DEFENSE METALS SETTLES DEBT WITH HATCH THROUGH EQUITY

Core Viewpoint - Defense Metals Corp. has entered into a shares-for-debt settlement agreement with Hatch Ltd. to settle outstanding debt related to engineering services, reflecting a strategic move to strengthen their partnership and advance the Wicheeda Rare Earth Element Project [1][5]. Group 1: Debt Settlement Agreement - The company will settle a total of $846,547.31 in outstanding payables to Hatch through the issuance of 5,290,920 common shares at a deemed price of $0.16 per share [2]. - In addition to the shares, the company will issue 2,645,460 common share purchase warrants to Hatch, allowing the purchase of additional shares at a price of $0.21 per share for 36 months [2][3]. - The pricing of the agreement aligns with previous fundraising efforts, adhering to regulations that allow a maximum discount of 25% [3]. Group 2: Future Collaboration - A side letter agreement indicates the company's intention to engage Hatch for engineering services related to a full feasibility study on the Wicheeda Project, contingent on reaching commercially acceptable terms [4]. - This collaboration aims to leverage Hatch's expertise as the company progresses towards full project development [4][5]. Group 3: Project Overview - The Wicheeda Rare Earth Element Project is a 100%-owned property covering approximately 11,800 hectares, located in British Columbia [6]. - The project is strategically positioned near infrastructure, including hydro power transmission lines and gas pipelines, facilitating access to major transportation routes [7]. - A recent Preliminary Feasibility Study demonstrated the robust economics of the Wicheeda Project, highlighting its potential for future development [7].