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Defense Metals Announces Share-Based Interest Payment

1. Defense Metals issues 491,807 shares to settle interest on convertible notes. 2. The aggregate interest payment totals C$100,821.92, due on January 11, 2025. 3. Interest shares priced at C$0.205, subject to TSXV approval. 4. Wicheeda REE Project is essential for Defense Metals' future production. 5. Company faces risks related to financing and rare earth element prices.

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Why Neutral?

Issuing shares can dilute existing value, impacting short-term stock performance.

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The share issuance affects capital structure, likely influencing investor sentiment.

Why Short Term?

The immediate share issuance impacts liquidity, affecting short-term trading dynamics.

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DEFNDFMTF35D
VANCOUVER, BC, Jan. 13, 2025 /PRNewswire/ - Defense Metals Corp. ("Defense Metals" or the "Company"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) announces that it will issue 491,807 shares of common stock of the Company (the "Interest Shares") to certain holders of secured convertible notes (the "Notes") in full satisfaction of the interest payable thereunder as of January 11, 2025 in the aggregate amount of C$100,821.92 (the "Interest Payment"). The Notes mature on October 11, 2025. Additional details regarding the Notes can be found in the Company's news releases dated October 11, 2024, which is available under the Company's profile on SEDAR+ at www.sedarplus.ca. In accordance with the terms of the Notes, the Company will issue the Interest Shares at a price of C$0.205 per Interest Share being the greater of (i) the volume-weighted average trading price per Share on the TSX Venture Exchange ("TSXV") for the 20 consecutive trading days ending on the applicable Pricing Date, and (ii) the lowest price permitted under the policies of the TSXV. The issuance of the Interest Shares is subject to the approval of the TSXV. Once issued, the Interest Shares will be subject to a four-month and one-day hold period in accordance with applicable Canadian securities laws. About Defense Metals Corp. and its Wicheeda Rare Earth Element Project Defense Metals Corp. is focused on the development of its 100% owned, 11,800-hectare (~29,158-acre) Wicheeda REE Project that is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada. The Wicheeda REE Project, approximately 80 kilometres (~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. For further information, please visit www.defensemetals.com or contact: Alex HeathSenior Vice President, Corporate Development & Interim CFOTel: +1 604-354-2491Email: [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Cautionary Statement Regarding "Forward-Looking" Information This news release contains "forward‐looking information or statements" within the meaning of applicable securities laws, which may include, without limitation, any statements (expressed or implied) relating to: advancing the Wicheeda Project, the issuance of the Interest Shares and other matters. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. All statements in this news release, other than statements of historical facts, that address events, contribution or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration and metallurgical results, risks related to the inherent uncertainty of exploration and development and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company's profile on SEDAR+ (www.sedarplus.ca). While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain or obtain community acceptance (including First Nations), risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of personnel, materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological, metallurgical, engineering and pricing assumptions, decrease in the price of rare earth elements, the impact of viruses and diseases on the Company's ability to operate, restriction on labour and international travel and supply chains, loss of key employees, consultants, officers or directors, increase in costs, delayed results, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward–looking statements or forward–looking information, except as required by law. SOURCE Defense Metals Corp.

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