Mr. Garrett Ainsworth reports

DISTRICT RECEIVES APPROVAL OF ADDITIONAL VIKEN MINERAL LICENSE APPLICATIONS IN CENTRAL SWEDEN

Bergslagen Metals AB (a 100-per-cent-owned Swedish subsidiary of District Metals Corp.) has received approval from the Bergsstaten (Mining Inspectorate) for the Viken nr 2 and 3 mineral licence applications that cover the area to the south and north of the original Viken nr 1 mineral licence application that encompasses 68 per cent of the polymetallic Viken deposit located in Jamtland county, central Sweden. The Viken Deposit is the largest undeveloped Alum Shale vanadium-uranium-molybdenum-nickel-copper-zinc deposit in Sweden, and amongst the largest deposits by total historic mineral resources of vanadium and uranium in the world.

Highlights:

The approved Viken nr 2 and 3 mineral license applications have increased the area of the Viken Property from 2,302 hectares (ha) to 9,367 ha.Expansion of the Viken Propery to the south (Viken nr 2) and north (Viken nr 3), will allow the Company to target mineralized Alum Shale that has been tectonically thickened from 20 to 30 m by thrusting and folding up to 180 m. Historical drill holes completed within the area of the Viken nr 2 and 3 mineral license applications returned grades and widths of mineralization that are consistent with drill results from within the Viken Deposit (Tables 1 to 3). There is currently a moratorium on uranium mining and exploration that was imposed in 2018. The Swedish Government has a positive stance on re-evaluating and lifting the moratorium.

Garrett Ainsworth, CEO of District, commented: "The Viken Property now comprises three large mineral licenses (Viken nr 1 to 3) that are in good standing for the next three years, and cover the majority of the polymetallic Viken Deposit and its likely extensions to the north and south as evidenced by historic drill hole results."

The Polymetallic Viken Deposit

The Viken Deposit is situated in the province of Jamtland, approximately 570 km northwest of Stockholm, Sweden. Infrastructure is well developed in the area with daily air service, as well as rail and truck freight services. Electrical power and modern communications are also readily available in the area.

The Geological Survey of Sweden (SGU) carried out work on the Alum Shales from 1977 to 1978 and drilled approximately 19 holes within and in the vicinity of the Viken Deposit. In 2005, Continental Precious Minerals Inc. (CPM) purchased mineral licenses that covered prospective Alum Shales where CPM drilled 26,293 m in 133 holes from 2006 to 2008 to delineate the Viken Deposit.

CPM retained P&E Mining Consultants Inc. to carry out a Resource Estimate and PEA in 2010 that resulted in the following historical estimate:

In 2012, a bio-heap leach scenario was evaluated, and P&E Mining Consultants were retained again to conduct an Updated Technical Report, Resource Estimate and Preliminary Economic Assessment on the Viken Deposit with the following historical estimate:

The Viken Deposit is a polymetallic shale resource contained within the Cambrian Viken Shale which regionally is referred to as the Alum Shale. The Alum Shale is enriched in metals such as vanadium, uranium, nickel, copper, zinc, and molybdenum. It occurs over a significant area in Sweden and is locally valued as a bituminous shale with recoverable hydrocarbons. The Alum Shale is regionally extensive in Sweden.

The stratigraphy across the Viken Mineral License application consists of upper Middle and Upper Cambrian age Alum Shale occurring as both in situ and fault detached blocks, with the latter having greater potential for economic mineralization due to imbrication of mineralized blocks. The Alum Shale is mostly exposed at surface and is underlain by Proterozoic granites and gneisses thrust Eastward over Archean granitic basement rocks. The thickness of the Alum Shale host rock has been tectonically thickened from 20 to 30 m by thrusting and folding during the Silurian to approximately 180 m.

Mineralization of potential economic significance is hosted in Middle and Upper Cambrian Alum Shale, with the Upper Cambrian age strata more enriched in vanadium and uranium than the Middle Cambrian3. Vanadium occurs within the lattice of a mica mineral named roscoelite. Uranium values are predominantly associated with sub-micron-scale uraninite crystals. Nickel, molybdenum, copper and zinc are present as sulphides. Figure 1: Viken Mineral Licenses with Outline of Viken Deposit To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/7971/164612_3d54e6dbd4024b5d_002full.jpg

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 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.

The data disclosed in this news release is related to mineral resource estimates that are considered to be "historical estimates" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource, and the Company is not treating these historical estimates as current Mineral Resources. The Company would need to conduct an exploration program, including twinning of historical drill holes in order to verify the Viken Deposit historical estimate as a current mineral resource.

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

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.

District is a polymetallic exploration and development company focused on the Viken and Tomtebo Properties in Sweden. The Viken Property covers 68% of the uranium-vanadium Viken Deposit, which is an asset with substantial exploration and development expenditures that resulted in the definition of large historic polymetallic resource estimates and positive economic studies in 2010 and 2014. The Viken Deposit is amongst the largest deposits by total historic mineral resources of uranium and vanadium in the world.

The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-central Sweden 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.

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