DEFN - Breaking News: Defense Metals Announces Closing of CDN$5.0 Million Private Placement Offering with Institutional Investors

Defense Metals Corp. (OTCQB: DFMTF) (TSX-V: DEFN) (FSE: 35D) (“Defense Metals” or the “Company”) is pleased to announce that it has closed its previously announced private placement to institutional investors of its common shares (“Common Shares”) and warrants to purchase common shares (“Warrants”) for aggregate gross proceeds to the Company of Cdn$5.0 million (the “Private Placement”). Pursuant to the Private Placement, the Company issued 15,625,000 Common Shares and Warrants to purchase up to 15,625,000 Common Shares at a purchase price of Cdn$0.32 per Common Share and associated Warrant. The Warrants are exercisable at an exercise price of Cdn$0.425 per Common Share at any time on or prior to May 17, 2024.

H.C. Wainwright & Co. acted as the exclusive placement agent for the Private Placement in the United States. H.C. Wainwright & Co. received (i) a cash commission of Cdn$400,000 (equal to 8.0% of the gross proceeds of the Private Placement) and (ii) 1,250,000 non-transferable compensation warrants (the “Agent Warrants”). The Agent Warrant are exercisable at an exercise price of Cdn$0.32 per Common Share at any time on or before May 17, 2024.

The Company intends to use the net proceeds of the Private Placement to complete a preliminary economic assessment for the Wicheeda Project, conduct an exploration program and further environmental studies on the Wicheeda Property, formalize a contract to build a hydrometallurgical pilot plant and for working capital and general corporate purposes. Details as to the intended specific allocation of the proceeds are disclosed in the Prospectus Supplement referred to below.

The Common Shares and Warrants issued under the Private Placement were qualified by way of a prospectus supplement (the “Prospectus Supplement”) under the Company’s base shelf prospectus dated May 4, 2021 which was filed in each of the provinces of Canada, except Québec. Copies of the Prospectus Supplement and the base shelf prospectus are available under the Company’s profile at www.sedar.com . In the United States, the Common Shares and Warrants were offered and sold on a private placement basis pursuant to exemptions from, or in transactions not subject to, the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and all applicable state securities laws.  No securities were offered or sold to Canadian purchasers.

The securities issued under the Private Placement are subject to resale restrictions in the United States under applicable U.S. federal and state securities laws with no resale restrictions in Canada.

This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in Canada in connection with the Private Placement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release shall not constitute an offer of securities for sale, or the solicitation of an offer to acquire, purchase or subscribe for any securities, in the United States. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

About Defense Metals Corp.

Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of “GREEN” energy technologies, such as, high strength alloys and rare earth magnets. Defense Metals has an option to acquire 100% of the 1,708 hectare Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

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