Mr. Alex Heath reports

DEFENSE METALS ANNOUNCES PRIVATE PLACEMENT

Defense Metals Corp. has arranged a non-brokered private placement financing of 12.5 million units of the company at a price of 16 cents per unit for aggregate gross proceeds of $2-million.

Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each warrant will be exercisable at a price of 22 cents into one common share for a period of two years from the date of issuance.

As part of the private placement offering, the company has received a significant lead order from Guy de Selliers, Defense Metals' executive chairman. Other members of the company's management team will also participate in the offering.

The company intends to use the net proceeds of the private placement to advance the company's prefeasibility study for its wholly owned Wicheeda rare earth element project, including a size optimization and trade-off study, priority environmental assessment work, and piloting testing of further process improvements, together with general working capital and corporate expenses.

The closing date of the private placement offering is expected to occur on or about Aug. 22, 2024, or such later date or dates as the company may determine, and is subject to certain closing conditions, including the receipt of all necessary approvals, including the conditional listing approval of the TSX Venture Exchange.

The securities issued under the private placement offering will be subject to a hold period under applicable securities laws in Canada expiring four months and one day from the closing date of the private placement offering.

Members of the company's management team may participate in the private placement offering, including subscriptions from related parties of the company as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The participation of management in the private placement offering is exempt from formal valuation and minority shareholder approval requirements pursuant to exemptions contained in sections 5.5(c) and 5.7(1)(a) of MI 61-101.

About Defense Metals Corp.

Defense Metals is focused on the development of its 100-per-cent-owned, 8,301-hectare (approximately 20,534-acre) Wicheeda REE project, which is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada.

The Wicheeda REE project, approximately 80 kilometres (approximately 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.

We seek Safe Harbor.