Mr. Garrett Ainsworth reports

DISTRICT RECEIVES NOTICE OF BOLIDEN'S TERMINATION OF THE OPTION AGREEMENT ON THE TOMTEBO AND STOLLBERG BASE METAL PROPERTIES

District Metals Corp. has received notice from Boliden Mineral AB of its decision to terminate the earn-in and joint venture agreement on the Tomtebo and Stollberg base metal polymetallic properties located in the Bergslagen mining district of south-central Sweden with District's Swedish subsidiary (District Metals AB).

The option agreement, originally signed in October, 2023, granted Boliden the right to earn up to an 85-per-cent interest in the Tomtebo property by incurring exploration expenditures of up to $10-million over a four-year period. Under the option agreement District had the right to earn up to a 15-per-cent interest in the Stollberg property. Boliden's withdrawal from the option agreement will see District retain a 100-per-cent interest in the Tomtebo property and Boliden will retain a 100-per-cent interest in the Stollberg property.

As per the terms of the option agreement, Boliden will leave the Tomtebo property in good standing until the end of the 90-day termination notice period and will fulfill all contractual obligations as defined by the option agreement provisions.

Garrett Ainsworth, chief executive officer of District, commented: "While we are disappointed that Boliden has elected to withdraw from the collaboration on the Tomtebo and Stollberg base metal polymetallic properties, we have appreciated our positive partnership with Boliden and the technical progress made on the projects.

"We remain highly encouraged by the exploration results at our now 100-per-cent-owned Tomtebo property. The technical work completed has significantly advanced our understanding of the volcanic massive sulphide mineralized systems and reinforces our confidence in the potential for expanding upon and discovering new high-grade base metal polymetallic mineralization at Tomtebo."

Jon Keisu-Lundh, director exploration -- Boliden Mines, commented: "Our collaboration with District Metals has been both constructive and professionally executed. The exploration work carried out at Tomtebo and Stollberg was of high technical quality, and while we have chosen to reallocate our exploration capital to other priorities within our portfolio, we continue to view the Bergslagen District as a highly prospective region. We wish District Metals continued success in advancing their promising portfolio of assets."

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.

For further information on the Viken property, please see the technical report titled "Updated Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jamtland County, Sweden" dated effective April 25, 2025, which is available under the company's profile on SEDAR+.

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 kilometres 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.

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 under the company's profile on SEDAR+.

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