Defense Metals Corp. announced the execution of a non-binding Memorandum of Understanding with Sinosteel Equipment & Engineering Co., Ltd, consisting of information sharing, beneficiation test work and potential concentrator design research cooperation, and an investigation into the establishment of an on-site large-scale pilot plant at the Wicheeda Rare Earth Property to assess the economic and technical feasibility of full-scale mine development. Pursuant to the MOU, areas of cooperation between the Parties are as follows: Defense Metals will share Wicheeda project information with Sinosteel MECC including but not limited to: Mine development; Permitting and licences; Transport logistics; Project financing; Cash cost analysis, and Situational updates. Sinosteel MECC will share with DEFN its experience in the rare earths industry relating to beneficiation, Engineering Procurement Construction ("EPC") and EPC financing, and other general knowledge including pricing, costs, and other relevant matters in the rare earth elements industry. Defense Metals will provide Sinosteel MECC with a representative mineralization sample to carry out beneficiation testwork with the objective of compiling research to design a concentrator suitable for handling Wicheeda feed material. The testwork results will be used in conjunction with the ongoing Preliminary Economic Assessment to optimise design for the future project. Wicheeda rare earth sample will total approximately 200kg and will be sent to Sinosteel MECC as soon as practicable and subject to obtaining any necessary government permits and approvals. It is anticipated the testwork will take approximately 4.5 months and cost USD 200,000. After receiving the testwork results, both parties will assess and discuss how to design a concentrator suitable for Wicheeda feed material. The proposed pilot plant will consist of both a beneficiation and hydrometallurgical process to produce bulk samples of rare earth concentrate, mixed rare earth carbonate, and high-purity rare earth oxides. DEFN will assess the cost value assigned to the EPC contract and will inform Sinosteel MECC as the proposed pilot plant progresses. DEFN will review if additional related infrastructure will be required for the pilot plant can be included in the EPC contract for Sinosteel MECC. Sinosteel MECC, as the general contractor, will be responsible for the design, procurement of equipment, construction, installation, commissioning, training and other works of the pilot plant following general EPC terms. It is envisioned the pilot plant will be fully constructed in modules in China before being transported and installed at Wicheeda. Both parties agree to enter into discussions regarding Sinosteel MECC providing or sourcing EPC financing solutions for development the pilot plant such as: Flexible financing solutions supported by Sinosteel MECC but based on conditions to the satisfactory of Sinosteel MECC, and Assisting DEFN to find proper investors from China or other countries.