Mr. Mark Tory reports

DEFENSE METALS ANNOUNCES FIRST TRANCHE CLOSING OF PRIVATE PLACEMENT FOR GROSS PROCEEDS OF C$3.65 MILLION

Defense Metals Corp. has closed the first tranche of its previously announced non-brokered private placement, pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions, as amended by Coordinated Blanket Order 45-935 -- Exemptions from Certain Conditions of the Listed Issuer Financing Exemption and other applicable prospectus exemptions under NI 45-106, for aggregate gross proceeds of approximately $3,647,877. The company anticipates closing a second and final tranche of the offering in the coming week.

Under the first tranche of the offering, the company issued 38,994,395 units of the company at a price of 14 cents per unit, comprising 28,927,143 units issued under the LIFE offering and 10,067,252 units issued under the non-LIFE offering. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at an exercise price of 21 cents per warrant share for a period of 36 months following the closing date.

The company intends to use the net proceeds from the offering to advance the company's 100-per-cent-owned Wicheeda rare-earth element project in British Columbia, including support for the company's continuing work toward its full feasibility study, and for general working capital and corporate purposes.

In connection with the first tranche of the offering, the company paid cash commissions of $99,484 to certain eligible finders in respect of purchasers introduced by such finders. The company also issued to such finders an aggregate of 710,599 non-transferable finders' warrants. Each finder's warrant is exercisable to acquire one common share at a price of 14 cents per common share for a period of 24 months from the closing date.

The units issued to Canadian resident subscribers under the LIFE offering are not subject to a hold period pursuant to applicable Canadian securities legislation, other than a four-month hold period under the policies of the TSX Venture Exchange applicable to certain purchasers, expiring Feb. 17, 2027. The units issued pursuant to the non-LIFE offering are subject to a statutory hold period of four months and a day from the closing date in accordance with applicable securities laws, also expiring Feb. 17, 2027. The offering is subject to the final approval of the TSX-V.

Insiders of the company participated in the offering for approximately $540,011. The issuance of units to insiders is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to Section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to Section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25 per cent of the company's market capitalization.

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 preliminary feasibility 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, as 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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