Defense Metals and Hanwha Corporation Sign Non-Binding Memorandum of Understanding To Advance Domestic Rare Earth Supply Chain

Press Release

Non-binding MOU to encompass all of Hanwha Corporation affiliates’ potential long-term rare earth supply requirements

Vancouver, British Columbia – May 27, 2026: Defense Metals Corp. (“Defense Metals” or the “Company”; TSX-V: DEFN / OTCQB:DFMTF / FSE:35D) today announced that it has entered into a non-binding memorandum of understanding (“MOU”) with Hanwha Ocean Co. Ltd (“Hanwha”) and its affiliate Hanwha Corporation, signed on May 25, 2026, to explore a strategic collaboration involving the future supply of rare earth elements (“REEs”) and potential investment opportunities.

Jung Jae Hyo – VP Hanwha Corporation (left), Mark Tory – President and CEO Defense Metals (centre), and Jeong Sung Kyun – VP Hanwha Ocean Co. Ltd (right)

Defense Metals is a company focused on the development of its wholly owned Wicheeda Rare Earth Project (the “Wicheeda Project”), located near Prince George, British Columbia, Canada. Hanwha is a South Korean global premium specialized shipbuilding and offshore contractor in the design, construction, maintenance and marketing of all types of vessels, offshore platforms, drilling rigs, floating oil production units, and submarines.

Under the terms of the MOU, the parties intend to evaluate the framework for a potential long-term offtake agreement pursuant to which Defense Metals could supply certain rare earth materials produced from the Company’s Wicheeda Project to support Hanwha and its affiliate’s manufacturing and supply chain requirements. The parties will also explore the possibility of a strategic investment by Hanwha or any of its affiliates in Defense Metals, subject to further due diligence, negotiation, and the execution of definitive agreements.

The contemplated collaboration reflects the growing demand for secure and reliable domestic sources of critical minerals used in advanced industrial applications, including defense and maritime technologies.

“This MOU is an important step in advancing a made-in-Canada critical minerals supply chain supporting strategically important defense and maritime industries,” Mark Tory, CEO of Defense Metals, said. “Rare earth elements are increasingly recognized as foundational materials for next-generation defense technologies and advanced manufacturing. We believe collaboration with a global premium naval vessel manufacturer position both organizations to contribute to a more secure and resilient domestic supply ecosystem while supporting long-term industrial development in Canada.”

A spokesperson for Hanwha, said “Hanwha is focused on ensuring resilient and reliable access to the critical materials required for Canada’s evolving naval defense, and overall maritime capabilities. As Canada continues to modernize its naval defense fleet, establishing strategic relationships within the Canadian critical minerals sector has become increasingly important for us. This MOU provides a framework to evaluate a potential long-term partnership that could support supply chain security while we work closely with the government of Canada on a path to update and upgrade parts of their naval defense arsenal.”

The MOU establishes a framework for ongoing discussions between the parties regarding commercial terms, technical evaluation, supply requirements, and potential investment parameters. There can be no assurance that the parties will enter into a definitive agreement or complete any transaction contemplated by the MOU.

Rare earth elements are critical components in a range of high-performance applications, including naval propulsion systems, advanced electronics, communications systems, and other defense-related technologies.

About Hanwha Corporation Global Division

Hanwha Corporation Global Division is a diversified business arm of Hanwha Corporation, with more than six decades of experience in industrial explosives and a broad portfolio spanning petrochemicals, mining services, advanced materials, and trading. Leveraging its operating experience and global business networks, the division supports industrial and resources-related businesses while expanding into future growth areas such as ammonia, hydrogen, and next-generation materials.

About Hanwha Ocean

Hanwha Ocean is a leading global shipbuilder with more than four decades of experience delivering complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5 square kilometres and has more than 31,000 employees, the company combines proven industrial capacity with operational expertise to deliver modern, in-service naval platforms backed by a resilient through-life support model. Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide. The company has developed deep expertise in the design, construction, and in service support of submarines and surface combatants for the Republic of Korea Navy, producing approximately 45 commercial and naval vessels annually.

About Defense Metals Corp. and the Wicheeda Rare Earth Element Project

Defense Metals Corp. is an advanced rare earth elements (“REE”) development company focused on delivering strategically critical metals to the western world defence, high-technology, and clean energy supply chains. The Company’s primary asset is its 100%-owned Wicheeda REE deposit, located near Prince George, British Columbia, Canada.

The Wicheeda Project is one of the most advanced, undeveloped REE deposits in North America or Europe, featuring a robust mineral resource and mining reserve, as detailed in the Company’s 2025 Pre Feasibility Study (“PFS”; refer to Company News Release April 7th, 2025) prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The PFS shows the economic potential of the deposit and supports future project development.

Defense Metals is committed to advancing the Wicheeda Project through the Feasibility Study stage, permitting, and ultimately into production, positioning the Company to become a reliable supplier of critical REEs that are essential to modern defence systems, advanced manufacturing, and energy-efficient technologies.

The PFS for the Wicheeda Rare Earth Element Project is preliminary in nature and includes numerous assumptions regarding metallurgy, capital and operating costs, and market conditions.

Mineral reserves and the economic outcomes projected in the PFS are subject to significant uncertainties, and there is no certainty that the results of the PFS will be realized. Additional studies, including a Feasibility Study, and permitting, are required before a production decision can be made for the Wicheeda Project.

For further information, please visit www.defensemetals.com or contact:

Ali Mahdavi
SVP Corporate Development
Email: am@spinnakercmi.com
+1.416.962.3300

Mark Tory
President and CEO
Email: mark@defensemetals.com

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