Defense Metals Corp. (TSX-V: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce it has closed a previously announced, oversubscribed non-brokered private placement financing for aggregate gross proceeds of $6,094,020.66, consisting of 12,364,172 flow-through common shares of the Company at a price of $0.28 per FT Share and 11,963,875 units of the Company at a price of $0.22 per Unit.

Each FT Share is a “flow-through share” within the meaning of the Income Tax Act (Canada). Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.32 for a period of 24 months from closing.

The proceeds raised from the sale of the FT Shares will be used for advancing the Company’s Wicheeda Rare Earth Element Project that qualify as “Canadian Exploration Expenditures” (within the meaning of the Act) and the net proceeds raised from the sale of Units will be used for the Wicheeda Project as well as for general corporate and working capital purposes.

In connection with the Private Placement, the Company paid aggregate cash finder’s fees of $258,047.55 and issued 1,017,476 non-transferable finder warrants to certain brokers, 366,882 of which are exercisable at a price of $0.22 per share and the remaining amount at a price of $0.32 per common share for a period of 24 months from closing.

All securities issued under the Private Placement are subject to a four month hold period in accordance with applicable securities laws.

Stock Options

The Company also announces the granting of incentive stock options to certain of its directors, officers and consultants to purchase up to an aggregate 5,400,000 common shares of the Company at a price of $0.22 per common share for a period of three years. 250,000 Options granted to Bluesky Corporate Communications Ltd. will vest in stages over a period of 12 months in equal portions every three months starting three months after the date of grant. The remaining Options vest on the date of grant.

About the Wicheeda REE Project

The 100% owned 4,244-hectare Wicheeda REE Project, located approximately 80 km northeast of the city of Prince George, British Columbia, 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 technical report that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR[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 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life producing and average of 25,423 tonnes REO annually. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and payback of $440 million initial capital within 5 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, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and a “Qualified Person” as defined in NI 43-101.

About Defense Metals Corp.

Defense Metals Corp. 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 markets, defense industry, 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% of the Wicheeda Rare Earth Element Deposit located near Prince George, British Columbia, Canada.