Mr. Garrett Ainsworth reports

DISTRICT RECEIVES APPROVAL OF THE ARDNASVARRE MINERAL LICENSE APPLICATION IN NORTHERN SWEDEN AND NOTES RECENT MEDIA REPORT REGARDING SUPPORT FOR URANIUM MINING AND EXPLORATION IN SWEDEN

District Metals Corp. has noted that Bergslagen Metals AB, a 100-per-cent-owned Swedish subsidiary, has received approval from the Bergsstaten (mining inspectorate) for the Ardnasvarre nr 1 mineral licence application to explore for copper, molybdenum, zirconium and rare earth elements (REE) over a 9,708-hectare (ha) area located in Norrbottens county, northern Sweden. The Ardnasvarre property hosts several uranium, lead-zinc-silver and copper mineralized occurrences that were historically drilled by the Swedish Geological Survey and Boliden, respectively.

The Ardnasvarre nr 1 mineral licence is in good standing for a three-year term that ends on April 17, 2026. Renewal for an additional three years will require payment of mineral licence fees to the Swedish mining inspectorate, and the completion of at least some geological, geochemical or geophysical work on the mineral licence before April 17, 2026.

Additionally, the company wishes to report that in a recent Swedish media story entitled "After the nuclear power investments: The Minister for the Environment wants to see uranium mines in Sweden," June 19, 2023, the Swedish Minister for the Environment, Romina Pourmokhtari (Liberal), was quoted saying, "I believe that we need uranium mines in Sweden." Further, the Swedish Minister for Energy and Business, Ebba Busch (Christian Democrats), was quoted saying, "Sweden also needs more uranium to achieve greater fossil-free electricity production." District welcomes these constructive statements from such prominent figures within the national government.

A link to the full article can be found on-line.

Ardnasvarre property highlights:

• The Ardnasvarre nr 1 mineral licence is located within the Arjeplog-Arvidsjaur uranium province and covers an area of 9,708 ha that is prospective for uranium, copper, zinc, lead and rare earth elements (REE).
• The Ardnasvarre property straddles the unconformity between exposed Svecofennian basement rocks and overlying Caledonide sedimentary rocks, where targets include stratabound, unconformity- and intrusive-related uranium and REE mineralization. Additional targets include sandstone-hosted lead and zinc mineralization, similar to the nearby historic Laisvall deposit.
• The Ardnasvarre property includes the Labbas uranium zone, where drilling by the SGU in the 1970s and 1980s resulted in a historical resource estimate of 86,478 tonnes at an average grade 0.12 per cent U3O8 (triuranium octoxide) containing 228,780 pounds (lb) of U3O8 using a polygon resource estimation method. The Labbas zone contains elevated molybdenum and zirconium, and remains open in all directions.
• Labbas uranium zone: A single hole (LAB08-001) was drilled in 2008 by Continental Precious Minerals that returned seven metres at 0.17 per cent U3O8 from 50 m to 57 m, including a higher-grade interval of 0.8 m at 0.94 per cent U3O8 from 53.5 m to 54.3 m (see the table entitled "2008 Drill hole at Labbas uranium zone").
• A moratorium on uranium mining and exploration was imposed in 2018. The current Swedish government has expressed a positive stance on re-evaluating the moratorium.

Garrett Ainsworth, chief executive officer of District, commented: "Since late 2022, we have assessed numerous uranium and polymetallic occurrences and properties in Sweden with a view that eventually the uranium moratorium will be lifted as part of Sweden's pro-nuclear energy stance to fuel the green energy transition and fulfill a low-carbon future. As part of that process, we identified the Ardnasvarre property as a high-grade uranium and base-metal opportunity, and acquired it through mineral licence application.

"Several different styles of uranium, lead-zinc-(silver) and copper mineralization occur on the Ardnasvarre property, with the most advanced being the intrusion-related Labbas uranium zone that hosts a historical uranium resource estimate. The Labbas uranium zone is situated at shallow depths (zero m to 100 m) and remains open for potential expansion in all directions. No significant work has been done on the Ardnasvarre property since the 1980s, where uraniferous boulder tracing back to bedrock source was the main mode of exploration. The use of modern technical knowledge and exploration methods at Ardnasvarre will be especially beneficial in exploration on the property.

"Although the moratorium on uranium mining and exploration imposed by the Swedish government in 2018 remains, the company continues to be encouraged by some positive media reports regarding the Swedish government's stance to lift the uranium moratorium. The company and its consultants continue to monitor next steps by the government, and will update shareholders as developments arise."

The Labbas uranium zone was discovered by boulder hunting in 1971 and was drill tested with 4,740 m in 35 holes between 1973 and 1980. Disseminated- to impregnation-style uranium mineralization is hosted by foliated meta-granites and amphibolites. The historic mineral resource estimate indicates that mineralization extends for at least 100 m in strike length, and averages two m in width and remains open in all directions.

The Ardnasvarre property is located approximately 30 kilometres north from the historic sandstone-hosted Laisvall Pb-Zn (lead-zinc) deposit, which was Europe's largest former lead mine (1941 to 2001: 64.3 million tonnes (Mt) at 4 per cent Pb, 0.6 per cent Zn and nine grams per tonne (g/t) Ag (silver)). The Labbas Pb-Zn zone (357 m in nine holes) and Ardnesjaure area (1,781 m in 28 holes) have been explored and drilled in 1954 and 1969, respectively, by Boliden, to identify the autochthonous stratigraphy above the basement rocks, which includes the Laisberg formation hosting the Laisvall deposit. This formation represents a transgressive, sandstone-dominated sequence with epigenetic, disseminated, mottled or banded galena-sphalerite mineralization hosted in two sandstone paleoaquifers (Lower and Upper sandstone). Compilation of the historic exploration and drilling information is continuing.

Technical information

All scientific and technical information in this news release has been prepared by, or approved by, Mr. 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 are related to mineral resource estimates that are considered to be historical estimates under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. 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 Labbas uranium zone historical estimate as a current mineral resource.

The data disclosed in this news release are 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 these 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 Ardnasvarre mineral licence. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Ardnasvarre mineral licence.

About District Metals Corp.

District Metals is led by industry professionals with a 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 per cent 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 volcanogenic massive sulphide-style/sedimentary exhalative-style mineralization as other significant mines within the district.

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 Oct. 15, 2020, and amended and restated on Feb. 26, 2021, which is available on SEDAR.

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