Mr. Mark Tory reports

DEFENSE METALS RECEIVES CONDITIONAL APPROVAL FOR UP TO C$1.88 MILLION IN FUNDING FOR WICHEEDA RARE EARTH ELEMENTS CLEAN ENERGY AND TRANSPORTATION INFRASTRUCTURE PROJECT

Defense Metals Corp. has been conditionally approved for up to $1,878,250 in the second call for proposals under the Critical Minerals Infrastructure Fund (CMIF), which is now transitioning to the First and Last Mile Fund (FLMF), to advance its Wicheeda REE (rare-earth element) clean energy and transportation infrastructure project. The funding is pending final due diligence and will support critical infrastructure planning initiatives for the company's Wicheeda REE project, located northeast of Prince George, B.C.

The approved funding will enable Defense Metals to advance the development of a new 60-kilometre transmission line designed to deliver up to 35 megawatts (MW) of electricity from the B.C. Hydro grid directly to the Wicheeda REE mine site. Access to reliable, grid-based hydroelectric power represents a significant step toward reducing the project's carbon footprint while strengthening long-term operational efficiency.

In addition to transmission line development, the project includes the engineering design of upgrades to the existing 43-kilometre forest service road connecting Highway 97 to the mine site. These improvements are expected to enhance site accessibility, safety and logistical efficiency during both construction and future operations.

Scheduled to commence in 2026 and conclude in 2028, the scope of work under the Wicheeda REE clean energy and transportation infrastructure project includes:

• B.C. Hydro interconnection;
• Rail network integration studies;
• Indigenous engagement initiatives to support future construction and operations.

Together, these initiatives are designed to advance infrastructure readiness, strengthen regional transportation linkages and reinforce meaningful collaboration with indigenous communities.

"This conditional funding approval represents an important milestone in advancing critical infrastructure planning for the Wicheeda REE project," said Mark Tory, chief executive officer of Defense Metals. "Securing access to clean low-carbon hydroelectric power and optimizing transportation networks are key components in positioning Wicheeda as a strategically important domestic source of rare-earth elements essential for clean energy technologies and modern transportation systems."

"Canada is moving faster, building smarter and thinking bigger about the minerals behind our economy and national security," said Tim Hodgson, Minister of Energy and Natural Resources. "The Wicheeda rare-earth project is a strong example of how strategic infrastructure like clean electricity, modern transportation corridors and stronger regional connections unlocks the full potential of the minerals beneath our feet, so Canadian businesses and families can benefit. Our government is proud to support work that strengthens supply chains, creates good jobs and gets new Canadian minerals to customers at home and abroad."

The Wicheeda REE project is expected to play a significant role in supporting the growing demand for rare-earth elements used in electric vehicles, renewable energy systems and advanced manufacturing. By investing in sustainable power and efficient transportation infrastructure, Defense Metals continues to advance its commitment to responsible resource development and long-term value creation for stakeholders.

Further updates will be provided as the Wicheeda REE clean energy and transportation infrastructure project advances through final due diligence and into the implementation phase.

About Defense Metals Corp. and the Wicheeda rare-earth element project

Defense Metals is an advanced rare-earth element (REE) exploration and development company focused on delivering strategically critical metals to Western defence, high-technology and clean energy supply chains. The company's primary asset is its 100-per-cent-owned Wicheeda rare-earth element project, located near Prince George, B.C., Canada.

The Wicheeda project is one of the most advanced undeveloped rare-earth deposits in North America or Europe, featuring a robust mineral resource and mining reserve, as detailed in the company's 2025 prefeasibility study (refer to company news release dated April 7, 2025) prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The PFS, showed the economic potential of the deposit, supporting future project development.

Defense Metals is committed to advancing the Wicheeda project through the feasibility study stage, permitting and ultimately into production, positioning the company to become a reliable supplier of critical rare earths that are essential to modern defence systems, advanced manufacturing and energy-efficient technologies.

The PFS for the Wicheeda rare-earth element project is preliminary in nature and includes numerous assumptions regarding metallurgy, capital and operating costs, and market conditions.

Mineral reserves and the economic outcomes projected in the PFS are subject to significant uncertainties, and there is no certainty that the results of the PFS will be realized. Additional studies, including a definitive feasibility study (DFS) and permitting work, are required before a production decision can be made.

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