The Management Board of Proguns Group S.A., with its registered officein Warsaw (the "Issuer"), hereby informs that on 19 January 2026 theIssuer entered into a joint venture agreement (the "Agreement") withZakłady Sprzętu Precyzyjnego Niewiadów sp. z o.o. ("ZSP") and FabrykaAmunicji Pocisk S.A. ("FAP").

The Issuer explains that the execution of theAgreement constitutes the implementation of the provisions of theinvestment agreement concluded by Forum 119 Closed-End Investment Fund,Niewiadów Polska Grupa Militarna S.A., ZSP, FAP and the Issuer, whichthe Issuer reported in current report ESPI No. 3/2025 dated 16 January2026.

The Agreement sets out detailed rules for cooperationbetween the parties with respect to the launch and operation in Polandof a factory producing medium-caliber 40 mm ammunition (the "Project"),using financing in the amount of PLN 60 million provided by Forum 119Closed-End Investment Fund.

The Issuer further informs that the Agreement doesnot impose on the Issuer any additional financial obligations other thanthe obligation to pay for FAP shares in exchange for a cash contributionin the amount of PLN 19,002,230, which obligation the Issuer disclosedin current report ESPI No. 3/2025 dated 16 January 2026. The payment forthe FAP shares was made from the funds received from Forum 119Closed-End Investment Fund in connection with the subscription for theIssuer's series G shares, as disclosed by the Issuer in current reportESPI No. 4/2025 dated 16 January 2026.