Mr. Garrett Ainsworth reports

DISTRICT PROVIDES DRILLING UPDATE ON THE TOMTEBO PROPERTY IN SWEDEN

District Metals Corp. has provided an update from the continuing core drilling program at the base metal polymetallic Tomtebo property located in the Bergslagen mining district in south-central Sweden.

A total of 1,712.5 metres in three drill holes have been completed at the Steffenburgs zone within the historic Tomtebo mine area. Drill targeting was designed to systematically test the broader Steffenburgs zone and its prospective polymetallic mineralized horizon (Rhyolite 1 and Rhyolite 3-4 contact) with aggressive stepouts of 150 metres at depth in order to identify high-grade sea floor massive sulphide lenses in several directions (news release on Feb. 10, 2025).

The drill rig has now moved to Kvistaberget, which is an exploration target located five kilometres northeast of the historic Tomtebo mine. A total of 700 metres to 1,000 metres of drilling in two to three holes are planned at Kvistaberget to test a geophysical SkyTEM conductive anomaly associated with historic mineral occurrences where grab rock sampling returned strong grades of copper and zinc. Based on whole-rock geochemistry results, the Kvistaberget target area is located along strike from the volcanic massive sulphide (VMS) horizon (Rhyolite 1 and Rhyolite 3-4 contact) at the historic Tomtebo mine. Kvistaberget has never been previously drill tested.

Highlights:

• Drill hole TOM22-038 (extended from 391.9 metres to 659.4 metres) intersected 18.9 metres of disseminated to stringer-style pyrite-pyrrhotite-chalcopyrite mineralization from 498.7 metres to 517.6 metres, which correlates well with a large borehole electromagnetic (BHEM) off-hole anomaly detected around 503.0 metres.
• Drill hole TOM25-044 intersected multiple zones of strongly altered and sulphide mineralized footwall rocks, including:
  • 26.0 metres of disseminated to stringer-style pyrite-pyrrhotite with minor chalcopyrite mineralization from 42.0 metres to 68.0 metres, which is interpreted as footwall mineralization, similar to the Gardsgruvan zone;
  • 46.0 metres of disseminated to stringer-style pyrite-pyrrhotite-sphalerite-galena and minor chalcopyrite mineralization from 559.0 metres to 605.0 metres with up to 10 per cent observed sulphides from 561.0 metres to 577.0 metres; a broad off-hole BHEM (borehole electromagnetic) anomaly was detected around 567.0 metres.
• Drill hole TOM25-045 intersected multiple zones of strongly altered and mineralized footwall rocks, including:
  • 7.85 metres of disseminated sphalerite-galena-pyrrhotite-pyrite with abundant gahnite mineralization (680.4 metres to 688.3 metres) which is currently interpreted as the prospective mineralized horizon; two BHEM anomalies were detected around 585 metres (off-hole) and 657 metres to 684 metres (in-hole).

Garrett Ainsworth, chief executive officer of District, commented: "Deeper drilling at the Steffenburgs zone has revealed that polymetallic sulphide mineralization continues at depth, and importantly, significant in-hole and off-hole borehole electromagnetic (BHEM) conductive anomalies have been identified. We look forward to receiving the drill assay results from Steffenburgs zone in late Q2 2025.

"We are very excited to have the drill rig move to the Kvistaberget target area, which has never been previously drilled. Very positive coincident data at Kvistaberget includes the whole-rock lithogeochemistry, a conductive SkyTEM anomaly, grab rock samples with up to 2 per cent copper and 8.7 per cent zinc (news release on Oct. 28, 2020), and numerous mineral occurrences that have never been followed up on."

Under the terms of a definitive agreement dated Oct. 27, 2023, Boliden and District will collaborate in the development of District's wholly owned polymetallic Tomtebo property and Boliden's wholly owned polymetallic Stollberg property. Initially, Boliden will be granted the right to earn up an 85-per-cent interest in the Tomtebo property. Following exercise of the earn-in option, the Tomtebo property will be contributed to a joint venture, along with Boliden's Stollberg property, under which District will control an initial 15-per-cent interest. A summary of the terms of definitive agreement as between Boliden and District is presented in the news release on Oct. 30, 2023.

Tracking the prospective VMS horizon (Rhyolite 1 and Rhyolite 3-4 contact) associated with the Steffenburgs zone along strike and at depth requires systematic drilling to provide vectors toward polymetallic sulphide mineralization. The whole-rock lithogeochemistry sampling will map out the stratigraphic succession and alteration intensity, which will refine further drill targeting. This, together with newly obtained structural data from drill core will significantly improve the geological understanding and structural framework of the historic Tomtebo mine area. Evaluation, compilation and interpretation of all obtained data will identify areas that warrant follow-up work.

A total of 232 samples for multielement assay and 111 samples for whole-rock lithogeochemistry were selected. Drill core samples from these three holes were recently sent to Palsatech in Sala, Sweden, for core cutting. The samples will be sent to ALS Geochemistry in Pitea, Sweden, for assay preparation and then to ALS Geochemistry in Loughrea, Ireland, for analysis. Assay results are expected in late Q2 2025.

The Kvistaberget target area is located five kilometres northeast of the historic Tomtebo mine. Reconnaissance field mapping and sampling indicated a transition of hangingwall and footwall rocks, similar to the stratigraphic succession detected in the historic Tomtebo mine area. The transition zone, which is interpreted as the prospective VMS mineralized horizon (Rhyolite 1 and Rhyolite 3-4 contact), coincides with a SkyTEM conductive anomaly and several grab rock samples with sulphide mineralization in the near vicinity. This combination of geological, geophysical and geochemical indicators highlights the Kvistaberget area as a priority target.

When drilling at Kvistaberget has been completed, then there will be a pause before drilling resumes at the historic Lovas mine in Q3 2025.

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 drill core reported in this news release was logged and prepared at the District Metals AB core facility in Sater, Sweden, before submittal to Palsatech Oy in Sala, Sweden, where the NQ-size drill core is cut and bagged. The samples will be prepared for analysis at ALS Geochemistry in Pitea, Sweden (PREP-31Y). Sample pulps will be sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis. Samples will be analyzed using a multielement ultratrace method combining a four-acid digestion with ICP-MS analytical package (ME-MS61). Overlimit sample values will be reassayed for: (1) values of copper greater than 1 per cent; (2) values of zinc greater than 1 per cent; (3) values of lead greater than 1 per cent; and (4) values of silver greater than 100 grams per tonne using the high-grade material ICP-AES analytical package (ME-OG62). Gold, platinum and palladium will be analyzed using the 30-gram lead fire assay with ICP-AES finish analytical package (PGM-ICP23). Certified standards, blanks and duplicates were inserted into the sample shipment to ensure integrity of the assay process.

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 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 VMS/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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