Mr. Garrett Ainsworth reports

DISTRICT INCREASES LAND POSITION AT THE NIANFORS PROPERTY AFTER SUCCESSFUL UAV SURVEY IN SWEDEN

MWH Geo-Surveys International Inc. has completed a detailed unmanned aerial vehicle (UAV) radiometric and magnetic survey at District Metals Corp.'s 100-per-cent-owned Nianfors property, located in Gavleborgs county, Sweden.

The UAV survey at the Nianfors property has successfully confirmed known uranium/molybdenum/rare earth element (REE) polymetallic occurrences whilst also identifying new target areas. At the Majsaberget uranium polymetallic occurrence, located within mineral licence Nianfors No. 102, a total of 889 uraniferous boulders have been historically documented, with assay results ranging from 0.01 per cent to 1.4 per cent U3O8 (triuranium octoxide), 0.05 per cent to 0.22 per cent molybdenum and 0.08 per cent to 0.69 per cent yttrium. As expected, this area produced a strong uraniferous radiometric response during the UAV survey.

Notably, a high intensity uraniferous radiometric anomaly was detected along the eastern boundary of Nianfors No. 102. This led to the discovery of a new uranium-rich area with a radiometric value approximately 50 per cent stronger than that of the Majsaberget occurrence. As a result of this significant find, a new mineral licence application, Nianfors No. 103, was submitted to cover the newly identified target area, located approximately 1.9 kilometres northeast of the Majsaberget occurrence.

Garrett Ainsworth, chief executive officer of District, commented: "The results from the UAV survey at our Nianfors property have exceeded our expectations by not only validating known high-grade uranium polymetallic occurrences but also uncovering a significant new target with even stronger uraniferous radiometric responses. This expansion of our land position at Nianfors underscores our commitment to aggressively explore and unlock the full potential of this underexplored region in Sweden."

Uranium is commonly used as a geochemical pathfinder in mineral exploration due to its close association with various valuable mineral deposits, including REEs, base metals and iron-oxide copper/gold (IOCG) systems. In Sweden, certain geological environments show elevated uranium concentrations that may indicate the presence of other economically significant metals and minerals. However, while uranium anomalies can guide exploration efforts, it is important to note that there is currently a moratorium on uranium exploration and mining in Sweden that the government has stated it intends to abolish as of Jan. 1, 2026 (see news release dated Sept. 2, 2025).

Nianfors property highlights:

• Contains the Majsaberget uranium-yttrium-molybdenum occurrence that consists of 889 mineralized boulders over an approximate area of 500 metres by 200 metres;
• Assays from the Majsaberget mineralized boulders returned a weighted average of 0.16 per cent U3O8 and 0.08 per cent Y;
• A 1982 report by the Swedish Geological Survey reported mineralized boulder assays ranging from 0.01 per cent to 1.4 per cent U3O8, 0.08 per cent to 0.69 per cent Y, 0.05 per cent to 0.22 per cent Mo and 0.02 to 0.31 per cent thorium;
• The Majsaberget occurrence was historically estimated to host at least 12,998,896 pounds U3O8 grading 0.07 per cent to 0.14 per cent U3O8;
• The Nianfors property has never seen systematic modern exploration.

Historical estimate disclosure:

• See Forsberg, L-O., Kullman, F., Lofroth, B., 1985: Description of SKBS Mineral Reserves, Norrland, Uranrapport 1985-3, Sveriges Geologiska AB, IRAP 85026, page 17 (the Majsaberget occurrence report);
• The company views the historical estimate included in the Majsaberget occurrence report to be relevant and reliable;
• Total, probable and presumed tonnage of the area: 5,199,558 to 10,399,116 pounds U3O8 (2,358.48 to 4,716.96 tonnes U3O8);
• In total for the entire area, the potential is estimated to be at least 12,998,896 pounds U3O8 (5,896.2 tonnes U3O8); mineralization of two types occurs in the area: partly neosome-pegmatite mineralization and partly an impregnation mineralization in gneiss granite; the average content of the former type is estimated to be about 0.06 per cent to 0.08 per cent U3O8 and of the latter type about 0.14 per cent U3O8;
• Historical uranium geochemical assays have been converted from uranium to U3O8 (U3O8 equals uranium multiplied by 1.1792);
• Mineral resources under the Majsaberget occurrence report were classified under previous definition standards and do not match the current categories under National Instrument 43-101;
• The company is not aware of any more recent estimates or data available to the company on the Nianfors property;
• The company would need to conduct an exploration program, including twinning of historical drill holes, in order to verify the Nianfors property historical estimate as a current mineral resource;
• The mineral resource estimate is considered to be a historical estimate under NI 43-101 and a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and District is not treating the historical estimate as a current mineral resource.

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 NI 43-101, Standards of Disclosure for Mineral Projects.

The data disclosed in this news release are related to rock geochemical results. District has not undertaken any independent investigation of the sampling, nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical rock geochemical results relevant as the company is using these data as a guide to plan exploration programs. The company's current and future exploration work includes verification of the historical data through geochemical sampling and drilling.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Nianfors mineral licences. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Nianfors mineral licences.

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 2025 TSX Venture 50 company, ranking among the top-performing issuers on the TSX Venture Exchange in the past year.

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 south-central Sweden and is situated between the historic 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 Viken property, please see the technical report entitled "NI 43-101 Updated Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jamtland County, Sweden," dated effective April 25, 2025, which is available on SEDAR+.

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