Mr. Garrett Ainsworth reports

DISTRICT ANNOUNCES CLOSING OF $6 MILLION PRIVATE PLACEMENT FINANCING

District Metals Corp. has closed its non-brokered private placement financing under the listed issuer financing exemption (as defined below), whereby the company raised $6-million through an offering of 22,222,221 common shares in the capital of the company at 27 cents per share. The shares offered under the offering are not subject to a 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 paid a finder's fee to Pareto Securities AB of $299,999.98 in connection with purchasers introduced by Pareto to the offering. The company also paid certain expenses of Pareto reasonably incurred in connection with the offering.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 -- Prospectus Exemptions (NI 45-106), the offering was made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 and in reliance on the exemptions in Coordinated Blanket Order 45-935 -- Exemptions from Certain Conditions of the Listed Issuer Financing Exemption.

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 track 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 metals 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 km to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo property along an approximate 17 km trend that exhibits similar geology, structure, alteration and VMS/sedex style mineralization as other significant mines within the district.

We seek Safe Harbor.