Mr. Garrett Ainsworth reports

DISTRICT UPDATES ON CHANGE OF CONTROL, EQUITY GRANT AND PROCEEDS FROM WARRANT EXERCISES

District Metals Corp. has amended certain change of control provisions for the CEO (chief executive officer) and CFO (chief financial officer) of the company, equity incentive grants, and proceeds received on the exercise of warrants.

Effective June 27, 2025, the company approved certain amendments to change of control or termination benefits within Garrett Ainsworth's executive employment agreement and Marlis Yassin's executive consulting agreement. Pursuant to the amendments, if there is a change of control of the company and the executive agreement is terminated by the company within 12 months of the change of control, the company will pay the executive two times annual compensation plus two times the average annual bonus paid, if any, during the last two full years of employment immediately upon such termination, and all incentive securities granted to the executive shall immediately vest and be exercisable in accordance with the District omnibus incentive plan. If the executive is otherwise terminated without cause, the company will pay the executive one times annual compensation plus one times the average annual bonus paid, if any, during the last full year of employment immediately upon such termination, and all incentive securities granted to the executive shall immediately vest and be exercisable in accordance with the District omnibus incentive plan.

The company also announces that it has granted a total of 3.3 million incentive stock options to directors, officers and consultants of the company, 925,000 restricted share units to officers of the company, and 675,000 deferred share units to directors of the company. Each stock option vests on the grant date and is exercisable to purchase one common share of the company for five years at a price of 69 cents per common share (the closing price of the company's common shares on June 26, 2025, the date prior to the grant date) pursuant to the terms of the company's omnibus incentive plan. Each restricted share unit and deferred share unit represents a right to acquire one common share of the company, cash equivalent or combination thereof in accordance with the company's omnibus incentive plan. The restricted share units and deferred share units vest over three years.

Exercise of warrants

To date in June 2025, the company has issued 7,132,500 common shares pursuant to the exercise of warrants, resulting in gross proceeds of $1,432,250.

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 (MRE) of uranium in the world along with significant mineral resource estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials.

We seek Safe Harbor.