An anonymous director reports

DEFENSE METALS CORP. ANNOUNCES PRIVATE PLACEMENT FINANCING

Defense Metals Corp. has arranged a non-brokered private placement of 2,525,000 units at a price of 20 cents per unit for gross proceeds of $505,000. Each unit will comprise one common share and one common share purchase warrant. Each warrant is exercisable to purchase one common share of the company at a price of 25 cents per share for a period of 12 months from the date of closing of the private placement. The company has received subscription agreements totalling $505,000 for the units.

The company has also arranged a non-brokered private placement of 405,000 flow-through (FT) common shares at a price of 25 cents per FT share for gross proceeds of $101,250. The company has received subscription agreements totalling $101,250 for the FT shares.

The company will pay aggregate cash finders' fees of $7,087.50 and will issue 28,350 non-transferable finders' warrants to certain brokers on a portion of the private placements. The finders' warrants otherwise have the same terms as the warrants.

Three directors of the company will participate in the private placement. Participation by insiders of the company in the private placements constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Because the company's shares trade on the TSX Venture Exchange, the issuance of securities will be exempt from the formal valuation requirements of Section 5.4 of MI 61-101, pursuant to Subsection 5.5(b) of MI 61-101, and exempt from the minority approval requirements of Section 5.6 of MI 61-101, pursuant to subsections 5.7(1)(a) and (b) of MI 61-101.

The private placements are subject to TSX-V approval and all securities will be subject to a four-month hold period.

The proceeds from these private placements will be used on the company's Wicheeda rare earth element project, located in Prince George, B.C., and for general working capital purposes.

Wicheeda REE (rare earth element) project

The Wicheeda REE project has indicated mineral resources of 4.89 million tonnes averaging 3.02 per cent LREO (light rare earth element) and inferred mineral resources of 12.1 million tonnes averaging 2.90 per cent LREO (1).

Qualified person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE property has been reviewed and approved by Kristopher J. Raffle, PGeo (B.C.), principal and consultant of APEX Geoscience Ltd.

(1) The technical report on the Wicheeda property in B.C., effective June 27, 2020, and prepared by APEX (Steven J. Nicholls, BSc, MAIG, and Kristopher J. Raffle, BSc, PGeo) is available under Defense Metals' profile on SEDAR.

Qualified person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE property has been reviewed and approved by Mr. Raffle, principal and consultant of APEX Geoscience, of Edmonton, Alta., a director of Defense Metals and a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Defense Metals Corp.

Defense Metals is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of green energy technologies, such as high-strength alloys and rare earth magnets. Defense Metals has an option to acquire 100 per cent of the 1,708-hectare Wicheeda REE property, located near Prince George, B.C., Canada. Defense Metals trades in Canada under the symbol DEFN on the TSX Venture Exchange, in the United States under DFMTF on the OTCQB and in Germany on the Frankfurt Exchange under 35D.

We seek Safe Harbor.