Mr. Garrett Ainsworth reports

DISTRICT ANNOUNCES UPDATE TO $6 MILLION PRIVATE PLACEMENT FINANCING

District Metals Corp. has updated its non-brokered private placement financing under the listed issuer financing exemption (as defined below), whereby the company intends to raise up to $6-million through an offering of up to 22,222,222 common shares in the capital of the company to be priced at 27 cents per share. The shares offered under the offering will not be subject to a hold period in accordance with applicable Canadian securities laws.

The updated offering is being conducted in reliance on the exemptions in co-ordinated blanket order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption). In connection with the updated offering, the company no longer intends on proceeding with the concurrent non-brokered private placement financing whereby the company intended to raise up to $1-million through an offering of up to 3,703,703 shares to be priced at 27 cents per share. The shares offered under the concurrent non-brokered private placement would have been subject to a four-month-and-one-day hold period in accordance with applicable Canadian securities laws.

The company intends to use the net proceeds of the offering to finance exploration activities on the company's projects in Sweden and for general corporate purposes. The company will pay a finder's fee to Pareto Securities AB in connection with purchasers introduced by Pareto to the offering. Any finders' fees payable will be in accordance with the policies of the TSX Venture Exchange.

The offering is scheduled to close on or about May 21, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX-V. Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 (Prospectus Exemptions), the offering is being made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 and in reliance on the order.

There is an amended and restated offering document related to the offering that can be accessed under the company's profile on SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.

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).

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 energy metal deposit, which contains the largest undeveloped mineral resource estimate of uranium in the world along with significant mineral resource estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials. See the company's news release dated April 29, 2025, for further information with respect to the mineral resource estimate.

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 that 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 approximate 17-kilometre trend that exhibits similar geology, structure, alteration and volcanogenic massive sulphide/sedex style mineralization as other significant mines within the district.

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