Mr. Mark Tory reports

DEFENSE METALS PROVIDES CORPORATE UPDATE HIGHLIGHTING CONTINUED EXECUTION AND STRATEGIC MOMENTUM

Defense Metals Corp. has provided shareholders with an update on the company's continued progress in advancing the Wicheeda rare earth project and positioning itself as a leading participant in the rapidly evolving North American critical minerals supply chain.

While broader market conditions have contributed to recent weakness in the company's share price, management believes the underlying value of Defense Metals continues to strengthen through consistent execution across multiple technical, strategic and commercial initiatives.

The company recently completed its 2026 spring drill program designed to support the continuing feasibility study through additional geotechnical, geochemical and hydrogeological data collection. These activities represent another milestone in advancing engineering work toward development.

In parallel, the company is completing its pilot-scale flotation testing at SGS Lakefield and is preparing for additional pilot testing work in relation to the hydrometallurgical plant to further optimize process design and validate metallurgical performance. This work builds upon the positive metallurgical test results achieved to date and is expected to provide important inputs for the feasibility study.

In addition, Defense Metals recently received conditional government funding support for infrastructure initiatives associated with the Wicheeda project and has continued to engage constructively with provincial, federal and indigenous stakeholders as project advancement continues. Defense Metals remains the only rare earth project selected by the government of British Columbia as one of four priority projects in the province.

"The market has understandably experienced periods of volatility, particularly across the junior mining sector," said Mark Tory, president and chief executive officer of Defense Metals. "However, our focus has remained unchanged: execute against our development plan, reduce technical risk, build strategic relationships and position Wicheeda to become an important future supplier of critical rare earth elements. We believe the intrinsic value of the company continues to grow as we systematically pursue these objectives."

The global strategic landscape continues to reinforce the importance of secure rare earth supply chains. Management believes Defense Metals is exceptionally well positioned to benefit from these long-term structural trends as one of the very few new rare earth development projects with published reserves in North America.

Strategic alternatives

As part of its continuing commitment to maximizing shareholder value, Defense Metals is actively evaluating a range of strategic alternatives to support the development of the Wicheeda project. These initiatives may include strategic partnerships, government-supported financing opportunities, offtake arrangements and broader corporate opportunities. While there can be no assurance about the timing and likelihood of any potential transaction, the board of directors and management remain committed to pursuing opportunities that have the potential to unlock meaningful value for shareholders.

"We recognize that our share price performance has been disappointing and has not reflected the significant progress the company has made over the past year," added Guy de Selliers, executive chairman of Defense Metals. "Our team remains highly focused on executing our strategy, advancing one of North America's premier rare earth development projects and pursuing opportunities that would ultimately translate into substantial value for our shareholders."

About Defense Metals Corp.

Defense Metals is an advanced rare earth element (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 the company's 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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