Mr. Garrett Ainsworth reports

DISTRICT METALS ANNOUNCES UPSIZE OF BOUGHT DEAL PRIVATE PLACEMENT FINANCING TO $4.5 MILLION

District Metals Corp., due to strong investor demand, has entered into an agreement with PI Financial Corp., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, to increase the size of the previously announced bought deal private placement financing from $4,004,000 to $4.51-million.

Pursuant to the amended terms, the underwriters will purchase, on a bought deal basis, 20.5 million units of the company at a price of 22 cents per unit for aggregate gross proceeds of $4.51-million. Each unit shall comprise one common share in the capital of the company and one-half of one transferable common share purchase warrant. Each whole warrant shall entitle the holder thereof to acquire one additional common share at a price of 30 cents for a period of 36 months from the closing date of the offering.

The net proceeds raised will be used to finance the advancement of the company's projects and for general working capital purposes.

The offering is anticipated to close on or around Feb. 1, 2024, or such later date as the company and the underwriters may determine. Closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange. All securities issued under the offering are subject to a hold period expiring four months and one day from the closing date.

In consideration for their services, the underwriters will receive a cash commission equal to 6.0 per cent of the gross proceeds of the offering and non-transferable compensation options, entitling the underwriters to purchase, at the offering price, that number of common shares equal to 6.0 per cent of the aggregate number of units issued by the company under the offering for a period of 36 months from the closing date.

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 100 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 in 2010 and 2014. The Viken deposit is among 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 kilometres to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo property along an approximately 17-kilometre trend that exhibits similar geology, structure, alteration and volcanic massive sulphide-/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 Oct. 15, 2020, and amended and restated on Feb. 26, 2021, which is available on SEDAR+.

We seek Safe Harbor.