Mr. Garrett Ainsworth reports

DISTRICT COMPLETES AIRBORNE MOBILEMT SURVEY AT THE VIKEN PROPERTY AND COMMENCES MOBILEMT AT THE ALUM SHALE PROPERTIES IN SWEDEN

District Metals Corp. has completed a helicopter-borne mobile magnetotellurics system (MobileMT) survey at the Viken property, and, now, the MobileMT system has been moved to the Alum shale properties, located in the Jamtland and Vasterbottens counties in northern-central Sweden.

The MobileMT survey initially commenced at the Viken property in on June 3, 2025. Preliminary interpretations indicate that the MobileMT survey has successfully mapped out the mineralized Alum shale host rock of the Viken energy metals deposit, which has validated this geophysical survey for further use at the company's Alum shale properties. The final results and interpretations of the MobileMT survey on the Viken property will likely be released in Q3 2025.

The MobileMT survey at the Alum shale properties will comprise approximately 2,700 line kilometres at 200-metre line spacing and will aim to identify potential mineralized Alum shale for follow-up confirmation by drilling. The optimal target for further follow-up work will comprise the shallowest and thickest parts of mineralized Alum shale. The MobileMT survey has successfully mapped out the mineralized Alum shale in detail at the Viken energy metals deposit, and this geophysical signature will be utilized for identifying drill targets at the Alum shale properties.

Garrett Ainsworth, chief executive officer of District, commented: "Our preliminary confirmation that MobileMT has effectively mapped out the mineralized Alum shale at the Viken energy metals deposit is a technological breakthrough for exploration of mineralized Alum shale in Sweden. The initial interpretations of the MobileMT results at the Viken deposit clearly show the depth to and thickness of the Alum shale that corroborates with geological data from historical drill holes. In an Alum shale deposit mining scenario, a shallow and thick deposit is important to optimize the strip ratio and deliver the best economic metrics. We will use this recently identified geophysical signature to prioritize drill targets outside of the 2025 Viken deposit mineral resource estimate and on the Alum shale properties."

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 historic 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 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 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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