Mr. Garrett Ainsworth reports

DISTRICT RECEIVES DRILL PERMIT FOR THE OSTERKALEN MINERAL LICENSE AT THE ALUM SHALE PROPERTIES IN SWEDEN

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

Arctic DS AB, a Swedish subsidiary of Arctic Drilling AS, has been awarded the contract to conduct core drilling at the company's Viken and Alum shale properties in central Sweden. Drilling will test target areas for Alum shale mineralization based on promising coincident geophysical and geochemical anomalies. The number of drill holes and total metres completed will be dependent on results obtained during the program and will form part of the company's broader approved annual drilling budget of approximately 5,000 to 7,000 metres. Drilling at Osterkalen is expected to commence in late June or early July, 2026.

The drill program at Osterkalen will test a large MobileMT geophysical conductive anomaly identified in 2025 and concurrent geochemical in soil anomalies that are interpreted to represent prospective Alum shale stratigraphy (news release dated Oct. 29, 2025). The conductive anomaly extends for approximately eight kilometres in length and up to 3.5 kilometres in width, and has never been previously drill tested, making it one of the most compelling exploration targets identified across the Alum shale properties.

Garrett Ainsworth, chief executive officer of District, commented: "Our valid work plan for Osterkalen represents the commencement of our Alum shale exploration strategy in Sweden to discover the next potential Viken-style Alum shale deposit. The large conductive MobileMT anomaly at Osterkalen is interpreted to represent Alum shale and has dimensions consistent with a district-scale target.

"Our objective is to determine whether this target hosts the characteristics of a Viken-style mineralized system and to continue building on the significant exploration potential across our extensive Alum shale land package. With drilling expected to begin shortly, we are excited to test one of the highest-priority targets generated from favourable and concurrent geophysical, geochemical and geological signatures.

"We are very pleased to have retained Arctic to conduct our planned drilling campaigns for 2026 and look forward to a successful and long-term collaboration. Arctic is a well-established diamond drilling company with over 25 years of experience in the Nordics. They have assembled an experienced drill crew with a local base in the county of Jamtland. We anticipate a smooth and well-executed drilling season which will meet or exceed the highest standards in industry with regards to the environment, health and safety."

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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