| News Release – Vancouver, British Columbia – January 6, 2022: Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce that the Preliminary Economic Assessment NI 43-101 Technical Report on the Wicheeda Rare Earth Element Project in British Columbia (the “Technical Report”) has been filed on SEDAR. The Technical Report, which is dated January 6, 2022, has an effective date of November 7, 2021, and is entitled “Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project” and was prepared by SRK Consulting (Canada) Inc. Highlights from the PEA: Project Metric Units Current Pre-tax NPV @ 8% $K (CAD) $760,585 Post-tax NPV @ 8% $K (CAD) $516,500 Pre-tax IRR % (real) 22% Post-tax IRR % (real) 18% Undiscounted After-tax Cashflow (LOM) $K (CAD) $1,668,640 Payback Period from start of production Years 5 Initial Capital Expenditure $K (CAD) $440,068 Maximum Production Rate mtpa 1.8 Mine Life years 16 Average Production Rate after Ramp-up mtpa 1.73 Mill Feed for Concentrate Sales tonnes 5,416,388 Mill Feed for HM Plant Precipitate Sales tonnes 20,712,812 Life Mine ROM Grade % REO in mill feed 2.33% Life of Mine Strip Ratio Waste:Mill feed 1.75 Net Revenue From Concentrate $K (CAD) $862,520 Net Revenue From Precipitate $K (CAD) $5,236,095 Operating Margin % 60% Total Unit Operating Costs $(CAD)/t Total Mill feed $90.64 |
| The results of the Preliminary Economic Assessment were previously disclosed in summary form in the Company’s news release dated November 24, 2021 as amended January 6, 2022. The Technical Report was prepared in accordance with the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and is available for review under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.defensemetals.com. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. About the Wicheeda REE Property The 2,008-hectare Wicheeda REE Property, 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. Geologically, the property is situated in the Foreland Belt and within the Rocky Mountain Trench, a major continental geologic feature. The Foreland Belt contains part of a large alkaline igneous province, stretching from the Canadian Cordillera to the southwestern United States, which includes several carbonatite and alkaline intrusive complexes hosting the Aley (niobium), Rock Canyon (REE), and Wicheeda (REE) deposits. Qualified Persons SRK Qualified Persons (QPs) are all independent as defined by NI 43-101 and have contributed to their corresponding sections of the Technical Report, and have reviewed and approved the scientific, technical, and economic information contained in this news release. The SRK QPs include André Deiss, (geology and mineral resources), Andy Thomas (pit geotechnical), Anoush Ebrahimi (mining), Eric Olin (flotation concentration), Samantha Barnes (water management), Mark Liskowich (environmental-social-permitting), and Neil Winkelmann (infrastructure, marketing and economics). Associate consultant, John Goode, is the QP for hydrometallurgical processing. 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. Mr. Raffle verified the data disclosed which includes a review of the analytical and test data underlying the information and opinions contained therein. About SRK SRK is an independent, global network of consulting practices in over 45 countries on six continents. Its experienced engineers and scientists work with clients in multi-disciplinary teams to deliver integrated, sustainable solutions across a range of sectors – mining, water, environment, infrastructure and energy. 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, 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 has an option to acquire 100% of the 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”. For further information, please contact: Todd Hanas, Bluesky Corporate Communications Ltd. Vice President, Investor Relations Tel: (778) 994 8072 Email: todd@blueskycorp.ca |
