Mr. Garrett Ainsworth reports

UAV RADIOMETRIC AND MAGNETIC SURVEY RESULTS HIGHLIGHT SIGNIFICANT EXPLORATION POTENTIAL AT DISTRICT METALS' ARDNASVARRE PROPERTY IN SWEDEN

MWH Geo-Surveys International Inc. has completed a detailed unmanned aerial vehicle (UAV) radiometric and magnetic survey at the company's 100-per-cent-owned Ardnasvarre property located in Norrbottens county in northern Sweden.

The UAV survey at the Ardnasvarre property has successfully identified strong and large uraniferous radiometric anomalies associated with uranium boulder trains sourced from the Viepsajokk and Labbas uranium polymetallic occurrences.

The Labbas uranium polymetallic occurrence is a basement-hosted and intrusive-related uranium polymetallic mineralized zone that is associated with a local magnetic-low response that extends beyond historical drilling, which may indicate potential for significant expansion from this previously delineated uranium polymetallic mineralization. Historic drill results from the Labbas uranium zone include 7.0 metres at 0.17 per cent U3O8 (triuranium octoxide) from 50.0 to 57.0 metres, including a higher-grade interval of 0.8 m at 0.94 per cent U3O8 from 53.5 to 54.3 m. The drill results can be found in the Geological Survey of Sweden (SGU) database. Drill results have been converted from U to U308 (U308 is equal to U multiplied by 1.1792).

The Viepsajokk uranium occurrence comprises 79 uranium-mineralized conglomerate and breccia boulders that are sourced from the base of the late Precambrian Laisvall sedimentary formation, which unconformably lies above the Precambrian crystalline basement rocks. This unconformity-style uranium mineralization on the Ardnasvarre property is similar to unconformity-style uranium mineralization found in the Athabasca basin in Northern Saskatchewan, Canada, which is known for high grades of uranium. According to the Geological Survey of Sweden in 1984 the Viepsajokk uranium occurrence was regarded as one of the most promising unconformity-style uranium target areas, but the 16 proposed holes were never drilled.

Garrett Ainsworth, chief executive officer of District, commented: "The UAV radiometric survey results from our Ardnasvarre property have revealed two significant uraniferous boulder trains that appear to be sourced from the Labbas and Viepsajokk uranium polymetallic occurrences. A boulder train is a line or trail of mineralized boulders that have been moved from their original bedrock mineralized source by glaciers during the ice age. The direction of these past glaciers on the Ardnasvarre property is from north-northwest to south-southeast, which pinpoints the bedrock mineralized source area at the north-northwest side of the boulder train.

"The UAV magnetic survey results at the Labbas uranium occurrence indicates a magnetic-low trough along the shoulder of a magnetic high where past drilling defined a historical resource estimate for uranium at the north-northwest end of a significant uraniferous boulder train. These recent magnetic results suggest that an extensive strike length remains untested by previous drilling at the Labbas occurrence. The Viepsajokk occurrence has never been drilled, and the potential bedrock mineralized source is also situated in a magnetic-low trough along the shoulder of a magnetic high while also being at the north-northwest end of a significant uraniferous boulder train.

"We are excited by these UAV results and look forward to advancing our exploration efforts in this highly prospective region of northern Sweden."

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 (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).

Ardnasvarre property highlights:

• The Ardnasvarre No. 1 mineral licence is located within the Arjeplog-Arvidsjaur uranium province and covers an area of 9,708 hectares that is prospective for uranium, copper, zinc, lead and REEs.
• The property straddles the unconformity between exposed Svecofennian basement rocks and overlying Caledonide sedimentary rocks, where targets include strata-bound, unconformity- and intrusive-related uranium and REE mineralization. Additional targets include sandstone-hosted lead and zinc mineralization, similar to the nearby historic Laisvall deposit.
• Labbas uranium zone: drilling by the SGU in the 1970s and 1980s resulted in a historical resource estimate of 86,478 tonnes at an average grade 0.12 per cent U3O8 containing 228,780 pounds of U3O8 using a polygon resource estimation method. The Labbas zone contains elevated molybdenum and zirconium and remains open in all directions. This mineral resource is considered to be a historical estimate under National Instrument 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:
  • See S. Svensson, 1981: Uranium Prospecting in Norrland, Uranrapport 1981-8, Sveriges Geologiska Undersokning, BRAP 81083, page 67 (the Labbas uranium zone report).
  • The company views the historical estimate included in the Labbas uranium zone report to be relevant and reliable.
  • A new ore reserve calculation using the polygone method has been done with respect to all drill holes. The calculation gives 88 tonnes U at a grade of 0.10 per cent U and a thickness 3.4 metres or four metres horizontally.
  • An unsuccessful attempt was made to excavate the presumed subglacial outcrop of the mineralization discovered southwest from the main body. The trenching was done recently and there were a lot of difficulties with water in the trenches. The detailed magnetometer measurement is finished and the result plotted.
  • Mineral resources under the Labbas uranium zone report were classified under previous definition standards and do not match the current categories under NI 43-101.
  • The company is not aware of any more recent estimates or data available to the company on the Ardnasvarre uranium property.
  • The company would need to conduct an exploration program, including twinning of historical drill holes in order to verify the Ardnasvarre uranium 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.
• Labbas uranium zone: A single hole (LAB08-001) was drilled in 2008 by Continental Precious Minerals, which returned 7.0 m at 0.17 per cent U3O8 from 50.0 to 57.0 m, including a higher-grade interval of 0.8 m at 0.94 per cent U3O8 from 53.5 to 54.3 m. The drill results can be found in the Geological Survey of Sweden database. Drill results have been converted from U to U308 (U308 is equal to U multiplied by 1.1792).
• The Ardnasvarre property has never seen systematic modern exploration.

The company is not treating the Ardnasvarre uranium property as a mineral project material to the company. District has not undertaken any independent investigation of the drill results, nor has it independently analyzed the drill results in order to verify the results. District considers these drill 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 drilling.

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.

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