Mr. Garrett Ainsworth reports

DISTRICT CLOSES ACQUISITION OF THE 2.0% NSR ROYALTY ON THE VIKEN ENERGY METALS DEPOSIT IN SWEDEN

District Metals Corp. has closed its previously announced acquisition of the 2.0-per-cent net smelter return (NSR) royalty over the remaining four mineral licences (Norra Leden, Norr Viken, Lill Viken and Storviken) covering the Viken deposit, located in Jamtland county, central Sweden (see news release dated Jan. 8, 2025). As a result, District's 100-per-cent-owned Viken deposit is now completely free of any NSR royalty.

Pursuant to the definitive royalty purchase agreement, District acquired the 2.0-per-cent NSR royalty from an arm's-length vendor for a purchase price of 500,000 common shares of District. The consideration shares are subject to a hold period of four months and one day from the date of issue.

Garrett Ainsworth, chief executive officer of District, commented: "In January, 2024, District completed the full consolidation of the Viken energy metals deposit and has now closed the acquisition to eliminate all NSR royalties tied to the deposit.

"The Viken deposit is hosted within Alum shales, which are rich in critical and important energy metals crucial for the green energy transition, such as uranium, vanadium, nickel, molybdenum, copper, zinc and rare earth elements. Moreover, the Alum shales hold the potential for significant production of sulphate of potash, a valuable resource that would greatly benefit the agriculture-driven economy of Jamtland county, Sweden, and Europe.

"This acquisition comes after the Swedish government's release of their inquiry report on lifting the uranium moratorium, along with a supportive press release, which we have commented on [...]."

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.

Drilling data disclosed in this news release relate to historical drilling 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 drill 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.

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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