Mr. Garrett Ainsworth reports

DISTRICT METALS INTERSECTS 155 METERS OF ALUM SHALE IN FIRST DRILL HOLE AT TARGET A ON THE VIKEN PROPERTY IN SWEDEN

The first drill hole, VIK-26-001, completed at Target A on District Metals Corp.'s Viken property in Jamtland county, central Sweden, intersected a thick interval of Alum shale from 43.7 to 198.5 metres, representing a downhole interval of 154.8 metres (Table 1).

This successful intersection demonstrates that the MobileMT geophysical survey flown by District in 2025 has identified a shallow and thick sequence of graphitic Alum shale associated with the strongly conductive signature exhibited by Target A. This result provides important initial validation of the company's geophysical targeting approach and supports the use of MobileMT to identify prospective Alum shale targets outside of the Viken deposit.

Garrett Ainsworth, chief executive officer of District, commented: "We are very pleased by the results from our first drill hole at Target A, which intersected a 154.8-metre interval of Alum shale starting at a shallow depth of 43.7 m downhole. This is an important initial success for our exploration program and provides confirmation that the MobileMT geophysical survey flown in 2025 is an effective tool for identifying shallow, thick sequences of Alum shale on the Viken property.

"Our objective is to use modern geophysical techniques to identify additional prospective areas across our extensive land position and to better understand the distribution and potential of Alum shale beyond the known Viken deposit. The results from drill hole VIK-26-001 represent a successful first step in evaluating Target A and the broader exploration potential of the Viken property."

Next steps

District will continue drilling broadly across target areas A and B by integrating geological drill data with geophysical interpretations to refine the company's understanding of the distribution and continuity of Alum shales. Further information will be provided as the drill program advances.

Geochemical results will be required to determine the presence, grade and continuity of mineralized Alum shale horizons as visual drill core logging and radioactivity alone are not sufficient to establish mineralization.

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 Viken property. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Viken 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 July 17, 2026, the company filed a technical report prepared in accordance with NI 43-101 disclosing the results of a preliminary economic assessment for the Viken deposit that 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 deposit, please see the technical report entitled "Preliminary Economic Assessment on the Viken Energy Metals Project, Jamtland County, Sweden," dated July 17, 2026, with an effective date of June 26, 2026, available under the company's SEDAR+ profile.

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