) | **YAPRAK BALTACIOĞLU, CM, ICD.D,** Ontario, Canada<br>**Principal occupation:** Senior Distinguished Fellow at Munk School of Global Affairs and Public Policy<br>**Director Since:** March 18, 2021<br>**Age:** 65 | **INDEPENDENT**  |

---

**Education:** Ms. Baltacioğlu holds a Bachelor of Law from Istanbul University, an ICD.D designation from the Rotman School of Management at the University of Toronto, as well as a Master of Arts from the Carleton University, School of Public Administration.<br>**Experience:** Ms. Baltacioğlu has had a distinguished public service career that spans more than 25 years within the federal government. She has directly impacted the direction of government affairs through shaping policy, directing programs and overseeing operations. Ms. Baltacioğlu was the Secretary of the Treasury Board from 2012 and 2018, and under her direction, the Treasury Board of Canada Secretariat was recognized as one of Canada's Top 100 Employers. She has also served as Deputy Minister of Transport, Infrastructure and Communities, Deputy Minister of Agriculture and Agri-Food and Deputy Secretary Operations to Cabinet. Ms. Baltacioğlu is a member of the Order of Canada and is the Chancellor of Carleton University.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 96.79% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall<br> Attendance |
| Board | 10/10 | 100% |
| Nominating & Governance Committee | 4/4 | 100% |
| Human Resources, Development & Compensation Committee (Chair) | 4/4 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or <br> Target Date to Meet</u> <br> 8,235 39,946 - Yes

MDA MANAGEMENT INFORMATION CIRCULAR 15

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| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img003.jpg) | **DARREN FARBER,** Maryland, USA<br>**Principal occupation:** Founder and Managing Partner, Albion River<br>**Director Since:** March 18, 2021<br>**Age:** 47 | **INDEPENDENT** |

---

<br> **Education:** Mr. Farber holds a Quebec Diploma of College Studies from Dawson College.<br>**Experience:** Mr. Farber currently serves on a number of boards and is the Founder and Managing Partner of Albion River, a private direct investment firm that focuses on aerospace, defense, and government related businesses. Previously, Mr. Farber was Co-Founder of NAWAH LLC, a Pritzker Organization enterprise focused on project finance in the Middle East and Southwest Asia. Mr. Farber was formerly a special advisor to the Deputy Under Secretary of Defense – Business Transformation and a member of the U.S. Department of Defense Task Force for Business and Stability Operations where he received the Secretary of Defense Medal for Outstanding Public Service. Mr. Farber began his career in product engineering at Nortel Networks and Celestica.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 99.75% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall Attendance |
| Board | 9/10 | 90% |
| Audit Committee | 4/4 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or <br> Target Date to Meet</u> <br> 95,656 48,422 - Yes

MDA MANAGEMENT INFORMATION CIRCULAR 16

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| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img004.jpg) | **MICHAEL GREENLEY,** Ontario, Canada<br>**Principal occupation:** Chief Executive Officer, MDA Space Ltd.<br>**Director Since:** March 18, 2021<br>**Age:** 58 | **NOT INDEPENDENT**  |

---

**Education:** Mr. Greenley holds a Bachelor of Science and a Master of Science from the University of Waterloo, as well as an Executive Leadership Development certificate from The Wharton School.<br>**Experience:** Mr. Greenley is the Chief Executive Officer of MDA Space. With over 30 years of executive experience in the defence and security business, Mr. Greenley has deep expertise in the land, air, maritime, public safety and space sectors. Prior to MDA Space, Mr. Greenley was Sector President of L-3 WESCAM. He also served as Vice President and General Manager of CAE Canada, Vice President, Strategy and Business Development for General Dynamics (GD) Canada, and Vice President, International for GD Mission Systems. Prior to GD, he was Vice President of the modelling and simulation business at CAE.<br>Mr. Greenley is Chair of Space Canada's Board of Directors, a member of the Business Council of Canada and a member of the Global Satellite Operators Association (GSOA). He has served as the Vice-Chair of the Government of Canada's Economic Strategy Table for Advanced Manufacturing, a Board member of the Aerospace Industries Association of Canada (AIAC) and of the Ontario Aerospace Council. Previously he served as Chair of the Advisory Board for Defence and Security Export to the Department of Foreign Affairs and International Trade (DFAIT) in Canada, as a member of the Industry Advisory Boards to the Department of National Defence, Defence R&D Canada, and Public Services and Procurement Canada and to the CEO of Export Development Canada (EDC). Mr. Greenley has also served on a number of non profit boards including six years as the Chair of the Board of the Canadian Association of Defence and Security Industries (CADSI), and Chair of the Board for the Elmwood School for Girls.<br>Mr. Greenley received the 2023 Satellite Executive of the Year award at the Satellite 2024 Conference and the 2024 Innovator of the Year award and recognition as one of Canada's Top CEOs by the Globe and Mail's Report on Business. Earlier in his career, Mr. Greenley was recognized as an Ottawa Top 40 under 40 business leader, and a PROFIT 100 CEO for leading one of Canada's fastest growing companies.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 99.99% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular <br> Meetings in 2024 | Overall<br> Attendance |
| Board | 10/10 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>RSUs Held</u> <u>PSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or <br> Target Date to Meet</u> <br> 61,729 170,155 252,883 2,179,950 N/A<sup>(1)</sup>

**Notes:**

(1) As an Excluded Director, Mr. Greenley does not currently have any share ownership guidelines
 in his capacity as a director. Rather, Mr. Greenley has share ownership guidelines in his capacity
 as Chief Executive Officer of MDA Space. See Share Ownership Guidelines for NEOs on pp. 62 and 75 of
 this Circular.

MDA MANAGEMENT INFORMATION CIRCULAR 17

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| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img005.jpg) | **BRENDAN PADDICK, ICD.D,** Freeport, Bahamas<br>**Principal occupation:** Chief Executive Officer, Columbus Capital Corporation<br>**Director Since:** March 18, 2021<br>**Age:** 61 | **INDEPENDENT**  |

---

**Education:** Mr. Paddick holds Bachelor of Commerce and Master of Business Administration degrees from Memorial University of Newfoundland (Alumnus of the Year in 2013) and graduated from the Advanced Management Program at Harvard University. Mr. Paddick also holds his ICD.D designation from the Rotman School of Management/Institute of Corporate Directors.<br>**Experience:** Mr. Paddick is the Chief Executive Officer of Columbus Capital Corporation and the Founder and former Chief Executive Officer of Columbus Communications Inc. Mr. Paddick is the former Chair of the Board of Directors of Nalcor Energy and Churchill Falls (Labrador) Corporation from 2016 to 2022 and is a director and member of the audit committee of Liberty Latin America Ltd. (Nasdaq: LILA), a leading telecommunications company with operations in over 40 countries across Latin America and the Caribbean. He is also a director and chair of the audit committee of Bahamas Telecommunications Corporations (BTC). Mr. Paddick has also served on the board and as a member of the audit committee of Clearwater Seafoods (formerly listed on the TSX) and Cable & Wireless Communications PLC (formerly listed on the London Stock Exchange). He has been recognized through a variety of awards, including Canada's Top 40 under 40 in 2000, induction into the Junior Achievement Newfoundland and Labrador Business Hall of Fame in 2018, and EY Canada's Special Citation Award for Master Entrepreneur in 2019 for his career body of work.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour: 98.93%** | **Other Public Board Memberships:** |
|  | **Liberty Latin America Ltd. (NASDAQ:LILA)** |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall<br> Attendance |
| Board (Chair)<sup>(1)</sup> | 10/10 | 100% |
| Audit Committee | 4/4 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or<br> Target Date to Meet</u> <br> 1,236,353 41,329 - Yes

**Notes:**

(1) As part of our efforts to refresh the Board, Brendan Paddick began serving as the Chair of our
 Board in 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 18

---

| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img006.jpg) | **JOHN RISLEY,** Nova Scotia, Canada<br>**Principal occupation:** Chairman, President, and Chief Executive Officer, CFFI Ventures Inc.<br>**Director Since:** March 18, 2021<br>**Age:** 76 | **INDEPENDENT**  |

---

**Education:** Mr. Risley is a graduate of Harvard University's President's Program on Leadership.<br>**Experience:** Mr. Risley was the co-founder of Clearwater Seafoods and serves as Chairman, President and Chief Executive Officer of CFFI Ventures Inc., an active investment and holding company with its major investments in renewable energy, financial services ventures and Northern Private Capital, an investment fund co-formed by CFFI Ventures Inc. Mr. Risley has been recognized with a number of awards, including Atlantic Canadian Entrepreneur of the Year and a Canada Award for Business Excellence in Entrepreneurship. He was named an Officer of the Order of Canada and was inducted into the Nova Scotia Junior Achievement Business Hall of Fame in 1997.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 99.99% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall<br> Attendance |
| Board | 10/10 | 100% |
| Nominating & Governance Committee | 2/2<sup>(1)</sup> | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or<br> Target Date to Meet</u> <br> 2,464,250<sup>(2)</sup> 58,221 - Yes

**Notes:**

(1) Mr. Risley joined the Committee on July 8, 2024 after its first 2 meetings; therefore
 he was only eligible to attend 2 of the meetings as a member.

(2) Mr. Risley owns 2,474,850 Common Shares through CFFI Ventures Inc. (an affiliate of John Risley).

MDA MANAGEMENT INFORMATION CIRCULAR 19

---

| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img007.jpg) | **JILL SMITH,** Massachusetts, USA<br>**Principal occupation:** Corporate Director<br>**Director Since:** March 18, 2021<br>**Age:** 66 | **INDEPENDENT**  |

---

**Education:** Ms. Smith earned a Master of Science in Management from MIT Sloan School of Management.<br>**Experience:** Ms. Smith brings more than 25 years of experience as an international business leader, including 17 years as chief executive officer of private and public companies in the technology and information services markets. Most recently, Ms. Smith served as the President and Chief Executive Officer of Allied Minds, a technology commercialization company, and prior to that she served as Chairman, Chief Executive Officer and President of DigitalGlobe Inc., a global provider of satellite imagery products and services. Ms. Smith started her career as a consultant at Bain & Company, where she rose to become Partner. She subsequently joined Sara Lee as Vice President and went on to serve as President and Chief Executive Officer of SRDS, a business-to-business publishing firm, and eDial, a VoIP collaboration company. She also served as Chief Operating Officer of Micron Electronics, and co-founded Treacy & Company, a consulting and boutique investment business. Ms. Smith currently serves as a director of Check Point Software Technologies Ltd. She previously served as a director of R1 RCM, Aspen Technology, Circor International Inc., Gemalto NV, Endo International, and Hexagon AB.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour: 86.92%** | **Other Public Board Memberships:** |
|  | Check Point Software Technologies Ltd. (NASDAQ: CHKP) |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular <br> Meetings in 2024 | Overall<br> Attendance |
| Board | 10/10 | 100% |
| Nominating & Governance Committee (Chair) | 4/4 | 100% |
| Human Resources, Development & Compensation Committee | 4/4 | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or<br> Target Date to Meet</u> <br> 53,511 26,477 - Yes

MDA MANAGEMENT INFORMATION CIRCULAR 20

---

| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img008.jpg) | **KARL SMITH,** Newfoundland and Labrador, Canada<br>**Principal occupation:** Corporate Director<br>**Director Since:** July 2, 2024<br>**Age:** 67 | **INDEPENDENT**  |

---

**Education:** Mr. Smith earned a Bachelor of Commerce (Honours) from Memorial University of Newfoundland.<br>**Experience:** Mr. Smith held a variety of executive roles over a career spanning more than 30 years. Mr. Smith was President and Chief Executive Officer of FortisAlberta and President and Chief Executive Officer of Newfoundland Power. As Executive Vice President and Chief Financial Officer of Fortis Inc., as part of the company's growth strategy, Mr. Smith helped to secure its New York Stock Exchange listing and was actively involved in and led the financial strategy for a number of significant acquisitions. Mr. Smith began his career with five years at Deloitte as a Chartered Public Accountant. Mr. Smith currently serves as a member on the Board at Raleigh Solar Tech and CSA (formerly the Canadian Standards Association). He also sits on the Board of the Genesis Centre in St. John's, Newfoundland where he chairs the Audit and Risk Committee, and is Co-Chair of the St. John's 2025 Summer Games. Mr. Smith earned a Bachelor of Arts in Commerce (Honours) from Memorial University of Newfoundland.<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** N/A | **Other Public Board Memberships:** - |

---

---

| | |
|:---|:---|
| Board / Committee Memberships | Overall<br> Attendance |
| Board4/4<sup>(1)</sup> | 100% |
| Audit Committee2/2<sup>(2)</sup> | 100% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or <br> Target Date to Meet</u> <br> 10,354 5,203 - July 2, 2029<sup>(3)</sup>

**Notes:**

(1) Mr. Smith was appointed to the Board on July 2, 2024, after
 the first six meetings of the Board; therefore he was only eligible to attend four of the meetings
 as a member.

(2) Mr. Smith was appointed to the Audit Committee on June 22, 2024, after the first two
 meetings of the Committee; therefore he was only eligible to attend two of the meetings as a member.

(3) See "Director Compensation – Share Ownership Guidelines".

MDA MANAGEMENT INFORMATION CIRCULAR 21

---

| | | |
|:---|:---|:---|
| ![](tm266080d2_ex4-4sp2img009.jpg) | **YUNG WU, ICD.D,** Ontario, Canada<br>**Principal occupation:** Chair, NFQ Ventures Ltd.<br>**Director Since:** February 14, 2024<br>**Age:** 65 | **INDEPENDENT**  |

---

**Education:** Mr. Wu holds a Bachelor of Science in Computer Science, Economics and Mathematics from the University of Toronto and is a graduate of the Entrepreneurial Masters Program from the Massachusetts Institute of Technology.<br>**Experience:** Mr. Wu is the recently retired Chief Executive Officer of MaRS Discovery District, one of the world's largest innovation hubs with over 1,200 companies in the health, cleantech, fintech, and platform technologies sectors, at all stages of growth and scale. Under Mr. Wu's leadership, MaRS's innovation community grew by over 450% in six years, raising over $17 billion in capital and contributing over $23 billion to Canada's GDP. Mr. Wu has been recognized as one of Canada's "Top 40 under 40" and for leading one of Canada's "50 Best Managed Private Companies" in the nation. He is also a member of MENSA, the Young Presidents Organization (YPO) and the Institute of Corporate Directors (ICD.D) and the National Association of Corporate Directors (NACD).<br>

---

| | |
|:---|:---|
| **2024 Shareholder votes in favour:** 99.97% | **Other Public Board Memberships:** - |

---

---

| | | |
|:---|:---|:---|
| Board / Committee Memberships | Attendance at Regular<br> Meetings in 2024 | Overall<br> Attendance |
| Board | 8/9<sup>(1)</sup> | 88% |
| Audit Committee | 2/4 | 50% |

---

<u>Common Shares <br> Controlled or Directed</u> <u>DSUs Held</u> <u>Options Held</u> <u>Share Ownership Guidelines Met or<br> Target Date to Meet</u> <br> 4,480 7,169 - February 14, 2029<sup>(2)</sup>

**Notes:**

(1) Mr. Wu was appointed to the Board on February 14, 2024, after the first meeting of the
 Board; therefore he was only eligible to attend nine of the meetings as a member.

(2) See "Director Compensation – Share Ownership Guidelines".

MDA MANAGEMENT INFORMATION CIRCULAR 22

**Board and Committee Meeting Frequency and Overall Attendance in Fiscal 2024**

During Fiscal 2024, director attendance was 97.6% at regular Board meetings and 94.4% at committee meetings, as set out below. Individual director nominee attendance is in their biographies starting on p. 14 of this Circular. As outlined in our Board Charter, all directors are expected to maintain a high attendance record at meetings of our Board and the committees of which they are members.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Board and Committees** | &nbsp;&nbsp;**Number of Meetings** | &nbsp;&nbsp;**Number of Meetings** | &nbsp;&nbsp;**Overall Attendance at <br> Regular Meetings** |
| &nbsp;&nbsp;**Board and Committees** | &nbsp;&nbsp;**Number of <br> Regular Meetings** | &nbsp;&nbsp;**Number of <br> Special Meetings** | &nbsp;&nbsp;**Overall Attendance at <br> Regular Meetings** |
| &nbsp;&nbsp;Board | &nbsp;&nbsp;8 | &nbsp;&nbsp;2 | &nbsp;&nbsp;97.6% |
| &nbsp;&nbsp;Human Resources, Development & Compensation Committee | &nbsp;&nbsp;4 | &nbsp;&nbsp;- | &nbsp;&nbsp;100% |
| &nbsp;&nbsp;Audit Committee | &nbsp;&nbsp;4 | &nbsp;&nbsp;- | &nbsp;&nbsp;85.7% |
| &nbsp;&nbsp;Nominating & Governance Committee | &nbsp;&nbsp;4 | &nbsp;&nbsp;- | &nbsp;&nbsp;100% |

---

**Director Nominee Skills and Experience**

All director nominees have a variety of skills and experience acquired from their senior roles in various organizations. In the table below are the skills identified by each director nominee through a self-assessment.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**C-Suite<br> Leadership** | &nbsp;&nbsp;**Government** | &nbsp;&nbsp;**SW/<br> Technology** | &nbsp;&nbsp;**SPACE** | &nbsp;&nbsp;**Capital<br> Markets /<br> Investor<br> Relations** | &nbsp;&nbsp;**Finance and /<br> or Legal** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Mergers &<br> Acquisitions** | &nbsp;&nbsp;**Commercial / <br> Go-To-Market** | &nbsp;&nbsp;**Human<br> Resources<br> &<br> Compensation** | &nbsp;&nbsp;**Compliance / <br> Risk<br> Management** | &nbsp;&nbsp;**Information<br> Technology / <br> Cyber** |
| &nbsp;&nbsp;**BRENDAN PADDICK**<br> *Chief Executive Officer, Columbus Capital Corporation* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**MICHAEL GREENLEY**<br> *Chief Executive Officer and Director of MDA Space Ltd.* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**ALISON ALFERS**<br> *Former Chief Legal and Compliance Officer, Study Group Ltd.* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |

---

MDA MANAGEMENT INFORMATION CIRCULAR 23

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**C-Suite<br> Leadership** | &nbsp;&nbsp;**Government** | &nbsp;&nbsp;**SW/<br> Technology** | &nbsp;&nbsp;**SPACE** | &nbsp;&nbsp;**Capital<br> Markets /<br> Investor<br> Relations** | &nbsp;&nbsp;**Finance and /<br> or Legal** | &nbsp;&nbsp;**Manufacturing** | &nbsp;&nbsp;**Mergers &<br> Acquisitions** | &nbsp;&nbsp;**Commercial / <br> Go-To-Market** | &nbsp;&nbsp;**Human<br> Resources<br> &<br> Compensation** | &nbsp;&nbsp;**Compliance / <br> Risk<br> Management** | &nbsp;&nbsp;**Information<br> Technology / <br> Cyber** |
| &nbsp;&nbsp;**YAPRAK BALTACIOĞLU**<br> *Senior Distinguished Fellow at Munk School of Global Affairs and Public Policy* | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  |  |  | &nbsp;&nbsp;● |  |  |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**DARREN FARBER**<br> *Founder and Managing Partner, Albion River* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**JOHN RISLEY**<br> *Chief Executive Officer, CFFI Ventures Inc.* | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**JILL SMITH**<br> *Retired President and Chief Executive Officer, Allied Minds plc, and former Chair, Chief Executive Officer and President of DigitalGlobe Inc.* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**KARL SMITH**<br> *Former Chief Executive Officer, FortisAlberta, Newfoundland Power, Chief Financial Officer Fortis Inc.* | &nbsp;&nbsp;● |  |  |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |
| &nbsp;&nbsp;**YUNG WU***<br> Former Chief Executive Officer, MaRS Discovery District and Chair, NFQ Ventures Ltd.* | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● |  | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● | &nbsp;&nbsp;● |

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MDA MANAGEMENT INFORMATION CIRCULAR 24

**Corporate Cease Trade Orders or Bankruptcies**

To the knowledge of MDA Space, no nominee proposed for election is, or has been within ten years before the date of this Circular, a director, chief executive officer or chief financial officer of any other company (including MDA Space) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was
 subject to a cease trade order or similar order or an order that denied MDA Space access
 to any exemption under securities legislation for a period of more than 30 consecutive days
 while the nominee was acting in such capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) was
 subject to a cease trade order or similar order or an order that denied MDA Space access
 to any exemption under securities legislation for a period of more than 30 consecutive days
 that was issued after the nominee ceased to act in such capacity and which resulted from
 an event that occurred while the nominee was acting in such capacity.

To the knowledge of MDA Space, except as set forth below, no nominee proposed for election is, as at the date of this Circular, or has been within the 10 years before the date of this Circular, a director or executive officer of any company (including MDA Space) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets.

Yung Wu served as a director of Antibe Therapeutics Inc. ("**Antibe**"), a clinical-stage biotech company developing a non-addictive opioid replacement drug candidate. Antibe, a reporting issuer listed on the TSX, initiated proceedings under the *Companies' Creditors Arrangement Act* (CCAA) on April 9, 2024. The Ontario Superior Court of Justice appointed a receiver and manager, without security, of the assets, undertakings and properties of Antibe, effective April 22, 2024. All of Antibe's directors, including Yung Wu resigned as directors of Antibe on April 22, 2024 to allow the court-appointed receiver to assume control. Antibe's shares were suspended from trading on April 9, 2024 and delisted on May 24, 2024. On January 16, 2025, Sun Pharmaceutical Industries Limited, through its subsidiary Taro Pharmaceuticals Inc., entered into an agreement to acquire a 100% stake in Antibe. The acquisition is expected to be completed in the first half of 2025, subject to regulatory approvals.

**Personal Bankruptcies**

To the knowledge of MDA Space, no nominee proposed for election has, within the 10 years before the date of this Circular, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or became subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director.

**Penalties or Sanctions**

Except as set forth below, no nominee proposed for election has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a Canadian securities regulatory authority or been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor making an investment decision.

On July 13, 2018, two holding companies (directly or indirectly) controlled by John Risley, entered into a settlement agreement with the United States Securities and Exchange Commission with respect to a failure to timely file a report under the reporting provisions of Section 13(d) of the *Securities Exchange Act* of 1934. The settlement agreement included a cease and desist order and a fine of $92,383 for each entity.

**Conflicts of Interest**

To MDA Space's knowledge, there are no existing potential conflicts of interest among MDA Space or its subsidiaries as a result of their outside business interests at the date of this Circular. Certain members of our Board are also members of the boards of directors of other public companies. Our Board has not adopted a director interlock policy but will keep informed of other public directorships held by our members (see "Election of our Board of

MDA MANAGEMENT INFORMATION CIRCULAR 25

Directors –Nominees"). Accordingly, conflicts of interest may arise which could influence these persons in evaluating possible acquisitions or in generally acting on behalf of MDA Space.

MDA Space's directors and officers are required by law to act honestly and in good faith with a view to the best interests of MDA Space and are also required to comply with the conflict of interest provisions of the *Business Corporations Act* (Ontario) ("**OBCA**"). A director who has a material interest in a matter before our Board or any committee on which they serve is required to disclose such interest as soon as the director becomes aware of it. In situations where a director has a material interest in a matter to be considered by our Board or any committee on which they serve, such director may be required to recuse themselves from the meeting while discussions and voting with respect to the matter are taking place. The contract or transaction resulting from the matter is not invalid, and the director is not accountable to MDA Space or its shareholders for any profits realized from the contract or transaction, because of the director's interest in the contract or transaction or because

the director was present or was counted to determine whether a quorum existed at the meeting of directors that considered the contract or transaction, if the interest was properly disclosed as detailed above, the directors approved the contract or transaction, and the contract or transaction was reasonable and fair to MDA Space when it was approved. In appropriate cases, we will establish a special committee of independent directors to review a matter in which several directors, or management, may have a conflict of interest.

**Appointment and Remuneration of Auditor**

Management of MDA Space is proposing to appoint KPMG LLP as the auditor until the next annual general meeting of shareholders at a remuneration to be fixed by our Board. KPMG LLP was first appointed as the auditor of MDA Space on June 17, 2020.

Unless authority to vote is withheld, the persons named in the accompanying form of proxy intend to vote FOR the appointment of KPMG LLP as the auditor of MDA Space until the next annual general meeting of shareholders and authorizing our Board to fix their remuneration.

**Advisory Vote on Executive Compensation (Say-On-Pay Vote)**

The Board has decided to provide MDA Space's shareholders with an advisory vote on the Company's approach to executive compensation. Approval of the Say-On-Pay Resolution (as defined below) will require an affirmative vote of the majority of the votes cast by holders of Common Shares present or represented by proxy at the Meeting. As this is an advisory vote, the results will not be binding upon the Board. However, the Board will take the results of the vote into account, as appropriate, when considering future compensation policies, procedures and decisions and in determining whether there is a need to significantly increase their engagement with shareholders on compensation and related matters. The Company will disclose the results of the shareholder advisory vote as a part of its report on voting results for the Meeting.

Our philosophy is to pay fair, reasonable and competitive compensation with an at-risk equity-based component to align the interest of the Company's executives and shareholders. The Company believes its executive compensation policies and practices are sound and link pay to performance in a manner that supports the future growth and success of the Company.

At the Meeting, shareholders will be asked to approve the following resolution to approve MDA Space's approach to executive compensation (the "**Say-On-Pay Resolution**"):

**"BE IT RESOLVED, on an advisory basis and not to diminish the role and responsibilities of the board of directors, that the shareholders accept the approach to executive compensation disclosed in the Company's information circular delivered in advance of the 2025 annual meeting of shareholders"**

The Board recommends that shareholders vote FOR the Say-On-Pay Resolution. Unless authority to vote is withheld, the persons named in the accompanying form of proxy intend to vote FOR the Say-On-Pay Resolution.

**Other Business**

MDA Space knows of no other matters to be brought before the Meeting as of the date of mailing of this Circular. If any amendment, variation or other business is properly brought before the Meeting, the enclosed form of proxy and voting instruction form confers discretion on the persons named on the form of proxy to vote on such matters.

MDA MANAGEMENT INFORMATION CIRCULAR 26

**Interest of Certain Persons or Companies in Matters to be Acted Upon**

To the knowledge of the directors and executive officers of MDA Space, other than the election of directors, none of the directors or executive officers of MDA Space who have been a director or executive officer at any time since the beginning of MDA Space's last financial year, none of the proposed nominees for election as directors of MDA Space, and no associate or affiliate of any of the foregoing, have any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Meeting.

**Interest of Informed Persons in Material Transactions**

Except as set out herein, no informed person of MDA Space, any proposed director of MDA Space, or any associate or affiliate of any informed person or proposed director has any material interest, direct or indirect, in any transaction since the commencement of MDA Space's most recently completed financial year or in any proposed transaction which has materially affected or would materially affect MDA Space or any of its subsidiaries.

**Corporate Governance Disclosure**

Our Board and management are dedicated to strong corporate governance practices designed to maintain high standards of oversight, accountability, integrity and ethics while promoting long-term growth. In accordance with the corporate governance guidelines set out under National Instrument 58-101 – *Disclosure of Corporate Governance Practices* ("**NI 58-101**") and National Policy 58-201 – *Corporate Governance Guideline*, the following is a summary of the governance practices of MDA Space.

**Governance Highlights**

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| | |
|:---|:---|
| &nbsp;&nbsp;**Governance Element** | &nbsp;&nbsp;**MDA Space Current Practice** |
| &nbsp;&nbsp;Board size | &nbsp;&nbsp;9 directors. |
| &nbsp;&nbsp;Board independence | &nbsp;&nbsp;8 (88.9%) directors are independent. |
| &nbsp;&nbsp;Gender diversity | &nbsp;&nbsp;3 (33.3%) directors identify as female. |
| &nbsp;&nbsp;Independent committees | &nbsp;&nbsp;All committees are 100% independent. |
| &nbsp;&nbsp;Independent board and committee meetings | &nbsp;&nbsp;Unless otherwise determined by our Board, to enhance independent judgement, independent directors hold *in camera* sessions at the conclusion of all regularly scheduled Board and committee meetings. |
| &nbsp;&nbsp;Board meetings and attendance | &nbsp;&nbsp;10 meetings held in 2024. |
| &nbsp;&nbsp;Audit Committee meetings and attendance | &nbsp;&nbsp;4 meetings held in 2024. 4 members. |
| &nbsp;&nbsp;Nominating & Governance Committee meetings and attendance | &nbsp;&nbsp;4 meetings held in 2024. 3 members. |
| &nbsp;&nbsp;Human Resources, Development & Compensation Committee meetings and attendance | &nbsp;&nbsp;4 meetings held in 2024. 3 members. |
| &nbsp;&nbsp;Voting standard for board elections | &nbsp;&nbsp;Annually by a majority of votes cast. |
| &nbsp;&nbsp;Majority voting policy | &nbsp;&nbsp;Yes. |

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MDA MANAGEMENT INFORMATION CIRCULAR 27

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| | |
|:---|:---|
| &nbsp;&nbsp;**Governance Element** | &nbsp;&nbsp;**MDA Space Current Practice** |
| &nbsp;&nbsp;Annual board assessments | &nbsp;&nbsp;Yes, the Nominating & Governance Committee annually assesses the performance and effectiveness of our Board, its committees and each individual member of our Board. In 2024, the Nominating & Governance Committee conducted its annual evaluation and assessment of our Board and its committees. The Nomination & Governance Committee reviewed the results of the assessment for the 2024 financial year, and reported results and recommendations to our Board resulting from the assessment. |

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MDA Space's strong corporate governance practices are reflected in our approach and application of policies and practices, some of which are outlined below.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Guidance** | &nbsp;&nbsp;**Reference <br> in Circular** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Application** |
| &nbsp;&nbsp;Code of Business Conduct and Ethics (the "**Code**") | &nbsp;&nbsp;See p. 33 | &nbsp;&nbsp;Sets out our Board's expectations for MDA Space's directors, officers and employees in their dealings on behalf of MDA Space. | &nbsp;&nbsp;Our Board monitors compliance with the Code by delegating responsibility for investigating and enforcing matters related to the Code to the Chair of the Audit Committee of MDA Space. |
| &nbsp;&nbsp;Majority Voting Policy | &nbsp;&nbsp;See p. 12 | &nbsp;&nbsp;Annual election of directors by shareholders.<br>Shareholders will vote for the election of individual directors rather a fixed slate.<br>Any director who receives a greater number of votes withheld must tender resignation. | &nbsp;&nbsp;Each director received a majority of the votes cast at the last meeting in 2024. |
| &nbsp;&nbsp;Say-On-Pay Vote | &nbsp;&nbsp;See p. 26 | &nbsp;&nbsp;Asks shareholders to cast an advisory, non-binding vote on the Company's approach to executive compensation. | &nbsp;&nbsp;As this is an advisory vote, the results will not be binding upon the Board. However, the Board will take the results of the vote into account, as appropriate, when considering future compensation policies, procedures and decisions and in determining whether there is a need to significantly increase their engagement with shareholders on compensation and related matters. |
| &nbsp;&nbsp;Director Independence | &nbsp;&nbsp;See p. 31 | &nbsp;&nbsp;Determination of independence of Board members.<br>Open and candid discussion among independent directors to facilitate independent judgment. | &nbsp;&nbsp;8 of 9 directors are deemed to be independent.<br>All committees are comprised entirely of independent directors.<br>Each Board meeting agenda includes *in camera* sessions; with only the independent directors in attendance. |

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MDA MANAGEMENT INFORMATION CIRCULAR 28

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Guidance** | &nbsp;&nbsp;**Reference <br> in Circular** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Application** |
| &nbsp;&nbsp;Board Responsibilities | &nbsp;&nbsp;See p. 31 | &nbsp;&nbsp;Written charters setting out Board and Committee mandates. | &nbsp;&nbsp;Our Board is responsible for supervising the management of MDA Space's business and affairs. |
| &nbsp;&nbsp;Board Meetings | &nbsp;&nbsp;See p. 32 | &nbsp;&nbsp;Board meets not less than four times a year. | &nbsp;&nbsp;Board met 10 times in 2024. |
| &nbsp;&nbsp;Position Descriptions | &nbsp;&nbsp;See p. 32 | &nbsp;&nbsp;Written position descriptions for each of the Chair of the Board, the Chair of the Audit Committee, Chair of the Nominating & Governance Committee, Chair of the Human Resources, Development & Compensation Committee and the Lead Director. | &nbsp;&nbsp;Sets out clear requirements and responsibilities of each such position. |
| &nbsp;&nbsp;Director Education | &nbsp;&nbsp;See p. 32 | &nbsp;&nbsp;Orientation and education programs designed to ensure directors are educated on their role and expected contributions, MDA Space's business and operations and current industry trends and developments. | &nbsp;&nbsp;Each new director receives specific orientation materials.<br>Ongoing education sessions on MDA Space's business and industry, among other subjects, are regularly held at Board meetings.<br>Board members are provided access to external memberships and resources as appropriate. |
| &nbsp;&nbsp;Board Assessment | &nbsp;&nbsp;See p. 35 | &nbsp;&nbsp;Nominating & Governance Committee assesses the performance and effectiveness of our Board. | &nbsp;&nbsp;Annual Board evaluation survey completed, reviewed and results reported. |
| &nbsp;&nbsp;Succession Planning | &nbsp;&nbsp;See p. 36 | &nbsp;&nbsp;Our Board, with the assistance of the HRDCC, oversees ordinary course succession planning for the CEO and, together with the CEO, for other executive officers.<br>Our Board, with the assistance of the Nominating & Governance committee engages in emergency succession planning for the CEO. | &nbsp;&nbsp;The HRDCC, on behalf of the Board, oversees ordinary course succession planning for the CEO role.<br>At least annually, the Nominating & Governance committee reviews and updates the emergency succession planning process for the CEO. |
| &nbsp;&nbsp;Environmental, Social and Governance (ESG) | &nbsp;&nbsp;See p. 36 | &nbsp;&nbsp;To align ESG with matters of importance to MDA Space's business and stakeholders. | &nbsp;&nbsp;Board governance of ESG matters is formalized within the Nominations and Governance Committee's Charter.<br>Strategic focus and leadership of ESG initiatives is also provided by a cross-functional ESG Working Group comprised of members of the company's senior management. |

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MDA MANAGEMENT INFORMATION CIRCULAR 29

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Guidance** | &nbsp;&nbsp;**Reference <br> in Circular** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Application** |
| &nbsp;&nbsp;Strategic Management Oversight | &nbsp;&nbsp;See p. 39 | &nbsp;&nbsp;Key responsibility of our Board includes overseeing and contributing to strategic planning, including as part of our annual strategic planning process. | &nbsp;&nbsp;Strategic oversight is carried out by our Board at regular Board meetings as well as at an annual Board meeting dedicated solely to strategic planning. Our Board also receives regular updates from senior management regarding execution on our strategic plan. |
| &nbsp;&nbsp;Risk Management Oversight | &nbsp;&nbsp;See p. 39 | &nbsp;&nbsp;To achieve a proper balance between risks incurred and the potential return to shareholders and other stakeholders, and ensure effective monitoring and management of risks. | &nbsp;&nbsp;Key responsibility of our Board includes ensuring there are systems in place which effectively monitor and manage risks with a view of long-term viability of MDA Space. Our Board relies on senior management to supervise day-to-day risk management. |
| &nbsp;&nbsp;Share Ownership Guidelines | &nbsp;&nbsp;See pp.59 and 73 | &nbsp;&nbsp;Aligns the interests of directors and executives with those of shareholders.<br>Applies to each Director and executive officer reporting to the CEO. | &nbsp;&nbsp;All independent directors are in compliance with the share ownership guidelines. 6 of 8 independent directors satisfy the required level of share ownership and 2 of 8 independent directors are on track and have additional time to comply.<br>Each of our NEOs has either met their ownership guidelines or has additional time to comply. See p. 62 for the list of NEOs. |
| &nbsp;&nbsp;Conflicts of Interest | &nbsp;&nbsp;See p. 25 | &nbsp;&nbsp;Directors and officers are obligated to act at all times in good faith and in the interest of MDA Space and to disclose any conflicts. | &nbsp;&nbsp;There are no existing potential conflicts of interest among the Directors. |
| &nbsp;&nbsp;Disclosure and Confidential Information Policy | &nbsp;&nbsp;See p. 38 | &nbsp;&nbsp;Ensures oversight and monitoring of public disclosure processes and practices and reports.<br>Ensures protection of confidential information. | &nbsp;&nbsp;Our Board reviewed and approved all key public disclosure documents prior to their release. |
| &nbsp;&nbsp;Anti-Corruption Policy | &nbsp;&nbsp;See p. 38 | &nbsp;&nbsp;Establishes our commitment to comply fully with relevant Anti-Corruption legislation. | &nbsp;&nbsp;Bribes, kickbacks or other questionable inducements directly or indirectly to government officials to influence business are prohibited. |

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MDA MANAGEMENT INFORMATION CIRCULAR 30

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Guidance** | &nbsp;&nbsp;**Reference <br> in Circular** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Application** |
| &nbsp;&nbsp;Anti-Harassment Policy | &nbsp;&nbsp;See p. 38 | &nbsp;&nbsp;Establishes our commitment to anti-harassment. | &nbsp;&nbsp;Protects employees, consultants, contractors and applies to customers, suppliers and members of the public who interact with MDA Space. Protects those who act in good faith from retaliation. |
| &nbsp;&nbsp;Whistleblower Policy | &nbsp;&nbsp;See p. 38 | &nbsp;&nbsp;Confidential access to the Audit Committee Chair to report any alleged violations or complaints. | &nbsp;&nbsp;Anonymous, third-party whistleblower hotline is available to all employees, customers, partners and third parties to confidentially report concerns or cases of misconduct. |
| &nbsp;&nbsp;Insider Trading Policy | &nbsp;&nbsp;See p. 38 | &nbsp;&nbsp;Prohibits trading in our securities while in possession of material undisclosed information about MDA Space. | &nbsp;&nbsp;All directors, executive officers (including the named executive officers) and certain employees are deemed insiders.<br>Insiders can trade in MDA Space securities only during prescribed trading windows, as set out in our Insider Trading Policy.<br>Insiders are prohibited from entering into certain types of hedging transactions involving MDA Space securities. |

---

**Director Independence**

In accordance with NI 58-101, our Board considers a director to be "independent" if he or she has no direct or indirect material relationship with MDA Space or our subsidiaries, as determined by our Board in consultation with the Nominating & Governance Committee. A "material relationship" is a relationship which could, in the view of our Board, be reasonably expected to interfere with the exercise of a director's independent judgment.

Based on the definition of independence and a review of the applicable factual circumstances (including financial, contractual and other relationships), our Board has determined that eight of the nine nominees are independent. Our Board has determined Michael Greenley is not considered independent on the basis that he is the Chief Executive Officer of MDA Space.

Our Board recognizes the importance of independent leadership on our Board, and appointed Brendan Paddick, independent director, as Chair. If at any time the Chair of our Board is not independent, our Board will appoint an independent director as a Lead Director and consider other possible steps and processes to ensure that independent leadership is provided for our Board.

Our Board believes that given our size and structure, including the fact that a majority of our directors are independent, we are able to facilitate independent judgment in carrying out our responsibilities and will continue to do so going forward. To enhance such independent judgment, the independent members of our Board held *in camera* meetings without members of management and the non-independent directors present, at each set of quarterly Board meetings and at every regularly scheduled Committee meeting (a combined total of 12 Committee meetings, in 2024).

MDA MANAGEMENT INFORMATION CIRCULAR 31

**Board Responsibilities**

Our Board is responsible for supervising the management of MDA Space's business and affairs. The mandate of our Board is set out in the Charter of the Board (the "**Board Charter**"), which is attached as Appendix A to this Circular. Our Board's key responsibilities are outlined below.

· **Culture of Integrity** - Our Board oversees MDA Space's Code of Conduct and Business Ethics
 and is responsible for satisfying itself as to the culture of integrity throughout MDA Space
 and for promoting a corporate culture that is based on ethical values and behaviours.

· **Strategic Planning** - Our Board reviews and approves MDA Space's long-term goals and strategic
 and financial plans, and monitors their effectiveness. At each meeting, our Board holds detailed
 discussions on strategy and the implementation of MDA Space's strategic plan and priorities.

· **Risk Management** - Our Board oversees MDA Space's risk profile and processes to identify,
 measure, monitor and mitigate MDA Space's principal business risks.

· **Internal Control** - Our Board oversees the integrity and effectiveness of MDA Space's internal
 controls and management information systems.

· **Human Resources Management** - With support from the Human Resources, Development &
 Compensation Committee, our Board oversees MDA Space's human resources strategy, including
 compensation philosophy, talent and incentive awards and succession planning.

· **Corporate Governance** - The Nominating & Governance Committee reviews current and developing
 corporate governance practices, including environmental, social and governance, best practices
 and refines MDA Space's corporate governance policies, as appropriate. The Nominating &
 Governance Committee makes recommendations to our Board to enhance corporate governance and
 Board effectiveness and to ensure our Board's continued independence.

· **Leadership Development and Succession Planning** - Our Board provides oversight of performance assessment
 and ordinary course succession planning for the Chief Executive Officer and, together with
 the Chief Executive Officer, for other executive officers.

**Board Meetings**

Our Board meets at least four times per year, including at least once in each quarter to carry out its responsibilities under its charter, including a review of our business operations and financial results. Our Board meets as many additional times as deemed necessary to carry out its duties. At each Board meeting, unless otherwise determined by our Board, an *in camera* meeting of independent directors takes place and such *in camera* sessions are chaired by the Chair of the Board or Lead Director if the Chair is not independent within the meaning of National Instrument 52-110 – *Audit Committees* ("**NI 52-110**").

Our Board appreciates having certain members of senior management attend each Board meeting to provide information and opinions to assist the members of our Board in their deliberations. Management attendees who are not Board members are excused for any agenda items which are reserved for discussion among directors only.

**Position Descriptions**

Our Board has adopted written position descriptions for each of the Chair of the Board, the Chair of the Audit Committee, Chair of the Nominating & Governance Committee, Chair of the Human Resources, Development & Compensation Committee and the Lead Director. Each position description sets out, without limitation, the requirements and responsibilities of each such position. Our Board also annually reviews the Chief Executive Officer's goals, objectives and compensation for the upcoming year.

**Orientation and Continuing Education**

Our Board oversees an appropriate orientation for new Board members in order to familiarize them with MDA Space and our business (including our reporting and organizational structure, strategic plans, significant financial, accounting and risk issues, compliance programs and policies, management and the external auditors), the role of our Board and its committees and the contribution that an individual director is expected to make to our Board, its

MDA MANAGEMENT INFORMATION CIRCULAR 32

committees (as applicable) and MDA Space. New directors are also provided with appropriate background materials pertaining to our business operations and plans, strategy and financial position and are given the opportunity to meet with senior management in order to facilitate a smooth transition into their role as a director of MDA Space.

Our Board also coordinates the development of continuing education activities or programs for directors, from time to time as appropriate, including, without limitation, continuing education to assist directors to maintain or enhance their skills and abilities as directors, and assist directors in ensuring that their knowledge and understanding of MDA Space and our business remains current. Additionally, MDA Space is a corporate member of the Institute of Corporate Directors ("**ICD**"). The ICD membership includes an individual membership for each director and our executive team and provides access to resources, education and professional development programs on corporate governance, board effectiveness and other matters.

In addition, Board members are expected to keep themselves current with industry trends and developments and are encouraged to communicate with management and, where applicable, auditors, advisors and other consultants of MDA Space. Board members have access to MDA Space's in-house and external legal counsel in the event of any questions or matters relating to our Board members' corporate and director responsibilities and to keep themselves current with changes in legislation. Board members also have full access to MDA Space's records.

As part of our continuing education efforts, management provides our Board with an in-depth review of each of our business areas, as well as our industry more generally, at each of our regular Board meetings. The Board and its Committees also receive relevant updates from management on developments related to corporate governance, disclosure requirements, changes in law and technology and industry developments. Throughout 2024, MDA Space's management team conducted or organized numerous education sessions for our Board, with internal and external speakers, including sessions on topics relating to artificial intelligence, capital market considerations, cybersecurity and satellite technology development.

**Ethical Business Conduct**

Our Board has adopted the Code for MDA Space's directors, officers and employees that sets out our Board's expectations for the conduct of such persons in their dealings on behalf of MDA Space. The Code establishes confidential reporting procedures, either internally or through MDA Space's anonymous, independently administered, third-party hotline service, in order to encourage employees, directors and officers to raise concerns regarding matters addressed by the Code on a confidential basis free from discrimination, retaliation or harassment. Employees who violate the Code may face disciplinary actions, including dismissal.

Our Code is designed to deter wrongdoing and promote honest and ethical conduct, the avoidance of conflicts of interests, confidentiality of corporate information, protection and proper use of corporate assets and opportunities and compliance with applicable governmental laws, rules and regulations. Our Code mandates the prompt reporting of any violations of the Code and has been designed to promote MDA Space's culture of transparency and accountability.

Our Board monitors compliance with the Code by delegating responsibility for investigating and enforcing matters related to the Code to the Chair of the Audit Committee of MDA Space or his/her designate (the "**Investigator**"), who may enlist the assistance of Company personnel, legal counsel, accounting, external investigators or other advisors as deemed appropriate to conduct the investigation and evaluation of any complaint. The relevant Investigator(s) will report to the Audit Committee (and, where appropriate, to the Board) on a quarterly basis with respect to the investigation and evaluation of a complaint, as well as on any proposed remedial action or disciplinary action. The action determined by the Audit Committee to be appropriate under the circumstances will then be brought to the Board or to the appropriate member(s) of senior management for authorization and implementation. The Chair of the Audit Committee will maintain a log of all complaints that are received, tracking their receipt, investigation, resolution, and any applicable corrective action to be taken. Any employee who becomes aware of a violation of the Code is required to report the violation either directly to their supervisor, manager or Human Resources business partner, or confidentially and anonymously through our independently administered, third-party hotline service. Directors and executive officers are required by applicable law and the Code to promptly disclose any potential conflict of interest that may arise. If a director or executive officer has a material interest in an agreement or transaction, the Code and principles of sound corporate governance require them to declare the

MDA MANAGEMENT INFORMATION CIRCULAR 33

interest in writing or request to have such interest entered in the minutes of meetings of directors and, where required by applicable law, abstain from voting with respect to the agreement or transaction. The Nominating & Governance Committee is responsible for monitoring such conflicts of interest under the Code. Our Board delegates the communication of the Code to employees and to management who will be expected to encourage and promote a culture of ethical business conduct.

The Code of Conduct has been filed with the Canadian securities regulatory authorities on SEDAR+ at <u>www.sedarplus.ca</u>.

**Nomination of Directors**

When directorships become vacant, or it is anticipated that they will be vacated, the Nominating & Governance Committee is responsible for identifying and recommending suitable candidates to be directors of MDA Space. In seeking suitable candidates to be directors, the Nominating & Governance Committee, all of whose members are independent directors, seeks individuals qualified (in the context of the needs of MDA Space and any formal criteria established by our Board) to become members of our Board for recommendation to our Board. Recommendations concerning director nominations are to be, foremost, based on merit, performance and experience.

When new directors are considered for appointment to our Board, diversity is also to be taken into consideration, as it is beneficial that a diversity of backgrounds, views and experiences be present on our Board, having regard to, among other attributes, gender, status, age, business experience, professional expertise, education, nationality, race, culture, language, personal skills and geographic background (see "Corporate Governance Disclosure – Diversity").

**Committees of the Board of Directors**

The directors have established three committees: the Audit Committee, the Nominating & Governance Committee and the Human Resources, Development & Compensation Committee. Key responsibilities of each committee are outlined below.

MDA MANAGEMENT INFORMATION CIRCULAR 34

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Audit Committee** | &nbsp;&nbsp;**Nominating & Governance <br> Committee** | &nbsp;&nbsp;**Human Resources, Development<br> & Compensation Committee** |
| &nbsp;&nbsp;· Oversee MDA Space's financial controls and reporting<br>· Monitor whether MDA Space complies with financial covenants and legal and regulatory requirements governing financial disclosure matters and financial risk management<br>· Review, monitor and report on MDA Space's major enterprise and financial risk exposures and guidelines, policies and practices regarding financial risk assessment and management, including MDA Space processes for strategic risks (including those related to information security, cyber-security and data protection) | &nbsp;&nbsp;· Oversee and evaluate MDA Space's governance and nominating policies<br>· Assess the effectiveness of our Board, each of its committees and individual directors<br>· Oversee the recruitment and selection of director candidates to be nominated by MDA Space<br>· Review and make recommendations to our Board concerning the size, composition and structure of our Board and its committees<br>· Oversee and review MDA Space's ESG strategy and implementation, consistent with MDA Space's corporate purpose, vision and values<br>· Monitor Board diversity, including the level of female representation, and consider recruiting qualified diverse candidates | &nbsp;&nbsp;· Oversee policies and programs related to human resources at MDA Space<br>· Review and make recommendations to variable compensation or incentive plans of MDA Space<br>· Assess the performance of the CEO, and, together with the CEO, the performance of the other NEOs<br>· Review and make recommendations to our Board concerning the level and nature of compensation payable to the CEO<br>· Review and, where applicable, approve the recommendations of the CEO concerning the compensation payable to the other NEOs<br>· Review overall strategy in respect of Diversity and Inclusion and monitor diversity among senior management |

---

**Audit Committee**

MDA Space's Audit Committee currently consists of Karl Smith (Chair), Darren Farber, Brendan Paddick and Yung Wu, each of whom is and must at all times be financially literate. All of our Audit Committee members are considered independent within the meaning of NI 52-110. In addition to each member's general business experience, the relevant education and experience of each member of the Audit Committee is described as part of their respective biographies herein and in MDA Space's current annual information form ("**AIF**") dated March 7, 2025 under "Directors and Executive Officers". The AIF is available on MDA Space's profile on SEDAR+ at www.sedarplus.ca. Each of the Audit Committee members has adequate education and/or experience that will be relevant to their performance as an Audit Committee member, including broad experience reviewing financial statements and dealing with related accounting and auditing issues. This includes Karl Smith, the new Chair of our Audit Committee, who has experience as a chartered public accountant and has held a variety of relevant finance roles over the past thirty years including as Executive Vice President and Chief Financial Officer of Fortis Inc., a company listed on the Toronto Stock Exchange.

Our Board has adopted a written Charter for the Audit Committee, which sets out the Audit Committee's responsibilities, including, without limitation, reviewing and approving the financial statements of MDA Space and public disclosure documents containing financial information and reporting on such review to our Board, ensuring that adequate procedures are in place for the reviewing of MDA Space's public disclosure documents that contain financial information, overseeing the work and reviewing the independence of the external auditors, reviewing and monitoring MDA Space's internal controls systems, oversight of MDA Space's enterprise risk management framework, and oversight of internal audit activity.

MDA MANAGEMENT INFORMATION CIRCULAR 35

The members of the Audit Committee are appointed annually by our Board, and each member of the Audit Committee serves at the request of our Board until the member resigns, is removed, or ceases to be a member of our Board.

All non-audit services to be provided by MDA Space's external auditor are required to be pre-approved by the Audit Committee.

Reference is made to the AIF for information relating to the Audit Committee, as required under Form 52-110F1 – *Audit Committee Information Required in an AIF*. The AIF also includes a copy of the Charter of the Audit Committee. Upon request, MDA Space will provide a copy of the AIF free of charge to a securityholder of MDA Space.

**Nominating & Governance Committee**

Our Nominating & Governance Committee currently consists of Jill Smith (Chair), John Risley and Yaprak Baltacioğlu, each of whom is independent within the meaning of NI 52-110. The relevant education and experience of each member of the Nominating & Governance Committee is described as part of their respective biographies herein and in MDA Space's current AIF. The primary mandate of the Nominating & Governance Committee is to (i) assess the effectiveness of our Board, each of its committees and individual directors; (ii) oversee the recruitment and selection of director candidates to be nominated by MDA Space; (iii) design an orientation and education program for new directors; (iv) consider and approve proposals by the directors to engage outside advisors on behalf of our Board as a whole or on behalf of the independent directors; (v) review and make recommendations to our Board concerning the size, composition and structure of the Board and its committees; (vi) review and make recommendations to our Board concerning the level and nature of the compensation payable to directors; (vii) maintain oversight of MDA Space's environmental, social and governance strategy plan, practices, related policies, and disclosure with respect to same; and (viii) advise our Board on enhancing MDA Space's corporate governance including in respect of environmental, social & governance matters, through a continuing assessment of MDA Space's approach to corporate governance.

Our Board has established a written charter setting forth the purpose, composition, authority and responsibility of the Nominating & Governance Committee consistent with MDA Space's corporate governance guidelines. The members of the Nominating & Governance Committee are appointed annually by our Board, and each member of the Nominating & Governance Committee serves at the request of our Board until the member resigns, is removed, or ceases to be a member of our Board. Each member of the Nominating & Governance Committee must be independent within the meaning of NI 52-110.

**Human Resources, Development & Compensation Committee**

Our Human Resources, Development & Compensation Committee (the "**HRDCC**") currently consists of Yaprak Baltacioğlu (Chair), Alison Alfers and Jill Smith, each of whom is independent within the meaning of Section 1.4 of NI 52-110. The relevant education and experience of each member of the HRDCC is described as part of their respective biographies herein and in our current AIF. The primary mandate of the HRDCC is to (i) review and make recommendations to variable compensation or incentive plans of MDA Space; (ii) assess the performance of the CEO, and together with the CEO, the performance of other NEOs; (iii) review and make recommendations to our Board concerning the level and nature of compensation payable to the Chief Executive Officer; (iv) review and, where applicable, approve the recommendations of the CEO concerning the compensation payable to the other NEOs; and (v) review and approve the compensation paid by MDA Space, if any, to advisors of the HRDCC.

Our Board has established a written charter setting forth the purpose, composition, authority and responsibility of the HRDCC consistent with MDA Space's corporate governance guidelines. The members of the HRDCC are appointed annually by our Board, and each member of the HRDCC serves at the request of our Board until the member resigns, is removed, or ceases to be a member of our Board. Each member of the HRDCC must be independent within the meaning of NI 52-110.

**Board Assessment**

Our Nominating & Governance Committee annually assesses the performance and effectiveness of our Board, its committees and each individual member of our Board. In 2024, the Nominating & Governance Committee

MDA MANAGEMENT INFORMATION CIRCULAR 36

conducted its annual evaluation and assessment of our Board and its committees. The Nomination & Governance Committee reviewed the results of the assessment for the 2024 financial year, and reported results and recommendations to our Board resulting from the assessment.

**Director Term Limits and Other Mechanisms of Board Renewal**

Our Board has considered the matters of term limits and mandatory retirement. At this time, our Board does not believe that these types of policies are necessary. Our Board believes that its self-evaluation process combined with input from an external third-party governance firm is an effective and transparent manner to ensure that MDA Space's directors add value and remain strong contributors.

**Succession Planning**

Succession planning is critical to MDA Space's long-term sustainable growth and is an ongoing process. In 2024, consistent with the standards of good governance, MDA Space's Board, through direct action of the HRDCC, within its accountability to ensure robust succession planning of key executive roles, discussed the Chief Executive Officer succession plan. At least annually, the Nominating & Governance Committee reviews and updates the emergency succession planning process for the CEO.

Additionally, ordinary course succession planning for key executive leadership roles is discussed among the HRDCC, the CEO and the Chief People, Culture and Transformation Officer in order to secure a balanced and diverse bench of future leaders to support the sustainable growth of MDA Space. This includes preparing for planned and unplanned executive transitions arising from business changes, employee movements, retirements, and voluntary and involuntary exits. Through board and committee meetings, Board members have direct exposure to numerous senior leaders across the organization to gain visibility into the MDA Space leadership pipeline.

The HRDCC also oversees MDA Space's human resources policies and practices that enable senior management to review the performance of their team members and to develop plans to invest in leadership capabilities. In 2024, MDA Space held a three day Leadership Forum, bringing together the most senior leaders across the Company to discuss strategy and objectives and also to drive alignment, connection and capabilities as enterprise leaders.

**Environmental, Social and Governance ("ESG")**

One of our core values at MDA Space is to "do the right thing". We act ethically in all that we do, take ownership of our work and responsibility for the outcomes. As a core part of our business, we contribute to impactful environmental and social initiatives that are important to MDA Space and our stakeholders.

Through our capabilities, MDA Space gathers imagery and data that is used for environmental monitoring including natural disaster and response management, tracking ice floes and shoreline erosion, deforestation, illegal, unreported and unregulated ("IUU") fishing and providing maritime protection awareness.

Of the 50 Essential Climate Variables identified by the World Meteorological Organization to monitor climate change, 26 variables can only be effectively observed from space. MDA Space plays an essential role in delivering data and insights to inform decisions that protect people and the planet.

According to the United Nations, IUU fishing is the planet's 6th largest crime, with 20% of the over 90 million tonnes of fish caught globally each year being captured illegally. MDA Space is active every day in the fight against IUU fishing, providing near real-time monitoring of fishing. Our Company has worked with Canadian and international agencies for years to provide actionable maritime intelligence data that addresses dark vessel detection and supports maritime enforcement initiatives.

Our technology also supports search and rescue efforts and facilitates space-based science, such as NASA's OSIRIS-REx mission that in 2023 returned physical samples from asteroid Bennu, providing researchers unprecedented insight into Earth origins from a time about 4.5 billion years ago when our planet was forming.

In 2024, MDA Space continued to make steady progress to build a sustainable and long-term ESG foundation in our organization, including formalizing ESG governance in the charter of our Board of Directors Nominations and Governance Committee.

Our identified ESG efforts are focused on addressing critical MDA Space business risks and opportunities.

MDA MANAGEMENT INFORMATION CIRCULAR 37

**Environmental**

Our operations are regulated under various federal, provincial, municipal, and international laws governing the environment, including laws related to the discharge of pollutants into the soil, air and water, the management and disposal of hazardous substances and wastes, and the cleanup of contaminated sites.

MDA Space operations comply with applicable environmental regulations and aim to continuously improve our environmental practices. In 2024, MDA Space completed the Company's first enterprise-wide greenhouse gas (GHG) emissions baseline assessment and submitted our data to the Carbon Disclosure Project (CDP).

**Social**

In 2024, MDA Space launched our first company-wide employee engagement survey providing all employees with a meaningful opportunity to contribute to our continued development of a high performance and inclusive culture. 75% of employees participated in the survey, sharing their personal and professional perspectives on engagement, leadership effectiveness and company culture, highlighting key strengths within the organization and identifying areas to drive further action and improvements.

In 2024, we expanded our benefits program with enhancements to our maternity leave and mental health support. We also introduced improvements to our total rewards program that support the financial well-being of our employees, including an Employee Share Purchase Plan with employer matching contributions, and enhancements to retirement benefits.

**Diversity**

We are committed to Diversity and Inclusion in line with our core values. We believe greater diversity drives a stronger corporate culture, deeper talent pool, and market-leading innovation that delivers better business outcomes for our customers and our organization. We are investing in opportunities that enable all employees to reach their full potential and thrive at MDA Space.

Ensuring inclusive hiring practices within our processes allow us to attract the best talent from a diverse pool of candidates. Operationally, to support our rapid growth while enabling a diverse candidate pool, our talent acquisition team have been certified in diversity sourcing under the Advanced Internet Recruitment Strategy (AIRS) Certified Diversity and Inclusion program. In addition, unconscious bias training was implemented across our talent acquisition team, and a corresponding training module was introduced as part of our performance management process.

In 2024, to further engage Indigenous communities, MDA Space introduced a new MDA Space Indigenous Student Scholarship program. The Company also joined the Canadian Council for Indigenous Business to increase opportunities to engage with Indigenous-led businesses. MDA Space also has multiple employee resource groups in several of our locations representing Women, Black employees, and 2SLGBTQIA+ employees.

**Board of Directors**

Our Board is composed of qualified professionals who have the requisite industry, financial and commercial experience and expertise to fulfill the board's mandate. Our current directors have a broad range of skills and experiences that have been highlighted in the director profiles skills matrix. We believe that an important part of our board effectiveness includes the unique perspectives of our directors resulting from the combination of diverse backgrounds, having regard to, among other attributes, gender, status, age, business experience, professional expertise, education, nationality, race, culture, language, personal skills and geographic background.

Currently, three of the nine directors (33.3%) identify as women. MDA Space has not yet adopted a written board diversity policy; however, the Nominating & Governance Committee continuously monitors diversity on our Board, as part of our overall recruitment and selection process to fill Board positions, as the need arises, through vacancies, growth or otherwise.

Additionally, the Human Resources, Development & Compensation Committee incorporates diversity as part of their consideration in appointments of executive officers and within ordinary course succession planning.

MDA MANAGEMENT INFORMATION CIRCULAR 38

**Management**

In 2024, our Chief Executive Officer was appointed as the executive sponsor of Diversity and Inclusion initiatives globally. Currently, three of seven executive officers (43%) identify as women and two out of three commercial Business Areas are led by women. In 2024, MDA Space was acknowledged by the Globe and Mail's Report on Business magazine as a Women Lead Here organization, which highlights Canadian businesses that are leading in executive team gender diversity.

**Employees**

Based on our most recent self-reported confidential demographic disclosure, 29% of employees identify as women, 41% identify as a member of a racial or ethnic group, and 6% identify as a member of the 2SLGBTQIA+ community.

MDA Space has a highly educated workforce, with 46% of employees identifying with a Bachelor's degree, 26% of employees with a Master's degree, and 7% of employees with a Doctorate level degree. Our total workforce is made up of four different generations (Baby Boomers, X, Millennials, Z) with millennials representing 40% of our total population.

**Health and Safety (H&S)**

With advanced manufacturing facilities in multiple operational locations, MDA Space places a high priority on health and safety (H&S). Dedicated personnel in our primary manufacturing facilities in Brampton, Ontario and Montreal, Quebec actively review, revise, and implement H&S policies and procedures. In 2024, several focused H&S initiatives were implemented in line with the significant new investments we are making to expand and modernize our facilities. Highlights include a risk assessment of newly built labs to inform and revise multiple H&S policies and procedures, the development of a new Emergency Response Plan, efforts to accommodate ergonomic requirements of our employees, and partnering with MDA Space contractors to ensure the safety of all individuals working on our premises.

**Cybersecurity**

We prioritize the effective management of cybersecurity risks through a strategy focused on identifying, assessing, and responding to cybersecurity vulnerabilities, threats and incidents. Our primary objectives are to safeguard information assets, prevent their misuse or loss, and minimize business disruptions, through a comprehensive cybersecurity program intended to detect, analyze, contain and address cybersecurity risk exposures, threats and incidents.

Our Board devotes significant time and attention to information security and risk management, including cybersecurity, data privacy, and regulatory compliance. Our Audit Committee is mandated to provide cybersecurity oversight including ensuring regulatory compliance and appropriate risk management.

MDA Space has adopted the Cybersecurity Framework (CSF) developed by the National Institute of Standards and Technology (NIST) to ensure strong governance and consistent processes. We conduct mandatory cybersecurity and information security compliance training for all employees on a monthly basis, tracking completion and required attestations.

In 2024, MDA Space continued to enhance risk mitigation efforts, including process initiatives, rigorous systems and network monitoring, dashboard tracking, and other management systems improvements to address cybersecurity and insider threats. We also implemented a Third-Party Risk Management Program to assess our third-party suppliers and vendors. External security risk rating services are also used to measure the IT security rating of MDA Space.

**Governance**

We are committed to running our business ethically and responsibly and have a number of important policies to maintain our high level of business trust and integrity, including a Disclosure and Confidential Information Policy, Anti-Corruption Policy, Anti-Harassment Policy, Whistleblower Policy, Insider Trading Policy and a Code of Ethics and Business Conduct Policy. Further, MDA Space requires its employees to undergo annual training on ethical standards, including sessions on Ethics & Business Conduct, Anti-Corruption and Anti-Harassment. In addition, MDA Space conducts mandatory continuous security awareness training for its current and new employees in areas

MDA MANAGEMENT INFORMATION CIRCULAR 39

such as phishing, social engineering, and data security. We have also introduced a Supplier Code of Conduct that outlines our expectations within our supply chain, including, among other things, the protection of individuals working directly or indirectly with MDA Space from any form of forced labour, child labour, modern slavery and human trafficking.

In 2024, in addition to ESG governance being formalized within the Nominations and Governance Committee of the Board, a cross-functional Senior Management ESG Working Group was also established to provide strategic focus and oversight of the Company's global ESG initiatives.

**Shareholder Engagement**

MDA Space's management and Board are committed to engaging in an open and constructive dialogue with current and prospective shareholders and value feedback on a wide range of topics including strategy, operations, corporate governance, executive compensation and sustainability practices. We carefully consider shareholder feedback, advice from our independent compensation consultant, and input from proxy advisory firms in board discussions and deliberations throughout the year**.**

In Fiscal 2024, MDA Space's Board Directors Brendan Paddick, the Chair of our Board of Directors, and Yaprak Baltacioğlu, the Chair of our Human Resources, Development & Compensation Committee, engaged with many of our largest shareholders through virtual meetings to solicit feedback on a range of topics including executive compensation. Shareholders were generally supportive of our executive pay policies and practices. We received constructive feedback that we are currently considering and evaluating.

Additionally, this past year, MDA Space's management, including our CEO and CFO at the time, carried out approximately 190 engagements with institutional investors through both in-person and virtual meetings, which included meetings with 26 of our top 50 shareholders.

![](tm266080d2_ex4-4sp3img02.jpg)

MDA Space communicates and engages with shareholders and other stakeholders through a variety of channels including:

· Hosting
 quarterly earnings calls with financial analysts and institutional investors to present and
 review financial and operating results for the quarter. The calls are webcast and include
 a formal management presentation as well as question-and-answer session with financial analysts

· Regularly
 meeting with institutional investors and financial analysts to provide timely updates on
 MDA Space's business and operations

· Participating
 in industry and investor conferences in Canada, the United States and Europe

· Holding
 other *ad hoc* events such as site tours of MDA Space's facilities in Canada

· Hosting
 an annual general meeting of shareholders, which allows shareholders to use an Internet-enabled
 device to watch and listen to the meeting in real time, submit comments and questions as
 well as vote during the meeting

MDA MANAGEMENT INFORMATION CIRCULAR 40

· Issuing
 timely news releases, annual and quarterly reports, annual information forms, and management
 information circulars

We also post relevant and useful disclosures on our investor relations website at <u>mda-en.investorroom.com</u>.

MDA Space values shareholder, employee and other interested party opinions, concerns and feedback. We invite you to communicate directly with Board members either by email at <u>boardofdirectors@mda.space</u> or by mail at the address below (in an envelope marked "Confidential – Board of Directors").

MDA Space Ltd.<br> Attn: MDA Space Board of Directors<br> 7500 Financial Drive<br> Brampton, ON L6Y 6K7 Canada

**Strategic Management Oversight**

Generally, the Chief Executive Officer oversees MDA Space's strategic plan and has responsibility for the operation of MDA Space's business in accordance with such plan and the operating and capital expenditure budgets as previously approved by the Board. Our Board also plays an integral role in providing oversight of MDA Space's strategic growth plan. As part of our annual strategic planning process, our Board holds an annual strategic planning session during which the Board considers the strategic plans and priorities of each of our business areas, and for MDA Space as a whole. As part of these sessions, our Board conducts a review of the strategic plans presented to it by our senior management team and provides insight and guidance on these plans. In addition to these dedicated strategy sessions, our Board also receives regular updates from senior management regarding execution on our strategic plan at Board meetings and holds *in camera* sessions solely for independent directors at each regular Board meeting to discuss strategic matters and other significant developments within our business.

**Risk Oversight**

Our Board and its Committees are responsible for understanding the principal risks of the business in which MDA Space is engaged, achieving a proper balance between risks incurred and the potential return to shareholders and other stakeholders, and for ensuring that there are systems in place which effectively monitor and manage those risks with a view of long-term viability of MDA Space. While our Board relies on senior management to supervise day-to-day risk management, the Board remains accountable for the oversight of enterprise risk management and receives quarterly updates on the Company's enterprise risk management through the Audit Committee.

Under the Company's enterprise risk management process overseen by the Audit Committee, key risks to our business, together with possible mitigating strategies, are identified. We also manage risks through various internal processes, policies and controls which are embedded within our operations and are reviewed with our Board as appropriate.

A discussion of the primary risks facing MDA Space's business is included in the AIF available on our profile on SEDAR+ at <u>www.sedarplus.ca</u>.

MDA MANAGEMENT INFORMATION CIRCULAR 41

**Letter to Shareholders from Chair of Human Resources, Development & Compensation Committee**

**Dear Fellow Shareholders,**

On behalf of the Human Resources, Development and Compensation Committee ("**HRDCC**") of the MDA Space Board of Directors, I am pleased to share our approach to executive compensation, including frameworks and considerations we use to ensure a competitive executive compensation program that demonstrates strong pay-for-performance alignment and supports long-term value creation for shareholders.

**2024 Performance<sup>3</sup>**

In 2024, MDA Space delivered another year of strong growth and execution which helped further solidify our position as a trusted mission partner and leader in the expanding space industry. Our revenues grew to $1,080.1 million, up 33.7% year over year driven by strong contributions from our Satellite Systems and Robotics and Space Operations businesses. We achieved solid profitability with Adjusted EBITDA of $217.1 million, up 24.6% year over year,<sup>4</sup> and Adjusted EBITDA Margin of 20.1% driven by our team's execution. On the bottom line, Adjusted Net Income in 2024 increased to $111.1 million, up 13.5% compared to 2023. Order Bookings for the full year totalled an impressive $2.4 billion and backlog grew to $4.4 billion as of December 31, 2024, up 41.6% year over year, a record level for MDA Space that sets us up well for 2025 and beyond. On the operational front, we continued to execute well against our strategic growth plan and achieved multiple milestones across our business areas in 2024, positioning us well to capitalize on the demand we see in our end markets.<sup>5</sup>

As we reflect on a transformative year in 2024, the accomplishments of the executive leadership team underscore the ongoing commitment of MDA Space to innovation and excellence, ensuring that we remain at the forefront of the space industry. The strength of the executive leadership team was demonstrated through multiple third-party acknowledgements of business leadership including for Michael Greenley, who was named by the Globe and Mail as Canada's 2024 CEO Innovator of the Year and the 2023 Satellite Executive of the Year at the Satellite 2024 Conference. Our Company was also recognized for leadership in diversity with the *Women Lead Here* designation by the Globe and Mail's Report on Business Magazine, and as an innovation leader, ranking in the top 35 of Canada's top 100 corporate research and development spenders by *Research Infosource Inc.* for the second straight year.

Understanding that people are at the core of our Company's success, the HRDCC reviewed key elements of the MDA Space Human Resources strategy, including the inaugural employee engagement survey; Diversity and Inclusion progress; and talent acquisition plans and metrics in line with the Company's growth, among others. As the business has grown and matured, so has our ability to attract and retain key executive talent, reflected in the November 2024 appointment of Guillaume Lavoie as Chief Financial Officer MDA Space. Mr. Lavoie brings over 20 years of financial expertise from large publicly traded and privately owned companies with proven experience as a CFO and expertise across financial and business functions, including strategic and financial planning, mergers and acquisitions, investor relations, capital deployment, business transformation, and P&L ownership.

**Linking Pay with Performance**

At MDA Space, we are committed to adhering to best pay practices and maintaining transparency in our compensation programs. We regularly benchmark our executive compensation against industry peers to ensure competitiveness and alignment with market practices.

Our compensation philosophy supports our goals of driving a high-performance culture and shareholder value creation. Our executive compensation program is designed to retain, motivate and reward our executive officers for their performance and contribution to the short- and long-term success of MDA Space through a total

<sup>3</sup> For a detailed review of our operational performance, refer to our 2024 Management's Discussion and Analysis, a copy of which is available on MDA Space's profile on SEDAR+ at <u>www.sedarplus.ca</u>.

<sup>4</sup> Adjusted EBITDA of $217.1 million in 2024 up 24.6% year over year compared to adjusted EBITDA of $174.2 million in 2023.

<sup>5</sup> Adjusted EBITDA, Adjusted EBITDA Margin, Order Bookings and Adjusted Net Income are financial measures that are not calculated in accordance with IFRS. For a reconciliation to the most directly comparable measure calculated in accordance with IFRS, see the section entitled "Reconciliation of Non-IFRS Measures" in MDA Space's latest Management Discussion and Analysis available on SEDAR+ at <u>www.sedarplus.ca</u>, which is hereby incorporated by reference.

MDA MANAGEMENT INFORMATION CIRCULAR 42

compensation approach that includes salary, short-term incentive, and long-term equity including performance share units ("**PSUs**") and restricted share units ("**RSUs**"). With significant 'pay at risk' tied to overall company performance, our approach to total compensation motivates executive officers to successfully achieve challenging business and financial objectives and aligns their interests with long-term shareholder value creation.

In 2024, our Short-Term Incentive Plan ("**STIP**") focused on execution and operational efficiency, using three core financial metrics, Revenue and Adjusted EBITDA, each weighted 40%, and Order Bookings, weighted at 20%.

This year's corporate financial and operational performance resulted in the short-term incentive award target of 105%. This, along with the results of personal objectives for the named executives, resulted in STIP awards ranging from 104% to 108% of target. These results demonstrate the impact that our individual executives have on the achievement of our long-term success.

The Long-Term Incentive Plan ("**LTIP**") set in 2024 aligns compensation outcomes with our shareholder expectations through cumulative three-year business targets aligned to our strategic growth plan objectives, in addition to considerations for relative total shareholder return. We believe this plan will continue to drive long-term performance and results for MDA Space and MDA Space shareholders.

**Focus for 2025**

We welcome the opportunity to receive Shareholder feedback on our approach to executive compensation which we believe is valuable for continued transparency, accountability and for strengthening our corporate governance. In addition to persistent management engagement with shareholders, in 2024 our Chair of the Board, Brendan Paddick and I undertook a series of direct engagements with shareholders and received general support for our executive compensation program. To further formalize this practice, in 2025 we are introducing a shareholder 'Say-On-Pay' vote.

The HRDCC and the Board believe that 2024 compensation outcomes are appropriate and well-aligned with the performance of MDA Space over the past year. We will continue to evolve our program in 2025 with a consistent focus on performance and execution in alignment with value creation for our shareholders.

We want to thank you for your continued support and trust in MDA Space. We remain committed to upholding the highest standards of corporate governance and delivering superior returns by leveraging our diversified and differentiated portfolio of space technology and expertise.

Sincerely,

Yaprak Baltacioğlu<br> Chair of Human Resources, Development & Compensation Committee

MDA MANAGEMENT INFORMATION CIRCULAR 43

**Executive Compensation**

**Compensation Discussion and Analysis**

The following discussion describes the significant elements of the compensation program for the named executive officers ("**NEOs**") of MDA Space. The NEOs for Fiscal 2024 are:

---

| | |
|:---|:---|
| **Michael Greenley** | Chief Executive Officer and Director |
| **Guillaume Lavoie<sup>(1)</sup>** | Chief Financial Officer |
| **Stephanie McDonalD** | Chief People, Culture and Transformation Officer |
| **Holly Johnson** | Vice President, Robotics & Space Operations |
| **Luigi Pozzebon** | Vice President, Satellite Systems |
| **Vito Culmone<sup>(2)</sup>** | Former Chief Financial Officer |
| **Janet McEachern<sup>(3)</sup>** | Vice President, Finance and Former Interim Chief Financial Officer |

---

**Notes:**

**(1)** Mr. Lavoie was appointed Chief
 Financial Officer on November 4, 2024.

**(2)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024.

**(3)** Ms. McEachern was appointed Interim
 Chief Financial Officer effective July 2, 2024 and held such position until November 4,
 2024.

---

| | |
|:---|:---|
| ![](tm266080d2_ex4-4sp4img001.jpg) | **Michael Greenley,** <br> Chief Executive Officer and Director<br>Mr. Greenley is the Chief Executive Officer of MDA Space. With over 30 years of executive experience in the defence and security business, Mr. Greenley has deep expertise in the land, air, maritime, public safety and space sectors. Prior to MDA Space, Mr. Greenley was Sector President of L-3 WESCAM. He also served as Vice President and General Manager of CAE Canada, Vice President, Strategy and Business Development for General Dynamics (GD) Canada, and Vice President, International for GD Mission Systems. Prior to GD, he was Vice President of the modelling and simulation business at CAE. Mr. Greenley is Chair of Space Canada's Board of Directors, a member of the Business Council of Canada and a member of the Global Satellite Operators Association (GSOA). He has served as the Vice-Chair of the Government of Canada's Economic Strategy Table for Advanced Manufacturing, a Board member of the Aerospace Industries Association of Canada (AIAC) and of the Ontario Aerospace Council. Previously he served as Chair of the Advisory Board for Defence and Security Export to the Department of Foreign Affairs and International Trade (DFAIT) in Canada, as a member of the Industry Advisory Boards to the Department of National Defence, Defence R&D Canada, and Public Services and Procurement Canada and to the CEO of Export Development Canada (EDC). Mr. Greenley has also served on a number of non-profit boards including six years as the Chair of the Board of the Canadian Association of Defence and Security Industries (CADSI), and Chair of the Board for the Elmwood School for Girls. Mr. Greenley received the 2023 Satellite Executive of the Year award at the Satellite 2024 Conference and the 2024 Innovator of the Year award and recognition as one of Canada's Top CEOs by the Globe and Mail's Report on Business. Earlier in his career, Mr. Greenley was recognized as an Ottawa Top 40 under 40 business leader, and a PROFIT 100 CEO for leading one of Canada's fastest growing companies. Mr. Greenley holds a Bachelor of Science and a Master of Science from the University of Waterloo, as well as an Executive Leadership Development certificate from The Wharton School. |

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MDA MANAGEMENT INFORMATION CIRCULAR 44

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| | |
|:---|:---|
| ![](tm266080d2_ex4-4sp4img002.jpg) | **Guillaume Lavoie,** Chief Financial Officer |
| ![](tm266080d2_ex4-4sp4img002.jpg) | Mr. Lavoie joined MDA Space in November 2024, bringing over 20 years of financial expertise from large publicly traded and privately owned companies with proven experience as a CFO and expertise across financial and business functions, including strategic and financial planning, mergers and acquisitions, investor relations, capital deployment, business transformation, and P&L ownership. Mr. Lavoie joined MDA Space from Sofina Foods Inc., a global food manufacturer, where he served as Executive Vice President and CFO and played an instrumental role in executing the company's growth strategy, including the integration of Sofina Europe. Prior to Sofina Foods Inc., Mr. Lavoie served as Senior Vice President and CFO of the Woodbridge Group, a global automotive supplier where he delivered significant free cash flow improvements for the business by executing key business projects, in addition to renegotiating financing for the company. Prior to this, Mr. Lavoie was the Vice President and CFO for Bombardier Transportation, a global leader in rail transportation, from 2018 to 2020 and the Vice President of Financial Planning & Analysis at Bombardier Inc. from 2015 to 2018. Mr. Lavoie is a Chartered Professional Accountant (CPA) and holds a Bachelor of Business Administration from the Université du Québec à Montréal. |

---

---

| | |
|:---|:---|
| ![](tm266080d2_ex4-4sp4img003.jpg) | **Stephanie McDonald,** Chief People, Culture and Transformation Officer |
| ![](tm266080d2_ex4-4sp4img003.jpg) | Ms. McDonald joined MDA Space in July 2023 in a newly created executive role with a mandate to drive MDA Space's transformation strategy and initiatives. With global responsibility for MDA Space's people, culture and transformation agenda and associated functions, Ms. McDonald brings a demonstrated track record of long-term strategic planning and value creation in publicly traded companies. A seasoned executive with a background in large multinationals undergoing transformation, Ms. McDonald has served in multiple executive and leadership roles as a trusted strategic business leader. Before joining MDA Space, Ms. McDonald was the Chief Human Resources Officer at Ontex, a global private label manufacturer of personal hygiene products. Previously, she was the Senior Vice President of People & Culture at Parkland, an international fuel distributor and retailer with operations in 25 countries. Ms. McDonald also spent over 16 years in progressive leadership roles while working at Holcim, a global leader in sustainable construction. Throughout her career, Ms. McDonald has led a series of organizations through a variety of significant transformations and corporate events, including rapid scaling and growth, complex business integrations and corporate turnarounds. Ms. McDonald is a past Committee Chair and former Board Member for HR People & Strategy (HRPS), now called the SHRM Executive Network, an exclusive community of practicing senior HR leaders dedicated to revolutionizing the world of work. Ms. McDonald holds a Master of Business Administration (Academic Distinction) from Georgetown University in Washington, DC, and a Bachelor of Commerce from the University of Saskatchewan. She is also a certified Culture Coach from the Maslow Research Center. |

---

MDA MANAGEMENT INFORMATION CIRCULAR 45

---

| | |
|:---|:---|
| ![](tm266080d2_ex4-4sp4img004.jpg) | **Holly Johnson,** Vice President, Robotics & Space Operations |
| ![](tm266080d2_ex4-4sp4img004.jpg) | Ms. Johnson has had an extensive 15-year career in the robotics and space operations industry, with experience in systems engineering, business development, business leadership, operations management and strategy development. In 2022, she was appointed Vice President, Robotics & Satellites Operations at MDA Space. Prior to that, Ms. Johnson led business transformation initiatives as the Vice President of Operations at MDA Space, working with the executive leadership team to modernize and harmonize practices and systems in human resources, finance, information technology, marketing and business operations. During her tenure in the Operations group, Ms. Johnson played a key role in corporate development initiatives, including the sale of MDA Space in 2019 to a Canadian-based private equity group, the subsequent divestiture and establishment of stand-alone operations as a private company, taking MDA Space through its initial public offering and other mergers and acquisitions activity. Ms. Johnson started her career at MDA Space in 2010 as a systems engineer working on Canadarm space robotics programs, medical robotics technology and early design concepts for Canadarm3 and other large projects. Following this, she leveraged her engineering skills and industry expertise as Business Development Manager in the robotics division, where she engaged with commercial space customers to develop solutions for on-orbit robotics systems and interfaces. Ms. Johnson has a Bachelor of Applied Science degree in Mechanical Engineering from the University of Toronto and is a member of Professional Engineers Ontario. In 2023, Ms. Johnson was named to the prestigious "Best Executives" list by the Globe and Mail's Report on Business, a program established to celebrate exceptional non-CEO leaders at Canadian corporations. In 2019, Ms. Johnson received a top 40 under 40 recognition and was presented with the University of Toronto Alumni Network's Early Career Award. She was also recognized for her professional accomplishments in 2016 when she received the Northern Lights Aero Foundation Rising Star Award. |

---

---

| | |
|:---|:---|
| ![](tm266080d2_ex4-4sp4img005.jpg) | **Luigi Pozzebon,** Vice President, Satellite Systems |
| ![](tm266080d2_ex4-4sp4img005.jpg) | Mr. Pozzebon is a long-term member of MDA Space's Satellite Systems engineering and management team and is a widely respected executive in the global satellite industry. Mr. Pozzebon brings more than 33 years of experience to his current role as MDA Space's Vice-President of Satellite Systems. He is responsible for MDA Space's state-of-the art satellite design and manufacturing facilities, including its high-volume satellite production facility. In his decades-long career, he has played an instrumental role in some of the most complex satellite technology programs that have fundamentally changed the space industry in the fields of robotics, SAR, navigation, and satellite communications, in a wide range of functions including digital engineering, system engineering, engineering management, chief architect, business execution, business leadership and strategy development. Prior to working at MDA Space, he was Project Engineer at CMC Electronics where he was responsible for the design of an all-glass large-format high resolution cockpit display product, with night vision (NVIS) option, and a family of Flight Management Systems products for modern digital cockpits in fixed and rotary wing aircraft for both civil and military applications. In April 2024, Mr. Pozzebon was named to the prestigious "Best Executives" list by the Globe and Mail's Report on Business, a program established to celebrate exceptional non-CEO leaders at Canadian corporations. Mr. Pozzebon holds an Honours Bachelor of Engineering degree from McGill University. |

---

MDA MANAGEMENT INFORMATION CIRCULAR 46

**Compensation Philosophy and Objectives**

In the highly dynamic and rapidly evolving space economy, MDA Space's compensation must support the business strategy by directly linking pay outcomes to the achievement of our business and financial objectives. Additionally, compensation is used to align executives to creating shareholder value, attract and retain an experienced executive team, and support a culture that ensures appropriate oversight and risk taking. We have designed our executive officer compensation program to achieve the following objectives:

---

| | | | |
|:---|:---|:---|:---|
| ![](tm266080d2_ex4-4sp4img007.jpg) | ![](tm266080d2_ex4-4sp4img006.jpg) | ![](tm266080d2_ex4-4sp4img008.jpg) | ![](tm266080d2_ex4-4sp4img009.jpg) |
| Attract and retain talented, high-performing and experienced executive officers, whose knowledge, skills, and performance are critical to success. | Motivate the executive team to achieve MDA Space's business and financial objectives. | Align the interests of our executive officers with those of our shareholders by tying a meaningful portion of compensation directly to the long-term value and growth of the business. | Encourage <br> appropriate oversight and risk-taking. |

---

MDA Space reevaluates its compensation philosophy and compensation program as appropriate and continues to review compensation each year. As part of this review process, MDA Space is guided by the philosophy and objectives outlined above, and by market competitiveness.

We offer executive officers cash compensation in the form of base salary, an annual short-term incentive, and equity-based compensation. We grant long-term incentives consisting of stock options ("**Options**"), PSUs and RSUs to our executive officers and employees, under an omnibus equity incentive plan (the "**Omnibus Plan**").

Primary elements of MDA Space's executive compensation program, its objectives and key features are outlined in the table below:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Compensation <br> Element** | &nbsp;&nbsp;**Objective** | &nbsp;&nbsp;**Key Features** |
| &nbsp;&nbsp;**Base salary** | &nbsp;&nbsp;Attract and retain talent and provide a competitive fixed level of annual cash compensation | &nbsp;&nbsp;Reflects competitive market value by referencing the median of the peer group in setting salaries with adjustments for individual performance and experience, including knowledge, skills, responsibilities in the role and internal equity |
| &nbsp;&nbsp;**Short-term incentives** | &nbsp;&nbsp;Variable cash award based on the achievement of MDA Space's annual financial and personal objectives | &nbsp;&nbsp;Defined as a percentage of base salary, the short-term incentive plan (STIP) is a cash incentive award that could pay out at up to two times target based on levels of achievement against three financial metrics (Revenue, Adjusted EBITDA, and Order Bookings) as well as personal objectives for each NEO |

---

MDA MANAGEMENT INFORMATION CIRCULAR 47

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Compensation <br> Element** | &nbsp;&nbsp;**Objective** | &nbsp;&nbsp;**Key Features** |
| &nbsp;&nbsp;**Long-term incentives** | &nbsp;&nbsp;Variable compensation to align management interests with long-term shareholder value creation, encourage retention and reward long-term company performance | &nbsp;&nbsp;Equity-based incentive awards with overlapping successive three-year periods:<br>· 50% PSUs that cliff vest at up to two times target after three years based on the achievement of financial metrics: Revenue growth (weighted 50%) and Adjusted EBITDA growth (weighted 50%), with a relative total shareholder return ("TSR") modifier relative to the TSX Composite Index<br>· 50% RSUs that vest ratably over three years |
| &nbsp;&nbsp;**Benefits** | &nbsp;&nbsp;To provide a competitive total compensation package consistent with market practice and support the health and wellness of our executive team to drive the performance and success of MDA Space | &nbsp;&nbsp;· Life, disability, health and dental insurance programs<br>· Retirement benefits |

---

**Pay Policies and Practices**

We have implemented the following best pay practices that reflect our compensation philosophy:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**what we do** | &nbsp;&nbsp;**what we don't do** |
| &nbsp;&nbsp;Link executive pay to company performance through the annual incentive plan and long-term equity awards in the form of PSUs, RSUs and Options | &nbsp;&nbsp;Single-trigger change-in-control provisions |
| &nbsp;&nbsp;Balance among short- and long-term incentives, cash and equity and fixed and variable pay | &nbsp;&nbsp;Hedging or pledging by executives or directors of equity holdings |
| &nbsp;&nbsp;Cap short-term incentives at 200% of target | &nbsp;&nbsp;Guarantee annual base salary increases |
| &nbsp;&nbsp;Maintain overlapping performance periods for long-term incentives | &nbsp;&nbsp;Overemphasize any single performance metric |
| &nbsp;&nbsp;Compare executive compensation and company performance to relevant peer group companies | &nbsp;&nbsp;Reprice underwater stock options |
| &nbsp;&nbsp;Target pay at the median of our peer group | &nbsp;&nbsp;Use an aspirational peer group of significantly larger companies |
| &nbsp;&nbsp;Require executives to meet minimum share ownership guidelines | &nbsp;&nbsp;Provide tax gross ups on perquisites or on change in control benefits |
| &nbsp;&nbsp;Maintain a compensation Clawback Policy to recapture unearned incentive pay | &nbsp;&nbsp;Apply pay policies or practices that pose material adverse risk to MDA Space |
| &nbsp;&nbsp;Provide only limited perquisites | &nbsp;&nbsp;Apply pay policies or practices that pose material adverse risk to MDA Space |
| &nbsp;&nbsp;Retain an independent compensation consultant | &nbsp;&nbsp;Provide supplemental executive retirement plans |

---

MDA MANAGEMENT INFORMATION CIRCULAR 48

**Compensation-Setting Process**

The HRDCC oversees MDA Space's policies, processes and practices with respect to all aspects of Human Resources, including talent management, ordinary course succession planning and compensation, and is responsible for ensuring that these are consistent with MDA Space's strategic goals and objectives and with shareholder interests. This includes ensuring that MDA Space's compensation policies and practices provide an appropriate balance of risk and reward consistent with MDA Space's risk profile. See "Risk and Executive Compensation" below for more on compensation risk and risk mitigation features. In executing these responsibilities, the HRDCC considers analyses, recommendations and proposals developed by management, and also has the authority to seek the expertise of external advisors as needed.

Our Board has adopted a written charter for the HRDCC, which sets out the committee's responsibilities for overseeing our compensation programs, reviewing and making recommendations to our Board concerning the level and nature of the compensation payable to our executive officers. The HRDCC's oversight includes reviewing objectives, evaluating performance and ensuring that total compensation paid to our executive officers is competitive and appropriate, and consistent with the objectives and philosophy of our compensation program. See also "Corporate Governance – Committees of the Board of Directors – Human Resources, Development & Compensation Committee."

MDA Space's Chief Executive Officer makes recommendations to the HRDCC each year with respect to the compensation for the other NEOs but is not involved in setting, or decisions with respect to, his own compensation.

**Compensation Consultant**

In 2024, the HRDCC engaged Mercer (Canada) Ltd. ("**Mercer**") to review the competitiveness of MDA Space's executive compensation program against market practice and an appropriate peer group. Mercer reported directly to the HRDCC.

In 2024, Mercer's advisory services included:

· Assessing
 the executive team's base salaries, short-term incentive opportunities, target total
 cash and long-term incentives against the market;

· Assessing
 the Board's compensation package, including cash and equity compensation;

· Providing
 advice on the design of MDA Space's STIP and annual long-term incentive awards;

· Providing
 advice on the design of a potential employee share purchase plan for the broader MDA Space
 employee population; and

· Assisting
 with drafting the compensation discussion and analysis portion of the Circular.

The HRDCC has sole authority to hire a compensation consultant, approve its compensation, determine the nature and scope of its services, evaluate its performance, and terminate and replace (or supplement) its engagement with an alternative consultant. In November 2024, the HRDCC elected to change compensation consultants. Meridian Compensation Partners ("**Meridian**") was selected to replace Mercer. Meridian performed advisory services to conduct a benchmark review of our peer group in late 2024 that will inform recommendations for 2025 market assessments for executive compensation.

The provision of any services by a compensation consultant to the HRDCC in addition to any executive compensation-related services requires the approval of the HRDCC. The fees for services rendered by Mercer in the 12-month period ending December 31, 2023 ("**Fiscal 2023**") and the fees for services rendered by Mercer and Meridian in Fiscal 2024, are set forth in the table below.

---

| | | |
|:---|:---|:---|
| **Mercer** | **2023 fees** | **2024 fees** |
| Executive compensation-related fees | $305404 | $64596 |
| All other fees | $76116<sup>(1)</sup> | $0 |

---

MDA MANAGEMENT INFORMATION CIRCULAR 49

---

| | | |
|:---|:---|:---|
| **MERIDIAN** | **2023 FEES** | **2024 FEES** |
| Executive compensation-related fees | – $| 54851 |
| All other fees | – $| 0 |

---

**Notes:**

(1) Fees in connection with Diversity and Inclusion strategy support, diversity
 benchmarking and succession planning framework development.

**Compensation Peer Group**

As compensation consultant, Mercer analyzed market compensation and recommended a comparative group of companies to set executive compensation levels to the HRDCC for approval. Recognizing that the advanced space technology industry is evolving rapidly, Mercer developed recommendations that were presented to the HRDCC for its consideration after analyzing executive compensation paid at both Canadian and U.S. companies. U.S. companies were included to recognize that the advanced space technology industry in Canada is extremely limited, and that MDA Space must compete with U.S.-based companies for key talent. The criteria used to determine the composition of the peer group were the following:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**market** | &nbsp;&nbsp;**operations** | &nbsp;&nbsp;**operations** | &nbsp;&nbsp;**size** |
| &nbsp;&nbsp;Companies competing in the same talent markets in Canada and the U.S. | &nbsp;&nbsp;Canadian and U.S. companies operating primarily in the Aerospace and Defence industry | &nbsp;&nbsp;Canadian and U.S. companies operating in the High-Tech / Software industry | &nbsp;&nbsp;Companies of similar size, measured by revenue (generally 0.33x to 3x that of MDA Space) and also considering assets, EBITDA, market capitalization, and enterprise value |

---

MDA Space used many of the same peer group companies for setting 2024 and 2023 pay, but has continued to update this group for the purpose of setting 2025 compensation levels, given the significant growth at both MDA Space and in the industry. The companies in the 2024 peer group are listed below, including their industry and whether they are listed in Canada and/or the U.S.:

**Comparator Group**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Industry** | &nbsp;&nbsp;**Canadian** | &nbsp;&nbsp;**U.S.** |
| &nbsp;&nbsp;Absolute Software Corporation | &nbsp;&nbsp;Systems Software | &nbsp;&nbsp;TSX | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;AeroVironment, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;AerSale Corporation | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Astronics Corporation | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Axon Enterprise, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Blackberry Limited | &nbsp;&nbsp;Systems Software | &nbsp;&nbsp;TSX | &nbsp;&nbsp;NYSE |
| &nbsp;&nbsp;CAE Inc. | &nbsp;&nbsp;Aerospace & Defence | &nbsp;&nbsp;TSX | &nbsp;&nbsp;NYSE |
| &nbsp;&nbsp;Calian Group Ltd. | &nbsp;&nbsp;Diversified Support Services | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Converge Technology Solutions Corp. | &nbsp;&nbsp;IT Consulting and Other Services | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;The Descartes Systems Group Inc. | &nbsp;&nbsp;Application Software | &nbsp;&nbsp;TSX | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Ducommun Incorporated | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;NYSE |

---

MDA MANAGEMENT INFORMATION CIRCULAR 50

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Industry** | &nbsp;&nbsp;**Canadian** | &nbsp;&nbsp;**U.S.** |
| &nbsp;&nbsp;Dye & Durham Limited | &nbsp;&nbsp;Application Software | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Enghouse Systems Limited | &nbsp;&nbsp;Application Software | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Héroux-Devtek Inc. | &nbsp;&nbsp;Aerospace & Defence | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Hexcel Corporation | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;NYSE |
| &nbsp;&nbsp;Iridium Communications Inc. | &nbsp;&nbsp;Alternative Carriers |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Kinaxis Inc. | &nbsp;&nbsp;Application Software | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Kratos Defense & Security Solutions, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Magellan Aerospace Corporation | &nbsp;&nbsp;Aerospace & Defence | &nbsp;&nbsp;TSX |  |
| &nbsp;&nbsp;Mercury Systems, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;National Presto Industries, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;NYSE |
| &nbsp;&nbsp;Rocket Lab, Inc. | &nbsp;&nbsp;Aerospace & Defence |  | &nbsp;&nbsp;Nasdaq |
| &nbsp;&nbsp;Telesat Corporation | &nbsp;&nbsp;Aerospace & Defence | &nbsp;&nbsp;TSX | &nbsp;&nbsp;Nasdaq |

---

The peer group was an important input in reviewing compensation levels and structure for Fiscal 2024. MDA Space's philosophy is to use market median for total direct compensation (base salary and short- and long-term incentives) as the primary reference point for decision-making. Actual compensation levels for each NEO were established considering the peer group data, while also looking at differences between the Canadian and U.S. peers for specific NEO roles, as well as the progression and performance of each individual NEO. Similarly, peer group practices were considered when establishing the design features and performance metrics within MDA Space's incentive plans, while also ensuring that these remain tailored to MDA Space's specific context and strategic objectives to promote long-term shareholder value creation.

The table below shows MDA Space's size relative to the peer companies, measured by assets, revenue, EBITDA, market capitalization and enterprise value.

---

| | | |
|:---|:---|:---|
| **Comparator** | **MDA Space <br> ($ millions)** | **MDA Space<br> Percentile Rank** |
| Assets<sup>(1)</sup> | 2570 | 75% |
| Revenue<sup>(2)</sup> | 939 | 53% |
| EBITDA<sup>(2)</sup> | 139 | 71% |
| Market Capitalization<sup>(3)</sup> | 3316 | 57% |
| Enterprise Value<sup>(3)</sup> | 3575 | 58% |

---

**Notes:**

**(1)** Most recently reported total assets
 as January 14, 2025.

**(2)** 12-month trailing revenue and EBITDA
 as of January 14, 2025.

**(3)** Market capitalization and enterprise
 value on January 14, 2025.

MDA MANAGEMENT INFORMATION CIRCULAR 51

**Components of Compensation**

The compensation of MDA Space's executive officers includes three major elements: (a) base salary; (b) short-term incentives; and (c) long-term equity incentives, including PSUs, RSUs and Options. Perquisites and benefits are not a significant element of compensation of MDA Space's executive officers.

**Pay Mix**

In 2024, we targeted a specific pay mix as demonstrated in the following charts, which illustrate the 2024 target pay mix for the CEO and the average target pay mix for the other NEOs. The majority of our NEOs' target total direct compensation opportunity in 2024 was provided in the form of performance-based compensation (variable pay), 80% for our CEO and 65% on average for our other NEOs.

![](tm266080d2_ex4-4sp4img012.jpg)

**Base Salary**

Base salary is provided as a fixed source of compensation for our executive officers. Base salaries are determined by considering market competitiveness and the individual performance and experience of each NEO, including knowledge, skills, responsibilities in the role and internal equity. Base salaries are reviewed annually by the HRDCC and approved by our Board for the CEO. The HRDCC makes determinations, and issue approvals with respect to base salary compensation of the other Named Executive Officers. Base salaries may be increased based on market competitiveness, among other factors. In addition, base salaries can be adjusted as warranted throughout the year to reflect promotions or other changes in the scope or breadth of an executive officer's role or responsibilities.

Base salaries for the NEOs generally are positioned at the market median level to attract and retain individuals with superior executive talent. Individual pay levels may be above or below the market median based on the NEO's experience, position and performance.

In 2024, our Board engaged Mercer to conduct a comprehensive benchmarking of our executive pay. After that, our Board, together with the HRDCC, approved adjustments to ensure that NEO pay levels, including those of our CEO, are consistent with our overall pay philosophy. The following table sets forth the annual base salaries for each of the NEOs for Fiscal 2023 and Fiscal 2024.

---

| | | |
|:---|:---|:---|
| **Named Executive Officer** | **2023 Base Salary <br> ($)** | **2024 Base Salary <br> ($)** |
| Michael Greenley | 738000 | 774900 |
| Guillaume Lavoie<sup>(1)</sup> |  | 625000 |
| Stephanie McDonald | 460000 | 480700 |
| Holly Johnson | 450000 | 481500 |
| Luigi Pozzebon | 450000 | 481500 |
| Vito Culmone<sup>(2)</sup> | 582079 | 606000 |

---

MDA MANAGEMENT INFORMATION CIRCULAR 52

---

| | | |
|:---|:---|:---|
| **Named Executive Officer** | **2023 Base Salary <br> ($)** | **2024 Base Salary <br> ($)** |
| Janet McEachern<sup>(3)</sup> | – | 285000 |

---

**Notes:**

**(1)** Guillaume Lavoie joined MDA Space
 as Chief Financial Officer on November 4, 2024.

**(2)** Vito Culmone resigned from his position
 with MDA Space effective July 2, 2024 and did not earn base salary after such date.

**(3)** Janet McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024. Ms. McEachern's
 base salary reflects her compensation as Vice President, Finance, as well as compensation
 for her role as interim Chief Financial Officer. Ms. McEachern was not a NEO in 2023.

**Short-term Incentives**

Annual incentive awards are granted under the MDA Space STIP, which is designed to motivate our executive officers to meet financial and personal performance targets. STIP targets are set as a percentage of each NEO's base salary, which varies based on their position. Individual annual payouts will be higher or lower than the target amount depending on the level of achievement of the applicable performance targets. STIP payments for the executive officers (except the CEO) are recommended to the HRDCC by the CEO and approved by the HRDCC. The CEO's STIP payment is recommended by the HRDCC to our Board for approval.

The NEOs are eligible to receive annual bonuses of up to a specified percentage of each executive's base salary as specified in their employment agreement based on individual performance, company performance or as otherwise determined appropriate by the HRDCC. Target awards are set in consideration of the market median with actual awards higher or lower based on performance.

The 2024 STIP is designed to reward executives for the achievement of financial and personal performance objectives:

---

| | |
|:---|:---|
| &nbsp;&nbsp;![](tm266080d2_ex4-4sp4img013.jpg) | &nbsp;&nbsp;**Financial Objectives**![](tm266080d2_ex4-4sp4img25.jpg) Drive ownership and accountability toward the achievement of MDA Space business objectives for the fiscal year based on achieving specified levels of corporate financial performance. |
| &nbsp;&nbsp;![](tm266080d2_ex4-4sp4img013.jpg) | &nbsp;&nbsp;**Personal Objectives** ![](tm266080d2_ex4-4sp4img25.jpg) Reward the attainment of personal performance results that are strategic and operational in nature and extend beyond the participant's core job responsibilities and contribute to the long-term success of MDA Space. |

---

![](tm266080d2_ex4-4sp4img014.jpg)

MDA MANAGEMENT INFORMATION CIRCULAR 53

**Financial Objectives**

In 2024, awards under the STIP were determined from the weighting of the financial objectives in the STIP for both the Corporate and Business Area goals.

![](tm266080d2_ex4-4sp4img015.jpg)

**Notes:**

**(1)** In 2024, for the CEO, CFO and Chief
 People, Culture and Transformation Officer, corporate financial weightings were 40% on Revenue,
 40% on Adjusted EBITDA and 20% on Order Bookings. For Business Area Leaders, measures were
 the same, but with a split weighting between Corporate and Business Areas for each financial
 metric (as illustrated above), with the achievement of Adjusted EBITDA measured at the Business
 Operating Income level for Business Areas.

These metrics and weightings were chosen to support the following objectives of MDA Space's business strategy:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**REVENUE** | &nbsp;&nbsp;**adjusted ebitda\*** | &nbsp;&nbsp;**order bookings** |
| &nbsp;&nbsp;We use Revenue as a performance metric because it directly reflects MDA Space's financial success. Revenue is a key indicator of a company's ability to execute on business awarded. Aligning incentives with revenue targets can motivate executives to prioritize activities that lead to increased productivity and profitability. | &nbsp;&nbsp;We use Adjusted EBITDA, a non-IFRS measure, as a performance metric because it provides a more accurate measure of MDA Space's operational performance and profitability than net income, the closest IFRS measure. Net income, is typically not used because it includes non-cash items such as depreciation and amortization, as well as other non-recurring items. Adjusted EBITDA eliminates non-operating expenses and one-time charges, allowing for a clearer assessment of core business performance. Adjusted EBITDA can incentivize executives to focus on improving operational efficiency, cost management, and revenue generation, which are crucial for long-term financial success. | &nbsp;&nbsp;We use Order Bookings as a performance metric because it directly reflects MDA Space's ability to generate new business and secure customer orders. Order Bookings measures the volume and value of new orders received within a specific period, indicating sales growth and market demand. By incentivizing executives based on Order Bookings, we can motivate them to focus on acquiring new customers, expanding market share, and driving future growth compared to revenue, which measures in-year conversion or execution of bookings. |

---

---

| | |
|:---|:---|
| **Note:** | \* Adjusted EBITDA is a financial measure that is not calculated in accordance with IFRS. For a reconciliation of Adjusted EBITDA to the most directly comparable measure calculated in accordance with IFRS, see the section entitled "Reconciliation of Non-IFRS Measures" in MDA Space's latest Management Discussion and Analysis available on SEDAR+ at <u>www.sedarplus.ca</u>, which is hereby incorporated by reference**.** |

---

In 2024, the HRDCC continued to place greater emphasis on Revenue and Adjusted EBITDA due to their direct impact on MDA Space's financial performance and profitability. By assigning a higher weight to these metrics, we aim to align executive incentives with our strategic goals of driving sales growth and improving operational efficiency. The decrease in the weighting of Order Bookings to 20% reflects a shift in focus toward our ability to convert orders into revenue and profitability, rather than on the volume of new orders. The refinement around the weighting of metrics for 2024 was in recognition of the strategic importance of converting backlog to Revenue on a timely and expeditious basis. Also, the threshold achievement and corresponding threshold payout were

MDA MANAGEMENT INFORMATION CIRCULAR 54

rebalanced for Revenue and Adjusted EBITDA so achievement of 75% of the target level performance is required to achieve a payout of 50% of the target payout. Threshold performance remained at 65% of target for Order Bookings.

Both the Corporate and Business Area performance metrics and targets for the STIP are below:

**1 – Corporate-level Objectives**

The financial performance of the CEO, CFO and Chief People, Culture and Transformation Officer is based on meeting three Corporate-level financial performance metrics under the Corporate Leader Plan. The 2024 targets are considered challenging and require significant effort to accomplish. For the other NEOs, the Corporate-level objectives represent 50% of their financial performance objectives, as noted below under "Business Area Objectives."

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Corporate Leader Short-Term Incentive Plan (Financial Metrics)** |
| Financial Metric<br> *In C$ millions* | Weighting | Threshold<sup>(4)</sup> ($) | Target<br> (100% <br> Payout) | Maximum<br> (Payout is 200% of <br> Target) | Actual<br> Result <br> ($) | Actual Payout<sup>(5)</sup> |
| Revenue<sup>(1)</sup> | 40% | 811 | 1080 | 1298 | 1080 | 100% |
| Adjusted EBITDA<sup>(2)</sup> | 40% | 158 | 211 | 253 | 217 | 115% |
| Order Bookings<sup>(3)</sup> | 20% | 1564 | 2406 | 3609 | 2369 | 97% |
| **Total** | 100% |  |  |  |  | 105% |

---

**Notes:**

**(1)** The achievement of Revenue is calculated
 on a linear basis with a maximum payout of 200% at 120% of target performance. The actual
 performance to target for Revenue is 100% which corresponds to a payout of 100% of target.

**(2)** The achievement of Adjusted EBITDA
 is calculated on a linear basis with a maximum payout of 200% at 120% of target performance.
 The actual performance to target for Adjusted EBITDA is 103% which corresponds to a payout
 of 115% of target.

**(3)** The achievement of Order Bookings
 is calculated on a linear basis with a maximum payout of 200% at 150% of target performance.
 The actual performance to target for Order Bookings is 98% which corresponds to a payout
 of 97% of target.

**(4)** Threshold payout is 75% for Revenue
 and Adjusted EBITDA and 65% on Order Bookings, each as a percentage of target.

**(5)** Based on actual performance against
 the financial measures, the actual payout is 105% of target as indicated.

**2 – Business Area Objectives**

For the other NEOs, who are leaders of one of MDA Space's three business areas, the financial performance portion of their STIP award is based 50% on Corporate-level performance metrics (set forth above) and 50% on Business Area goals under the Business Area Leader Plan. For 2024, the weighting of the Business Area performance metrics was 50% to emphasize driving execution within individual Business Areas, while still focusing the team on achieving enterprise results. MDA Space has not disclosed specific dollar targets under our Business Area Leader Plan because doing so would seriously prejudice its interests, as disclosure of such information would reveal details of its strategy to our competitors. The targets are considered challenging and require significant effort to accomplish.

---

| | | | |
|:---|:---|:---|:---|
| **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** |
| Financial Metric | Overall Weighting | Corporate MDA Space<br> (Weighting) | Business Area<br> (Weighting) |
| Revenue<sup>(1)</sup> | 40% | 20% | 20% |
| Adjusted EBITDA<sup>(1)</sup> | 40% | 20% | 20% |

---

MDA MANAGEMENT INFORMATION CIRCULAR 55

---

| | | | |
|:---|:---|:---|:---|
| **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** | **2024 Business Area Leader Short-Term Incentive Plan (Financial Metrics)** |
| Financial Metric | Overall Weighting | Corporate MDA Space<br> (Weighting) | Business Area<br> (Weighting) |
| Order Bookings<sup>(2)</sup> | 20% | 10% | 10% |
| Total | 100% | 50% | 50% |

---

**Notes:**

**(1)** The achievement of Revenue and Adjusted
 EBITDA is calculated on a linear basis with a maximum payout of 200% at 120% of target performance.
 For the Business Areas, the achievement of Adjusted EBITDA is measured at the Business Operating
 Income level.

**(2)** The achievement of Order Bookings
 is calculated on a linear basis with a maximum payout of 200% at 150% of target performance.

**Individual Performance Objectives (weighted 20% for our CEO and 10% for all other NEOs)**

In 2024, 20% of the STIP award of our CEO and 10% of the awards for the other NEOs was based on performance against personal objectives that extend beyond the participant's core job responsibilities and contribute to the long-term success of MDA Space. These included objectives related to the following:

· Successfully
 completing specific strategic projects in alignment with business strategy.

· Continuing
 to scale the business to match growth and opportunity pipeline.

· Delivering
 the annual operating plan.

**2024 CEO Performance Highlights Against Personal Objectives**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Goal** | &nbsp;&nbsp;**Comments** |
| &nbsp;&nbsp;Deliver the 2024 annual operating plan metrics on Revenue, Adjusted EBITDA, Adjusted EBITDA margin, capital expenditures, Order Bookings, as well as maintaining compliance on all covenants under the Company's senior credit facility. | &nbsp;&nbsp;Exceeded annual operating plan targets, demonstrating strong commercial execution in Order Bookings and Revenue while driving above-target top-line growth in Adjusted EBITDA. Exceeded expectations on free cash flow position ahead of plan. |
| &nbsp;&nbsp;Advance long-term company strategy and execute key strategic projects, including:<br>· continued development of MDA CHORUS™ ;<br>· progressing the high-volume manufacturing facility in the Satellite Systems business area; and<br>· advancing the growth plan for the Robotics & Space Operations business area. | &nbsp;&nbsp;Made significant progress on strategy execution and commercialization of business areas including the launch of MDA AURORA™ software-defined satellite product line; MDA SKYMAKER™ next generation robotics product line; and advancements to MDA CHORUS™, adding new satellites-to-ship services. Advanced portfolio of patents for cutting-edge technology and solutions, strengthening the company's long-term competitive position in bringing advanced technology to market. |

---

MDA MANAGEMENT INFORMATION CIRCULAR 56

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Goal** | &nbsp;&nbsp;**Comments** |
| &nbsp;&nbsp;Develop a high performing team, including the development of the executive leadership team and succession planning and development for senior levels of management. | &nbsp;&nbsp;Continued to strengthen MDA Space leadership bench through key executive appointments – particularly the new CFO – complementing the high-performing, future-ready executive team. External industry recognition by *Canada's Best Executives* and *Women Lead Here* reinforces the company's growing reputation for leadership excellence. Named one of Greater Toronto's Top Employers, recognizing MDA Space as a leader in providing an innovative workplace and professional development. |
| &nbsp;&nbsp;Sustain strong investor relations, with enhanced engagement and communication. | &nbsp;&nbsp;Increased profile and engagement with institutional investors and analysts in 2024 with approximately 190 engagements carried out both in person and through virtual meetings, which included meetings with 26 of our top 50 shareholders. |

---

**STIP Payouts**

**Corporate Leader Short-Term Incentive Plan Calculations:**

![](tm266080d2_ex4-4sp4img017.jpg)

**Business Area Leader Short-Term Incentive Plan Calculations:**

![](tm266080d2_ex4-4sp4img016.jpg)

The table below outlines the target and actual awards each NEO received under the STIP based on performance against the financial and personal objectives discussed above.

MDA MANAGEMENT INFORMATION CIRCULAR 57

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Short-term Incentive Plans - Targets and Actual Awards** | **Short-term Incentive Plans - Targets and Actual Awards** | **Short-term Incentive Plans - Targets and Actual Awards** | **Short-term Incentive Plans - Targets and Actual Awards** | **Short-term Incentive Plans - Targets and Actual Awards** | **Short-term Incentive Plans - Targets and Actual Awards** |
| Named Executive Officer | 2024 <br> Base Salary <br> ($) | 2024 Target <br> (% of Base Salary) | 2024 Target ($) | Actual Award<br> (% of Target) | Actual Award ($) |
| Michael Greenley | 774900 | 100% | 774900 | 104% | 805896 |
| Guillaume Lavoie<sup>(1)</sup> | 625000 | 75% | 468750 | 105% | 76862 |
| Stephanie McDonald | 480700 | 75% | 360525 | 105% | 378551 |
| Holly Johnson | 481500 | 50% | 240750 | 106% | 255195 |
| Luigi Pozzebon | 481500 | 50% | 240750 | 108% | 260010 |
| Vito Culmone<sup>(2)</sup> | 606000 | 75% | 454500 |  |  |
| Janet McEachern<sup>(3)</sup> | 285000 | 48.7% | 138791 | 105% | 145731 |

---

**Notes:**

**(1)** Mr. Lavoie's actual award
 (as a % of target) is calculated on a prorated base salary given his November 4, 2024
 start date with MDA Space.

**(2)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024. Pursuant to the STIP, Mr. Culmone
 was not paid any award in 2024.

**(3)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024. During this period,
 the STIP target was 75%.

**Equity-Based Incentive Awards**

Equity awards are granted under the Omnibus Plan, which provides MDA Space with a share-related mechanism to align management interests with long-term shareholder value creation, encourage retention and reward long<sub>-</sub>term company performance. MDA Space's equity incentive plans are discussed under "Securities Authorized for Issuance under Equity Incentive Plans – Omnibus Plan."

The NEOs are eligible to receive equity awards under the Omnibus Plan, which is administered by the HRDCC. The Omnibus Plan provides for the grant of Options, RSUs, PSUs and other share-based awards. For 2024, annual long-term incentive awards were granted to each NEO 50% in PSUs and 50% in RSUs, which was the same allocation as in 2023. MDA Space chose these vehicles and this allocation of PSUs and RSUs to emphasize company performance and align executives' interests with those of shareholders.

MDA MANAGEMENT INFORMATION CIRCULAR 58

---

| | |
|:---|:---|
| &nbsp;&nbsp;**PSUs (50%)** | &nbsp;&nbsp;**RSUs (50%)** |
| &nbsp;&nbsp;Granting executives PSUs aligns the interests of executives with the long-term success of MDA Space. Tying compensation to the company's performance incentivizes executives to make decisions and take actions that will drive the company's growth and profitability and enhance shareholder value. PSUs also allow us to reward executives for achieving specific performance targets with respect to Revenue and Adjusted EBITDA.<sup>1</sup> We also have included a relative TSR modifier that compares MDA Space's performance relative to the TSX Composite Index as a relevant and objective measure of MDA Space's performance compared to the overall market to account for market conditions and industry trends. The PSU payout factor range is 50%-200% based on a formula described on page 60 and subject to final HRDCC determination. This ensures executives are rewarded based on their ability to outperform the market and generate value for shareholders, which promotes a long-term focus on delivering sustained performance. | &nbsp;&nbsp;RSUs are used to attract and retain executive talent and align the interests of our executive team to long-term shareholder value creation. RSUs serve as a retention incentive that encourages executives to stay with MDA Space and contribute to its success over the long term. Additionally, RSUs can be an effective way to reward executives for their contributions and achievements, as the value of RSUs can increase over time if the company performs well. |

---

**Notes:**

**(1)** Adjusted EBITDA is a financial measure
 that is not calculated in accordance with IFRS. For a reconciliation of Adjusted EBITDA to
 the most directly comparable measure calculated in accordance with IFRS, see the section
 entitled "Reconciliation of Non-IFRS Measures" in MDA Space's latest Management
 Discussion and Analysis available on SEDAR+ at <u>www.sedarplus.ca</u>, which is hereby incorporated
 by reference.

2024 targets for awards under our LTIP were set as a percentage of base salary as determined by the HRDCC as outlined in the table below. The target numbers of PSUs and RSUs are calculated using the closing price of MDA Space's Common Shares on the TSX of $29.53 on December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Named Executive <br> Officer** | **Target LTIP<br> Award as % of <br> Base Salary** | **TARGET<br> NUMBER OF<br> PSUs** | **Target<br> Grant Date<br> Value ($)** | **TARGET<br> NUMBER OF<br> RSUs** | **Target Grant<br> Date Value ($)** |
| Michael Greenley<sup>(1)</sup> | 300% | 39362 | 1162350 | 39362 | 1162350 |
| Guillaume Lavoie<sup>(2)</sup> | 150% | 15874 | 468750 | 15874 | 468750 |
| Stephanie McDonald<sup>(3)</sup> | 150% | 12209 | 360525 | 12209 | 360525 |
| Holly Johnson | 100% | 8153 | 240750 | 8153 | 240750 |
| Luigi Pozzebon | 100% | 8153 | 240750 | 8153 | 240750 |
| Vito Culmone<sup>(4)</sup> | 150% | 15391 | 454500 | 15391 | 454500 |
| Janet McEachern<sup>(5)</sup> | 35% |  |  | 3378 | 99750 |

---

**Notes:**

**(1)** Mr. Greenley's target LTIP
 award changed from 200% in 2023 to 300% in 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 59

**(3)** Ms. McDonald's target LTIP
 award changed from 100% in 2023 to 150% in 2024.

**(2)** Mr. Lavoie joined MDA Space as
 Chief Financial Officer on November 4, 2024.

**(4)** Mr. Culmone's target LTIP
 award changed from 100% in 2023 to 150% in 2024. Mr. Culmone resigned from his position
 with MDA Space effective July 2, 2024. Pursuant to the LTIP, Mr. Culmone was not
 paid any award in 2024.

**(5)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024.

**Restricted Share Units**

Time-based RSUs vest one-third each year over three years and executives must be actively employed on the vesting date to receive a payout. The Plan Administrator determines whether awards will be settled in cash or shares. NEOs must hold their after-tax value of vested RSUs as common shares until they achieve the minimum share ownership guidelines. The terms and conditions of grants of RSUs, including the quantity, grant date, vesting periods, settlement date and other terms and conditions with respect to the awards, are set out in the grant agreement.

**Performance Share Units**

PSUs have a three-year performance period with cliff vesting at the end of the period and executives must be actively employed on the vesting date to receive a payout. The Plan Administrator determines whether payouts will be settled in cash or shares. The calculations of the 2024 PSU grant and vesting are illustrated below:

![](tm266080d2_ex4-4sp5img001.jpg)

Revenue growth, Adjusted EBITDA growth and relative TSR (as a modifier) were chosen because they align executive interests with long-term shareholder growth expectations. See "Short-term incentive, Financial Objectives" above for an explanation of the rationale for the selection of Revenue growth and Adjusted EBITDA growth metrics.

**Relative TSR as a modifier for PSUs**

Relative TSR was included as a modifier for the PSUs to recognize the importance of delivering superior returns for shareholders over the long term. In establishing the TSR peers for the relative performance analysis, the HRDCC considered several different alternatives, recognizing that there are very few advanced space technology organizations that are publicly traded in Canada, and that the performance of the Canadian stock markets could be impacted by macro-economic factors that may not have the same impact on MDA Space (either positive or negative).

The Relative TSR modifier to the PSU payouts has a multiplicative factor ranging from 0.75, when MDA Space's relative TSR performance is at or below the 25th percentile of the TSX Composite Index, up to 1.25 when MDA Space's TSR performance is at or above the 75th percentile of the TSX Composite Index. This ensures that executive PSU payouts are directly impacted by MDA Space's share-price performance relative to other Canadian publicly-traded organizations, while minimizing the impact of factors unrelated to MDA Space's performance and shareholder experience.

**Financial metrics for both short- and long-term incentives**

The HRDCC chose to use Revenue and Adjusted EBITDA<sup>6</sup> as the metrics in the short-term and long-term incentive plans because they are widely recognized and commonly used financial metrics that provide a clear and objective measure of a Company's financial performance. These metrics are easily understood by executives and

---

| | |
|:---|:---|
| 6 | Adjusted EBITDA is a financial measure that is not calculated in accordance with IFRS. For a reconciliation of Adjusted EBITDA to the most directly comparable measure calculated in accordance with IFRS, see the section entitled "Reconciliation of Non-IFRS Measures" in MDA Space's latest Management Discussion and Analysis available on SEDAR+ at <u>www.sedarplus.ca</u>, which is hereby incorporated by reference. |

---

MDA MANAGEMENT INFORMATION CIRCULAR 60

shareholders, and they provide a transparent and consistent basis for evaluating and rewarding performance. Furthermore, the metrics have distinct time horizons under the two plans. The use of Revenue and Adjusted EBITDA in the short-term incentive focuses on annual performance, while these metrics in the PSU plan consider a longer time horizon, spanning three years, to capture sustained profitability and shareholder value creation.

**2024 One-time Equity Grants**

Pursuant to Mr. Lavoie's employment agreement, he is eligible to receive a one-time grant of RSUs in the approximate amount of $175,000 at the time of the 2025 annual LTIP cycle.

**Benefit Plans**

MDA Space provides its executive officers, including the NEOs, with life, disability, health, dental insurance and paid time off programs on the same basis as other MDA Space employees. MDA Space offers these benefits consistent with local market practice. In addition to the standard benefit package, NEOs are granted an annual executive medical benefit.

**Retirement Plan Benefits**

MDA Space sponsors several different retirement plans for the NEOs, including defined benefit pension plans and defined contribution pension plans. Participation in the plan is determined based on the geographical location of employment.

**Perquisites**

MDA Space generally does not offer significant perquisites as part of its compensation program, other than those described below under "Executive Compensation – Employment Agreements."

**Risk and Executive Compensation**

In reviewing MDA Space's compensation policies and practices each year, the HRDCC will seek to ensure the executive compensation program provides an appropriate balance of risk and reward consistent with the risk profile of MDA Space. The HRDCC will also seek to ensure MDA Space's compensation practices do not encourage excessive risk-taking behaviour by the executive team. To mitigate compensation risk, our Board has adopted an Insider Trading Policy, including restrictions against hedging transactions, a Clawback Policy (as defined below), and Share Ownership Guidelines for NEOs.

**Insider Trading Policy and Hedging Prohibition**

MDA Space's executive officers, including the NEOs, directors and certain employees are subject to its insider trading policy, which prohibits trading in MDA Space's securities while in possession of material undisclosed information about MDA Space. Under this policy, these individuals are also prohibited from entering into certain types of hedging transactions involving the securities of MDA Space, such as short sales, puts and calls or other derivative securities, prepaid variable forwards, equity swaps, collars, and common shares of exchange funds that are designed to hedge or offset a decrease in the market value of equity securities granted as compensation or held directly by the employee. Furthermore, executive officers, including the NEOs and certain employees, may trade in MDA Space's securities, including exercising Options, only during prescribed trading windows.

**Clawback Policy**

MDA Space's clawback policy allows it to recoup unearned incentive-based pay ("**Clawback Policy**"). The Clawback Policy relates to any bonus, equity-based or other incentive-based compensation awarded or granted to MDA Space's current and former executive officers, including the NEOs, to mitigate compensation risk. In the event MDA Space is required to prepare an accounting restatement of its financial statements due to MDA Space's material noncompliance with any financial reporting requirement under the federal securities laws or misstatements of financial results, our Board will assess whether MDA Space should seek to recover any excess incentive compensation received by any covered executives during the three completed fiscal years immediately preceding the date on which MDA Space is required to prepare an accounting restatement. In making this determination, our Board will look at factors it deems appropriate, including whether the executive engaged in fraud or intentional misconduct which contributed to the need for the restatement.

MDA MANAGEMENT INFORMATION CIRCULAR 61

**Share Ownership Guidelines**

MDA Space adopted a policy to require executives to meet minimum share ownership guidelines effective May 10, 2022 ("**Share Ownership Guidelines**"). NEOs can meet the share ownership guidelines through direct or beneficial ownership of MDA Space's securities, including common shares owned directly or indirectly, vested or unvested RSUs and fully vested PSUs issued under our LTIP. Options and unvested PSUs do not count toward the guidelines. Executives have five years from the effective date of the Share Ownership Guidelines to comply. Executives who are promoted or appointed into a position that is subject to these requirements have five years to meet the minimum requirement. Our NEOs should hold the after-tax value of any vested RSUs as common shares and hold shares received upon the settlement of PSUs until the guidelines have been met. Each of our NEOs has either met their ownership guidelines or has time remaining to do so.

The ownership guidelines for our NEOs as a multiple of annual base salary are set forth in the table below.

---

| | | |
|:---|:---|:---|
| **Named Executive Officer** | **Multiple of Base Salary** | **Share Ownership Guidelines Met or On <br> Track to Meet** |
| &nbsp;&nbsp;Michael Greenley | 3x | Met |
| &nbsp;&nbsp;Guillaume Lavoie | 1.5x | On track |
| &nbsp;&nbsp;Stephanie McDonald | 1.5x | Met |
| &nbsp;&nbsp;Holly Johnson | 1.5x | Met |
| &nbsp;&nbsp;Luigi Pozzebon | 1.5x | Met |
| &nbsp;&nbsp;Vito Culmone<sup>(1)</sup> | - | - |
| &nbsp;&nbsp;Janet McEachern<sup>(2)</sup> | - | - |

---

**Notes:**

**(1)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024. The Share Ownership Guidelines are no
 longer applicable to Mr. Culmone.

**(2)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024. The Share Ownership
 Guidelines are not applicable to Ms. McEachern.

**Performance Graph**

The following graph compares the yearly cumulative total shareholder return on a $100 investment in MDA Space's common shares against the cumulative total shareholder return of the S&P/TSX Composite Index from the period beginning April 7, 2021 (the date of our IPO) and ending on December 31, 2024. It assumes reinvestment of all dividends during the covered period. The performance graph and table both show an increase in MDA Space's total shareholder return in Fiscal 2024 driven by solid MDA Space share performance in the latest fiscal year (shares appreciated 156% in Fiscal 2024). Over the period from April 7, 2021 to December 31, 2024, MDA Space's total shareholder return was 103% compared to 45% for the S&P/TSX Composite Index.

The compensation structure for the NEOs is heavily equity weighted and there is strong alignment between share price performance and total compensation. The total return on MDA Space shares increased in 2023 and 2024. Similarly, total NEO compensation increased in 2023 and 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 62

![](tm266080d2_ex4-4sp5img002.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **All amounts are in C$** | **April 7, 2021<br> (IPO)** | **December<br> 31, 2021** | **December<br> 31, 2022** | **December<br> 31, 2023** | **December<br> 31, 2024** |
| MDA Space Ltd. | $100 | $65 | $44 | $79 | $203 |
| S&P/TSX Composite Index | $100 | $113 | $107 | $119 | $145 |
| **NEO COMPENSATION (C$ MILLIONS)** | **NEO COMPENSATION (C$ MILLIONS)** | **NEO COMPENSATION (C$ MILLIONS)** | **NEO COMPENSATION (C$ MILLIONS)** | **NEO COMPENSATION (C$ MILLIONS)** | **NEO COMPENSATION (C$ MILLIONS)** |
| Total Compensation (all NEOs) |  | $13.4 | $8.6 | $9.8 | $10.2 |

---

**Summary Compensation Table**

The following table sets out information concerning the compensation earned by, paid to, or awarded to the NEOs for each of MDA Space's three most recently completed financial years.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and<br> Principal<br> Position** | **Fiscal<br> Year** | **Base Salary<br> ($)<sup>(5)</sup>** | **Share <br> Based Awards <br> ($)<sup>(6)</sup>** | **Option<br> Based<br> Awards<br> ($)<sup>(7)</sup>** | **Non-Equity annual <br> Incentive Plan<br> Compensation<br> ($)<sup>(8)</sup>** | **Pension ($)** | **All Other<br> Compensation ($)<sup>(9)</sup>** | **Total<br> Compensation ($)** |
| **Michael Greenley**<br> Chief Executive Officer and Director | 2024<br> 2023<br> 2022<sup>(7)</sup> | 773480<br> 738000<br> 703846 | 2214000<br> 1440003<br> 1200000 | -<br> -<br> - | 805896<br> 944640<br> 723600 | 28500<br> 16700<br> 23600 | 62253<br> 32038<br> 35951 | 3884129<br> 3171380<br> 2686997 |
| **Guillaume Lavoie<sup>(1)</sup>**<br> Chief Financial Officer | 2024 | 72116 |  |  | 76862 |  | 266 | 149244 |

---

MDA MANAGEMENT INFORMATION CIRCULAR 63

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and<br> Principal<br> Position** | **Fiscal<br> Year** | **Base Salary<br> ($)<sup>(5)</sup>** | **Share <br> Based Awards <br> ($)<sup>(6)</sup>** | **Option<br> Based<br> Awards<br> ($)<sup>(7)</sup>** | **Non-Equity annual <br> Incentive Plan<br> Compensation<br> ($)<sup>(8)</sup>** | **Pension ($)** | **All Other<br> Compensation ($)<sup>(9)</sup>** | **Total<br> Compensation ($)** |
| **Stephanie McDonald**<br> Chief People, Culture and Transformation Officer | 2024<br> 2023 | 479904<br> 212308 | 689994<br> 228113 | -<br> 1355780 | 378551<br> 153123 | -<br> - | 68014<br> 51036 | 1616464<br> 2000359 |
| **Holly Johnson**<br> Vice President, Robotics & Space Operations | 2024<br> 2023<br> 2022 | 378692<br> 401842<br> 347129 | 450000<br> 416062<br> 350004 | -<br> -<br> 733187 | 255195<br> 254601<br> 180600 | 8900<br> 3000<br> 10800 | 77499<br> 8516<br> 7601 | 1179286<br> 1084020<br> 1628781 |
| **Luigi Pozzebon<sup>(2)</sup>**<br> Vice President, Satellite Systems | 2024<br> 2023<br> 2022 | 477656<br> 347441<br> 213292 | 450000<br> 349999<br> 76116 | 760679<br> - | 260010<br> 219880<br> 51650 | 19137<br> 13898<br> 8532 | 105121<br> 44501<br> 48964 | 1302957<br> 1736397<br> 398554 |
| **Vito Culmone<sup>(3)</sup>**<br> Former Chief Financial Officer | 2024<br> 2023<br> 2022 | 395101<br> 581481<br> 555289 | 873120<br> 566503<br> 566496 | -<br> -<br> 796403 | -<br> 580624<br> 450368 | 13900<br> 8900<br> - | 86442<br> 27114<br> 22570 | 1368563<br> 1764622<br> 2391126 |
| **Janet McEachern<sup>(4)</sup>**<sup></sup> Vice President, Finance, former Interim Chief Financial Officer | 2024<br> 2023<br> 2022 | 285634<br> 251617<br> 237529 | 99744<br> 120446<br> 60512 | -<br> -<br> - | 145731<br> 88556<br> 64143 | 27900<br> 14500<br> - | 74841<br> 5923<br> 3999 | 633850<br> 481042<br> 366184 |

---

**Notes:**

**(1)** Mr. Lavoie joined MDA Space as
 Chief Financial Officer on November 4, 2024.

**(2)** In 2023, Mr. Pozzebon was promoted
 Vice President, Satellite Systems. Prior to 2023, he served as Vice President, New Business.
 Information provided for 2022 reflects his prior role.

**(3)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024.

**(4)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024.

**(5)** Represents the base salary earned
 in the fiscal year ended December 31, 2022, Fiscal 2023 and Fiscal 2024.

**(6)** Amounts in Fiscal 2024 represent PSUs
 and RSUs issued to the applicable NEOs. PSUs and RSUs are measured at the fair value of MDA
 Space's Common Shares on the date of grant.

MDA MANAGEMENT INFORMATION CIRCULAR 64

**(7)** The fair value of the Options has
 been calculated using the Black-Scholes option-pricing model and the assumptions presented
 in the table below. The Black-Scholes option pricing model was chosen because it is recognized
 as a common and appropriate methodology for valuing options.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**DATE** | &nbsp;&nbsp;**RISK FREE RATE** | &nbsp;&nbsp;**RISK FREE RATE** | &nbsp;&nbsp;**RISK FREE RATE** | &nbsp;&nbsp;**EXPECTED LIFE <br> OF GRANT** | &nbsp;&nbsp;**EXPECTED LIFE <br> OF GRANT** | &nbsp;&nbsp;**EXPECTED LIFE <br> OF GRANT** | &nbsp;&nbsp;**VOLATILITY** | &nbsp;&nbsp;**VOLATILITY** | &nbsp;&nbsp;**VOLATILITY** |
| &nbsp;&nbsp;25-Jan-21 | &nbsp;&nbsp;0.45% | &nbsp;&nbsp;- | &nbsp;&nbsp;1.27% | &nbsp;&nbsp;5.94 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.97 | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;- | &nbsp;&nbsp;40.00% |
| &nbsp;&nbsp;17-Feb-21 | &nbsp;&nbsp;0.73% | &nbsp;&nbsp;- | &nbsp;&nbsp;1.27% | &nbsp;&nbsp;5.94 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.94 | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;- | &nbsp;&nbsp;40.00% |
| &nbsp;&nbsp;31-Jan-22 | &nbsp;&nbsp;1.62% | &nbsp;&nbsp;- | &nbsp;&nbsp;1.62% | &nbsp;&nbsp;5.50 | &nbsp;&nbsp;- | &nbsp;&nbsp;5.50 | &nbsp;&nbsp;40.00% | &nbsp;&nbsp;- | &nbsp;&nbsp;40.00% |
| &nbsp;&nbsp;23-Jun-22 | &nbsp;&nbsp;3.14% | &nbsp;&nbsp;- | &nbsp;&nbsp;3.15% | &nbsp;&nbsp;5.26 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.26 | &nbsp;&nbsp;42.37% | &nbsp;&nbsp;- | &nbsp;&nbsp;43.87% |
| &nbsp;&nbsp;29-Nov-22 | &nbsp;&nbsp;3.08% | &nbsp;&nbsp;- | &nbsp;&nbsp;3.21% | &nbsp;&nbsp;5.04 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.05 | &nbsp;&nbsp;42.98% | &nbsp;&nbsp;- | &nbsp;&nbsp;44.62% |
| &nbsp;&nbsp;13-Jun-23 | &nbsp;&nbsp;3.55% | &nbsp;&nbsp;- | &nbsp;&nbsp;3.67% | &nbsp;&nbsp;5.50 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.50 | &nbsp;&nbsp;40.23% | &nbsp;&nbsp;- | &nbsp;&nbsp;41.34% |
| &nbsp;&nbsp;14-Aug-23 | &nbsp;&nbsp;3.77% | &nbsp;&nbsp;- | &nbsp;&nbsp;3.99% | &nbsp;&nbsp;5.00 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.69 | &nbsp;&nbsp;40.26% | &nbsp;&nbsp;- | &nbsp;&nbsp;42.28% |
| &nbsp;&nbsp;22-Sep-23 | &nbsp;&nbsp;4.01% | &nbsp;&nbsp;- | &nbsp;&nbsp;4.17% | &nbsp;&nbsp;5.00 | &nbsp;&nbsp;- | &nbsp;&nbsp;6.64 | &nbsp;&nbsp;40.31% | &nbsp;&nbsp;- | &nbsp;&nbsp;42.31% |

---

**(8)** Represents amounts paid under the
 STIP. 2023 annual incentive plan amounts were adjusted from MDA Space's previous management
 information circular in order to represent actual incentive payments paid in the year.

**(9)** Other compensation amounts paid to
 NEOs during the course of the year include perquisites, excess vacation pay, one-time pay
 adjustments and taxable benefits, as applicable. Mr. Greenley received excess vacation
 pay in the amount of $60,159. Ms. McDonald received payment for relocation expenses
 in the amount of $35,103 and RRSP contribution in lieu of pension of $25,000, Ms. Johnson
 received a maternity leave top-up of $63,435. Mr. Pozzebon received excess vacation
 pay of $87,193. Mr. Culmone received excess vacation pay of $83,210. Ms. McEachern
 received an assignment premium of $63,200.

**Employment Agreements**

MDA Space has entered into employment agreements with each of the NEOs. The agreements set forth the terms and conditions of each executive's employment with MDA Space, including base salary, short-term incentive, eligibility for employee benefits and severance benefits upon a qualifying termination of employment, and certain restrictive covenants such as non-solicitation provisions. Any potential payments and benefits due upon a qualifying termination of employment or a change of control are further described below.

**Michael Greenley, Chief Executive Officer and Director**

Mr. Greenley's employment agreement provides for base salary, an annual performance bonus, participation in the LTIP and benefits.

If Mr. Greenley is terminated without cause or resigns for good reason, then in addition to his accrued but unpaid base salary and vacation pay up to the termination date, and benefits continuation, MDA Space will provide Mr. Greenley, as severance, an amount equal to 200% of his annual base salary; as well as his annual bonus (if any) for the year of termination, prorated to the termination date. If Mr. Greenley's employment agreement is terminated for any other reason other than as set out immediately above, he will receive only his accrued but unpaid base salary and vacation pay up to the termination date, and all entitlement to benefits and participation in MDA Space's STIP or incentive plans shall terminate on the termination date.

Mr. Greenley's employment agreement also contains customary confidentiality and non-disparagement covenants and certain restrictive covenants that will continue to apply following the termination of his employment, including non-competition provisions which are in effect during Mr. Greenley's employment and for 12 months following the termination of his employment if terminated without cause or due to resignation with good reason, and for 24 months following the termination of his employment for any other reason, and non-solicitation provisions which are in effect during Mr. Greenley's employment and for the 24 months following the termination of his employment.

MDA MANAGEMENT INFORMATION CIRCULAR 65

**Guillaume Lavoie, Chief Financial Officer**

Mr. Lavoie's employment agreement provides for base salary, a signing bonus, an annual performance bonus, participation in the LTIP, and benefits.

If Mr. Lavoie resigns or is terminated for cause, he will be entitled to receive only his accrued but unpaid base salary and accrued vacation pay up to the termination date, and all entitlement to benefits shall terminate on the termination date. If Mr. Lavoie is terminated without cause then in addition to his accrued but unpaid base salary and vacation pay up to the termination date, MDA Space will provide Mr. Lavoie, as severance, an amount equal to one month base salary for each completed year of service, with a minimum of 18 months and a maximum of 24 months; as well as his annual bonus prorated for the number of months by which his severance exceeds the minimum statutory requirements. For the purposes of calculating such annual bonus, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination, and if termination occurs prior to Mr. Lavoie having been eligible to receive two (2) bonus payments, then the bonus shall be calculated on the basis of his target bonus.

Mr. Lavoie's employment agreement also contains customary confidentiality covenants and certain restrictive covenants that will continue to apply following the termination of his employment, including non competition and non-solicitation provisions which are in effect during Mr. Lavoie's employment and for the 12 months following the termination of his employment.

**Stephanie McDonald, Chief People, Culture and Transformation Officer**

Ms. McDonald employment agreement provides for base salary, an annual performance bonus, a relocation allowance, participation in the LTIP, and benefits.

If Ms. McDonald resigns or is terminated for cause, she will be entitled to receive only her accrued but unpaid base salary up to the termination date, and all entitlement to benefits shall terminate on the termination date. If Ms. McDonald is terminated without cause, then in addition to her accrued but unpaid base salary and vacation pay up to the termination date and benefits continuation, MDA Space will provide Ms. McDonald as severance an amount equal to 24 months' base salary as well as her annual bonus prorated to the termination date and for a period of 24 months thereafter. For the purposes of calculating such annual bonus for the 24 months following termination, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination (except that in the event that Ms. McDonald has not completed two (2) fiscal years prior to the date of termination, in which case it will be based on her target bonus amount under the STIP). Additionally, pursuant to option award agreements, if Ms. McDonald is terminated without cause, any unvested Options granted to her pursuant to shall vest immediately.

Ms. McDonald's employment agreement also contains customary confidentiality covenants and certain restrictive covenants that will continue to apply following the termination of her employment, including non-competition and non-solicitation provisions which are in effect during Ms. McDonald's employment and for the 12 months following the termination of her employment.

**Holly Johnson, Vice President, Robotics & Space Operations**

Ms. Johnson's employment agreement provides for base salary, an annual performance bonus, and benefits.

Ms. Johnson's employment agreement provides that, if Ms. Johnson resigns without good reason or is terminated for cause, she will be entitled to receive only her accrued but unpaid base salary up to the termination date, and all entitlement to benefits shall terminate on the termination date. If Ms. Johnson's employment is terminated for any other reason other than as set out immediately above, then in addition to her accrued but unpaid base salary to the termination date, and benefits continuation, MDA Space will provide Ms. Johnson, as severance, an amount equal to 12 months' base salary plus an additional month per year of service to an overall maximum of 24 months as well as her annual bonus prorated for a period of 12 months plus one month for every completed year of service up to an overall maximum of 24 months. For the purposes of calculating such annual bonus, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination.

MDA MANAGEMENT INFORMATION CIRCULAR 66

Ms. Johnson's employment agreement also contains customary confidentiality covenants and certain restrictive covenants that continue to apply following the termination of her employment, including non-competition and non-solicitation provisions which are in effect during Ms. Johnson's employment and for the 12 months following the termination of her employment.

**Luigi Pozzebon, Vice President, Satellite Systems**

Mr. Pozzebon's employment agreement provides for base salary, an annual performance bonus, participation in the LTIP, and benefits.

If Mr. Pozzebon resigns or is terminated for cause, he will be entitled to receive only his accrued but unpaid base salary up to the termination date, and all entitlement to benefits shall terminate on the termination date. If Mr. Pozzebon is terminated without cause then in addition to his accrued but unpaid base salary and vacation pay up to the termination date, MDA Space will provide Mr. Pozzebon, as severance, an amount equal to 12 months' base salary plus one month base salary for each completed year of service up to a maximum of 24 months; as well as his annual bonus prorated for a period of 12 months plus one month for every completed year of service up to a maximum of 24 months. For the purposes of calculating such annual bonus, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination. Additionally, pursuant to an option award agreement, if Mr. Pozzebon is terminated without cause, 200,000 Options granted to him June 13, 2023 shall vest immediately. The balance of any unvested Options will be forfeited.

Mr. Pozzebon's employment agreement also contains customary confidentiality covenants and certain restrictive covenants that will continue to apply following the termination of his employment, including non-competition and non-solicitation provisions which are in effect during Mr. Pozzebon's employment and for the 12 months following the termination of his employment.

**Vito Culmone, Former Chief Financial Officer**

Mr. Culmone resigned from his position with MDA Space effective July 2, 2024.

Prior to his resignation, Mr. Culmone's employment agreement provided for base salary, a signing bonus, an annual performance bonus, participation in the LTIP, and benefits.

Mr. Culmone's employment agreement provided that if Mr. Culmone resigns or is terminated for cause, he will be entitled to receive only his accrued but unpaid base salary up to the termination date, and all entitlement to benefits shall terminate on the termination date. If Mr. Culmone is terminated without cause, then in addition to his accrued but unpaid base salary and vacation pay up to the termination date and benefits continuation, MDA Space will provide Mr. Culmone as severance an amount equal to 24 months' base salary as well as his annual bonus prorated to the termination date and for a period of 24 months thereafter. For the purposes of calculating such annual bonus for the 24 months following termination, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination. Additionally, if Mr. Culmone is involuntarily terminated during a year prior to an upcoming December 31 vesting date, the options allotment for that year will be included in any severance agreement on a prorated basis based on the date of termination.

Mr. Culmone's employment agreement also contained customary confidentiality covenants and certain restrictive covenants that will continue to apply following the termination of his employment, including non-competition and non-solicitation provisions which are in effect during Mr. Culmone's employment and for the 12 months following the termination of his employment.

**Janet McEachern, Vice President, Finance, former Interim Chief Financial Officer**

Ms. McEachern served as Interim Chief Financial Officer from July 2, 2024 until November 4, 2024. Ms. McEachern's employment agreement provides for base salary, an annual performance bonus, participation in the LTIP, and benefits.

If Ms. McEachern resigns or is terminated for cause, she will be entitled to receive only her accrued but unpaid base salary and accrued vacation pay up to the termination date, and all entitlement to benefits shall terminate on

MDA MANAGEMENT INFORMATION CIRCULAR 67

the termination date. If Ms. McEachern is terminated without cause then in addition to her accrued but unpaid base salary and vacation pay up to the termination date, MDA Space will provide Ms. McEachern, as severance, an amount equal to six months' base salary plus one month base salary for each completed year of service up to a maximum of 24 months; as well as her annual bonus prorated for a period of six months plus one month for every completed year of service up to a maximum of 24 months. For the purposes of calculating such annual bonus, the annual amount used shall be the average of the annual bonus paid in respect of the two (2) contemplated fiscal years immediately preceding the date of termination.

Ms. McEachern's employment agreement also contains customary confidentiality covenants and certain restrictive covenants that will continue to apply following the termination of her employment, including noncompetition and non-solicitation provisions which are in effect during Ms. McEachern's employment and for the 12 months following the termination of her employment.

**Outstanding Option-Based Awards and Share-Based Awards**

The following table sets out information concerning the option-based and share-based awards granted to MDA Space's NEOs that are outstanding as of December 31, 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name and Principal <br> Position** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options <br> (#)** | **Option<br> Exercise Price <br> ($)** | **Option Expiration Date** | **Value of<br> Unexercised In-<br> The-Money<br> Options <br> ($)<sup>(1)</sup>** | **Number of<br> Shares That<br> Have Not<br> Vested <br> (#)** | **Market or<br> Payout Value<br> of Share-<br> Based Awards<br> That Have <br> Not Vested <br> ($)<sup>(2)</sup>** | **Market or<br> Payout Value<br> of Vested<br> Share-Based<br> Awards Not<br> Paid Out or<br> Distributed<br> ($)** |
| **Michael Greenley**<br> Chief Executive Officer and Director | 2179950 | 6.00 - 15.36 | 30-Oct-30 | 41281220 | 423038 | 12492312 |  |
| **Guillaume Lavoie<sup>(3)</sup>**<br> Chief Financial Officer |  |  |  |  |  |  |  |
| **Stephanie McDonald**<sup></sup> Chief People, Culture and Transformation Officer | 311269 | 10.18 - 15.00 | 14-Aug-33 <br> 22-Sep-33 | 5720220 | 67546 | 1994633 |  |
| **Holly Johnson**<br> Vice President, Robotics & Space Operations | 401550 | 6.00 - 15.36 | 05-Nov-30<br> 31-Jan-32<br> 23-Jun-32 | 8237368 | 101358 | 2993102 |  |
| **Luigi Pozzebon**<br> Vice President, Satellite Systems | 401550 | 6.00 - 15.36 | 02-Nov-30<br> 13-Jun-33 | 8290178 | 75809 | 2238640 |  |
| **Vito Culmone<sup>(4)</sup>**<br> Former Chief Financial Officer | 1223532 | 6.60 - 30.00 | 30-Jun-25 | 13238789 |  |  |  |
| **Janet McEachern<sup>(5)</sup>**<sup></sup> Vice President, Finance, former Interim Chief Financial Officer | 10844 | 14.00 - 15.36 | 25-Jan-31 | 163839 | 20780 | 613633 |  |

---

**Notes:**

MDA MANAGEMENT INFORMATION CIRCULAR 68

**(1)** Amounts shown represents the difference
 between the closing price of MDA Space's Common Shares on the TSX of $29.53 on December 31,
 2024 and the option exercise price.

**(2)** Based on the closing price of MDA
 Space's Common Shares on the TSX of $29.53 on December 31, 2024.

**(3)** Mr. Lavoie joined MDA Space as
 Chief Financial Officer on November 4, 2024.

**(4)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024. All option-based awards and trust shares
 were allowed to vest until December 31, 2024. All other unvested share-based awards
 previously granted to Mr. Culmone were forfeited upon his resignation on July 2,
 2024.

**(5)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024.

**Incentive Plan Awards – Value Vested or Earned During the Year**

The following table sets out, for each of MDA Space's NEOs, the value of the option-based and share-based awards that vested in accordance with their terms during Fiscal 2024. Non-equity annual incentive plan compensation amounts represent awards under the STIP earned in 2024 and paid in 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Principal Position** | **Option-based<br> Awards – Value<br> Vested During<br> the Year <br> ($)<sup>(1)</sup>** | **Share-based<br> Awards – Value<br> Vested During<br> the Year <br> ($)<sup>(2)</sup>** | **Non-equity annual<br> incentive plan<br> compensation – Value<br> Earned During the<br> Year <br> ($)** |
| **Michael Greenley** <br> Chief Executive Officer and Director | 10187345 | 773768 | 805896 |
| **Guillaume Lavoie<sup>(3)</sup>**<sup></sup> Chief Financial Officer |  |  | 76862 |
| **Stephanie McDonald**<sup></sup> Chief People, Culture and Transformation Officer | 1144048 | 54720 | 378551 |
| **Holly Johnson** <br> Vice President, Robotics & Space Operations | 1393280 | 201961 | 255195 |
| **Luigi Pozzebon**<br> Vice President, Satellite Systems | 931537 | 154859 | 260010 |
| **Vito Culmone<sup>(4)</sup>**<br> Former Chief Financial Officer | 3668768 | 1341975 |  |
| **Janet McEachern<sup>(5)</sup>**<sup></sup> Vice President, Finance, former Interim Chief Financial Officer | 163839 | 286167 | 145731 |

---

**Notes:**

**(1)** Option-based amounts represent the
 difference between the various closing prices of MDA Space's Common Shares on the TSX
 on the respective vesting dates and the option exercise prices, multiplied by the number
 of vested Options.

**(2)** Share-based amounts represent the
 number of vested shares multiplied by the various closing prices of MDA Space's Common
 Shares on the TSX on the respective vesting dates.

**(3)** Mr. Lavoie joined MDA Space as
 Chief Financial Officer on November 4, 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 69

**(4)** Mr. Culmone resigned from his
 position with MDA Space effective July 2, 2024. All option-based awards and trust shares
 were allowed to vest until December 31, 2024. All other unvested share-based awards
 previously granted to Mr. Culmone were immediately forfeited upon his resignation on
 July 2, 2024.

**(5)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024.

**Burn Rate**

The annual burn rate for each security-based compensation arrangement for the three most recently completed financial years, expressed as a percentage and calculated by dividing the number of awards granted during the financial year by the weighted average number of Common Shares outstanding for the financial year, is set forth in the following table:

---

| | | | |
|:---|:---|:---|:---|
| **Burn Rate** | **2022 (%)** | **2023 (%)** | **2024(%)** |
| Number of share-based awards granted / Basic weighted average number of Common Shares outstanding at year end | 1.32 | 1.61 | 0.67 |

---

**Pension Plan Benefits**

The following table summarizes information for the NEOs participating in MDA Space's defined benefit pension plan arrangements as at December 31, 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Annual Benefits<br> Payable<br> ($)** | **Annual Benefits<br> Payable<br> ($)** | | | | |
| **Name and <br> Principal**<br>**Position<sup>(1)</sup>** | **Number <br> of Years<br> Credited<br> Service**<br>**(#)** | **At Year End** | **At Age 65** | **Opening<br> Present Value<br> of Defined<br> Benefit<br> Obligation**<br>**($)** | **Compensatory<br> Change**<br>**($)** | **Non-Compensatory<br> Change**<br>**($)** | **Closing<br> Present Value<br> of Defined<br> Benefit<br> Obligation**<br>**($)** |
| **Michael Greenley**<br> Chief Executive Officer and Director | 6.92 | 20000 | 44400 | 257700 | 28500 | 16900 | 303100 |
| **Vito Culmone<sup>(2)</sup>**<sup></sup> Chief Financial Officer | 1.08 |  |  | 11700 | 13900 | 25600 |  |
| **Holly Johnson<sup>(3)</sup>**<sup></sup> VP Robotics and Space Operations | 13.33 | 26500 | 129200 | 96900 | 8900 | 4700 | 110500 |
| **Janet McEachern<sup>(4)</sup>**<br> Vice President, Finance, former Interim Chief Financial Officer | 2.00 | 5200 | 44300 | 22405 | 27900 | 4195 | 54500 |

---

**Notes:**

**(1)** All amounts disclosed in the table
 are in Canadian dollars and at year-end, have been calculated using the same assumptions
 and methods that are used for financial statement reporting, including a December 31,
 2024 discount rate of 4.8%.

**(2)** Vito Culmone resigned from MDA Space
 on July 2, 2024.

**(3)** Amounts disclosed in the table for
 Holly Johnson reflect membership in the SPATEA and ONR pension plans.

**(4)** Ms. McEachern served as Interim
 Chief Financial Officer from July 2, 2024 until November 4, 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 70

MDA Space's sponsored defined benefit plan is subject to a two-year waiting period. Stephanie McDonald and Guillaume Lavoie will have the option to participate in this plan following the two-year waiting period.

The following table summarizes information for the NEOs participating in MDA Space's defined contribution pension plan arrangements as at December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Principal<br> Position<sup>(1)</sup>** | **Accumulated Value at<br> Start of Year<br> ($)** | **Compensatory ($)<sup>(1)</sup>** | **Accumulated Value at<br> Year End<br> ($)** |
| **Luigi Pozzebon**<br> VP, Satellite Systems | 484893 | 50080 | 583149 |

---

**Notes:**

**(1)** Represents MDA Space's employer
 contribution to the plan and the interest earned on employer contributions.

**Termination and Change of Control Benefits**

For a summary of the termination and change of control benefits provided under each long-term incentive plan, please refer to "Components of Compensation - Equity-Based Incentive Awards." For a summary of the termination benefits provided under the NEOs' employment agreements, please refer to the "Executive Compensation – Employment Agreements" section.

The following table provides the estimated amounts of incremental payments, payables and benefits to which each NEO would be entitled based on differing departure scenarios, assuming the triggering event took place on December 31, 2024. Incremental benefits in connection with a change of control are realized only in the event of a termination of employment following a change of control and no incremental benefit is realized solely on a change of control, except as otherwise set out in the Omnibus Plan – please refer to "Components of Compensation - Equity-Based Incentive Awards."

MDA MANAGEMENT INFORMATION CIRCULAR 71

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Departure Scenario** | **Cash<br> severance <br> ($)** | **Short-term<br> incentive <br> ($)<sup>(1)</sup>** | **Continuation<br> of benefits<br> (present value) <br> ($)<sup>(2)</sup>** | **PSUs** **<br> ($)<sup>(3)</sup>** | **RSUs** **<br> ($)<sup>(3)</sup>** | **Employee<br> Trust<br> shares <br> ($)<sup>(3)</sup>** | **Stock<br> options<br> ($)<sup>(3)</sup>** | **Total** |
| **Michael Greenley**<br> Chief Executive Officer and Director | Resignation<br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 1549800<br> 1549800<br> - | -<br> -<br> 805896<br> 805896<br> - | -<br> -<br> 309960<br> 309960<br> - | -<br> -<br> -<br> 7467635<br> - | -<br> -<br> -<br> 5024677<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> 41281220<br> - | -<br> -<br> 2665656<br> 56439188<br> - |
| **Guillaume Lavoie**<sup>(4)</sup>****<br> Chief Financial Officer | Resignation <br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 937500<br> 937500<br> - | -<br> -<br> 76862<br> 76862<br> - | -<br> -<br> 187500<br> 187500<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> 1201862<br> 1201862<br> - |
| **Stephanie McDonald**<br> Chief People, Culture and Transformation Officer | Resignation <br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 961400<br> 961400<br> - | -<br> -<br> 1099601<br> 1099601<br> - | -<br> -<br> 192280<br> 192280<br> - | -<br> -<br> -<br> 1052479<br> - | -<br> -<br> -<br> 942155<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> 4848419<br> 4848420<br> -<br><sup>(7)</sup> | -<br> -<br> 7101700<br> 9096334<br> - |
| **Holly Johnson**<br> Vice President, Robotics & Space Operations | Resignation<br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 963000<br> 963000<br> - | -<br> -<br> 434501<br> 434501<br> - | -<br> -<br> 192600<br> 192600<br> - | -<br> -<br> -<br> 1828704<br> - | -<br> -<br> -<br> 1164397<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> 8237368<br> - | -<br> -<br> 1,590.101<br> 12,820.571<br> - |
| **Luigi Pozzebon**<br> Vice President, Satellite Systems | Resignation<br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 963000<br> 963000<br> - | -<br> -<br> 312210<br> 312210<br> - | -<br> -<br> 192600<br> 192600<br> - | -<br> -<br> -<br> 1193839<br> - | -<br> -<br> -<br> 1044801<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> 4215240<br> 8290178<br> -<br><sup>(8)</sup> | -<br> -<br> 5683050<br> 11996628<br> - |
| **Vito Culmone**<sup>(5)</sup>****<br> Former Chief Financial Officer | Resignation |  |  |  |  |  |  |  |  |
| **Janet McEachern**<sup>(6)****<br></sup>Vice President, Finance, former Interim Chief Financial Officer | Resignation <br> Termination for cause<br> Termination without cause<br> Change of control<br> Retirement | -<br> -<br> 237500<br> 237500<br> - | -<br> -<br> 63626<br> 63626<br> - | -<br> -<br> 47500<br> 47500<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> -<br> -<br> - | -<br> -<br> 348626<br> 348626<br> - |

---

**Notes:**

**(1)** Pursuant
 to their employment agreements: Mr. Greenley's amount represents his 2024 award under
 the STIP; Mr. Lavoie's amount represents his 2024 award under STIP prorated for his
 time of employment during 2024; Ms. McDonald's amount represents her 2024 award under
 the STIP and a target award for a period of 24 months after termination; Ms. Johnson and
 Mr. Pozzebon's amounts represent STIP for a period of 24 months after termination;
 and Ms. McEachern's amount represents STIP prorated for a period of 10 months after
 termination.

**(2)** Continuation
 of benefits reflect amounts for health and dental benefits and insurance benefits, pursuant
 to the terms of the NEO's employment contracts, as applicable. The present value of
 such continuation of benefits has been calculated using an estimate of 20% of cash severance
 amount.

**(3)** Payouts
 for PSUs, RSUs, Employee Trust shares and Options in the event of a Change of Control for
 executive officers, assume the Plan Administrator under the Omnibus Plan deemed it necessary
 or desirable to cause outstanding Awards to vest and become exercisable. Value of PSUs, RSUs
 and Employee Trust shares calculated based on the closing price of MDA's Common Shares
 on the TSX of $29.53 on December 31, 2024. Value of Options calculated based on the difference
 between the closing price of MDA's Common Shares on the TSX of $29.53 on December 29,
 2024 and the option exercise price.

**(4)** Mr.
 Lavoie joined MDA Space as Chief Financial Officer on November 4, 2024.

**(5)** Mr.
 Culmone resigned from his position with MDA Space effective July 2, 2024.

**(6)** Ms.
 McEachern served as Interim Chief Financial Officer from July 2, 2024 until November 4, 2024.

MDA MANAGEMENT INFORMATION CIRCULAR 72

**(7)** Pursuant
 to option award agreements, if Ms. McDonald is terminated without cause, any unvested Options
 granted to her shall vest immediately.

**(8)** Pursuant
 to an option award agreement, if Mr. Pozzebon is terminated without cause, 200,000 Options
 granted to him June 13, 2023 shall vest immediately.

**Director Compensation**

**General**

The following discussion describes the significant elements of the compensation program for members of our Board and its committees. The compensation of MDA Space's directors is designed to attract and retain committed and qualified directors and to align their compensation with long-term shareholder value creation. MDA Space's CEO, Michael Greenley (an "**Excluded Director**"), does not receive any compensation for his service as a director of our Board and is not included in the table below, see the "Summary Compensation Table" above for the compensation he received from MDA Space in 2024.

Our Board, on the recommendation of our Nominating & Governance Committee, is responsible for reviewing and approving any changes to the directors' compensation arrangements. In consideration for serving on our Board, each director (other than the CEO) is paid an annual retainer. All directors are reimbursed for their reasonable out-of-pocket expenses incurred while serving as directors.

**Director Compensation Table**

The chart below outlines MDA Space's director compensation program.

---

| | | |
|:---|:---|:---|
|  | **Type of Fee** | **Amount for 2024 ($)** |
| **Board Retainer** | Excluded Director | Nil |
|  | Board Chair | 300000 |
|  | Board Member | 200000 |
| **Committee Chair Retainers** | Audit Committee Chair | 25000 |
|  | Nominating & Governance Committee Chair | 15000 |
|  | Human Resources, Development and Compensation Committee Chair | 20000 |

---

Deferred Share Units

MDA Space's Omnibus Plan provides for the grant of DSUs to each director, other than the CEO. Our Board has mandated that 50% of each director's annual cash retainer shall be payable to such director in the form of DSUs. In addition, each year, our directors may elect to take all or a portion of the remaining amount of their annual Board retainer in the form of DSUs.

Following the end of an eligible director's tenure as a member of our Board, the director will receive Common Shares, a payment in cash at the fair market value of the Common Shares represented by his or her DSUs, or a combination of the two on the director's elected redemption date. Each director's elected redemption date will not be earlier than the date the director's tenure as a member of our Board ceases and will not be later than December 15th of the year following the year in which the director's tenure as a member of our Board ceases.

MDA MANAGEMENT INFORMATION CIRCULAR 73

The following table sets forth the value of all compensation earned by directors of MDA Space (other than the Excluded Director) in their capacity as directors for Fiscal 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Director** | **Cash Compensation<br> Earned <br> ($)<sup>(1)</sup>** | **DSU Compensation<br> Earned <br> ($)** | **Total Compensation <br> ($)** |
| Brendan Paddick | 76717 | 204555 | 281272 |
| Alison Alfers |  | 200000 | 200000 |
| Yaprak Baltacioğlu | 55000 | 165000 | 220000 |
| Darren Farber |  | 200000 | 200000 |
| John Risley |  | 235440 | 235440 |
| Jill Smith | 107500 | 107500 | 215000 |
| Karl Smith |  | 109936 | 109936 |
| Yung Wu | 47423 | 128401 | 175824 |
| Louis Vachon<sup>(2)</sup> | 20789 | 50000 | 70879 |

---

**Notes:**

**(1)** Includes
 all fees awarded, earned, paid or payable in cash for services as a director, including annual
 retainer fees, committee, chair and meeting fees.

**(2)** Ceased
 to be a director as of May 8, 2024.

**Outstanding Option-Based and Share-Based Awards**

The following table sets out information concerning the share-based awards granted to MDA Space's directors (other than the Excluded Director) that are outstanding as of December 31, 2024. None of MDA Space's directors (other than the Excluded Director) has been granted any option-based awards.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name of Director** | **Number of <br> Shares That Have<br> Not Vested <br> (#)** | **Market or Payout<br> Value of Share-Based <br> Awards That Have Not <br> Vested <br> ($)** | **Number of Vested<br> Share-Based Awards <br> Not Paid Out or<br> Distributed <br> (#)<sup>(1)</sup>** | **Market or Payout Value of<br> Vested Share-Based<br> Awards Not Paid Out or<br> Distributed <br> ($)<sup>(2)</sup>** |
| Brendan Paddick |  |  | 41329 | 1220445 |
| Alison Alfers |  |  | 39379 | 1162862 |
| Yaprak Baltacioğlu |  |  | 39946 | 1179605 |
| Darren Farber |  |  | 48422 | 1429902 |
| John Risley |  |  | 58221 | 1719266 |
| Jill Smith |  |  | 26477 | 781866 |
| Karl Smith |  |  | 5203 | 153645 |
| Yung Wu |  |  | 7169 | 211701 |
| Louis Vachon<sup>(3)</sup> |  |  |  |  |

---

MDA MANAGEMENT INFORMATION CIRCULAR 74

**Notes:**

**(1)** Represents
 all DSUs issued to directors during their tenure with MDA Space, including during Fiscal
 2024. All DSUs are immediately vested upon grant. Each director's DSUs will be redeemed
 following the end of such director's tenure as a member of our Board.

**(2)** Based
 on the closing price of MDA Space's Common Shares on the TSX of $29.53 on December
 31, 2024.

**(3)** Ceased
 to be a director as of May 8, 2024. All of Mr. Vachon's DSUs were released on May 8,
 2024 as a result of his resignation as a director.

**Incentive Plan Awards – Value Vested or Earned During the Year**

The following table sets out, for each of MDA Space's directors (other than the Excluded Director), the value of the option-based and share-based awards that vested in accordance with their terms during Fiscal 2024.

---

| | | | |
|:---|:---|:---|:---|
| **Name of Director** | **Option-based Awards – <br> Value Vested During <br> the Year <br> ($)** | **Share-based Awards –<br> Value Vested During <br> the Year <br> ($)<sup>(1)</sup>** | **Non-equity incentive plan<br> compensation – Value Vested<br> During the Year <br> ($)** |
| Brendan Paddick |  | 204555 |  |
| Alison Alfers |  | 200000 |  |
| Yaprak Baltacioğlu |  | 165000 |  |
| Darren Farber |  | 200000 |  |
| John Risley |  | 235400 |  |
| Jill Smith |  | 107500 |  |
| Karl Smith |  | 109936 |  |
| Yung Wu |  | 128401 |  |
| Louis Vachon<sup>(2)</sup> |  | 50000 |  |

---

**Notes:**

**(1)** DSUs
 issued to directors are immediately vested upon grant. Each director's DSUs will be
 redeemed following the end of such director's tenure as a member of our Board. The
 values represent the number of vested shares at the closing price of MDA Space's Common
 Shares at the various closing prices of MDA Space's Common Shares on the TSX on the
 respective vesting dates.

**(2)** Ceased
 to be a director as of May 8, 2024.

**Director Share Ownership Guidelines**

To align the interests of the directors of MDA Space with long-term shareholder value creation, the directors (other than any Excluded Director) are required to maintain an equity ownership interest in MDA Space equal to four times the applicable director's annual cash retainer, not including committee chair retainers. Our Board share ownership guidelines were adopted by our Board on December 26, 2021. Directors have five years from the effective date to comply. Newly appointed directors have five years from the date of their appointment to meet the minimum requirement. The HRDCC is authorized to further define the parameters of the foregoing share ownership guidelines.

MDA MANAGEMENT INFORMATION CIRCULAR 75

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Directors** | &nbsp;&nbsp;**Multiple of Annual Cash Retainer** | &nbsp;&nbsp;**Share Ownership Guidelines Met <br> or On Track to Meet** |
| &nbsp;&nbsp;Brendan Paddick | 4x | Met |
| &nbsp;&nbsp;Alison Alfers | 4x | Met |
| &nbsp;&nbsp;Yaprak Baltacioğlu | 4x | Met |
| &nbsp;&nbsp;Darren Farber | 4x | Met |
| &nbsp;&nbsp;John Risley | 4x | Met |
| &nbsp;&nbsp;Jill Smith | 4x | Met |
| &nbsp;&nbsp;Karl Smith | 4x | On Track |
| &nbsp;&nbsp;Yung Wu | 4x | On Track |
| &nbsp;&nbsp;Louis Vachon<sup>(1)</sup> | - | - |

---

**Notes:**

**(1)** Louis
 Vachon ceased to be a director as of May 8, 2024.

**Directors' and Officers' Liability Insurance**

MDA Space's directors and officers are covered under its existing directors' and officers' liability insurance. Under this insurance coverage, MDA Space will be reimbursed for insured claims where payments have been made under indemnity provisions on behalf of MDA Space's directors and officers, subject to a deductible for each loss, which will be paid by MDA Space. MDA Space's individual directors and officers will also be reimbursed for insured claims arising during the performance of their duties for which they are not indemnified by MDA Space. Excluded from insurance coverage are illegal acts, acts which result in personal profit and certain other acts.

**Securities Authorized for Issuance Under Equity Incentive Plans**

As of the date hereof, there are 6,821,173 Options, 734,600 RSUs, 526,748 PSUs and 266,146 DSUs outstanding under MDA Space's equity incentive plans, each of which could be exercised or settled for one Common Share, which represent in the aggregate 6.80% of MDA Space's issued and outstanding Common Shares as at the date hereof.

The following table sets forth the equity securities authorized for issuance under MDA Space's equity incentive plans as of December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| | **Number of securities to<br> be issued upon exercise <br> of outstanding Options,<br> DSUs, RSUs AND PSUs** | **Weighted-average<br> exercise price of<br> outstanding<br> Options <br> ($)** | **Number of securities remaining<br> available for future issuance<br> under equity compensation<br> plans (excluding securities<br> reflected in column (a))** |
| <br>**Plan Category** | **(A)** | **(B)** | **(C)** |
| Equity compensation plans approved by securityholders | 9516930 | 11.79 | 2638193 |

---

MDA MANAGEMENT INFORMATION CIRCULAR 76

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of securities to<br> be issued upon exercise <br> of outstanding Options,<br> DSUs, RSUs AND PSUs** | **Weighted-average<br> exercise price of<br> outstanding<br> Options <br> ($)** | **Number of securities remaining<br> available for future issuance<br> under equity compensation<br> plans (excluding securities<br> reflected in column (a))** |
| Equity compensation plans not approved by securityholders | - | - | - |
| Total | 9516930 | 11.79 | 2638193 |

---

**Omnibus Plan**

In connection with MDA Space's IPO, we amended and restated our Legacy Stock Option Plan to become the Omnibus Plan. On May 10, 2022, we amended our Omnibus Plan to clarify certain language regarding the payment of certain broker fees. On February 27, 2024, we further amended and restated our Omnibus Plan to make certain administrative amendments and to revise the treatment of Awards upon a Participant's retirement. The material features of the Omnibus Plan, as amended, are summarized below.

**Purpose**

The purpose of the Omnibus Plan is to provide MDA Space with a share-related mechanism to attract, retain and motivate qualified directors, employees and consultants of MDA Space, to reward such of those non-employee directors, employees and consultants as may be granted Awards (as hereinafter defined) under the Omnibus Plan by our Board from time to time for their contributions toward the long-term goals and success of MDA Space and to enable and encourage such non-employee directors, employees and consultants to acquire Common Shares (as defined in the Omnibus Plan) as long-term investments and proprietary interests in MDA Space.

**Types of Awards**

The Omnibus Plan provides for the grant of Options, DSUs, PSUs and RSUs and other share-based awards ("**Other Share-Based Awards**" and together with the Options, DSUs, PSUs and RSUs, the "**Awards**"). All Awards will be granted by an agreement or other instrument or document evidencing the Award granted under the Omnibus Plan (an "**Award Agreement**").

**Plan Administration**

The Omnibus Plan will be administered by our Board, which may delegate its authority to any duly authorized committee of the Board (the "**Plan Administrator**"). The Plan Administrator has sole and complete authority, in its discretion, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) determine
 the individuals (the "**Participants**") to whom grants of Awards under the
 Omnibus Plan may be made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) make
 grants of Awards under the Omnibus Plan, whether relating to the issuance of Common Shares
 or otherwise (including any combination of Options, RSUs, PSUs, DSUs or Other Share-Based
 Awards), in such amounts, to such Participants and, subject to the provisions of the Omnibus
 Plan, on such terms and conditions as it determines, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 time or times at which Awards may be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 conditions under which: (A) Awards may be granted to Participants; or (B) Awards may be forfeited
 to MDA Space, including any conditions relating to the attainment of specified performance
 goals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 number of Common Shares to be covered by any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 price, if any, to be paid by a Participant in connection with the purchase of Common Shares
 covered by any Awards;

MDA MANAGEMENT INFORMATION CIRCULAR 77

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) whether
 restrictions or limitations are to be imposed on the Common Shares issuable pursuant to grants
 of any Award, and the nature of such restrictions or limitations, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any
 acceleration of exercisability or vesting, or waiver of termination regarding any Award,
 based on such factors as the Plan Administrator may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) establish
 the form or forms of Award Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel,
 amend, adjust or otherwise change any Award under such circumstances as the Plan Administrator
 may consider appropriate in accordance with the provisions of the Omnibus Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) construe
 and interpret the Omnibus Plan and all Award Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) adopt,
 amend, prescribe and rescind administrative guidelines and other rules and regulations relating
 to the Omnibus Plan, including rules and regulations relating to sub-plans established for
 the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment
 under applicable foreign laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) make
 all other determinations and take all other actions necessary or advisable for the implementation
 and administration of the Omnibus Plan.

**Common Shares Available for Awards**

Subject to adjustments as provided for under the Omnibus Plan, the maximum number of Common Shares available for issuance pursuant to Awards granted under the Omnibus Plan will not exceed 10% of MDA Space's total issued and outstanding Common Shares from time to time. As of the date hereof, there are 8,368,196 Common Shares reserved and available for issuance pursuant to outstanding Awards under the Omnibus Plan, representing 6.82% of MDA Space's issued and outstanding Common Shares. As of the date hereof, there are 3,901,031 Common Shares remaining available for issuance under the Omnibus Plan, representing 3.18% of MDA Space's issued and outstanding Common Shares.

The Omnibus Plan is considered to be an "evergreen" plan, since the Common Shares covered by Awards which have been exercised, settled or terminated will be available for subsequent grants under the Omnibus Plan and the total number of Awards available to grant increases as the number of issued and outstanding Common Shares increases. Accordingly, pursuant to the rules of the TSX, the unallocated options, rights or entitlements under the Omnibus Plan must be submitted for re-approval by the Shareholders every three years.

The aggregate number of Common Shares: (a) issuable to Insiders (as defined under the Omnibus Plan) at any time under all of MDA Space's security based compensation arrangements (which, for greater certainty, includes the Legacy Stock Option Plan) may not exceed 10% of MDA Space's total issued and outstanding Common Shares; and (b) issued to Insiders within any one-year period, under all of MDA Space's security based compensation arrangements may not exceed 10% of MDA Space's total issued and outstanding Common Shares.

**Blackout Period**

In the event that the date of grant of an Award occurs, or an Award expires, at a time when an undisclosed material change or material fact in the affairs of MDA Space exists, the effective date of grant for such award, or expiry of such Award, as the case may be, will be six business days after which there is no longer such undisclosed material change or material fact, and the Market Price (as hereinafter defined) with respect to the grant of such Award will be calculated based on the five business days immediately preceding the effective grant date.

**Description of Awards**

Subject to the provisions of the Omnibus Plan and such other terms and conditions as the Plan Administrator may prescribe, including with respect to performance and vesting conditions, the Plan Administrator may, from time to time, grant the following types of Awards to any Participant.

**Options**

An Option entitles a holder thereof to purchase a Share at an exercise price set at the time of the grant, which exercise price must in all cases be not less than the Market Price on the date of grant. "**Market Price**" is defined as

MDA MANAGEMENT INFORMATION CIRCULAR 78

the volume weighted average trading price of the Common Shares on the TSX for the five trading days immediately preceding the date of grant (or, if such Common Shares are not then listed and posted for trading on the TSX, on such stock exchange on which the Common Shares are listed and posted for trading as may be selected for such purpose by our Board); provided that, for so long as the Common Shares are listed and posted for trading on the TSX, the Market Price shall not be less than the market price, as calculated under the policies of the TSX. The term of each option will be fixed by the Plan Administrator, but may not exceed 10 years from the date of grant.

**Deferred Share Units**

A DSU is a unit equivalent in value to a Share that vests upon grant but does not settle until a future date, generally upon termination of service with MDA Space. The number of DSUs (including fractional DSUs) granted at any particular time will be calculated by dividing (a) the amount of any compensation that is to be paid in DSUs, as determined by the Plan Administrator, by (b) the Market Price of a Share on the grant date.

The Plan Administrator will have the sole authority to determine the settlement terms applicable to the grant of DSUs. Subject to the terms of the Omnibus Plan and except as otherwise provided in an Award Agreement, on the settlement date for any DSU, the Participant will redeem each vested DSU for a Share, a cash payment, or a combination thereof.

Unless otherwise determined by the Plan Administrator and set forth in the particular Award Agreement, DSUs will be credited with dividend equivalents in the form of additional DSUs as of each dividend payment date in respect of which normal cash dividends are paid on Common Shares. Dividend equivalents will vest in proportion to the DSUs to which they relate and will be settled in the same manner as the DSUs.

**Restricted Share Units**

An RSU is a unit equivalent in value to a Share that does not vest until after a specified period of time, or satisfaction of other vesting conditions as determined by the Plan Administrator, and which may be forfeited if vesting conditions are not met. The number of RSUs (including fractional RSUs) granted at any particular time will be calculated by dividing (a) the amount of any compensation that is to be paid in RSUs, as determined by the Plan Administrator, by (b) the Market Price of a Share on the grant date.

The Plan Administrator will have the sole authority to determine the settlement terms applicable to the grant of RSUs. Subject to the terms of the Omnibus Plan and except as otherwise provided in an Award Agreement, on the settlement date for any RSU, the Participant will redeem each vested RSU for a Share, a cash payment, or a combination thereof.

Unless otherwise determined by the Plan Administrator and set forth in the particular Award Agreement, RSUs will be credited with dividend equivalents in the form of additional RSUs as of each dividend payment date in respect of which normal cash dividends are paid on Common Shares. Dividend equivalents will vest in proportion to the RSUs to which they relate and will be settled in the same manner as the RSUs.

**Performance Share Units**

The Plan Administrator will issue performance goals prior to the grant date to which such performance goals pertain. The performance goals may be based upon the achievement of corporate, divisional or individual goals and may be applied relative to performance relative to an index or comparator group, or on any other basis determined by the Plan Administrator. The Plan Administrator may modify the performance goals as necessary to align them with MDA Space's corporate objectives, subject to any limitations set forth in an Award Agreement or other agreement with a Participant. The performance goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur), all as set forth in the applicable Award Agreement.

Each PSU will consist of a right to receive a Share, cash payment, or a combination thereof, upon the achievement of such performance goals during such performance periods as the Plan Administrator may establish.

MDA MANAGEMENT INFORMATION CIRCULAR 79

**Other Share-Based Awards**

Each Other Share-Based Award shall consist of a right (a) which is other than an Award or right described above, and (b) which is denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Common Shares (including, without limitation, securities convertible into Common Shares) as are deemed by the Plan Administrator to be consistent with the purposes of the Omnibus Plan; provided, however, that such right will comply with applicable law. Subject to the terms of the Omnibus Plan and any applicable Award Agreement, the Plan Administrator will determine the terms and conditions of Other Share-Based Awards.

**Effects of Termination on Awards**

The following table describes the impact of certain events upon the Participants under the Omnibus Plan, including termination for cause, resignation, termination without cause, disability, death or retirement, subject, in each case, to the terms of a Participant's employment agreement, Award Agreement or other written agreement:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Event Provisions** | &nbsp;&nbsp;**Provisions** |
| &nbsp;&nbsp;Termination for cause | &nbsp;&nbsp;Forfeiture of any unvested and vested Option or other Award. |
| &nbsp;&nbsp;Resignation (other than resignation with good reason or retirement) | &nbsp;&nbsp;Forfeiture of any unvested Option or any unvested or vested but unsettled other Award. Vested Options must be exercised before the earlier of the expiry date and 180 days after termination of employment. |
| &nbsp;&nbsp;Termination without cause (or resignation with good reason) | &nbsp;&nbsp;Forfeiture of any unvested Option or other Award. Vested Options or other Awards must be exercised or settled before the earlier of the expiry date and 180 days after termination of employment. |
| &nbsp;&nbsp;Death or Disability | &nbsp;&nbsp;12-month vesting period after death for all unvested Options or other Awards and the earlier of the expiry date and 30 days following such 12-month vesting period to exercise. |
| &nbsp;&nbsp;Retirement | &nbsp;&nbsp;Any unvested Option or other Award shall continue to vest and any vested Option or other Award may be exercised and settled, in each case, as if the Participant had remained employed. |

---

Notwithstanding the foregoing, the Plan Administrator may, in its discretion, permit the acceleration of vesting of any or all Awards or waive termination of any or all Awards, all in the manner and on the terms as may be authorized by the Plan Administrator.

**Change in Control**

Except as may be set forth in an employment agreement, Award Agreement or other written agreement between MDA Space or a subsidiary of MDA Space and the Participant or as set out in the Omnibus Plan, the Plan Administrator may, without the consent of any Participant, take such steps as it deems necessary or desirable, including to cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 conversion or exchange of any outstanding Awards into or for, rights or other securities
 of substantially equivalent value, as determined by the Plan Administrator in its discretion,
 in any entity participating in or resulting from a Change in Control (as defined in the Omnibus
 Plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) outstanding
 Awards to vest and become exercisable, realizable, or payable, or restrictions applicable
 to an Award to lapse, in whole or in part prior to or upon consummation of such Change in
 Control, and, to the extent the Plan Administrator determines, terminate upon or immediately
 prior to the effectiveness of such Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained
upon the exercise or settlement of such Award or realization of the Participant's rights as of the date of the occurrence of the
transaction net of any exercise price payable by the Participant (and, for the avoidance of doubt, if as of the date of the occurrence
of the transaction, the

MDA MANAGEMENT INFORMATION CIRCULAR 80

Plan Administrator determines, in good faith, that no amount would have been attained upon the exercise or settlement of such Award or realization of the Participant's rights net of any exercise price payable by the Participant, then such Award may be terminated by MDA Space without payment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 replacement of such Award with other rights or property selected by our Board in its sole
 discretion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 combination of the foregoing

In taking any of the foregoing actions, the Plan Administrator will not be required to treat all Awards similarly in the transaction.

Notwithstanding the foregoing, and unless otherwise determined by the Plan Administrator or as set out in the Omnibus Plan, if, as a result of a Change in Control, the Common Shares will cease trading on a stock exchange, MDA Space may terminate all of the Awards granted under the Omnibus Plan at the time of and subject to the completion of the Change in Control by paying to each holder an amount for each Award equal to the fair market value of the Award held by such Participant as determined by the Plan Administrator, acting reasonably.

In the event a Participant is terminated without cause or resigns for good reason during the 12-month period following completion of a Change in Control, any Awards that were assumed or replaced by other awards upon a Change in Control and remain unvested shall vest in full and shall be exercisable until the earlier of (i) the close of business on the expiry date of the Award; and (ii) 90 days following the Participant's termination of employment.

**Assignability**

Except as required by law, the rights of a Participant under the Omnibus Plan are not capable of being assigned, transferred, alienated, sold, encumbered, pledged, mortgaged or charged unless otherwise approved by the Plan Administrator.

**Amendment, Suspension or Termination of the Omnibus Plan**

The Plan Administrator may from time to time, without notice and without approval of the Shareholders, amend, modify, change, suspend or terminate the Omnibus Plan or any Awards granted pursuant thereto as it, in its discretion, determines appropriate, provided, however, that: (a) no such amendment, modification, change, suspension or termination may materially impair any rights of a Participant or materially increase any obligations of a Participant under the Omnibus Plan without the consent of the Participant, unless the Plan Administrator determines such adjustment is required or desirable in order to comply with any applicable securities laws or TSX requirements; and (b) any amendment that would cause an Award held by a U.S. taxpayer to be subject to the additional tax penalty under the U.S. tax code will be null and void with respect to the U.S. taxpayer unless his or her consent is obtained.

Without limiting the generality of the foregoing, but subject to the below, the Plan Administrator may, without shareholder approval, at any time or from time to time, amend the Omnibus Plan for the purposes of:

· any
 amendments to the general vesting provisions of each Award;

· any
 amendment regarding the effect of termination of a participant's employment or engagement;

· any
 amendments to add covenants of MDA Space for the protection of Participants, provided that
 the Plan Administrator must be of the good faith opinion that such additions will not be
 prejudicial to the rights or interests of the Participants;

· any
 amendments not inconsistent with the Omnibus Plan as may be necessary or desirable with respect
 to matters or questions which, in the good faith opinion of the Plan Administrator, having
 in mind the best interests of the Participants, it may be expedient to make, including amendments
 that are desirable as a result of changes in law in any jurisdiction where a Participant
 resides, provided that the Plan Administrator must be of the opinion that such amendments
 and modifications will not be prejudicial to the interests of the Participants and non-employee
 directors; or

MDA MANAGEMENT INFORMATION CIRCULAR 81

· any
 such changes or corrections which, on the advice of counsel to MDA Space, are required for
 the purpose of curing or correcting any ambiguity or defect or inconsistent provision or
 clerical omission or mistake or manifest error, provided that the Plan Administrator must
 be of the opinion that such changes or corrections will not be prejudicial to the rights
 and interests of the Participants.

Notwithstanding the foregoing and subject to any rules of the TSX, shareholder approval will be required for any amendment, modification or change that:

· increases
 the percentage of Common Shares reserved for issuance under the Omnibus Plan, except pursuant
 to the provisions in the Omnibus Plan which permit the Plan Administrator to make equitable
 adjustments in the event of transactions affecting MDA Space or our capital;

· increases
 or removes the 10% limits on Common Shares issuable or issued to Insiders;

· reduces
 the exercise price of an Award except pursuant to the provisions in the Omnibus Plan which
 permit the Plan Administrator to make equitable adjustments in the event of transactions
 affecting MDA Space or our capital;

· extends
 the term of an Award beyond the original expiry date (except where an expiry date would have
 fallen within a blackout period applicable to the Participant or within five business days
 following the expiry of such a blackout period);

· permits
 an Award to be exercisable beyond 10 years from its grant date (except where an expiry date
 would have fallen within a blackout period);

· increases
 or removes the non-employee director participation limits;

· permits
 Awards to be transferred to a person;

· changes
 the eligible participants of the Omnibus Plan; or

· deletes
 or reduces the range of amendments which require shareholder approval.

**Legacy Stock Option Plan**

The Legacy Stock Option Plan is a part of a legacy compensation program pursuant to which certain directors, officers and employees of MDA Space or our subsidiaries were granted options to purchase shares in the capital of MDA Space. In connection with MDA Space's IPO, we amended and restated our Legacy Stock Option Plan to form the Omnibus Plan. All options previously granted under the Legacy Stock Option Plan continue to be governed by the Omnibus Plan, which contains substantially the same terms as the Legacy Stock Option Plan in respect of the options.

**Employee Trust**

In connection with the IPO, MDA Space settled the Employee Trust, the beneficiaries of which are certain executive officers and employees of MDA Space as of the date of closing of the IPO. The Employee Trust was established in consideration for past and ongoing services to MDA Space by such executive officers and employees and in some cases in furtherance of agreements made by MDA Space in our offers of employment to such executive officers and employees. The Common Shares held in the Employee Trust are subject to certain vesting conditions and forfeiture upon the occurrence of certain events, including termination for cause, resignation, termination without cause, disability, death or retirement, in a manner similar to the vesting of Awards, and the impact on awards as a result of the occurrence of such events, under our Omnibus Plan.

**Indebtedness of Directors and Executive Officers**

Except as set out below, none of our current or former directors, officers, or employees are indebted to MDA Space or have been subject of a guarantee, support agreement, letter of credit or similar arrangement or understanding provided by MDA Space or any of our subsidiaries. The table set out below displays the aggregate indebtedness outstanding as at March 30, 2025 of all current and former executive officers, directors and employees of the Company and its subsidiaries to either: (i) the Company or any of its subsidiaries, or (ii) a third

MDA MANAGEMENT INFORMATION CIRCULAR 82

party, where such indebtedness is the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

---

| | | | |
|:---|:---|:---|:---|
| **Purpose** | **To the Company or its Subsidiaries** | **To the Company or its Subsidiaries** | **To Another Entity** |
| Share Purchases |  | 65000 |  |
| Other |  |  |  |

---

The table below discloses details of executive officers' indebtedness during the most recently completed financial year to either: (i) the Company or any of its subsidiaries, or (ii) a third party, where such indebtedness is the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and<br> Principal<br> Position** | **Involvement of<br> Company,<br> Subsidiary or<br> Another Entity** | **Largest Amount<br> Outstanding<br> During 2024 <br> ($)** | **Amount<br> Outstanding <br> as at March 1,<br> 2025<br> ($)** | **Financially<br> Assisted<br> Securities<br> Purchases<br> During 2024 <br> (#)** | **Security for<br> Indebtedness<sup>(1)</sup>** | **Amount<br> Forgiven<br> During <br> 2024 <br> ($)** |
| **Holly Johnson<br> Vice President, Robotics & Space Operations** | &nbsp;&nbsp;Company | 30000 | – |  | &nbsp;&nbsp;Common Shares |  |

---

**Notes:**

**(1)** As
 collateral, the executive officer has granted MDA Space a security interest in the financially-assisted
 Common Share purchases, all substitutions and replacements of such Common Shares, all dividends
 on, returns of capital, other distribution in respect of, and proceeds from such Common Shares,
 and all rights and claims of the executive officer in respect of each of the foregoing.

**Additional Information**

Additional information relating to MDA Space, including the annual audited financial statements for the year ended December 31, 2024 is available on SEDAR+ at <u>www.sedarplus.ca</u>. Shareholders may contact MDA Space to request copies of our financial statements and Management Discussion and Analysis for the financial year ending December 31, 2024, and any documents incorporated by reference herein without charge by emailing <u>investor.relations@mda.space</u>. Financial information regarding MDA Space is provided in our comparative financial statements and the related Management's Discussion and Analysis for our most recently completed financial year.

MDA MANAGEMENT INFORMATION CIRCULAR 83

**Approval of Directors**

The contents and the sending of this Circular have been approved by the Board.

DATED at Toronto, Ontario as at the 30th day of March, 2025.

---

| |
|:---|
| By Order of the Board of Directors |
| (signed) "Brendan Paddick" |
| Brendan Paddick |
| Chair of the Board |

---

MDA MANAGEMENT INFORMATION CIRCULAR 84

**Appendix A**

**Charter of the Board of Directors**

This Charter of the Board of Directors (the "Charter") was adopted by the board of directors (the "Board") of MDA Space Ltd. (the "Corporation") on April 1, 2021, as amended by the Board on May 10, 2022, November 10, 2022 and August 7, 2024.

**1.** Purpose

The purpose of this Charter is to set out the mandate and responsibilities of the Board of the Corporation. Pursuant to the *Business Corporations Act* (Ontario) (the "**Act**") governing the Corporation, the Board is responsible for exercising oversight of the management of the business and affairs of the Corporation. By approving this Charter, the Board confirms its responsibility for the stewardship of the Corporation and its affairs. This stewardship function includes responsibility for the matters set out in this Charter. The responsibilities of the Board described herein are pursuant to, and subject to, the Act and the by-laws of the Corporation in effect from time to time and do not impose any additional responsibilities or liabilities on the directors at law or otherwise.

**2.** Composition

The Board (a) shall be constituted with a majority of individuals who qualify as "independent" within the meaning of National Policy 58-201 – *Corporate Governance Guidelines* ("**NP 58-201**") and who are resident Canadians, and (b) the Corporation's Chief Executive Officer shall be a member of the Board. If at any time a majority of the Corporation's directors are not independent because of the death, resignation, bankruptcy, adjudicated incompetence, removal or change in circumstance of any director who was an independent director within the meaning of NP 58-201, the remaining directors shall appoint a sufficient number of directors who qualify as "independent" to comply with this requirement at their earliest convenience. Pursuant to NP 58-201, an independent director is one who is free from any direct or indirect relationship which could, in the view of the Board, be reasonably expected to interfere with a director's independent judgment.

At least annually, the Board shall, with the assistance of the Committees of the Board, determine: (i) the independence of each director based on the definition of independence contained in the listing standards of the TSX and NP 58-201; (ii) the independence of each Audit Committee member based on the definition of independence contained in National Instrument 52-110 – *Audit Committees* ("**NI 52-110**"); (iii) the independence of each Compensation and Governance Committee member; and (iv) the "financial literacy" of each Audit Committee member based on the definition of financial literacy contained in NI 52-110.

If at any time the Chair of the Board is not independent, the Board shall appoint an independent director as a Lead Director and consider other possible steps and processes to ensure that independent leadership is provided for the Board.

**3.** Responsibilities
 of the Board of Directors

The Board is responsible for the stewardship and oversight of the Corporation and its business and in that regard shall be specifically responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) selecting
 from among its members a Chair and independent lead director if the Chair is not independent
 (the "**Lead Director** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appointing
 the Chief Executive Officer of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 the extent feasible, satisfying itself as to the integrity of the Chief Executive Officer
 and each of the other individuals who are from time to time appointed to offices of the Corporation
 by resolution of the Board (together with the Chief Executive Officer, collectively, the
 "**Executive Officers** "), and that the Chief Executive Officer and the other
 Executive Officers create a culture of integrity throughout the organization;

MDA SPACE MANAGEMENT INFORMATION CIRCULAR A-1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) approving
 the long-term strategic and financial plans for the Corporation on an annual basis, while
 acting in the best interest of the Corporation, taking into account shareholders of the Corporation
 ()"**Shareholders** "), wider stakeholders and social responsibilities and their
 implications for the Corporation's long-term success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reviewing
 and approving an annual budget for the Corporation prepared by the CEO and the CFO, with
 the input and recommendations from the applicable Executive Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) considering
 and approving all material decisions affecting the Corporation and its subsidiaries and controlled
 entities including all material acquisitions, dispositions, capital expenditures and debt
 financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) assessing
 the performance of the CEO, and, together with the CEO, the performance of the CFO and each
 of the three most highly compensated Executive Officers of the Corporation (including its
 affiliates), or the three most highly compensated individuals acting in a similar capacity
 (the CEO, the CFO, and such other three Executive Officers or individuals being the "**Named Executive Officers** "), and ensuring that between them the Named Executive Officers
 of the Corporation have the necessary up-to-date experience, skills and capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) issuing
 shares and other securities of the Corporation for such consideration as the Board may deem
 appropriate, subject to the Act, and applicable securities laws and stock exchange rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) approving
 the re-purchase of securities of the Corporation, subject to the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) understanding
 the principal risks of the business in which the Corporation is engaged, for achieving a
 proper balance between risks incurred and the potential return to shareholders, and for ensuring
 that there are systems in place which effectively monitor and manage those risks with a view
 of long-term viability of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) overseeing
 the integrity and adequacy of the Corporation's internal controls and management information
 systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) ensuring,
 through oversight, that the financial results are reported fairly and in accordance with
 generally accepted accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) succession
 planning for the CEO and, together with the CEO, succession planning for the Named Executive
 Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) establishing
 committees of the Board where required or prudent, which shall be comprised entirely of independent
 directors (provided that a sufficient number of independent, qualified directors are available
 to sit on any such committee), and defining their mandates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) ensuring,
 through oversight, timely and accurate reporting to Shareholders, as required by the Act
 and applicable regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) seeking
 to understand and meet Shareholder needs and expectations, in a manner consistent with their
 fiduciary duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) ensuring
 that the Executive Officers provide effective and adequate communication with Shareholders,
 other stakeholders and the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) determining
 the amount and timing of dividends and other distributions to Shareholders, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) developing
 the Corporation's approach to corporate governance and evaluating the effectiveness
 of the Corporation's corporate governance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) promoting
 a corporate culture that is based on ethical values and behaviours; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) fulfilling
 such other duties and responsibilities as set out in the Act, and applicable securities laws
 and stock exchange rules.

MDA SPACE MANAGEMENT INFORMATION CIRCULAR A-2

It is recognized that every member of the Board in exercising powers and discharging duties must act honestly and in good faith with a view to the best interests of the Corporation and its Shareholders. Directors must exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. In this regard, they will comply with their duties of honesty, loyalty, care, diligence, skill and prudence.

In addition, members of the Board are expected to carry out their duties in accordance with policies and regulations adopted by the Board from time to time.

It is expected that the Executive Officers will co-operate in all ways to facilitate compliance by the Board with its legal duties by causing the Corporation and its subsidiaries to take such actions as may be necessary in that regard and by promptly reporting any data or information to the Board that may affect such compliance.

**4.** Expectations
 of Directors

The Board has developed a number of specific expectations of directors to promote the discharge by the directors of their responsibilities and to promote the proper conduct of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Commitment and Attendance.** All directors are expected to maintain a high attendance record at meetings
 of the Board and the committees of which they are members. Attendance by telephone or video
 conference may be used to facilitate a director's attendance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Preparation for Meetings.** All directors are expected to review the materials circulated in advance
 of meetings of the Board and its committees and should arrive prepared to discuss the issues
 presented. Directors are encouraged to contact the Chair of the Board, or, if one has been
 appointed, the Lead Director, and any other appropriate Executive Officer to ask questions
 and discuss agenda items prior to meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Participation in Meetings.** Each director is expected to be sufficiently knowledgeable of the business
 of the Corporation, including its financial statements, and the risks it faces, to ensure
 active and effective, and candid and forthright participation in the deliberations of the
 Board and of each committee on which he or she serves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Loyalty, Ethics and Personal Conduct.** In their roles as directors, all members of the Board owe
 a duty of loyalty to the Corporation. This duty of loyalty mandates that the best interests
 of the Corporation take precedence over any other interest possessed by a director. Directors
 are expected to: (i) exhibit high standards of personal integrity, honesty and loyalty to
 the Corporation; (ii) project a positive image of the Corporation to news media, the financial
 community, governments and their agencies, shareholders and employees; (iii) be willing to
 contribute extra efforts, from time to time, as may be necessary including, among other things,
 being willing to serve on committees of the Board; and (iv) disclose any potential conflict
 of interest that may arise with the affairs or business of the Corporation and, generally,
 avoid entering into situations where such conflicts could arise or could reasonably be perceived
 to arise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Other Board Memberships and Significant Activities.** The Corporation values the experience directors
 bring from other boards on which they serve and other activities in which they participate,
 but recognizes that those boards and activities also may present demands on a director's
 time and availability and may present conflicts or legal issues, including independence issues.
 Each member of the Board should, when considering membership on another board or committee,
 make every effort to ensure that such membership will not impair the member's time
 and availability for his or her commitment to the Corporation. Directors should advise the
 Chair before accepting membership on other public company boards or any audit committee or
 other significant committee assignment on any other board, or establishing other significant
 relationships with businesses, institutions, governmental units or regulatory entities, particularly
 those that may result in significant time commitments or a change in the member's relationship
 to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Contact with Management and Employees.** All members of the Board should be free to contact the
 Executive Officers at any time to discuss any aspect of the Corporation's business.
 Directors should use their judgement to ensure that any such contact is not disruptive to
 the operations of the Corporation. The Board expects that there will be frequent opportunities
 for members of the Board to meet with the Executive Officers in meetings of the Board and
 committees, or in other formal or informal settings; and

MDA SPACE MANAGEMENT INFORMATION CIRCULAR A-3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Confidentiality.** The proceedings and deliberations of the Board and its committees are confidential. Each
 member of the Board will maintain the confidentiality of information received in connection
 with his or her service as a director.

**5.** Meetings

The Board will meet not less than four times per year: three meetings to review quarterly results and one meeting prior to the issuance of the annual financial results of the Corporation. The Board shall meet periodically without the Executive Officers present to ensure that the Board functions independent of management of the Corporation. At each Board meeting, unless otherwise determined by the Board, an *in camera* meeting of independent directors will take place, which session will be chaired by the Chair of the Board or Lead Director if the Chair is not independent within the meaning of NP 58-201. Any of the Chair, Chief Executive Officer (if he or she is a director), or Lead Director may call and provide formal notice of a directors meeting, provided it is done in consultation with the other members of the Board.

In discharging its mandate, the Board and any committee of the Board will have the authority to retain and receive advice from outside financial, legal or other advisors (at the cost of the Corporation) as the Board or any such committee determines to be necessary to permit it to carry out its duties.

The Board appreciates having Executive Officers, and other personnel as appropriate, attend each Board meeting to provide information and opinion to assist the members of the Board in their deliberations. Attendees who attend Board meetings who are not Board members will be excused for any agenda items which are reserved for discussion among directors only.

**6.** Board
 Meeting Agendas and Information

The Chair, and, if one has been appointed, the Lead Director, based on the input and recommendations of the Chief Executive Officer and input from the other directors as needed, will develop the agenda for each Board meeting. Agendas will be distributed to the members of the Board before each meeting, and all Board members shall be free to suggest additions to the agenda in advance of the meeting.

Whenever practicable, information and reports pertaining to Board meeting agenda items will be circulated to the directors in advance of the meeting by the Executive Officers. Reports may be presented during the meeting by members of the Board, the Executive Officers and/or staff, or by invited outside advisors. It is recognized that under some circumstances, due to the confidential nature of matters to be discussed at a meeting, it will not be prudent or appropriate to distribute written materials in advance.

**7.** Board
 Meetings by Electronic Means

A director may participate in a meeting of the Board or in a committee meeting by means of electronic, telephone or such other communications facilities as permit all persons participating in the meeting to communicate with each other and a director participating in such a meeting by such means is deemed to be present at the meeting.

While it is the intent of the Board to follow an agreed meeting schedule as closely as possible, from time to time, board meetings may be called in order for directors to be in a position to better fulfill their legal obligations. Alternatively, the Executive Officers may request the directors to approve certain matters by unanimous written consent.

**8.** Measures
 for Receiving Shareholder Feedback

All publicly disseminated materials of the Corporation shall provide for a mechanism for feedback of Shareholders.

**9.** Communications
 Policy

The Board shall review the content of the Corporation's material communications to Shareholders and, if applicable, the investing public and shall approve any Annual Report, Management Information Circular, Annual Information Form and any prospectuses which may be issued. The Audit Committee shall review and recommend to the Board the approval of the quarterly and annual financial statements (including, if applicable, the Management's Discussion & Analysis).

MDA SPACE MANAGEMENT INFORMATION CIRCULAR A-4

The Board shall have responsibility for reviewing the Corporation's policies and practices with respect to disclosure of financial and other information including insider reporting and trading. The Board shall periodically review the disclosure policies designed to assist the Corporation in meeting its objective of providing timely, consistent and credible dissemination of information, consistent with disclosure requirements under applicable securities law.

Generally, communications from Shareholders and, if applicable, the investment community will be directed to a Named Executive Officer, who will coordinate an appropriate response depending on the nature of the communication. It is expected, if communications from stakeholders are made to any individual members of the Board, that the relevant Named Executive Officers will be informed, if appropriate, and consulted to determine any appropriate response.

**10.** Delegation
 of Powers

The directors may establish one or more committees and may, subject to the Act and other applicable laws, delegate to such committees any of the powers of the Board. The directors may also, subject to the Act and other applicable laws, delegate powers to manage the business and affairs of the Corporation to such of the officers of the Corporation as they, in their sole and absolute discretion, may deem necessary or desirable to appoint, and define the scope of and manner in which such powers will be exercised by such persons as they may deem appropriate.

The Board retains responsibility for oversight of any matters delegated to any director(s) or any committee of the Board, to the Executive Officers or to other persons.

**11.** Board
 Effectiveness

The Board shall review and, if determined appropriate, approve the recommendations of the applicable committee of the Board, if any, concerning formal position descriptions for the Chair of the Board and Lead Director, if any, and for each committee of the Board, and for the Chief Executive Officer, provided that in approving a position description for the Chief Executive Officer, the Board shall consider the input of the Chief Executive Officer and shall develop and approve corporate goals and objectives that the Chief Executive Officer is responsible for meeting (which may include goals and objectives relevant to the Chief Executive Officer's compensation, as recommended by the applicable committee of the Board, if any).

The Board shall review and, if determined appropriate, adopt a process recommended by the applicable committee of the Board, if any, for reviewing the performance and effectiveness of the Board as a whole, the committees of the Board and the contributions of individual directors on an annual basis.

**12.** Inconsistencies
 with Applicable Laws

In the event of any conflict or inconsistency between this Charter and the provisions of the Act or other applicable laws, in each case as amended, restated or amended and restated from time to time, the provisions hereof shall be ineffective and shall be superseded by the provisions of the Act or such other applicable laws to the extent necessary to resolve such conflict or inconsistency.

MDA SPACE MANAGEMENT INFORMATION CIRCULAR A-5

## Exhibit 5.1

**Exhibit 5.1**

![](tm266082d2_ex5-1img001.jpg)

KPMG LLP

100 New Park Place, Suite 1400

Vaughan, ON L4K 0J3

Tel 905-265 5900

Fax 905-265 6390

www.kpmg.ca

**Consent of Independent Registered Public Accounting Firm**

The Board of Directors

MDA Space Ltd.

We consent to the use of our report dated March 3, 2026, on the consolidated financial statements of MDA Space Ltd., which comprise the consolidated statements of financial position as at December 31, 2025 and December 31, 2024, the related consolidated statements of comprehensive income, changes in equity and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes, and to the reference to our firm under the heading "Experts" in the prospectus, included in the Registration Statement on Form F-10 dated March 10, 2026 of MDA Space Ltd.

/s/ KPMG LLP

Chartered Professional Accountants, Licensed Public Accountants

March 10, 2026

Vaughan, Canada

KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated<br> with KPMG International Limited, a private English company limited by guarantee. <br> KPMG Canada provides services to KPMG LLP.<br> Document classification: KPMG Confidential<br>

## Exhibit 5.2

**Exhibit 5.2**

---

| | |
|:---|:---|
| ![](tm266080d2_ex5-2001.jpg) | ![](tm266080d2_ex5-2002.jpg) |

---

March 10, 2026

MDA Space Ltd.<br> 7500 Financial Drive<br> Brampton, ON L6Y 6K7<br> Canada

---

| | |
|:---|:---|
| **Re:** | **Consent regarding Registration Statement on Form F-10 for MDA Space Ltd.** |

---

We refer to the registration statement on Form F-10 dated March 10, 2026 (the "**Registration Statement**") of MDA Space Ltd. (the "**Registrant**") to which this consent is exhibited.

We hereby consent to the use of our firm name on the face page of the Registration Statement and in the prospectus supplement included therein, under the headings "Legal Matters" and "U.S. Registration Statement" and to the reference to and use of our opinions under the heading "Certain Canadian Federal Income Tax Considerations".

In giving this consent, we do not acknowledge that we come within the category of persons whose consent is required by the United States Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder.

---

| |
|:---|
| /s/ Goodmans LLP |
| Goodmans LLP |
| Toronto, Ontario |

---

## Exhibit 5.3

**Exhibit 5.3**

---

| | |
|:---|:---|
| **Osler, Hoskin & Harcourt llp**<br> Box 50, 1 First Canadian Place<br> Toronto, Ontario, Canada M5X 1B8<br> 416.362.2111 main<br> 416.862.6666 facsimile<br>| &nbsp;&nbsp;![](tm266080d2_ex5-3img001.jpg) |

---

---

| | |
|:---|:---|
| Toronto<br>Montréal<br>Calgary<br>Ottawa<br>Vancouver<br>New York | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> March 10, 2026<br>Dear Sirs/Mesdames:<br>**Registration Statement on Form F-10 of MDA Space Ltd.**<br>We refer to the registration statement on Form F-10 dated March 10, 2026 (the "**Registration Statement**") of MDA Space Ltd. to which this consent is exhibited. We hereby consent to the references to this firm on the face page of the Registration Statement and under the headings "U.S. Registration Statement" and "Legal Matters" and to the reference to and use of our opinion under the heading "Certain Canadian Federal Income Tax Considerations".<br>In giving such consent, we do not hereby admit that we are in the category of persons whose consent is required under the U.S. Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder.<br>Yours very truly,<br>/s/ Osler, Hoskin & Harcourt LLP  |

---

![](tm266080d2_ex5-3img002.jpg)

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-10**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **MDA Space Ltd.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation Rule or Instruction**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
|  |  | Equity | Common shares, without par value | 457(o) |  |  |  |
|  |  | Equity | Preference shares, without par value | 457(o) |  |  |  |
|  |  | Debt | Debt securities | 457(o) |  |  |  |
|  |  | Other | Subscription receipts | 457(o) |  |  |  |
|  |  | Other | Warrants | 457(o) |  |  |  |
|  |  | Other | Units | 457(o) |  |  |  |
| Fees to be Paid | 1 | Unallocated (Universal) Shelf |  | 457(o) | $1000000000.00 | 0.0001381 | $138100.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $1000000000.00  |  | $138100.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $138100.00  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> There are being registered under this Registration Statement such indeterminate number of common shares, preference shares, debt securities, subscription receipts, warrants and units of MDA Space Ltd. (the "Registrant"), and a combination of such securities, separately or as units, as may be sold by the Registrant from time to time, which collectively, shall have an aggregate initial offering price not to exceed US$1,000,000,000. The maximum aggregate offering price is estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of common shares, preference shares, debt securities, subscription receipts, warrants and units as may be issuable with respect to the securities being registered hereunder as a result of stock splits, stock dividends, or similar transactions. The proposed maximum initial offering price per security will be determined, from time to time, by the Registrant in connection with the sale of the securities under this Registration Statement.

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| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **File Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

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