Mr. Garrett Ainsworth reports

DISTRICT EXECUTES AGREEMENT TO SELL REMAINING OWNERSHIP OF THE BAKAR PROPERTY ON NORTHERN VANCOUVER ISLAND, BRITISH COLUMBIA

District Metals Corp. has executed a definitive purchase agreement dated June 3, 2025, for District's high-grade copper-silver Bakar property, located on northern Vancouver Island in British Columbia, with Sherpa II Holdings Corp.

Garrett Ainsworth, chief executive officer of District, commented: "District's focus is clearly on our Swedish uranium and base metal polymetallic properties. The sale and full exit of ownership from the Bakar property on northern Vancouver Island in British Columbia will allow Sherpa II to continue to advance the Bakar property on a 100-per-cent ownership basis. District will benefit from any potential exploration success at the Bakar property through its equity position in Sherpa II."

Transaction highlights

Under the agreement, Sherpa II will acquire District's remaining approximate 25-per-cent interest in the Bakar property by the issuance of 1.5 million shares of Sherpa II. Closing of the transaction remains subject to customary closing conditions, including approval by the TSX Venture Exchange.

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 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.

The advanced-exploration-stage Tomtebo property is located in the Bergslagen mining district of southern-central Sweden and is situated between the historical 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 (volcanogenic massive sulphide/sedimentary exhalative) mineralization as other significant mines within the district.

For further information on the Tomtebo property, please see the technical report titled "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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