Mr. Garrett Ainsworth reports

DISTRICT AND BOLIDEN SIGN DEFINITIVE AGREEMENT FOR TOMTEBO AND STOLLBERG PROPERTIES IN SWEDEN

District Metals Corp. and its Swedish subsidiary (District Metals AB) have executed a definitive agreement dated Oct. 27, 2023, with Boliden Mineral AB, an arm's-length party. Pursuant to the definitive agreement, Boliden and District will collaborate in the development of District's wholly owned polymetallic Tomtebo property and Boliden's wholly owned polymetallic Stollberg property.

Initially, Boliden will be granted the right to earn (the "Earn-In Option") up an eighty-five percent (85%) interest in the Tomtebo Property. Following exercise of the Earn-In Option, the Tomtebo Property will be contributed to a joint venture, along with Boliden's Stollberg Property, under which District will control an initial fifteen percent (15%) interest. The Tomtebo and Stollberg Properties (Figure 1) are located 35 km apart along a well-known metallogenic belt in the heart of the prolific Bergslagen Mining District in Sweden, which hosts Boliden's Garpenberg Mine and Lundin Mining's Zinkgruvan Mine.

Garrett Ainsworth, President & CEO of District, commented: "First and foremost I'd like to thank the team at Boliden for the very positive experience in completing this Definitive Agreement. The combination of our Tomtebo Property with Boliden's Stollberg Property backed by a combined strong technical team is a very significant development for Sweden."

"The prolific Bergslagen District is known for its large tonnage and high grade polymetallic Volcanogenic Massive Sulphide (VMS) and Sedimentary Exhalative (SedEx) deposit types which are presently being mined at Garpenberg and Zinkgruvan, respectively. The Bergslagen District has substantial polymetallic production and endowment that is evidenced by the numerous historical and active mines, which has seen little modern systematic exploration compared to peer districts. Access and infrastructure on the properties and in the region is highly accommodative. Sweden is a stable and supportive jurisdiction for mining that is ranked highly by the Fraser Institute. This partnership with Boliden will create an elite and highly experienced technical team to advance the Tomtebo and Stollberg Properties in the heart of the Bergslagen."

Tomtebo Property Highlights

• Tomtebo covers an area of 5,144 hectares (ha) and is located 175 km northwest from the capital city of Stockholm in Sweden (Figure 1).
• Boliden's Garpenberg Mine is located 25 km to the southeast, and the historic Falun Mine is located 25 km to the northwest. Lundin Mining's Zinkgruvan Mine is located 175 km to the southwest.
• Tomtebo contains similar host rocks, structure, alteration, and mineralization styles as the Garpenberg, Falun, and Zinkgruvan Mines.
• Two historic mines, and numerous mineralized prospects are situated along a 17 km trend on the property. Mineralization at the historic Tomtebo and Lovas Mines appears to be open in all directions. Historic production at the Tomtebo Mine comprised 120,000 tonnes at 4.4% Cu1. Historic production at the Lovas Mine comprised 330,000 tonnes at 3.5% Zn, 2.5% Pb, and 30g/t Ag2. Modern systematic exploration was initiated on the Tomtebo Property in 2020 by District.
• District drill intercepts from 2021 to 2022 campaigns at the Tomtebo Property include:TOM21-001 intersected 8.2 m at 20.9% ZnEq3 (10.3% Zn, 4.5% Pb, 66.2 g/t Ag, 1.7 g/t Au, and 0.08% Cu) from 65.3 to 73.5 m;TOM21-002 intersected 12.55 m at 8.6% ZnEq3 (148.6 g/t Ag, 2.1% Zn, 2.2% Pb, 0.2 g/t Au, and 0.04% Cu) from 90.8 to 103.35 m;TOM21-013 intersected 8.65 m at 3.6% CuEq4 (2.92% Cu and 0.43 g/t Au) from 76.65 to 85.3 m;TOM21-019 intersected 9.8 m at 2.34% CuEq4 (1.1% Cu and 0.61 g/t Au) from 69.5 to 79.3 m;TOM21-025 intersected 14.3 m at 14.2% ZnEq3 (9.5% Zn, 40.0 g/t Ag, 2.3% Pb, 0.4 g/t Au, and 0.2% Cu) from 210.0 to 224.3 m;TOM21-028 intersected 30.05 m at 10.9% ZnEq3 (7.0% Zn, 25.0 g/t Ag, 1.9% Pb, 0.4 g/t Au, and 0.2% Cu) from 148.35 to 178.40 m;TOM22-038 intersected 25.5 m at 8.2% ZnEq3 (2.4% Zn, 65.0 g/t Ag, 2.1% Pb, 0.6 g/t Au, and 0.2% Cu) from 249.0 to 274.1 m.

Stollberg Property Highlights

• The Stollberg Property covers an area of 5,180 ha and is located 180 km northwest of the capital city of Stockholm in Sweden (Figure 1).Boliden's Garpenberg Mine is located 50 km to the east, and the historic Falun Mine is located 50 km to the northeast. Lundin Mining's Zinkgruvan Mine is located 150 km to the south.
• The Stollberg Mineralized Trend has been mined from the 14th century until 1982 and produced 6.65 Mt of iron, and zinc-lead-silver ore, comprising semi-massive to massive magnetite and base metal sulphides bodies spatially related to skarn and altered carbonate rocks5,6,7.Boliden has been actively exploring the Stollberg Property since 2000 and has drilled on multiple geological and geophysical targets, including the discovery of Vastansjo in 2013.
• The Stollberg Property includes two mining concessions:Gransgruvan K nr 1, which covers the historic Gransgruvan Mine (1943-1978) with polymetallic mineralization;
• Vastansjo K nr 1 covers a published (February 25, 2016)8 Historical Mineral Resources of:
• Historical Inferred Mineral Estimate: 235,000 tonnes grading 3.35% Zn, 2.27% Pb, 30 g/t Ag, 0.08% Cu, 0.11 g/t Au.
• Historical Indicated Mineral Estimate: 621,000 tonnes grading 3.76% Zn, 2.11% Pb, 32 g/t Ag, 0.26% Cu, 0.13 g/t Au.
• The Stollberg Property contains similar host rocks, structure, alteration, and mineralization styles as the Garpenberg Mineralized Trend, which gives significant support in making a similar new discovery5,6,7.

The Stollberg Mineralized Trend is located in the Bergslagen region of the Fennoscandian shield. The Stollberg Trend comprises a 5 km long steeply east-dipping belt of manganese-rich, magnetite and Zn-Pb-Ag sulphide deposits hosted by marble, skarn and hydrothermally altered meta-volcanic rocks. The deposits have been mined continuously from medieval times until 1982.

Most deposits in the Stollberg Mineralized Trend occur along the N-S striking eastern limb of an upright to steeply east-dipping, steeply south plunging syncline. The historic Gransgruvan Zn-Pb-Ag Mine is located 2 km west of the historic Stollberg workings and is interpreted to be stratigraphically equivalent, representing the western limb of the syncline.

The core of the syncline comprises meta-sediments, which are separated from the mineralized horizon by 800 m of massive to banded rhyolitic meta-volcanic rocks. These hanging-wall rocks are generally not strongly altered but locally contain abundant patchy, calc-silicate aggregates and local zones of elevated cordierite, muscovite and quartz, interpreted as regional metamorphosed syn-volcanic alteration zones. Proximal to the mineralized horizon on the eastern limb, gradation into biotite+quartz-rocks with abundant porphyroblasts (locally more than 50 vol.%) of garnet, gahnite, cordierite, andalusite, sillimanite and amphibole is observed. These grade further eastward into marble and skarn, which is the main host to mineralization. Formation of these polymetallic deposits directly followed a major rhyolitic, volcanic eruption and formation of a submarine caldera. The earliest mineralization comprised exhalative iron oxides concurrent with limestone formation. Post-caldera subsidence and burial induced a shift in style of mineralization, whereby the limestone became a trap to replacement-type magnetite and Zn-Pb-Ag sulphide mineralization.

The polymetallic sulphide mineralization is dominated by sphalerite (Zn), pyrrhotite, arsenopyrite and lesser chalcopyrite (Cu) and pyrite. They grade irregularly into semi-massive and locally massive sulphide bodies, which are considerably richer in galena (Pb-Ag). Average grades in the mined deposits ranged between 0.5 to 5.0% Zn, 0.5 to 15.6% Pb, and 5 to 320 g/t Ag5,6,7.

Boliden acquired the historic Gransgruvan Zn-Pb-Ag Mine in 1972 and produced 0.26 Mt at 4.8% Zn, 2.1% Pb and 29 g/t Ag down to -225 m depth until mine closure in 19787. Boliden restarted exploration activities in the Stollberg Mineralized Trend in 2000.

The newly discovered mineralization at the Vastansjo deposit is situated on the eastern limb of the Stollberg syncline. A mineral resource estimate, compliant with SveMin's procedures, was delineated by Boliden in 20168. Similarities in structural setting, alteration and mineralization style to the marble-skarn hosted Zn-Pb-Ag-(Cu-Au) deposit of Garpenberg imply potential for finding significant mineralization at the Stollberg Property5,6,7.

Definitive Agreement

The Definitive Agreement contemplates that Boliden will be granted the Earn-In Option in respect of the Tomtebo Property. In order to exercise the Earn-In Option, Boliden will be required to incur exploration expenditures totaling CDN$10,000,000 on the Tomtebo Property and Stollberg Property through October 31, 2027. Of this amount, a minimum of CDN$3,000,000 must be allocated to the Tomtebo Property. Prior to the exercise of the Earn-In Option, District will act as the operator of the Tomtebo Property and the Stollberg Property and will manage exploration operations.

Following incurrence of the required expenditures, and the exercise of the Earn-In Option, the Tomtebo Property will be contributed to a joint venture, along with Boliden's Stollberg Property, under which District will control an initial fifteen percent (15%) interest. Under the joint venture, District and Boliden will share in the costs of further development based upon their respective pro rata interests.

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 Tomtebo and Stollberg Properties. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Tomtebo and Stollberg Properties.

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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