Mr. Garrett Ainsworth reports

DISTRICT APPLIES FOR ADDITIONAL MINERAL LICENSES OVER ALUM SHALE ENERGY METAL TARGETS IN SWEDEN

District Metals Corp.'s Bergslagen Metals AB (a 100-per-cent-owned Swedish subsidiary of District) has applied for eight mineral licences covering a total area of 91,470 hectares. These applications target Alum Shale deposits, and have been registered with Bergsstaten (Mining Inspectorate of Sweden) to permit the exploration of vanadium, nickel, molybdenum, zinc and other elements located in central and north-central Sweden. Bergsstaten is expected to reach a decision on the company's mineral licence applications in the coming weeks.

Although there is currently a moratorium on uranium mining and exploration in Sweden, the Swedish government has recently initiated an inquiry into abolishing the ban on uranium mining and exploration (Feb. 26, 2024, news release).

District consolidated 100 per cent of the Viken Energy Metals deposit on Jan. 15, 2024, which 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 of uranium and vanadium in the world.

Alum Shale deposits in Sweden typically contain a large inventory of critical energy metals that will be required as part of the green energy transition. In addition, potentially viable Alum Shale deposits are large and shallow, which simplifies and lowers the cost of the exploration, discovery and development stages.

Highlights:

• Mineral licence application Viken nr 4 will increase the area of the Viken property from 9,367 hectares (ha) to 37,211 ha.
• Mineral licence applications Tasjo nr 106 to 108 will increase the area of the Tasjo property from 15,625 ha to 34,317 ha.
• Mineral licence applications Malgomaj 1001 to 1003 is a new property that covers an area of 37,131 ha, and is located northeast of the Tasjo property.
• Mineral licence application Osterkalen nr 101 is a new property that covers an area of 7,803 ha, and is located southeast of the Tasjo property.

Garrett Ainsworth, chief executive officer of District, commented: "The Alum Shale formation in Sweden is vast and insufficiently explored. As a result, it represents an opportunity to be a significant contributor to the green energy transition in Sweden, Europe and elsewhere.

"These licence applications are the product of an elaborate methodology to vector in on high-priority Alum Shale deposit targets developed by District in partnership with GeoVista AB. Alum Shales are radioactive and low-resistivity which is visible with airborne radiometric and very low frequency (VLF) data, respectively. Also, potentially viable Alum Shale deposits need to be thickened substantially via structural thrusting, which is identifiable using detailed geological maps provided by the Swedish Geological Survey (SGU). Finally, glacial till geochemical data and a compilation of historical exploration work refined our selection of target Alum Shale deposits."

Alum Shale deposits in Sweden are known to host uranium and vanadium, together with other commodities of interest, such as molybdenum, nickel, copper, zinc, potash, phosphate and rare-earth elements (REE).

Viken nr 4 mineral licence application

According to the SGU geological map, Alum Shale is only outcropping in two small areas. One in the southwest corner and another in the west, but the actual distribution might be different as the area is covered by soil and till, and any overlying limestone is likely very thin.

The airborne radiometric survey shows moderate to high values in the northern to southeastern part of Viken nr 4. A large area of high conductivity dominates the western half of the application, with a similar smaller one in the east, close to the border with the Viken nr 3 mineral licence.

Thickening of the Alum Shale is likely, but not evident from the SGU geological map. Only two glacial till samples are located within the application where one of them shows a moderately anomalous value of uranium (four parts per million U), and the other shows highly anomalous vanadium (78 ppm V).

Tasjo nr 106 to 108 mineral licence applications

Tasjo nr 106 is located adjacent southwest of Tasjo nr 102 and contains the Fetsjon zone. The Fetsjon zone is part of several large historical exploration target estimates for uranium, vanadium, rare-earth elements, phosphate and other energy metals, and has seen extensive historic drilling. According to published SGU metallogenetic maps, the Fetsjon zone is within one of Sweden's most promising areas to host large Alum Shale deposits.

Tasjo nr 107 is adjacent to Tasjo nr 102 and 103, which covers the eastern part of the Alum Shale in the Tasjo area. The lithology comprises Alum Shale with the overlying carbonate-rich unit and the underlying quartz-rich metasediments.

An airborne radiometric survey covers two thirds of the area, and shows moderate to high uraniferous radiometric values, especially in the centre area. The airborne VLF survey only covers less than half of the perimeter, showing moderate to moderate-high conductive values with an enticing high conductivity area in the south of the application.

Some tectonic thickening is likely present as suggested by thrust faults shown in the SGU geological maps. No glacial till samples were available for Tasjo nr 107.

According to the SGU geological map Tasjo nr 108 is dominated by Alum Shale.

The SGU airborne radiometric survey shows relatively low uraniferous radiometric values, with some significantly elevated values in the west and south areas. The airborne VLF survey shows that the area is characterized by a strong high conductivity anomaly covering almost the entire area.

No obvious tectonic thickening is suggested by the SGU geological maps, and no glacial till survey data is available for Tasjo nr 108.

Malgomaj 1001 to 1003 mineral licence applications

Malgomaj nr 1001 is covered by Alum Shale and quartz-rich metasediments.

No airborne radiometric or VLF data was available for Malgomaj nr 1001.

Tectonic thickening of the Alum Shale is strongly suggested by the SGU geological map in the northern half of Malgomaj nr 1001 where a repeating sequence of Alum Shale and quartz-rich metasediments is shown.

Only two till samples were collected from the area by SGU, one in the center and one in the south, both showing anomalous U values (8.2 ppm in the center and six ppm in the south) as well as one value of 21 ppm Mo in the center.

Six grab rock samples from Malgomaj nr 1001 are reported in the SGU database, confirming the presence of Alum Shale with values up to 33 ppm U, 577 ppm V, 111 ppm Ni and 160 ppm Mo.

Malgomaj nr 1003 is characterized by an extensive presence of Alum Shale at surface.

The historical airborne radiometric survey indicates moderate to high uraniferous radiometric values over most of Malgomaj nr 1003, with the highest values also grouped in the centre part of the application. No airborne VLF geophysical data were available for this area.

Significant tectonic thickening within Malgomaj nr 1003 is indicated by the SGU geological maps, with both the Alum Shale and the quartz-rich metasediments repeating within a nappe system.

The SGU glacial till survey shows multiple samples with anomalous uranium in the 3.5 to 11.4 ppm U range scattered all over Malgomaj nr 1003. In the central part of the area cover by the licence application, several samples show anomalous vanadium up to 43.5 ppm V as well as anomalous phosphate up to 0.34 per cent P2O5 that is associated with REE of the Early Ordovician phosphatic siltstone in the Tasjo area. This is further confirmed by the presence of anomalous lanthanum up to 32.7 ppm La in the glacial till samples from the same area. Molybdenum in the glacial till samples generally shows moderate anomalous values that reach up to 56 ppm Mo, while nickel shows values up to 46 ppm Ni.

Alum Shale has been confirmed within Malgomaj nr 1003, and eight grab samples showed values of up to 47 ppm U, 504 ppm V and 175 ppm Mo.

Osterkalen nr 101 mineral licence application

Osterkalen nr 101 is covered by Alum Shales at surface as well as both the overlying carbonate-rich metasediments and the lower quartz-rich metasediments.

The historical airborne radiometric survey shows moderate uraniferous radiometric values with small but strongly radioactive areas in the south and north. Osterkalen nr 101 is almost in its entirety characterized by a strong low-resistivity anomaly, based on the VLF airborne survey.

Tectonic thickening is likely given the presence of mapped overthrust faults.

No SGU glacial till surveys cover the area of this mineral licence application or surrounding area.

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 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-kilometre trend that exhibits similar geology, structure, alteration and VMS/SedEx style mineralization as other significant mines within the district.

We seek Safe Harbor.