Mr. Garrett Ainsworth reports

DISTRICT CLOSES ACQUISITION TO CONSOLIDATE 100% OF THE VIKEN ENERGY METALS DEPOSIT IN SWEDEN, WHICH CONTAINS AN HISTORICAL INFERRED RESOURCE OF 1.15 BILLION POUNDS OF U3O8

District Metals Corp. has closed the acquisition of the remaining four mineral licences covering the Viken energy metal deposit, located in Jamtland county, central Sweden, that the company did not already control. The company now controls 100% of the mineral licences comprising the Viken deposit. The Viken deposit is the largest undeveloped Alum Shale uranium-vanadium-potash-molybdenum-nickel-copper-zinc deposit in Sweden, and amongst the largest deposits based on total historic mineral resources (see below historical mineral resource disclosure) of uranium and vanadium in the world.

Highlights:

• The four mineral licences acquired are in good standing until late-2025, and comprise Norra Leden, Norr Viken, Lill Viken, and Storviken, which has increased the area of the company's Viken Property from 9,367 hectares (ha) to 10,812 ha.
• The Norra Leden, Norr Viken, Lill Viken mineral licenses cover the southeast and east areas of the Viken deposit that remain open to the southeast based on historic drill results.
• The Storviken mineral licence covers the southwest corner of the Viken deposit that remains open to the south and west based on historic drill results.
• There is currently a moratorium on uranium mining and exploration that was imposed in 2018. The Swedish Government has indicated a positive stance on re-evaluating and lifting the moratorium.

The Purchase Agreement

Pursuant to the definitive purchase agreement (the "Purchase Agreement"), District has acquired the Norra Leden, Norr Viken, Lill Viken and Storviken mineral licences from an arm's length vendor (the "Vendor") upon the following principal terms:

• CDN $50,000 cash paid to the Vendor on closing.
• CDN $50,000 cash payable to the Vendor within 30 days following the moratorium on uranium exploration and mining in Sweden being lifted.
• 1,000,000 District shares issued to the Vendor on closing.
• 3,500,000 District shares to be issued to the Vendor within 30 days following the moratorium on uranium exploration and mining in Sweden being lifted. These District shares will be subject to a voluntary lock-up pursuant to which 500,000 will be released after four months after issuance, 500,000 will be released after six months after issuance, 1,000,000 will be released after twelve months after issuance, 1,000,000 will be released after 18 months after issuance and 500,000 will be released twenty-four months after issuance.
• A 2% net smelter returns ("NSR") royalty granted to the Vendor on closing that can be bought back in its entirety at any time for a value of CDN $8,000,000 where the first 1% NSR royalty may be purchased for CDN $2,000,000.

Pursuant to applicable securities laws, the District shares issued to the Vendor on closing are subject to a four-month and one day hold period from the closing.

The Viken Energy Metals 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 licences 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 mineral resource estimate and preliminary economic assessment in 2010 that resulted in the following historical mineral resource estimate:

In 2012, a bio-heap leach scenario was evaluated, and P&E Mining Consultants were retained again to conduct an updated mineral 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 licence 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 Cambrian.3 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.

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 NI 43-101.

Drilling data disclosed in this news release relates 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.

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 100% 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 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.

We seek Safe Harbor.