Mr. Garrett Ainsworth reports

DISTRICT OUTLINES 2026 EXPLORATION AND DEVELOPMENT PLANS ON ITS URANIUM PROPERTIES IN SWEDEN

District Metals Corp. has outlined its planned 2026 exploration and development programs across its portfolio of uranium properties in Sweden. The planned work will advance the company's flagship Viken property and continue systematic exploration across its extensive sedimentary Alum shale and basement-rock-hosted uranium properties.

2026 exploration and development plans:

• Preliminary economic assessment (PEA): P&E Mining Consultants Inc. has been retained to provide a National Instrument 43-101 PEA and technical report on the Viken deposit within the company's Viken property. Mets Engineering Group Pty. Ltd. has also been retained to undertake the metallurgical component of the PEA, which is targeted for completion in Q2 2026.
• Economic impact study (EIS): BDO Canada LLP has been retained to articulate the economic and strategic benefits of building and operating a mining operation on the Viken property to extract uranium, vanadium, potash, and other important and critical raw materials. This study will consist of three main modules: economic impact, strategic benefits and social licence. The EIS, incorporating input from the PEA, is scheduled for completion in Q2 or Q3 2026.
• Drilling of MobileMT geophysical targets: Results from the 2025 airborne MobileMT survey confirmed a strong conductive signature associated with the Viken deposit, which correlates well with historical drill results. The 2025 MobileMT surveys also identified nine new conductive targets on the Viken property and an additional 15 conductive targets across the company's Alum shale properties. District plans to complete approximately 5,000 to 7,000 metres of drilling at the Viken and Alum shale properties to test targets prospective for the next potential Viken-style Alum shale deposit. The sequence and timing of drilling will be contingent upon the receipt of drill permits, which are expected to take approximately six weeks to six months to be issued.
• Airborne MobileMT geophysical survey: In late 2025, the company submitted mineral licence applications totalling an additional 72,078 hectares to the mining inspectorate, which would nearly double the size of the Alum shale properties if approved. Upon receipt of approvals, District plans to conduct airborne MobileMT surveys during Q2 and Q3 2026 to identify high-priority drill targets and areas for potential relinquishment.
• Follow-up fieldwork programs: The company plans to undertake geological mapping, prospecting and geochemical sampling at the Ardnasvarre, Sagtjarn and Nianfors properties to follow up on anomalies identified from the 2025 UAV-based (unmanned aerial vehicle) radiometric and magnetic surveys. This fieldwork is scheduled to commence during Q2 and Q3 2026.

Garrett Ainsworth, chief executive officer of District, commented: "With uranium exploration and mining officially permitted in Sweden as of Jan. 1, 2026, District is well positioned to unlock the significant potential of its portfolio of uranium properties. Our planned 2026 exploration and development programs mark an exciting next phase for the company, particularly at a time when uranium fundamentals continue to strengthen as nuclear energy plays an increasingly important role in the generation of carbon-free electricity.

"Advancing the Viken deposit with a preliminary economic assessment and economic impact study while simultaneously drilling priority MobileMT targets and expanding our geophysical coverage across the Alum shale properties positions the company to unlock significant value. In addition, our planned fieldwork at Ardnasvarre, Sagtjarn and Nianfors will ensure we are fully capitalizing on the encouraging radiometric and magnetic anomalies identified from the 2025 UAV survey. We believe this integrated approach sets the stage for meaningful growth and potential discovery."

Investor relations agreements

The company has engaged Pareto Securities AB from Jan. 12, 2026, for a term of 12 months, to provide research coverage to the company, including distribution and exposure of the company's activities through content creation and publication to build awareness of the company. Pareto Securities is an investment bank based in Stockholm, Sweden. Pareto Securities is entitled to receive a monthly fee of 35,000 Swedish kronor in consideration of the services provided, primarily to be conducted by Pareto Securities analyst, Alexander Ripe. At the time of the engagement, Pareto confirmed to the company that certain employees of Pareto hold in total 150,000 common shares of the company. Otherwise, to the company's knowledge, neither Pareto nor its principals have any interest, directly or indirectly, in the securities of the company.

The company has engaged Aktiespararnas Serviceaktiebolag from Jan. 12, 2026, for a term of 12 months, to assist with the development of featured articles and videos describing the activities of the company to be published on its website. Aktiespararnas is a subscription service based in Stockholm, Sweden. Aktiespararnas is entitled to receive a fee of 36,000 Swedish kronor in the first month and 18,000 Swedish kronor monthly thereafter for 10 months in consideration of the services provided, primarily to be conducted by Aktiespararnas analyst Joakim Kindahl. At the time of the engagement, to the company's knowledge, neither Aktiespararnas nor its principals have any interest, directly or indirectly, in the securities of the company.

The company is at arm's length to Pareto Securities and Aktiespararnas (together, the contractors". The engagements with the contractors are subject to the filing requirements of the TSX Venture Exchange.

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 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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