Mr. Garrett Ainsworth reports

DISTRICT COMMENCES AIRBORNE MOBILEMT SURVEY AT THE ALUM SHALE PROPERTIES IN SWEDEN

Expert Geophysics Surveys Inc. (EGS) has been retained to conduct a helicopter-borne mobile magnetotellurics system (MobileMT) survey at the Alum shale properties, located in the Jamtland and Vasterbottens counties, north-central Sweden.

The MobileMT survey will comprise approximately 2,253 line kilometres at 400-metre line spacing over the Alum shale properties. In June, 2025, the MobileMT survey successfully mapped out the mineralized Alum shale host rock of the Viken energy metals deposit, which has validated this geophysical survey for further use at the company's Alum shale properties. Approximately half of the 151,329-hectare Alum shale properties were flown with the MobileMT survey in July, 2025, where numerous large and conductive anomalies were identified as potential targets for Alum shale mineralization.

Priority follow-up targets are expected to comprise the shallowest and thickest accumulations of mineralized Alum shale. The relatively flat-lying Alum shale unit contains abundant graphite, resulting in a highly conductive signature associated with the Viken deposit that was successfully delineated in detail by the June, 2025, MobileMT survey. The survey demonstrated the effectiveness of MobileMT in mapping prospective mineralized Alum shale horizons and refining drill targets across District's Alum shale and Viken properties.

Garrett Ainsworth, chief executive officer of District, commented: "The decision to expand the MobileMT survey across our Alum shale properties is supported by the excellent results achieved at the Viken deposit, where the survey successfully mapped the mineralized Alum shale host rock and validated MobileMT as a highly effective exploration tool. With approximately half of our Alum shales land package surveyed to date, we have already identified numerous large conductive anomalies that we have recently started to drill test at the Osterkalen mineral licence.

"The extensive graphite content within the Alum shale creates a strong conductive signature that can be effectively mapped using MobileMT. This next phase of surveying will significantly advance our understanding of the district-scale potential across our Alum shale properties and support our objective of discovering additional Viken-style Alum shale deposits in Sweden."

EGS introduced its MobileMT system in 2018 for use in airborne natural-source audio-frequency magnetotellurics (AFMAG), positioning it as the most advanced generation of airborne AFMAG technology. This system harnesses energy from global thunderstorm activity, which is converted into an underground electromagnetic plane wave, serving as the primary field in the airborne natural field. The electromagnetic fields and currents induced in the subsurface are then utilized by MobileMT to detect variations in subsurface electrical resistivity to map out geological units of interest.

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 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, which outlined an after-tax net present value (discounted at 8 per cent) of $2.88-billion (U.S.), an 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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