Mr. Garrett Ainsworth reports

DISTRICT PROVIDES CORPORATE UPDATE

In connection with its application for a secondary listing of its shares on the Nasdaq First North Growth Market in Sweden, District Metals Corp. has provided a corporate update. The company's objective is to complete the listing and start trading on the Nasdaq First North Growth Market before the end of 2024, as stated in the company's previous news release on Nov. 18, 2024.

Swedish mineral properties

District holds the second-largest cumulative prospective exploration land package (144,718 hectares) in Sweden across several well-endowed metallogenic belts for uranium polymetallic and base metal polymetallic deposits, which includes:

• District's 100-per-cent-owned Viken property, which hosts the Viken energy metal deposit in central Sweden (Jan. 15, 2024, news release) -- the Viken deposit is the largest 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;
• A portfolio of four other highly prospective uranium polymetallic properties in Sweden comprising Ardnasvarre, Sagtjarn, Nianfors and the Alum shale properties;
• District's Tomtebo property is prospective for base metal polymetallic sulphide mineralization (zinc, lead, silver, copper and gold) and is located in the highly prolific Bergslagen mining district in Sweden. In October, 2023, Boliden Mineral AB agreed to finance $10-million of exploration expenditures over four years on the development of the Tomtebo property and Boliden's wholly owned Stollberg property (Oct. 30, 2023, news release). A drill program at the Stollberg property operated by District has commenced and was reported by the company on Oct. 16, 2024.

Sweden is Europe's leading mining nation with mining activities dating back 2,400 years. With the high cost of energy globally and uncertain geopolitical climate, Sweden has made energy independence and security a priority and is currently reviewing and considering lifting the moratorium on uranium exploration and mining. As recently announced (Nov. 15, 2024, news release), the company is highly encouraged by the latest developments.

Technical team expertise

District has a leading team of uranium and base metal geologists that includes:

• Garrett Ainsworth, chief executive officer of District Metals: Mr. Ainsworth was formerly the vice-president of exploration and development at NexGen Energy Ltd. from 2014 to 2018, where he led the technical team and was co-recipient of the 2018 PDAC Bill Dennis Award and the 2016 Mines and Money Exploration Award for his work on the Arrow deposit. Prior to NexGen, Mr. Ainsworth was the vice-president, exploration, at Alpha Minerals Inc., where he took a lead role in the discovery of the Triple R uranium deposit, and he was named co-recipient of the AMEBC Colin Spence Award in 2013. Now, as chief executive officer of District, Mr. Ainsworth has led the assembly of one of the best and most prospective land packages for uranium exploration in Sweden.
• Hein Raat, vice-president, exploration, of District Metals: Mr. Raat has extensive experience exploring for base metal and precious metal deposits in Scandinavia and Europe. Mr. Raat was a geologist for the Boliden Group in Sweden for eight years, with the last four years being focused on polymetallic projects in the Bergslagen mining district. Mr. Raat spent much of his time in the Bergslagen working on the polymetallic Stollberg project, which is located approximately 40 kilometres southwest and along trend from District's Tomtebo property.
• Rodney Allen, technical adviser to District Metals: Mr. Allen is a geologist with 42 years of experience in mineral exploration and research applied to mineral exploration. Mr. Allen has worked extensively in the Skellefte and Bergslagen mining provinces in Sweden, the Mount Read Volcanics and Benambra mining districts in Australia, and the Hokuroku mining district in Japan. At the Garpenberg mine in Sweden, Mr. Allen's geological interpretations were fundamental in the discovery of over 100 million tonnes of mineral resources and contributed to turning the mine around from probable closure to one of the world's largest and most efficient zinc-lead-silver producers. Mr. Allen's interpretations of the geology and hydrothermal alteration in the Rosebery mining area in Australia and Renstrom in the Skellefte district of Sweden also contributed to the discovery of new rich mineralized bodies.

The company is excited about the prospects ahead and looks forward to completing its listing on Nasdaq First North to be dually listed in Canada and Sweden and is encouraged that the ban on uranium exploration and mining in Sweden can be lifted.

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 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, which 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 volcanogenic massive sulphide/sedimentary exhalative (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 Oct. 15, 2020, and amended and restated on Feb. 26, 2021, which is available on SEDAR+.

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