Mr. Garrett Ainsworth reports

DISTRICT CONFIRMS THE VIKEN ENERGY METALS DEPOSIT AND IDENTIFIES HIGH POTENTIAL TARGETS ELSEWHERE ON THE VIKEN PROPERTY IN SWEDEN WITH AIRBORNE MOBILEMT SURVEY RESULTS

District Metals Corp. has released positive results from its airborne mobile magnetotelluric (MobileMT) survey at the 100-per-cent-owned Viken energy metals property located in Jamtland county, central Sweden.

The high-resolution MobileMT survey conducted by Expert Geophysics Ltd. successfully identified large-scale low-resistivity (highly conductive) anomalies that correlate with the Viken energy metals deposit, as confirmed by historic drill holes from 2006 to 2012. The MobileMT survey has also uncovered several additional large-scale low-resistivity anomalies located outside of the Viken deposit (target areas A to I), highlighting new high-priority targets for follow-up exploration. Target areas A, B and C have a larger and stronger low-resistivity response compared with the Viken deposit.

The Viken deposit 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, as reported in District's news release from April 29, 2025.

The MobileMT survey covered approximately 2,350 line kilometres at 200-metre spacing across the entire Viken property, completed in two phases. Phase 1 captured the low-resistivity signature of the mineralized Alum shale, which hosts the Viken deposit. Phase 2 covered the rest of the 37,211-hectare Viken property and identified additional low-resistivity signatures resembling those of the Viken deposit. High-priority target areas were selected based on the shallow depth and thickness of the mineralized Alum shale. The relatively flat-lying Alum shale is rich in graphite and sulphides, making it low resistivity (highly conductive) and easily detectable using the airborne MobileMT system.

Garrett Ainsworth, chief executive officer of District, commented: "The Viken deposit is already known to contain the largest undeveloped uranium mineral resource in the world, so it's incredible to see from the MobileMT results that the Viken property has the potential to host multiple Viken deposits. Furthermore, three of these newly identified target areas on the Viken property appear to be larger and more robust in signature compared to the Viken deposit.

"The MobileMT survey results have successfully mapped the mineralized Alum shale at the Viken deposit, which marks a significant technological advancement in the exploration for Alum shale in Sweden. The MobileMT results at the Viken deposit reveal the depth and thickness of the Alum shale, aligning with geological data from past drill holes. In a potential mining context, a shallow and thick deposit is crucial for optimizing the strip ratio and achieving the best economic outcomes.

"Now that the interpretation of the MobileMT data from the Viken property is complete, we are evaluating the optimum location to conduct a preliminary economic assessment, which is anticipated to commence upon, and if, the uranium moratorium in Sweden is lifted, as anticipated.

"We plan to leverage this newly identified MobileMT signature of Alum shales to prioritize target areas outside of the 2025 Viken deposit mineral resource estimate as well as across all of our Alum shale properties."

Uranium is commonly used as a geochemical pathfinder in mineral exploration due to its close association with various valuable mineral deposits, including rare earth elements, 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).

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.

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