Mr. Garrett Ainsworth reports

DISTRICT RECEIVES APPROVAL OF NIANFORS MINERAL LICENSE APPLICATIONS IN CENTRAL SWEDEN

Bergslagen Metals AB (a 100-per-cent-owned Swedish subsidiary of District Metals Corp.) has received approval from Bergsstaten (Mining Inspectorate) for the Nianfors No. 1 and No. 2 mineral licence applications to explore for copper, zinc, molybdenum, yttrium and other rare earth elements (REEs) located in the Gavleborgs county, central Sweden.

The Nianfors mineral licenses are in good standing for a three-year term that ends on June 30, 2026. Renewal for an additional three years will require payment of mineral license fees to the Swedish Mining Inspectorate, and the completion of at least some geological, geochemical, or geophysical work on the mineral license before June 30, 2026.

Nianfors Property Highlights:Mineral license Nianfors nr 2 contains the Majsaberget uranium-yttrium-molybdenum occurrence that consists of 889 mineralized boulders over an approximate area of 500 m by 200 m1. Assay results from the Majsaberget mineralized boulders returned a weighted average of 0.16% U3O8 and 0.08% Y1. A 1982 report by the Swedish Geological Survey (SGU) reported mineralized boulder assays ranging from 0.01 to 1.4% U3O8, 0.08 to 0.69% Y, 0.05 to 0.22% Mo, and 0.02 to 0.31% Th2.The Majsaberget Occurrence was historically estimated to host at least 12,998,896 lbs U3O8 grading 0.07 to 0.14% U3O84. This historical exploration target estimate is based on a 1985 Report by the SGU, and the Company is not treating it as a current mineral resource estimate nor is the Company aware of any more current estimate. The potential quantity and grade is conceptual in nature, as there has not been sufficient exploration to define the target at this time; and it is uncertain that further exploration would result in the definition of a current resource. A moratorium on uranium mining and exploration in Sweden was imposed in 2018. The current Swedish Government has expressed a positive stance on re-evaluating the moratorium.

Garrett Ainsworth, CEO of District, commented: "We applied for the Nianfors mineral licenses based on the large boulder field and exploration target at the Majsaberget occurrence that has returned high grade uranium, yttrium, and molybdenum values. During my lead role in the 2012 discovery of the Triple R Uranium Deposit in the southwest Athabasca Basin, Saskatchewan the importance of following mineralized boulders "up-ice" to the bedrock source can't be overstated. The mineralized boulder field and mineralized outcrop on the Nianfors Property underpins a very large exploration target that outcrops at surface.

The two styles of mineralization at Nianfors are very similar to what we have seen at our Sagtjarn Property, which makes the historical exploration target estimate at Nianfors very exciting. No known exploration work has been carried out at Nianfors since the early-1980's, which makes it an ideal energy metals property to unlock using modern exploration techniques such as detailed UAV (drone) radiometric and magnetic surveys. In addition, recent forest clear cuts on the Nianfors Property has made for excellent access."

Background

The Nianfors mineral occurrences were discovered in 1980 during follow-up work of airborne radiometric anomalies by the Swedish Geological Survey (SGU)1. Detailed outcrop mapping, boulder hunting and sampling started in 1981-1982. Over 1,000 radioactive and mineralized boulders and outcrops have been mapped. Three areas of interest were outlined, including Nybodvallen, Nissamybacken and Majsaberget (Figure 1).

The Nianfors Property and surrounding area is dominated by Proterozoic meta-sedimentary rocks which have experienced upper amphibolite metamorphic grades, forming porphyroblasts of cordierite, sillimanite and garnets. The meta-sedimentary rocks have been intruded by younger uraniferous meta-granite and meta-pegmatites. The two types of mineralization identified include neosome-pegmatite hosted which averages 0.07 to 0.09% U3O8, and impregnation mineralization within meta-sedimentary rocks which averages 0.14% U3O84.

The Majsaberget occurrence appears to be the most prospective and includes 889 mineralized boulders that cover an area of 500 m by 200 m. Assays from the Majsaberget boulder field returned a weighted average of 0.16% U3O8 and 0.08% Y1. A 1982 report by the SGU assayed seven mineralized boulders that returned results ranging from 0.01 to 1.4% U3O8, 0.08 to 0.69% Y, 0.05 to 0.22% Mo, and 0.02 to 0.31% Th2.

Several mineralized outcrops were also found at the Majsaberget occurrence. In the largest of the outcrops, the mineralized zone dips vertically and has a width greater than 4 m where historic assays returned 0.27% U3O8 and 0.1% Y.

Mapping of outcrop at the Majsaberget Occurrence generated a historical exploration target estimated to host at least 12,998,896 lbs U3O8 grading 0.07 to 0.14% U3O84. This historical exploration target estimate is based on a 1985 Report by the SGU, and the Company is not treating it as a current mineral resource estimate nor is the Company aware of any more current estimate. The potential quantity and grade is conceptual in nature, as there has not been sufficient exploration to define the target at this time; and it is uncertain that further exploration would result in the definition of a current resource.

Additional work including geophysical surveys and diamond drilling was highly recommended in a 1984 report by the SGU, but was never conducted at the Majsaberget occurrence3. No exploration work has been conducted on the Nianfors Property for approximately 40 years, and no modern exploration techniques including geophysics and multi-element sampling (including lithium or other REEs) has ever been conducted.

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 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 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 Nianfors Mineral Licenses. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Nianfors Mineral Licenses.

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.

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.sedarplus.ca.

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