Mr. Garrett Ainsworth reports

DISTRICT REPORTS ON GEOCHEMICAL RESULTS FROM SAGTJARN URANIUM PROPERTY IN SWEDEN

District Metals Corp. has successfully completed its reconnaissance field mapping and geochemical sampling campaigns on the company's 100-per-cent-owned Sagtjarn property located in the Jamtland and Vasternorrland counties in Sweden.

The reconnaissance field program followed up on prominent radiometric and magnetic anomalies identified by the property-wide unmanned aerial vehicle (UAV) survey in 2025 (see news release dated Sept. 3, 2025). Geological observations and radiometric measurements with a hand-held scintillometer (Exploranium GR-110) were recorded for a total of 163 field stations within the Sagtjarn mineral licences. A total of 32 rock samples were recovered from both outcrops and boulders for geochemical analysis.

Highlights:

• Extensive mineralized system identified: Field mapping identified widespread pegmatite and granite intrusions within metamorphic rocks, with uranium mineralization observed throughout both the intrusive rocks and surrounding gneiss.
• Potential to expand the historic Sagtjarn deposit: Uranium mineralization associated with pegmatites was identified over an approximately two kilometres strike length, extending northwest and southeast beyond the area previously drilled by the Geological Survey of Sweden (SGU). Mineralized boulders returned values of up to 1,179 parts per million U3O8, suggesting the historic Sagtjarn mineralized system may extend beyond its previously explored limits.
• Higher-grade uranium values in gneiss: Uranium mineralization was also identified in silicified zones within the surrounding gneiss, with mineralized boulders returning values of up to 3,656 ppm U3O8. This style of mineralization is widespread across the northwestern Sagtjarn No. 101 mineral licence, the Hammarmyran area and much of the Sagtjarn No. 102 mineral licence.
• Additional critical and base metals identified: Mineralized boulders south of the Staverberget occurrence returned molybdenum values of up to 5,250 ppm molybdenum, while a uranium-bearing gneiss boulder returned 333 ppm cobalt and 1,800 ppm copper, highlighting the presence of additional metals associated with uranium mineralization.
• Mineralization extends beyond historic drilling: Uranium mineralized boulders were discovered approximately one to 1.5 kilometres southeast of historic drill holes in both the Hammarmyran and Staverberget areas, identifying additional areas for follow-up exploration and suggesting the mineralized systems may extend beyond previously investigated areas.

Garrett Ainsworth, chief executive officer of District, commented: "We are very encouraged by the results from our reconnaissance program at our Sagtjarn property, which have identified widespread uranium mineralization across multiple areas of the property, including significant uranium values in both pegmatites and the surrounding gneiss. Of particular interest is the presence of mineralized boulders extending approximately two kilometres along strike beyond the historically explored Sagtjarn deposit as well as additional mineralization identified beyond historic drilling at Hammarmyran and Staverberget.

"The fieldwork results also highlight the presence of molybdenum, cobalt and copper associated with the uranium mineralization. These findings support the potential for the mineralized systems to extend beyond previously investigated areas and provide compelling targets for follow-up exploration. We look forward to building on these results as we continue to evaluate the broader potential of our Swedish uranium polymetallic portfolio."

Background

The Sagtjarn deposit (southeast portion of Sagtjarn No. 101) was discovered during follow-up work of geochemical soil anomalies in 1974 by the Swedish Geological Survey (SGU). Detailed outcrop mapping, boulder hunting and sampling started in 1975 followed by ground geophysical surveys and systematic geochemical sampling. Diamond drilling programs were executed between 1977 and 1980 totalling 43 drill holes (6,655 metres), including mineralogical studies. The Sagtjarn deposit has historical inferred mineral resource estimate of 756,000 tonnes grading 0.068 per cent U3O8 containing 1,137,585 pounds of U3O8 using a cut-off of 200 ppm uranium.

The mineral resource estimate contained on this slide is considered to be a historical estimate under National Instrument 43-101 and a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and District is not treating the historical estimate as a current mineral resource. See under "Technical information" below for more disclosure.

The northwestern part of the Sagtjarn No. 101 licence was also explored in the past by SGU for uranium (Hammarmyran occurrence). In this area, 433 mineralized boulders were located, and seven exploration drill holes were completed. However, the results were not promising and thereby, the exploration was focused mainly on the Sagtjarn deposit.

Multiple companies have been exploring the area for base and precious metals as well. This includes the Staverberget occurrence (Sagtjarn No. 102) with copper-molybdenum-gold boulders up to 1.3 per cent Cu, 1.8 per cent Mo and 1.3 grams per tonne Au hosted by metamorphosed, fine-grained mica-rich sediment-gneiss. Follow up drilling in 1982 (987 metres in seven holes) intersected a 0.8-metre mineralized interval with 1.26 per cent Mo, 0.25 per cent lead, 0.2 per cent zinc, 0.2 per cent copper, 10 grams per tonne silver and 1.25 per cent uranium.

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 NI 43-101, Standards of Disclosure for Mineral Projects.

The grab and chip samples in this news release were recovered from outcrops and boulders. The samples were logged and bagged before submittal to ALS Geochemistry in Pitea, Sweden, where the samples were prepared for analysis, including crushing and pulverizing (PREP-31Y). The prepared pulp samples were sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis. The samples were analyzed using a complete characterization (whole-rock analysis) package (CCP-PKG01). Overlimit sample values were reassayed for values of uranium greater than 0.1 per cent using fusion XRF (X-ray fluorescence) with oxidizing flux (U-XRF10). Certified standards were inserted into the sample shipment to ensure integrity of the analytical process. No quality assurance/quality control issues were noted with the results reported.

Additional disclosure for Sagtjarn deposit historical mineral resource

See report titled "Revised Introductory Technical Report on Eight Uranium Properties in Northern Sweden" prepared for Continental Precious Metals Inc., revised and restated Sept. 20, 2005, with an effective date of July 15, 2005.

The company views the historical estimate included in the Sagtjarn report to be relevant and reliable.

Based upon 47 drill holes, 50- to 100-metre drill space fencing, 20- to 100-metre spacing along drill fence, the Sagtjarn deposit was partially drilled on a wide grid and is considered underdrilled. The authors of the Sagtjarn report utilized a standardized cut-off of 300 ppm wherever possible to facilitate length weighted borehole grade and historical reserve comparisons.

Sagtjarn report resources are based on Geological Survey of Sweden (SGU) documentation and the auditing by the authors of the Sagtjarn report of their reserve calculation methodology, certain of the historical SGU estimates should be classified as (then) CIM-style (Canadian Institute of Mining, Metallurgy and Petroleum) inferred resources on the basis that these estimates are relevant and appear reliable.

Both XRF analysis and pulse gamma logging (PGL) were used in grade determinations, with the pulse gamma logging giving substantially higher volumes and grades. Despite this bias, the authors of the Sagtjarn report (Forsberg and Kullman, 1981) believed that the pulse gamma logging results were more representative as they measured a greater rock volume.

Forsberg and Kullman, 1981, calculated a wide variety of historical reserve estimates, using a range of cut-off values (200 to 600 ppm in 100-part-per-million steps), analytical methods (XRF and PGL) and blocking techniques (profiles and triangles), based on their profile method (for comparability with other deposit estimates), using a minimum two-metre width and a 300-part-per-million cut-off based on XRF analysis.

It should be noted, however, that the bulk of the historical estimates, which serve as the basis for the Sagtjarn report historical estimate, are based on volume-weighted grades, which do not take the log normal nature of the mineralization's grade populations into account and that, due to this non-recognition of log normality, these historical grades are likely to be slightly overstated. It is impossible to judge the degree of grade overstatement without having carried out actual estimates, but it is considered unlikely (but not impossible) to exceed 10 per cent over all. This type of grade overreporting is a common problem with older, traditional reserve estimates and it was/is often accounted for by cutting high values.

Mineral resources under the Sagtjarn report were classified under previous definition standards and do not match the current categories under NI 43-101.

The company is not aware of any more recent estimates or data available to the company on the Sagtjarn uranium property.

The company would need to conduct an exploration program, including twinning of historical drill holes, in order to verify the Sagtjarn uranium property historical estimate as a current mineral resource.

The mineral resource estimates is considered to be a historical estimate under NI 43-101 and a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and District is not treating the historical estimate as a current mineral resource.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Sagtjarn mineral licences. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Sagtjarn mineral licences.

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 a 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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