Mr. Garrett Ainsworth reports

DISTRICT TO COMMENCE TRADING ON NASDAQ FIRST NORTH GROWTH MARKET IN SWEDEN

District Metals Corp. has received confirmation that its Nasdaq First North Growth Market listing application has been approved. As a result, District's depositary receipts (the DMX SDRs) will begin trading on Nasdaq First North at market open (Sweden local time) on Jan. 23, 2025, under the symbol DMXSE SDB. Swedish depositary receipts are financial instruments issued by a Swedish bank representing shares in a non-Swedish company. The company's ISIN (international securities identification number) of CA2548481043 remains unchanged. Additionally, the company's common shares will continue to be traded on the TSX Venture Exchange under the symbol DMX.

Garrett Ainsworth, chief executive officer and president, commented: "The timing of our listing on the Nasdaq First North could not be better. A strong focus on the importance of exploration and mining has returned to Sweden, which has been hastened with the uncertainty of supply of critical and important raw materials for Europe. These positive developments are reflected in the fact that our Viken deposit is currently under review by the Geological Survey of Sweden as an area of national interest due to its historical vanadium mineral resource. Vanadium is a critical raw material as defined by the European Union.

"Additionally, on Dec. 20, 2024, the Swedish government released an inquiry regarding the potential lifting of the uranium ban and issued a press release highlighting positive developments in their efforts to lift the ban on uranium mining. We have summarized this update here.

"Finally, we began 2025 with exciting news that a definitive royalty purchase agreement has been executed, allowing District to acquire the 2-per-cent NSR [net smelter return] royalty on the Viken deposit. Subject to closing, this agreement will result in District's fully owned Viken deposit being entirely free of any NSR royalty, and the details can be found [on the company's website]."

Nasdaq First North is a natural choice as a secondary listing for District as it will help expand the company's presence in Europe to further broaden its shareholder base. The decision to list on the Nasdaq First North was influenced by the potential for wider distribution of corporate information, increased trading volume and greater visibility to prospective European investors. These factors are expected to benefit both existing and new shareholders.

District controls highly prospective uranium and base metal polymetallic assets in the Nordic region, which provides European investors with a unique opportunity to participate in the rush to secure domestic supplies of critical and important raw materials. These raw materials are essential for the development of new technologies and the continuing green transition. They play a crucial role in the production of affordable electricity, batteries for electric vehicles, solar panels, wind turbines, grid expansion, and advanced electronics such as smart phones and computers.

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 historic polymetallic resource estimates in 2010 and 2014.

The advanced-exploration-stage Tomtebo property is located in the Bergslagen mining district of southern-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/sedex-style (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+.

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