Mr. Garrett Ainsworth reports

DISTRICT REPORTS ON SOIL SAMPLING ORIENTATION SURVEY AND ROCK SAMPLING WITH UP TO 22.9% ZINC AT THE GRUVBERGET PROPERTY

District Metals Corp. has released the results from a soil sampling orientation survey and additional rock grab sampling at the polymetallic Gruvberget property located in the Bergslagen mining district of south-central Sweden.

Soil samples were recovered on three east to west survey lines located across and north of the Gruvberget North Zone (Figure 1). All of the soil samples were analyzed by conventional (ICP-MS) and Ionic Leach (IL) methods.

Highlights:

Coincident multi-element anomalies for zinc, lead, copper, silver, and gold have been identified over and to the north of the Gruvberget North Zone. A detailed review of analysis by conventional (ICP-MS) versus Ionic Leach (IL) analyses has shown that the IL analysis is more effective at identifying polymetallic mineralization at depth in the bedrock than conventional analysis. A robust soil sampling program with IL analysis has been initiated at the Gruvberget Property over four target zones that will be reported before the end of 2022. Any soil anomalies identified during the current program that are coincident with existing geophysical anomalies and historical mineral occurrences will assist with drill target prioritization. Three rock grab samples from the Djurgruvan mineral occurrence returned 10.3 to 22.9% zinc. One rock grab sample from the Gruvberget South zone returned 13.1% zinc (Figure 2).

Garrett Ainsworth, CEO of District, commented: "The majority of the Gruvberget Property is covered by a thin veneer (2 to 20 m) of glacial till, which is just enough to conceal potential polymetallic mineralization that is daylighting at the top of bedrock. Our soil sampling orientation survey conducted over known polymetallic mineralization at the Gruvberget North zone has clearly shown us that Ionic Leach analysis is superior at identifying mineralization in the bedrock than conventional analysis. In addition, we were delighted to see multi-element anomalies from the Ionic Leach analysis extend north of the Gruvberget North zone, which suggests that polymetallic mineralization in the bedrock continues in that direction.

Based on the results from our orientation survey we have commenced a substantial soil sampling program with Ionic Leach analysis on the Gruvberget Property that will extend over four target areas previously identified by our SkyTEM geophysical anomalies and historical mineral occurrences."

Soil geochemistry can be seen as one of the most cost effective field data acquisition methods available to delineate and prioritize drill targets. The Gruvberget Property is largely covered by a thin veneer of glacial till (2 to 20 m), which makes traditional bedrock mapping and sampling challenging.

The recently conducted soil sampling orientation survey across and north of the Gruvberget North zone was implemented to evaluate two different analyses. A total of 37 soil samples were collected with a plastic shovel at a constant depth relative to the organic-soil interface around the B-horizon. The samples were analyzed by conventional (ICP-MS) and Ionic Leach (IL) analysis to determine which method is preferable before initiating a larger soil sampling program focused on and "down-ice" from our SkyTEM geophysical target zones and known mineral occurrences.

The main advantage of IL is the lack of drying and sieving, with risk of contamination during sample preparation, besides a reduced turn-around time at the lab. Samples are processed as collected (systematically) in the field, with no sample dilution prior to analysis, which allows for a very low detection limit to be achieved. Ionic Leach analysis does not actively digest the soil sample or any specific component of it, but only extracts free ionic elements from the soil leached from the primary (metal) source migrating towards surface. Anomalous results will identify targets directly to a source below, which includes possible "blind" mineralization in the bedrock. Drill targets supported by coincident geochemical and geophysical anomalies provide an increased level of confidence when prioritizing targets.

Soil samples from the orientation survey showed that both analytical methods (conventional versus IL) picked up the projected polymetallic mineralization at the Gruvberget North zone, however, the signature from IL analysis showed as much more pronounced. An extensive soil survey has been initiated at target areas on the Gruvberget Property defined by coinciding geophysical anomalies detected by the recent SkyTEM survey (see news release) and documented historic mineral occurrences.

Four additional rock grab samples have been collected in the field during reconnaissance field work, while ground proofing previously identified SkyTEM geophysical target zones. Three massive sulphide grab samples around a small historic working called Djurgruvan, located 2 km south-southeast from the Gruvberget South zone returned 10.0 to 22.9% zinc that is closely associated with a felsic volcanic rock, and will be further investigated (Figure 2). The fourth rock grab sample from the Gruvberget South zone returned 13.1% zinc, which expands the mineralized footprint of this zone.

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by Garrett Ainsworth, PGeo, President and CEO of the Company. Mr. Ainsworth is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

The soil and grab rock samples in this news release were logged and bagged before submittal to ALS Geochemistry in Mala, Sweden where the samples were prepared for analysis. A 50 gram soil sample was sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis, whereas rock samples were crushed and pulverized ("PREP-31Y"). Conventional soil samples were first screened and analyzed using an aqua regia digestion with super trace method with ICP-MS analytical package ("ME-MS41L"). Ionic Leach samples used a static sodium cyanide leach with a highly sensitive ICP-MS finish ("ME-MS23"). Rock samples were analyzed using a multi-element ultra trace method combining a four-acid digestion with ICP-MS analytical package ("ME-MS61"). Over limit sample values were re-assayed for: (1) values of copper >1%; (2) values of zinc >1%; (3) values of lead >1%; and (4) values of silver >100 g/t using the high-grade material ICP-AES analytical package ("ME-OG62"). Gold, platinum, and palladium were analyzed using the 30 gram lead fire assay with ICP-AES finish analytical package ("PGM-ICP23").

Some of the data disclosed in this news release is related to historical drilling results. District has not undertaken any independent investigation of the sampling nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical drill results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Gruvberget Property. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Gruvberget Property.

About District Metals Corp.

District Metals Corp. is led by industry professionals with a track record of success in the mining industry. The Company's mandate is to seek out, explore, and develop prospective mineral properties through a disciplined science-based approach to create shareholder value and benefit other stakeholders.

The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-central Sweden is the Company's main focus. Tomtebo comprises 5,144 ha and is situated between the historic Falun Mine and Boliden's Garpenberg Mine that are located 25 km to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo Property along an approximate 17 km trend that exhibits similar geology, structure, alteration and VMS/SedEx style mineralization as other significant mines within the district. Mineralization that is open at depth and along strike at the historic mines on the Tomtebo Property has not been followed up on, and modern systematic exploration has never been conducted on the Property.

For further information on the Tomtebo Property, please see the technical report entitled "NI 43-101 Update Technical Report on the Tomtebo Project, Bergslagen Region of Sweden" dated effective October 15, 2020 and amended and restated on February 26, 2021, which is available on SEDAR at www.sedar.com.

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