Interim Results

Draganfly Investments Limited

("Draganfly" or the "Company")

Interim Results for period from May 1st 2013 to October 31st 2013

Chairman's Statement

Following the six months to the 31st October 2014, as disclosed in note 1 to these interim results, a placing took place on the 27th November. This was a success and the Company has raised gross placing proceeds of £360,000 from new investors. The additional funding has provided Draganfly with liquidity and scope to develop any investment opportunities that may arise in the coming months.

The net asset value of these interim results is per the pre consolidation shares and does include the Atlantic Healthcare PLC asset, and does not include the net placing proceeds.

As resolved at the shareholders meeting in November the unquoted shareholding in Atlantic Healthcare PLC is currently being distributed to the qualifying shareholders, being those that held shares in Draganfly on the 12th November 2014. Those investors that have bought shares in Draganfly after this date will not be entitled to the distribution.

We hope to be in a position to update the shareholders further at the financial year end of the company.

Edward Bayman

Chairman

Unaudited Profit and loss account

for the period ended 31 October 2014

Unaudited Balance sheet

as at 31 October 2014

Unaudited Cash flow statement

for the period ended 31 October 2014

Notes to the interim statements

for the period ended 31 October 2014

1 Accounting policies

Basis of preparation

The financial statements are prepared in accordance with applicable UK accounting standards.

Going concern basis of accounting

As at the period end date the company was dependent on realisation of sufficient cash from its unquoted investments or raising new funds to be able to meet its operating expenses.

In November 2014 it was resolved to restructure the company in order to raise additional capital by way of a share subscription. It was proposed that prior to the subscription, the company's holding in Atlantic Healthcare would be distributed in specie on a pro rata basis to the existing shareholders and at the same time an additional £400,000 would be raised by subscriptions, at a valuation of the company of £600,000 (including the subscriptions but excluding the shareholding in Atlantic Healthcare). The final irrevocable subscriptions received came to £360,000.

As a result the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a minimum period of at least 12 months from the date of approval of the financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Investments

In accordance with FRS 26, investments are designated as at fair value through profit or loss.

Quoted investments are stated at mid-market prices at the balance sheet date.

Unlisted investments are stated at 'price of recent investment', reflecting the early stage nature of the investment. The following considerations are used when calculating the 'price of recent investment'

(i) Where the investment being valued was itself made recently, its cost will generally provide a good indication of fair value.

(ii) Where there has been a recent investment by third parties, the price of that investment will provide a basis of the valuation.

Where a fair value cannot be estimated reliably, the investment is reported at cost or the carrying value at the previous reporting date, unless there is evidence that the investment has since been impaired.

Taxation

The company has been granted exempt company status within the meaning of Article 123A of the Income Tax (Jersey) Law 1961 (as amended). The effect of such special status is that the company is treated as a non-resident company for the purposes of Jersey tax laws and is therefore exempt from Jersey income tax on its profits arising outside Jersey and, by concession, on bank deposit interest arising in Jersey (and from any obligation to withhold Jersey income tax from any interest or dividend payments made by it). This status is renewable on an annual basis upon payment of a fee to the Comptroller of Income Tax in Jersey, and it is the company's intention to maintain this status.

Consequently, no provision for taxation, either current or deferred has been made in these financial statements.

2 Turnover

Turnover is derived from its principal activity and includes dividends received from investments. It also includes realised and unrealised profits and losses on investments.

3 Investments

4 Creditors: amounts falling due within one year

5 Reconciliation of Shareholders' funds

6 Earnings per share

Basic earnings per share is calculated on the basis of the (loss) for the period of £39,868 and 125,627,000 shares being the weighted average number of shares in issue during the trading period and is stated in pence.

7 Dividends

No dividends have been paid or proposed.