Mr. Garrett Ainsworth reports

DISTRICT AND BOLIDEN JOINT TECHNICAL COMMITTEE APPROVE 2024 EXPLORATION BUDGET ON THE TOMTEBO AND STOLLBERG PROPERTIES AND COMMENCE DRILLING AT THE TOMTEBO PROPERTY IN SWEDEN

District Metals Corp. and Boliden Minerals AB have approved an exploration budget of $2-million on the Tomtebo and Stollberg properties for 2024. District is the operator of the Tomtebo-Stollberg collaboration, and the company has commenced core drilling at the high grade polymetallic Tomtebo Property located in the Bergslagen Mining District in south-central Sweden.

Highlights:The approved 2024 Exploration Budget of CDN$2.0M for the Tomtebo and Stollberg Properties will cover historical compilation work, geological mapping, geochemical sampling, ground magnetic and electromagnetic surveys, historic drill core review, and core drilling.The planned core drill program for the Tomtebo Property comprises 2,250 m in six to eight drill holes (Figure 1) will be followed up by Boliden's in-house, state of the art, down-hole, three component electromagnetic (DHEM) survey1.Three drill holes in 1,200 m of drilling will test the Steffenburgs zone at the historic Tomtebo Mine by stepping out below hole TOM22-038 that returned 25.5 m at 8.2 per cent ZnEq2 (249.0 to 274.1 m). This interval included 384 g/t Au and 855 g/t Ag over 0.4 m (273.7 to 274.1 m) that is wide open at depth (Figure 2). Three to five drill holes will test the inferred mineralized horizon to the west and east of the historic Tomtebo Mine.

Garrett Ainsworth, CEO of District, commented: "The Joint Technical Committee ran a very thorough process in reaching approval on the 2024 exploration budget for the Tomtebo and Stollberg Properties. The collaboration here has outlined an exciting path forward for exploration that includes additional target generation and drill testing of high priority targets.

"Due largely to market conditions we have been waiting almost two years to get the drill rig back at Tomtebo where we will be taking some aggressive step outs below significant high grade polymetallic mineralized drill intercepts at the Steffenburgs zone that is within the historic Tomtebo Mine. We are also keen to drill test along the polymetallic fertile horizon to the east and west of the Tomtebo Mine that will be guided by recent whole rock geochemistry and ground magnetic results. All drill holes at Tomtebo will be followed by a DHEM survey that is unique to Boliden and has been an important tool in the discovery of new polymetallic mineralized zones at their Garpenberg Mine."

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 drill core reported from the Tomtebo Property in this news release was logged and prepared at the District Metals AB core facility in Sater, Sweden before submittal to ALS Geochemistry in Mala, Sweden where the NQ-size drill core is cut, bagged, and prepared for analysis. Sample pulps were sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis. Samples were analyzed using a multi-element ultra trace method combining a four-acid digestion with ICP-MS analytical package ("ME-MS61"). Over limit sample values were re-assayed for: (1) values of copper >1 per cent; (2) values of zinc >1 per cent; (3) values of lead >1 per cent; and (4) values of silver >100 g/t using the high-grade material ICP-AES analytical package ("ME-OG62"). Additional over limit sample values were re-assayed for: (1) values of zinc >30 per cent; (2) values of lead >20 per cent using the high precision analysis of base metal ores AAS analytical package ("Zn, Pb-AAORE"). Gold, platinum, and palladium were analyzed using the 30 g lead fire assay with ICP-AES finish analytical package ("PGM-ICP23"). Certified standards, blanks, and duplicates were inserted into the sample shipment to ensure integrity of the assay process. Selected samples were chosen for duplicate assay from the coarse reject and pulps of the original sample. No QA/QC issues were noted with the results reported.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than District's Properties. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on District's 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 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 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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