An anonymous director reports

DEFENSE METALS CLOSES OVERSUBSCRIBED PRIVATE PLACEMENT OF $6.1 MILLION

Defense Metals Corp. has closed a previously announced, oversubscribed non-brokered private placement financing for aggregate gross proceeds of $6,094,020.66, consisting of 12,364,172 flow-through common shares of the company at a price of 28 cents per FT share and 11,963,875 units of the company at a price of 22 cents per unit.

Each FT share is a flow-through share within the meaning of the Income Tax Act (Canada). Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one common share of the company at a price of 32 cents for a period of 24 months from closing.

The proceeds raised from the sale of the FT shares will be used for advancing the company's Wicheeda rare earth element (REE) project that qualify as Canadian exploration expenditures (within the meaning of the Income Tax Act), and the net proceeds raised from the sale of units will be used for the Wicheeda project, as well as for general corporate and working capital purposes.

In connection with the private placement, the company paid aggregate cash finder's fees of $258,047.55 and issued 1,017,476 non-transferable finder warrants to certain brokers, 366,882 of which are exercisable at a price of 22 cents per share and the remaining amount at a price of 32 cents per common share for a period of 24 months from closing.

All securities issued under the private placement are subject to a four-month hold period in accordance with applicable securities laws.

Stock options

The company also announces the granting of incentive stock options to certain of its directors, officers and consultants to purchase up to an aggregate 5.4 million common shares of the company at a price of 22 cents per common share for a period of three years. The 250,000 options granted to Bluesky Corporate Communications Ltd. will vest in stages over a period of 12 months in equal portions every three months starting three months after the date of grant. The remaining options vest on the date of grant.

Qualified person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE (rare earth element) project has been reviewed and approved by Kristopher J. Raffle, PGeo (B.C.), principal and consultant of APEX Geoscience Ltd. of Edmonton, Alta., a director of Defense Metals and a qualified person as defined in National Instrument 43-101.

About Defense Metals Corp.

Defense Metals is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power markets, defence industry, national security sector, and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100 per cent of the Wicheeda rare earth element deposit located near Prince George, B.C., Canada.

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