Mr. Anthony Paterson reports

DISTRICT MINES LTD. ANNOUNCES COMPLETION OF PLAN OF ARRANGEMENT

District Mines Ltd. has completed its previously announced plan of arrangement under the Business Corporations Act (British Columbia). Shareholders of District Mines now hold common shares in the following former subsidiaries of District Mines: 1355379 B.C. Ltd., 1355381 B.C. Ltd., and 1355384 B.C. Ltd. (collectively referred to as the "SubCo's"). Each of the SubCo's is now an unlisted reporting issuer in the provinces of British Columbia and Alberta. Shareholders of District Mines continue to hold their interest in District Mines.

Pursuant to the terms of the Arrangement effective on January 25, 2023: i) the Company altered its share capital to create the additional classes of common shares (the "New Common Shares") and Reorganization Shares (as defined below); (ii) each of the issued and outstanding common shares of District Mines was exchanged for one New Common Share, one Class 1 Reorganization Share, one Class 2 Reorganization Share, and one Class 3 Reorganization Share, (collectively referred to as the "Reorganization Shares"), and all of the common shares of District Mines outstanding prior to the Arrangement were cancelled; iii) one class of the Reorganization Shares were transferred to each SubCo in exchange for common shares of each SubCo on a 1:1 basis and District Mines redeemed all Reorganization Shares through the transfer to each SubCo $50,000 of working capital; and iv) the Company altered its share capital so that only the New Common Shares remain, were re-designated as "common shares" and deemed to be represented by the same certificate as the previously issued and outstanding common shares of District Mines but under new CUSIP/ISIN numbers 25484M301/CA25484M3012.

Following completion of the Arrangement, each SubCo has 12,889,131 common shares issued and outstanding with the following CUSIP/ISIN numbers:

1355379 BC LTD.: 682933106/CA6829331066,

1355381 BC LTD.: 682931100/CA6829311001, and

1355384 BC LTD.: 682932108/CA6829321083,

Further information about the Plan of Arrangement is set forth in the management information circular of District Mines dated November 15, 2022, which is available under the Company's profile on SEDAR at www.sedar.com.

We seek Safe Harbor.