Mr. Garrett Ainsworth reports

DISTRICT IDENTIFIES LARGE AND ROBUST TARGETS FROM AIRBORNE MOBILEMT SURVEY AT MALGOMAJ ALUM SHALE PROPERTY IN SWEDEN

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

On the basis of these encouraging results, the company has filed an application for a new mineral licence adjacent to the company's existing Malgomaj mineral licence No. 1003, which covers potential extensions of the MobileMT anomaly.

Together with the Osterkalen and Tasjo licences, Malgomaj forms part of 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 generated extensive data sets and identified numerous geophysical anomalies. The results have been detailed in a series of three news releases -- this is the final instalment.

The company's Malgomaj mineral licences are approximately 177 kilometres to 217 kilometres northeast from the company's 100-per-cent-owned Viken property, which hosts the Viken energy metals deposit.

The high-resolution MobileMT survey results, covering approximately 37,132 hectares at the Malgomaj mineral licences No. 1001 to No. 1003, have successfully outlined six low-resistivity (highly conductive) anomalies (target areas A to F) consistent with the MobileMT signature observed at the company's Viken deposit as reported in District's news release of Sept. 24, 2025. These two target areas show size and scale that surpasses the MobileMT conductive anomalies observed at the Viken property:

• Target A: 20.4-kilometre-long-by-up-to-5.4-kilometre-wide, low-resistivity (highly conductive) anomaly that is interpreted to be Alum shale;
• Target B: 17.7-kilometre-long-by-up-to-4.1-kilometre-wide, low-resistivity (highly conductive) anomaly that is interpreted to be Alum shale.

These results represent a major step forward in District's strategy to delineate drill-ready targets within a largely underexplored region characterized by Alum shales enriched in vanadium, potash, uranium, molybdenum, nickel, zinc, copper and rare earth elements (REEs).

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 1,255 line kilometres at 400-metre line spacing across the Malgomaj property. The high-priority target areas were 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: "Our technical team, in collaboration with Convolutions Geoscience, have now completed a thorough review on all of the MobileMT data from our extensive spring/summer 2025 campaign flown by Expert Geophysics, and I can say that the MobileMT survey at our Malgomaj mineral licences has delivered an exceptional outcome.

"The newly defined MobileMT conductive anomalies at Malgomaj are both large and strong -- attributes that likely indicate the presence of thick, mineralized Alum shales with the potential to host significant uranium and associated important and critical raw materials. The clarity with which these anomalies present, combined with their favourable structural context, provides a high level of technical confidence and marks a major step forward in our understanding of this underexplored district.

"These findings reinforce our previous view that Malgomaj represents a highly prospective opportunity for a scalable Alum shale discovery. We are adding to our current mineral licence holdings adjacent to Malgomaj mineral licence 1003 to ensure that we capture the full continuity of these priority targets."

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. On Nov. 5, 2025, the Swedish government approved the proposal to lift the ban on uranium exploration and mining (see news release dated Nov. 5, 2025), and the associated legislation is expected to be revised accordingly on Jan. 1, 2026.

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 Malgomaj property. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Malgomaj 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 uranium polymetallic exploration and development company focused on its flagship Viken property 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.

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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