Mr. Garrett Ainsworth reports

DISTRICT COMMENCES DRILLING AT THE OSTERKALEN MINERAL LICENSE WITHIN THE ALUM SHALE PROPERTIES IN SWEDEN

District Metals Corp. has commenced diamond drilling on the Osterkalen mineral licence, which forms part of the company's 100-per-cent-owned Alum shale properties in central Sweden.

The drill program at the Osterkalen property is designed to test prospective Alum shale mineralization associated with coincident geophysical and geochemical anomalies identified across the property. The number of drill holes and total metres completed will be guided by geological observations and uraniferous radiometric measurements generated during drilling and will form part of the company's approved 2026 exploration budget of approximately 5,000 to 7,000 metres across the Viken and Alum shale properties.

Drilling is focused on a large MobileMT (mobile magnetotelluric) conductive anomaly identified in 2025, which coincides with geochemical soil anomalies interpreted to reflect favourable Alum shale stratigraphy (see news release dated Oct. 29, 2025). The anomaly extends approximately eight kilometres in length and up to 3.5 kilometres in width and remains entirely untested by drilling. Given its scale, geophysical signature and strong geochemical support, Osterkalen represents one of the highest-priority and most compelling exploration targets identified within the company's extensive Alum shale properties.

Garrett Ainsworth, chief executive officer of District, commented: "We are excited to have commenced our first drill program targeting Alum shale mineralization in Sweden. The large conductive MobileMT anomaly at Osterkalen is interpreted to represent Alum shale and has dimensions consistent with a district-scale target. By integrating geophysical, geochemical and geological data sets, we have identified a high-priority target that has never been previously drill tested. This program is designed to determine whether the Osterkalen target hosts the characteristics of a Viken-style mineralized system while continuing to demonstrate the significant exploration upside across our Alum shale properties."

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 uranium polymetallic exploration company focused on its flagship Viken property in Sweden. The Viken property covers 100 per cent of the Viken deposit, which contains the largest undeveloped mineral resource estimate of uranium in the world, along with significant mineral resource estimates of vanadium, potash, molybdenum, nickel, copper, zinc, and other important and critical raw materials.

On June 2, 2026, the company announced the results of a preliminary economic assessment (PEA) for the Viken deposit that outlined an after-tax net present value (discounted at 8 per cent) of $2.88-billion (U.S.), internal rate of return of 45.9 per cent and payback period of 2.1 years. The assessment included an initial capital cost of $876-million (U.S.) to generate average after-tax free cash flow of $531-million (U.S.) per year over the 13 years of life-of-mine production.

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+ and the company's news release dated June 2, 2026, for further details on the PEA.

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