Mr. Garrett Ainsworth reports

DISTRICT IDENTIFIES LARGE MOBILEMT ANOMALY INDICATING SIGNIFICANT ALUM SHALE POTENTIAL AT THE OSTERKALEN PROPERTY IN SWEDEN

District Metals Corp. has released positive results from the airborne mobile magnetotelluric (MobileMT) survey conducted over its 100-per-cent-owned Osterkalen mineral licence, located in Jamtland county, north-central Sweden.

On the basis of these encouraging results, the company has filed an application for a new mineral licence adjacent to the northwest of the Osterkalen No. 101 mineral licence that covers the extension of the MobileMT anomaly.

The Osterkalen, Tasjo and Malgomaj licences together form the company's Alum shale properties, collectively covering approximately 79,250 hectares. All three licence areas were surveyed using MobileMT during the summer of 2025. The survey produced extensive data sets and identified numerous geophysical anomalies, the findings of which will be presented across three separate news releases -- beginning with this one.

The company's Osterkalen mineral licence is approximately 100 kilometres northeast from the company's 100-per-cent-owned Viken property, which hosts the Viken energy metals deposit.

Highlights:

• MobileMT results have identified an eight-kilometre-long-by-up-to-3.5-kilometre-wide low-resistivity (highly conductive) anomaly that is interpreted to be Alum shale.
• The high-resolution MobileMT survey results, covering approximately 7,800 hectares at the Osterkalen No. 101 mineral licence, have successfully outlined a strong and laterally extensive low-resistivity (highly conductive) anomaly consistent with the MobileMT signature observed at the company's Viken deposit as reported in District's news release of Sept. 24, 2025.

These findings are a significant advancement in District's strategy to define drill-ready targets within a vastly underexplored region known for its Alum shales that contain important and critical metals and minerals.

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 291 line kilometres at 400-metre line spacing across the Osterkalen property. The high-priority target area was selected based on the shallow depth and thickness of the interpreted Alum shale. The Alum shale is typically flat lying and is rich in graphite and sulphides, making it low resistivity (highly conductive) and easy to detect using the airborne MobileMT system.

Garrett Ainsworth, chief executive officer of District, commented: "The MobileMT survey results from our Osterkalen property are highly encouraging and reveal a strong and large conductive anomaly that aligns with the interpreted Alum shale horizon. This supports our geological model and corporate strategy and highlights the significant potential to host Alum shale with important and critical raw materials.

"With these results, we are not only confirming the presence of a potentially high-tonnage Alum shale target but also advancing toward our goal of building a uranium polymetallic portfolio of district-scale assets in Sweden capable of delivering meaningful value to our shareholders and stakeholders. The combination of a large, coherent geophysical anomaly, strong geological support and proximity to infrastructure ranks Osterkalen as one of our most compelling growth opportunities to date outside of our Viken property."

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 Osterkalen property. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Osterkalen property.

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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