XAG has always been attaching great importance to pursuing benign development in the global market and observing market rules and regulations. As of October 31, 2021, the company will officially activate the add-on features of "Geofence" for the following purposes.

1. To protect the legitimate rights and interests of the end users.

2. To safeguard market order and promote healthy development of XAG's distribution channels.

3. To enforce the provisions on market access prescribed by the laws and regulations on localization of electronic and electrical products by the regions of Hong Kong, Macau and Taiwan and other countries.

Scope of Application:

1. All XAG products listed under the "XAG One" APP and activated after November 1, 2021, 00:00 (UTC+8), including but not limited to XAG P40 Agricultural Drone, XAG V40 Agricultural Drone, XAG P80 Agricultural Drone, etc;

2. Products activated no later than October 31, 2021, 24:00 (UTC+8) will be excluded.

The use of products purchased within the People's Republic of China, excluding the regions of Hong Kong, Macau and Taiwan, shall be confined to the foregoing area, or it may lead to the products being inoperable. To protect your legitimate rights and interests, it is strongly recommended that you purchase from the corresponding XAG official channel on the basis of where the products will be used. Where it is your personal reasons that lead to failure to do so and the products being inoperable, you shall assume both economic and legal liabilities arising therefrom.

Thank you for your understanding and cooperation.

XAG CO., LTD.

October 15, 2021