With reference to Current Report ESPI No. 25/2025dated 21 October 2025 regarding the investment aimed at launching afactory in Poland for the production of medium-calibre 40 mm ammunition,the Management Board of Proguns Group S.A., with its registered officein Warsaw (the "Issuer"), hereby reports that, according to CurrentReport ESPI No. 70/2025 published by Grupa Niewiadów - PGM S.A., on 20November 2025 a licence agreement for the production of 40 mm ammunition(the "Agreement") was concluded between Zakłady Sprzętu PrecyzyjnegoNiewiadów Sp. z o.o. ("ZSP") and ST Engineering Advanced MaterialEngineering Pte. Ltd., headquartered in Singapore ("AME").

The Issuer notes that the signing of this Agreementrepresents an important stage in the implementation of the projectdescribed in the aforementioned Current Report ESPI No. 25/2025 dated 21October 2025.

Under the Agreement, AME grants ZSP, for an agreedfee, an exclusive licence to use the technical data package andnecessary know-how for the production of 40 mm ammunition intended forthe Polish Armed Forces and end-users in 20 European Union member states.

For the technical data package (including allnecessary specialist expertise) related to 40 mm ammunition, ZSP hasundertaken to pay AME a licence fee. The Agreement also provides for theobligation to pay a licence fee for each unit of 40 mm ammunitionproduced.

The Agreement has been concluded for a period of 30years.

The Agreement allows for the transfer of rights andobligations under the Agreement to an entity in which ZSP holds at least51% of shares.