Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON URANIUM MINING ANNOUNCEMENT FROM THE SWEDISH GOVERNMENT

District Metals Corp. has noted that, on June 12, 2025, the Swedish Ministry of Climate and Enterprise submitted a referral to the Council on Legislation. The referral proposes "that the prohibition in the Environmental Code against granting permits for mining operations or mining facilities relating to uranium-containing material be removed and that uranium should be a concession mineral under the Minerals Act."

The proposed changes detailed in the referral will allow uranium extraction under the Minerals Act and detailed bedrock investigations in Sweden. The amendments also permit applications for exploration permits and processing concessions for uranium under specific conditions.

The next steps toward lifting the uranium moratorium in Sweden include:

• A legislative proposal is to be brought to parliament in Q3 or Q4 of 2025.
• The legislative changes are proposed to go into effect by Jan. 1, 2026.

Garrett Ainsworth, chief executive officer of District, commented: "The Swedish government's consistent and rigorous approach towards lifting the uranium moratorium appears to be advancing as previously communicated. We welcome this referral process that is a significant step for Sweden to unlock the country's vast uranium resources for the green energy transition during a time of increasing geopolitical unrest. We are well prepared for this potential lifting of the uranium moratorium by updating the Viken energy metals deposit mineral resource estimate on April 29, 2025, and commencing an airborne MobileMT survey at the Viken property on June 3, 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.

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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