DroneShield has set its sights on preventing terrorist attacks using drone-borne bombs.

The ASX-listed drone hunter — which today announced that Spanish authorities were evaluating its latest DroneGun device — says terrorist group ISIS has its own “air force entirely made of drones”.

DroneShield just launched the second generation of its handheld DroneGun, which jams the signals of drones and allows users to take over control and guide the device back to land.

“ISIS are strapping grenades on drones and releasing them on tanks and civilians, recording the footage and posting it online,” Droneshield chief executive Oleg Vornik told Stockhead.

“The Middle East is a massive market. ISIS has launched their own air force department which is entirely made of drones.

“If you look at the history of the western military, not since the Korean War have soldiers not felt safe from the air.”

Droneshield shares were steady at 19.5c on Wednesday morning.

Droneshield has already garnered the support of the Australian and US military, with federal defence Minister Christopher Pyne (pictured above) backing the technology at a defence exhibition in Abu Dhabi earlier this year.

The team behind the hand-held drone jammer are now working on a third-generation product to protect troops between the ground and high altitudes serviceable by the air force, where most drones now target.

It plans to implement drone sensors to create a bubble of drone protection dubbed ‘DroneSentry’.

“Sensors use a combination of radio frequency and cameras to detect drones and will be able to communicate to the jammers when the drone is in the vicinity,” Mr Vornik said.

“The drone issue is going to continue to proliferate as drones proliferate so we are continually working to stay on the front foot.”

Minister Pyne told Stockhead he was pleased to see an Aussie making an impact in the industry.

“Drones and drone technology are a fixture of the modern battlefield, and are only going to increase in effectiveness and impact over time,” he said.

“As that technology advances, so too do we need to look at technologies to defeat drones that seek to impact on our own operations.

“As a government firmly focused on growing our defence industry exports it’s great to see an Australian company, at the cutting edge of technology, reaching out and looking to sell their product overseas.”

Technology to stop drones in the air is only available for military use, but the sensors had applications for critical infrastructure like airports and government buildings, to prevent smuggling via drones or even movie sets.

The company made a $2.9 million loss in the last half-year. Revenue increased to $225,343.

DRO had $2.8 million in the bank at the end of June.