Mr. Mark Tory reports

DEFENSE METALS AND HANWHA CORPORATION SIGN NON-BINDING MEMORANDUM OF UNDERSTANDING TO ADVANCE DOMESTIC RARE EARTH SUPPLY CHAIN

Defense Metals Corp. has entered into a non-binding memorandum of understanding (MOU) with Hanwha Ocean Co. Ltd. and its affiliate Hanwha Corp., signed on May 25, 2026, to explore a strategic collaboration involving the future supply of rare-earth elements (REEs) and potential investment opportunities.

Defense Metals is a company focused on the development of its wholly owned Wicheeda rare-earth project, located near Prince George, B.C., Canada. Hanwha is a South Korean global premium specialized shipbuilding and offshore contractor in the design, construction, maintenance and marketing of all types of vessels, offshore platforms, drilling rigs, floating oil production units and submarines.

Under the terms of the MOU, the parties intend to evaluate the framework for a potential long-term offtake agreement pursuant to which Defense Metals could supply certain rare-earth materials produced from the company's Wicheeda project to support Hanwha and its affiliate's manufacturing and supply chain requirements. The parties will also explore the possibility of a strategic investment by Hanwha or any of its affiliates in Defense Metals, subject to further due diligence, negotiation and the execution of definitive agreements.

The contemplated collaboration reflects the growing demand for secure and reliable domestic sources of critical minerals used in advanced industrial applications, including defence and maritime technologies.

"This MOU is an important step in advancing a made-in-Canada critical minerals supply chain supporting strategically important defence and maritime industries," Mark Tory, chief executive officer of Defense Metals, said. "Rare-earth elements are increasingly recognized as foundational materials for next-generation defence technologies and advanced manufacturing. We believe collaboration with a global premium naval vessel manufacturer position both organizations to contribute to a more secure and resilient domestic supply ecosystem while supporting long-term industrial development in Canada."

A spokesperson for Hanwha said: "Hanwha is focused on ensuring resilient and reliable access to the critical materials required for Canada's evolving naval defence and overall maritime capabilities. As Canada continues to modernize its naval defence fleet, establishing strategic relationships within the Canadian critical minerals sector has become increasingly important for us. This MOU provides a framework to evaluate a potential long-term partnership that could support supply chain security while we work closely with the government of Canada on a path to update and upgrade parts of their naval defence arsenal."

The MOU establishes a framework for continuing discussions between the parties regarding commercial terms, technical evaluation, supply requirements and potential investment parameters. There can be no assurance that the parties will enter into a definitive agreement or complete any transaction contemplated by the MOU.

Rare-earth elements are critical components in a range of high performance applications, including naval propulsion systems, advanced electronics, communications systems and other defence-related technologies.

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

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

The Wicheeda project is one of the most advanced, undeveloped REE deposits in North America or Europe, featuring a robust mineral resource and mining reserve, as detailed in the company's 2025 prefeasibility study (PFS, 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 shows the economic potential of the deposit and supports 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 REEs 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 feasibility study, and permitting, are required before a production decision can be made for the Wicheeda project.

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