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Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

21 November 2017

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Significant Commercial Agreement signed with Alnahdi Aviation Technology for UAV Training Centre

Strat Aero plc, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ('UAV') sector, has signed a Commercial Agreement ('Agreement') with Alnahdi Aviation Technology ('AAT'), experts in aviation technology in the Kingdom of Saudi Arabia ('KSA') to collaborate on establishing a UAV Training Centre in the KSA. It is envisaged the Centre will provide comprehensive training for military and civilian UAS pilots and sensor operators ('SO'), and will be based on Strat Aero's modular UAV training course and its proprietary Digital Data Management ('DDM') system, which will be used to deliver course data and track student progress.

The Agreement is in line with the Company's strategy to focus on its key strengths and experience, specifically its Training Division, which is headed by Mark Wharry one of the leading UAV Instructors in the world, and Survey and Inspection via its subsidiary Geocurve.

Under the terms of the Agreement, Strat Aero and AAT will develop a detailed joint business model and plan. This will be designed to meet an initial predicted demand of 50 Crew sets per year (total 100 students per annum), which is expected to increase as the customer base broadens. The business plan will include a per student fee which once agreed with the initial client, will be split equitably between Strat Aero and AAT.

AAT, the fully owned subsidiary of Alnahdi United, has been serving both the governmental and private sectors in Saudi Arabia for over 60 years and has more than 80 years of cumulative group experience. It is a professional airport operating and servicing company, providing cost-effective services and maintenance solutions to commercial airlines, private operators and military stations throughout the region.

Iain McLure, CEO of Strat Aero plc, commented, "Saudi Arabia and the entire Middle East region is an area which has significant value potential for Strat Aero, and this Agreement with Alnahdi Aviation Technology presents us with a highly reputable partner with which to capitalise on this opportunity. The skill set required to deliver the proposed training programme is extremely specialised and very rare. Thanks to the unrivalled experience of our senior team, Strat Aero has these skills in-house and is therefore uniquely placed to develop and deliver a complex and high spec training programme. I look forward to providing further information regarding this partnership as it develops and formalises."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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For further information please visit www.strat-aero.com or contact:

Notes

Strat Aero plc is a multi-divisional international aerospace services company, focused primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Commercial and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.