Mr. Kristopher Raffle reports

NEW EXPLORATION TARGETS WITH POTENTIAL TO EXPAND WICHEEDA REE DEPOSIT DEFINED BY DEFENSE METALS

A recently completed ground radiometric geophysical survey over Defense Metals Corp.'s Wicheeda rare earth element (REE) deposit, located near Prince George, Canada, has identified new anomalies that may represent previously unknown REE mineralized carbonatite located largely within the current mineral resource pit shells, as set forth in the 2021 preliminary economic assessment (PEA).

Highlights:

• Based on extensive core drilling and surface geologic mapping completed to advance Defense Metals' continuing preliminary feasibility study (PFS), the survey results closely map and further define the surface extent of outcropping REE mineralization.
• Two previously unknown linear radiometric anomalies were identified, each approximately 40 metres in width and extending approximately 250 metres northwest from the main body of the Wicheeda REE deposit.
• Ground truthing showed that the anomalies are overlain entirely by surficial cover which occurs at lower elevations, along the western portion of the Wicheeda deposit.

Kristopher Raffle, PGeo, director of Defense Metals and a qualified person, stated: "We're excited to have identified two new exploration targets so close to the Wicheeda deposit. The radiometric surveys were initially designed to assist our geologic mapping teams and it came as a surprise when we identified new anomalies under cover having a similar geophysical expression to known drilled and outcropping rare earth mineralization. After reviewing the geophysical data in the context of our updated Wicheeda 3-D geological model we recognized the potential for undiscovered near-surface, east-dipping carbonatite bodies. We look forward to drill testing these anomalies."

Several resource definition drill holes undercut the southern half of the eastern anomaly at greater than 150 metres vertical depth below surface and preclude a subvertical or steeply east-dipping source. Drill hole WI21-39 intersected relatively higher-grade carbonatite at depth returning 2.91 per cent total rare earth oxide (TREO) over 45 metres from a depth of 69 metres down hole that is believed to represent the down-dip projection of the eastern radiometric anomaly.

The majority of the eastern and the entirety of the western radiometric anomaly remain untested by core drilling. Defense Metals plans to test the western geophysical anomaly during fall 2023 as part of an expanded program of pit geotechnical drilling comprising a planned 915 metres in four holes, with additional drilling subject to initial results.

Details of the radiometric surveys

The recently completed Wicheeda ground radiometric survey comprised a total of 20 line-kilometres along 50-metre spaced, and locally 25-metre infill, east-west-oriented survey lines completed over an area of approximately 800 by 900 metres. A NUVIA Dynamics PGIS-2 Gamma-ray spectrometer, equipped with a 0.347-litre NaI detector and 512-channel resolution ADC, was used and data were automatically synchronized with GPS, ensuring both time and location accuracy. The spectrometer's self-stabilizing capabilities on natural radioactive elements such as potassium, uranium and thorium eliminated the need for frequent recalibration, assuring reliable and accurate gamma ray measurements. Given that gamma rays are highly attenuated by overburden (approximately 90 per cent attenuation at 20 to 30 centimetres overburden depth), ground radiometric surveys are only likely to detect outcropping or very near-surface sources.

Qualified person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE project has been reviewed and approved by Mr. Raffle, PGeo (British Columbia), principal and consultant of Apex Geoscience Ltd. of Edmonton, Alta., who is a director of Defense Metals and a qualified person as defined in National Instrument 43-101.

About the Wicheeda REE property

Defense Metals' 100-per-cent-owned, 6,759-hectare (approximately 16,702-acre) Wicheeda project is located approximately 80 km northeast of the city of Prince George, B.C.; population 77,000. The Wicheeda REE project is readily accessible by all-weather gravel roads and is near infrastructure, including hydropower transmission lines and gas pipelines. The nearby Canadian National Railway and major highways allow easy access to the deepwater port facilities at Prince Rupert, the closest major North American port to Asia.

The 2021 Wicheeda REE project preliminary economic assessment technical report outlined an after-tax net present value (8 per cent) of $517-million and an 18-per-cent internal rate of return. This PEA contemplated an open-pit mining operation with a 1.75:1 (waste:mill feed) strip ratio providing a 1.8-million-tonne-per-year mill throughput producing an average of 25,423 tonnes rare earth oxides annually over a 16-year mine life. A phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher-grade surface mineralization in year 1 and payback of $440-million initial capital within five years.

About Defense Metals Corp.

Defense Metals is a mineral exploration and development company focused on the development of its 100-per-cent-owned Wicheeda rare earth element deposit located near Prince George, B.C., Canada.

We seek Safe Harbor.