Mr. Garrett Ainsworth reports

DISTRICT AND BOLIDEN JOINT TECHNICAL COMMITTEE APPROVE 2025 EXPLORATION BUDGET ON THE TOMTEBO AND STOLLBERG PROPERTIES AND COMMENCE DRILLING AT THE TOMTEBO PROPERTY IN SWEDEN

District Metals Corp. and Boliden Minerals AB have approved an increased exploration budget of $3-million on the Tomtebo and Stollberg properties for 2025. This will be a 50-per-cent increase with regard to the 2024 budget and will be equally split between both properties. District is the operator of the Tomtebo-Stollberg collaboration, and the company has commenced core drilling at the high-grade base metal polymetallic Tomtebo property, located in the Bergslagen mining district in southern-central Sweden.

Highlights:

• The approved 2025 exploration budget of $3-million for the Tomtebo and Stollberg properties will cover geological mapping, geochemical sampling, historical drill core review and core drilling.
• The planned core drill program for the historic Tomtebo mine area comprises 1,500 metres to 2,000 metres in three to four drill holes that will be followed up by Boliden's proprietary downhole electromagnetic survey.
• These drill holes will test the broader Steffenburgs zone at the historic Tomtebo mine by stepping out below hole TOM24-042, which returned 29.25 metres at 0.95 per cent copper, 0.67 gram per tonne gold, 1.6 per cent zinc, 0.8 per cent lead and 30 grams per tonne silver (299.0 to 328.25 metres) of footwall stringer-style sulphide mineralization and test the inferred mineralized horizon based on detailed lithogeochemistry work (July 29, 2024, news release).
• Permitting is under way to drill test the Kvistaberget and historic Lovas mine targets areas later in 2025.

Garrett Ainsworth, chief executive officer of District, commented: "We have enhanced our understanding of the high-grade base metal polymetallic mineralized system at the historic Tomtebo mine by applying modern exploration methods. The current drilling phase aims to test some exciting targets we've identified from our previous drilling at the Steffenburgs zone where we have intersected massive sulphide lenses with significant widths of high-grade polymetallic mineralization that remain open in several directions.

"Additionally, we are eager to expand drilling within the Tomtebo property beyond the historic Tomtebo mine, where we will look to test two high-priority target areas. The Kvistaberget target area is underpinned by a SkyTEM conductive anomaly and a linear trend of historic copper sulphide workings that appear to be along strike from the volcanic massive sulphide horizon located at the historic Tomtebo mine. The historic Lovas mine was worked to a depth of 190 metres, where historical drill holes indicate that base metal polymetallic mineralization is open along strike and to depth."

Polymetallic volcanogenic massive sulphides (VMS) deposits always occur in clusters and each deposit generally comprises a cluster of massive sulphide lenses separated by less mineralized rocks. When exploring for VMS deposits, it is critical to understand where in the stratigraphic succession the original sea floor horizon is situated because that is where the VMS mineralization is formed on. This basic concept provides guidance on where to follow the prospective VMS horizon along strike and downdip on a local and regional scale. The obtained geological observations, systematic whole-rock lithogeochemistry sampling and structural data from recent drill cores have significantly improved the geological understanding and geometry of the Tomtebo mineral system. The main objective of the planned drilling campaign is to systematically test the prospective mineralized horizon with aggressive steps of 150 metres or more in order to identify high-grade sea floor massive sulphide lenses associated with the Steffenburgs zone and to test the upside potential in several directions.

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 uranium-vanadium Viken deposit, which is an asset with substantial exploration and development expenditures that resulted in the definition of historic polymetallic mineral 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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