Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON THE SWEDISH PARLIAMENT'S DECISION TO LIFT THE URANIUM MORATORIUM

District Metals Corp. notes that the Swedish Parliament voted today to repeal the moratorium on uranium mining and exploration in Sweden imposed in 2018, and approved new legislation permitting uranium exploration and mining will come into effect on Jan. 1, 2026.

The decision marks a pivotal shift in Sweden's energy and mining policy, aligning national regulation with the country's goals of improving energy security, supporting its nuclear power ambitions and strengthening its role in the supply of critical raw materials. Swedish bedrock hosts approximately 27 per cent of Europe's known uranium resources.

Key features of the legislation to be valid from Jan. 1, 2026:

• The moratorium on granting permits for mining operations that handle uranium is lifted.
• Uranium will be classified as a concession mineral under the Minerals Act, bringing it into the same regulatory regime as other extractable minerals.
• The section of the Environmental Code prohibiting uranium-related mining and processing will be repealed or amended so that uranium-related operations may apply for exploration and extraction licences, subject to prescribed conditions.
• Technical and regulatory safeguards will remain in place, including oversight from the Swedish Radiation Safety Authority and environmental impact assessments consistent with Sweden's high-standard permitting regime.

Garrett Ainsworth, chief executive officer of District, commented: "The Swedish government's consistent and thorough approach to lifting the uranium moratorium has now culminated in today's historic vote by the Swedish Parliament to repeal the ban on uranium exploration and mining. The legislative changes enabling uranium exploration and extraction are scheduled to take effect on Jan. 1, 2026. We are very pleased with this decisive step, which positions Sweden to unlock its vast uranium resources in support of the green energy transition amid growing global geopolitical uncertainty.

"In anticipation of this decision, District Metals updated the Viken Energy Metals deposit mineral resource estimate on April 29, 2025, and completed airborne geophysical surveys across our uranium polymetallic properties in Sweden.

"Looking ahead to 2026, we are now eager to further advance exploration programs at our uranium properties in Sweden that we anticipate will include fieldwork, additional airborne geophysics, drilling and an economic study of the Viken deposit."

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 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 historical Falun mine and Boliden's Garpenberg mine, which are located 25 kilometres to the northwest and southeast, respectively. Two historical 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 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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