Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON URANIUM MINING ANNOUNCEMENT FROM THE SWEDISH GOVERNMENT

District Metals Corp. has highlighted a press release issued by the Swedish Ministry for Climate and the Environment on Feb. 23, 2024, which states that a rapid investigation will commence with the purpose to remove a ban (on uranium mining) that is not needed. The press release further states that an inquiry chair will now be tasked with investigating what regulatory changes are needed to enable and clarify the conditions for uranium extraction.

This press release is of particular importance to District and its shareholders given the company's 100-per-cent ownership of the Viken energy metal deposit in Sweden, which is amongst the largest deposits of uranium and vanadium, based on total historic mineral resources, in the world (see Jan. 15, 2024, news release).

Garrett Ainsworth, chief executive officer of District, commented: "We are very pleased with this official statement from the Swedish government and believe it is a significant step towards lifting the current uranium mining moratorium in Sweden. On Feb. 15, a rapid investigation into lifting the uranium moratorium has been initiated and shall be reported no later than May 15. The Swedish government has made its intentions clear by stating that the current ban on uranium mining will be removed. District is ready for this transformational decision with our portfolio of properties in Sweden."

Sweden's current government has indicated strong support for nuclear power and energy security. The governing coalition formed in October, 2022, has indicated support for expanding nuclear power in Sweden. There are currently six operating nuclear reactors in Sweden that supply about 40 per cent of the country's electricity, and the government has called for the possible restart of Ringhals reactor units 1 and 2 as well as preparation for the construction of new reactors.

The moratorium on exploration and mining of uranium in Sweden came into effect on Aug. 1, 2018. In November, 2022, the ruling coalition government put forth a motion to revert the Minerals Act back to the original wording prior to Aug. 1, 2018. District believes that the aforementioned press release from the Ministry for Climate and the Environment is very positive for Sweden and a low-carbon Europe.

Technical information

All scientific and technical information in this news release has been prepared by or approved by Garrett Ainsworth, PGeo, president and chief executive officer 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 are 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 these 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 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 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 Viken uranium-vanadium 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 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 VMS/sedex-style (volcanogenic massive sulphide/sedimentary exhalative) 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.