Mr. Garrett Ainsworth reports

DISTRICT STRENGTHENS ITS SWEDISH FOOTPRINT BY NEARLY DOUBLING THE SIZE OF THE ALUM SHALE PROPERTIES

Bergslagen Metals AB (a 100-per-cent-owned Swedish subsidiary of District Metals Corp.) has applied for 11 mineral licences covering a total area of 72,078 hectares (the new Alum shale mineral licences). These applications target Alum shale deposits and have been registered with Bergsstaten (Mining Inspectorate of Sweden), which are located in central to north-central Sweden. Bergsstaten is expected to reach a decision on the company's mineral licence applications in the coming weeks.

Highlights:

• The new Alum shale mineral licence applications will almost double the size of the existing Alum shale properties from 79,250 hectares to 151,328 hectares.
• The new Alum shale mineral licence applications were submitted to secure high-priority airborne geophysical MobileMT anomalies identified along the boundaries of the following existing mineral licences:
  • Osterkalen No. 102 (see Oct. 29, 2025, news release);
  • Tasjo No. 110 to No. 113 (see Nov. 18, 2025 news release);
  • Malgomaj No. 1004 (see Dec. 2, 2025, news release);
• The following new Alum shale mineral licence applications were selected from the results of a comprehensive study that took into account areas with favourable geology, geochemistry and geophysics for mineralized Alum shales:
  • Tasjo No. 109;
  • Hallviken No. 1 and No. 2;
  • Forsasen No. 1 and No. 2.

Alum shale deposits in Sweden typically contain a large inventory of important energy metals and critical raw materials that will be required as part of the green energy transition. Potentially viable Alum shale deposits are large and shallow, which simplifies and lowers the cost of the exploration, discovery and development stages.

District's 100-per-cent-owned Viken energy metals deposit is an Alum shale deposit that hosts the world's largest undeveloped uranium mineral resource estimate, together with significant mineral resource estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials, as reported in District's April 29, 2025, news release.

On Nov. 5, 2025, the Swedish government approved a 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 enacted on Jan. 1, 2026.

Garrett Ainsworth, chief executive officer of District, commented: "Nearly doubling the size of our mineral licence area that makes up our Alum shale properties represents a significant step forward for District in building a robust pipeline of highly prospective energy metals properties in Sweden.

"The new Alum shale mineral licence applications were not selected at random; they are the result of an extensive and disciplined evaluation process in which the selected areas are adjacent to highly promising airborne MobileMT geophysical anomalies within our existing Alum shale properties as well as targets identified through a comprehensive technical study that integrated regional and property-scale geological, geochemical and geophysical data.

"Importantly, this work was carried out with a strong focus on responsible exploration, deliberately avoiding environmentally sensitive areas. This strategic expansion of our existing Alum shale properties significantly enhances our exploration optionality, strengthens the continuity of our land position and enables District to systematically advance the largely underexplored Alum shale properties toward its full multicommodity potential over the long term."

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

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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