Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON URANIUM MINING ANNOUNCEMENT FROM THE SWEDISH GOVERNMENT

District Metals Corp. is commenting on recent events in Sweden. The Swedish Ministry of Climate and Enterprise issued a press release on Dec. 20, 2024, and made public the results of the inquiry into lifting the uranium moratorium that commenced on Feb. 15, 2024. The press release further states that the purpose of the inquiry was to assess and provide proposals necessary to allow for the resumption of uranium extraction in Sweden.

In its press release, the Swedish government notably reiterated an intention to remove the ban on uranium mining that was introduced in 2018, and to restore the legislation as it was before the ban was introduced. Supportive quotes were provided by each of the Liberal, Christian Democrats, Sweden Democrats and Moderate political parties. Readers are encouraged to read the announcement in its entirety.

A rapid inquiry into lifting the uranium moratorium was completed during 2024. A summary of the key outcomes from this inquiry include:

• The current ban in the environmental code is to be overturned, and it shall be possible to mine uranium in Sweden.
• Uranium will be regulated as a concession mineral within the Swedish Minerals Act.

In addition, the inquiry into lifting the uranium moratorium outlines these next steps:

• A written consultation on the inquiry will be conducted until March 20, 2025.
• A legislative proposal is to be brought to Parliament after March 20, 2025.
• The legislative changes are proposed to go into effect by Jan. 1, 2026.

Garrett Ainsworth, chief executive officer of District, commented: "We are extremely pleased with this official statement from the Swedish government and view it as a significant step toward lifting the current uranium mining moratorium in Sweden. The long-awaited results from the inquiry are highly encouraging and align with our proposed exploration plans to begin work on our Swedish uranium polymetallic properties in 2025. The Swedish government has clearly expressed its intention to remove the ban on uranium mining. District is fully prepared for this proposed transformational change to legislation, supported by our strong 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 29 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. On Feb. 15, 2024, a rapid government investigation into lifting the uranium moratorium commenced with the results of this inquiry made publicly available on Dec. 20, 2024. District believes that the aforementioned press release from the Ministry of Climate and Enterprise 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 this 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 historical polymetallic resource estimates in 2010 and 2014.

The advanced-exploration-stage Tomtebo property is located in the Bergslagen mining district of south-central Sweden and is situated between the historical Falun mine and Boliden's Garpenberg mine, which are located 25 kilometres to the northwest and southeast, respectively. Two historical 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 (volcanogenic massive sulphide/sedimentary exhalative) mineralization as other significant mines within the district.

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