Mr. Kristopher Raffle reports

DEFENSE METALS CLOSES PRIVATE PLACEMENT FINANCING

Defense Metals Corp. has closed a non-brokered private placement for gross proceeds of $1.5-million, consisting of 4,545,456 flow-through common shares of the company at a price of 33 cents per FT share. Each FT share is a flow-through share within the meaning of the Income Tax Act (Canada).

The proceeds of the private placement will be used for the exploration and development of the company's Wicheeda rare earth element project located near Prince George, B.C.

In connection with the private placement, the company paid aggregate cash finder fees of $90,000 and issued 272,727 non-transferable finder warrants to Glores Securities Inc. The finder warrants are exercisable for a period of 24 months from issuance at a price of 33 cents per share.

All securities issued under the private placement are subject to a four-month hold period in accordance with applicable securities laws.

About the Wicheeda REE project

The 100-per-cent-owned 2,008-hectare Wicheeda REE property, located approximately 80 kilometres northeast of the city of Prince George, B.C., is readily accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway and major highways.

The Wicheeda REE project yielded a robust 2021 preliminary economic assessment that demonstrated an after-tax net present value (discounted at 8 per cent) of $517-million and an 18-per-cent internal rate of return (1). A unique advantage of the Wicheeda REE project is the production of a saleable high-grade flotation concentrate. The PEA contemplates a 1.8-million-tonne-per-year mill throughput open-pit mining operation with a 1.75 to 1 (waste to mill feed) strip ratio over a 19-year mine (project) life producing an average of 25,423 tonnes rare earth oxides annually. A phase 1 initial pit strip ratio of 0.63 to 1 (waste to mill feed) would yield rapid access to higher-grade surface mineralization in year one and a payback of $440-million initial capital within five years.

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 Kristopher J. Raffle, PGeo (British Columbia), principal and consultant of Apex Geoscience Ltd. of Edmonton, Alta., a director of Defense Metals, a qualified person as defined in National Instrument 43-101.

(1) Independent Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project, British Columbia, Canada, dated Jan. 6, 2022, with an effective date of Nov. 7, 2021, and prepared by SRK Consulting (Canada) Inc., is filed under Defense Metals' issuer profile on SEDAR.

About Defense Metals Corp.

Defense Metals is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defence industry and national security sector and in the production of green energy technologies, such as: rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100 per cent of the Wicheeda rare earth element 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.

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