Mr. Mark Tory reports

DEFENSE METALS RECEIVES LETTER OF INTEREST FOR POTENTIAL US$250 MILLION IN PROJECT FINANCING

Defense Metals Corp. has received a letter of interest (LOI) from Export Development Canada (EDC), the government of Canada's export credit agency, expressing its interest in participating as a mandated lead arranger for potential debt financing of up to $250-million (U.S.) from EDC to support the development and construction of Defense Metals' flagship Wicheeda rare earth element (REE) project, located in British Columbia, Canada.

The LOI was issued in response to Defense Metals' request for potential funding support and is based on information provided by the company, continuing discussions with EDC and publicly available data.

Guy de Selliers, executive chairman of Defense Metals, commented: "We are very pleased to receive this letter of interest from EDC. This is a strong endorsement of the strategic importance of the Wicheeda REE project and shows the key role that EDC might consider playing in its financing. This project would indeed contribute to a number of Canadian priorities, including the clean-energy transition and the security of supply of critical minerals."

Mark Tory, president and chief executive officer of Defense Metals, commented: "The prefeasibility study we released on April 7, 2025, demonstrates the financial robustness of the Wicheeda project. EDC's prospective support can serve as an anchor to mobilize a comprehensive debt package. We are also encouraged by the recent creation in Canada, Europe and elsewhere of a number of very large, government-backed equity funds with mandates to finance in projects like Wicheeda. For such a strategically important and financially robust project as Wicheeda, we are confident that financing will be available. We are encouraged by EDC's letter of interest."

EDC is a financially self-sustaining Crown corporation. Over the past 25 years, it has developed a particularly strong record in structured and project finance, having participated in more than 540 transactions totalling over $40-billion (U.S.). The proposed financing from EDC remains subject to the satisfactory completion of all due diligence.

About Defense Metals Corp.

Defense Metals is focused on the development of its 100-per-cent owned, 11,800-hectare (roughly 29,158-acre) Wicheeda rare earth element property, located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada.

The Wicheeda project, approximately 80 kilometres (roughly 50 miles) northeast of the city of Prince George, is readily accessible by a paved highway and all-weather gravel roads, and is close to infrastructure, including hydro power transmission lines and gas pipelines. The nearby Canadian National Railway and major highways allow easy access to the port facilities at Prince Rupert, the closest major North American port to Asia. The company recently completed a prefeasibility study that demonstrated the robust economics of the project.

We seek Safe Harbor.