Mr. Mark Tory reports

DEFENSE METALS PROVIDES JOINT LETTER TO SHAREHOLDERS FROM EXECUTIVE CHAIRMAN AND CEO

Defense Metals Corp. today released a joint letter from executive chairman Guy de Selliers and president and chief executive officer Mark Tory.

Joint letter from the executive chairman and CEO

Dear shareholders,

Two thousand twenty-five has been a transformative year for Defense Metals as we continued to advance the Wicheeda rare-earth project while strengthening our leadership, financial position and strategic alignment in response to growing global demand for secure rare-earth supply.

During the year, we enhanced our leadership and governance framework to support the company's transition into its next phase of development. Mark Tory formally assumed the role of president and chief executive officer, and the company further strengthened its board and senior management team with appointments that add depth across technical, financial and corporate development disciplines. These efforts ensure Defense Metals is well positioned to execute its long-term strategy.

A major milestone in 2025 was the completion of the prefeasibility study (PFS) for the Wicheeda project. The PFS confirmed the Wicheeda project as the only undeveloped rare-earth project in North America and Europe with proven mineral reserves, reinforcing its strategic importance within the global rare-earth supply chain. Building on this foundation, the company commenced preparatory work to advance toward a definitive feasibility study (DFS), targeted to begin in early 2026.

To support continuing project advancement, Defense Metals successfully completed multiple private placement financings during the year, including the most recent oversubscribed $16.2-million financing. These financings strengthened the company's balance sheet and provided funding for metallurgical optimization, engineering studies and other technical work required to progress the Wicheeda project.

Importantly, these financings were supported by meaningful insider participation, with certain directors and senior officers investing alongside institutional shareholders. In addition, the executive chairman, through his family trust, increased his ownership in the company through open-market purchases during the year. This level of insider investment reflects strong confidence in the company's strategy and ensures continued alignment with shareholders.

Throughout 2025, we also advanced engagement with indigenous partners and government stakeholders. Continuing support from the McLeod Lake Indian Band and constructive dialogue with federal and provincial authorities remain central to our responsible development approach. Further underscoring the strategic significance of the Wicheeda project, the company received a letter of interest from Export Development Canada (EDC) regarding potential project financing of up to $250-million (U.S.), subject to customary conditions.

As we look ahead to 2026, Defense Metals is well positioned to advance the Wicheeda project through the next stage of development, pursue strategic partnerships and offtake opportunities, and continue disciplined capital management. The progress achieved in 2025 has laid a strong foundation for long-term value creation.

We would like to thank our shareholders for their continued support and confidence as we work to advance one of North America's most strategically important rare-earth projects.

Sincerely,

Guy de Selliers

Executive chairman

Mark Tory

President and chief executive officer

Defense Metals

About Defense Metals Corp. and its Wicheeda rare-earth deposit

Defense Metals is focused on the development of its 100-per-cent-owned Wicheeda rare-earth element mineral deposit.

The Wicheeda project, approximately 80 kilometres (approximately 50 miles) northeast of the city of Prince George in British Columbia, Canada, is readily accessible by a paved highway and an all-weather gravel road and is close to power and transport infrastructure, including hydroelectric transmission lines, gas pipelines, rail services and the port facilities at Prince Rupert. The company completed a preliminary feasibility study (PFS) in 2025 (refer to the company's news releases dated Feb. 18 and April 7, 2025).

We seek Safe Harbor.