Defense Metals Corp. Closes Second Tranche of Private Placement

Not for distribution to United States newswire services or for dissemination in the United States

DEFENSE METALS CORP. CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

News Release - Vancouver, British Columbia – July 15, 2020: Defense Metals Corp. (“Defense Metals”

or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce that it has closed

the second tranche of a non-brokered private placement (the “FT Private Placement”) consisting of 80,000

flow-through units (the “FT Units”) at a price of $0.25 per FT Unit for gross proceeds of $20,000. Each FT

Unit is comprised of one flow -through share and one common share purchase warrant . Each warrant is

exercisable to purchase one common share of the Company at a price of $0.35 per share for a period of

twenty-four (24) months from the date of closing the second tranche of the FT Private Placement. The

Company also closed the second tranche of a non-brokered private placement (the “ Private Placement”)

consisting of 100,000 units (each, a “Unit”) at a price of $0.20 per Unit for gross proceeds of $20,000. Each

Unit is comprised of one common share and one common share purchase warrant . Each warrant is

exercisable to purchase one common share of the Company at a price of $0.30 per share for a period of

twenty-four (24) months from the date of closing the second tranche of the Private Placement.

The securities issued pursuant to the second tranches of the FT Private Placement and the Private Placement

are subject to a four month hold period from the closing date in accordance with applicable securities laws.

About the Company

Defense Metals Corp. is a mineral exploration company focused on the acquisition, exploration and

development of mineral deposits containing metals and elements commonly used in electric power markets,

the military and for national security concerns 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”.

Contact Information - For more information, please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.

Vice President, Investor Relations

Tel: (778) 994 8072

Email: [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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any

sale of any of the secu rities in any jurisdiction in which such offer, solicitation or sale would be unlawful,

including any of the securities in the United States of America. The securities have not been and will not be

registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities

laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons

(as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and app licable state

securities laws, or an exemption from such registration requirements is available.

Cautionary Statement Regarding Forward Looking Information

This news release includes certain statements that constitute “forward -looking information or statements” within the

meaning of applicable securities law, including without limitation, use of funds from the second tranches of the FT

Private Placement and the Private Placement and other matters.

Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates

and assumptions. These statements relate to analyses and other information that are based on forecasts of future results,

estimates of amou nts not yet determinable and assumptions of management. Any statements that express or involve

discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future

events or performance (often, but not alway s, using words or phrases such as “expects” or “does not expect”, “is

expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events

or results “may”, “could”, “would”, “might” or “will” be tak en, occur or be achieved), and variations of such words,

and similar expressions are not statements of historical fact and may be forward -looking statements. Forward-looking

statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or

achievements of the Company to be materially different from future results, performances or achievements express or

implied by such statements. Such statements and information are based on numerous assumptions regard ing present

and future business strategies and the environment in which the Company will operate in the future, including the price

of metals, anticipated costs and the ability to achieve 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, and

that third party contractors, equipment and supplies and governmental and other approvals required to conduct the

Company’s planned exploration activities will be available on reasonable terms and in a timely manner . 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.

Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of

activity, performance or results to differ materially from those reflected in the forward -looking statements, including,

without limitation: (i) risks related to rare earth elements, and other commodity price fluctuations; (ii) risks and

uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of

exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and

development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to

receive necessary licences and permits; (vi) that environmental laws and regulations may become more onerous; (vii)

that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration,

development or mining results will not be consistent with the Company’s expectations; (ix) exploration and

development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated

difficulties with or interruptions in exploration and development; (x) competition; (xi) the potential for delays in

exploration or development activities or the completion of geologic reports or studies; (xii) the uncertainty of

profitability based upon the Company’s history of losses; (xiii) risks related to environmen tal regulation and liability;

(xiv) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred

to as “social licence”) , including local First Nations ; (xv) risks relating to obtaining and maintaining all necessary

government permits, approvals and authorizations relating to the continued exploration and development of the

Company’s projects; (xvi) risks related to the outcome of legal actions; (xvii) p olitical and regulatory risks associated

with mining and exploration; (xix) risks related to current global financial conditions; and (xx) other risks and

uncertainties related to the Company’s prospects, properties and business strategy. These risks, as well as others, could

cause actual results and events to vary significantly.

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, the loss

of key directors, employees, advisors or consultants, adverse weather conditions, increase in costs, equipment failures,

litigation, the impact of Covid -19 or other viruses and diseases on the Company’s ability to operate , failure of

counterparties to perform their contractual obligations and fees charged by service providers. Investors are cautioned

that forward-looking statements are not guarantees of future performance or events and, acco rdingly are cautioned not

to put undue reliance on forward -looking statements due to the inherent uncertainty of such statements. The forward -

looking statements included in this news release are made as of the date hereof and the Company disclaims any intention

or obligation to update or revise any forward-looking statements, whether as a result of new information, future events

or otherwise, except as expressly required by applicable securities legislation.