Mr. Garrett Ainsworth reports

DISTRICT CONFIRMS MOBILEMT GEOPHYSICAL ANOMALIES BY INTERSECTING GRAPHITIC BLACK SHALE IN EVERY DRILL HOLE AT THE ALUM SHALE PROPERTIES IN SWEDEN

District Metals Corp. has successfully completed of its inaugural diamond drilling program at the Osterkalen and Malgomaj mineral licences, which forms part of the company's 100-per-cent-owned Alum shale properties in central Sweden. Drilling was completed at the Osterkalen and Malgomaj mineral licences, where all 15 completed drill holes successfully intersected graphitic black shale interpreted to represent Alum shale. These areas have never been drilled for mineral exploration.

A total of 787 metres in seven drill holes were completed at the Osterkalen mineral licence (Table 1), followed by 1,156 metres in eight drill holes completed at the Malgomaj mineral licences (Table 2), for a combined 1,943 metres of drilling. Three drill holes at the Malgomaj No. 1002 mineral licence were abandoned due to the unconsolidated and weathered nature of the black shale bedrock, which resulted in no recovery of drill core.

The drill program targeted prominent conductive anomalies identified by the company's 2025 helicopter-borne mobile magnetotellurics (MobileMT) survey, which has demonstrated its effectiveness in mapping graphitic Alum shale at the company's Viken property. The MobileMT anomalies targeted by drilling also coincided with soil geochemical anomalies, providing additional support for the presence of mineralized Alum shale horizons.

Highlights:

• 1,943 metres drilled in 15 holes across the Osterkalen and Malgomaj mineral licences;
• All 15 drill holes intersected graphitic black shale, which demonstrates the effectiveness of the MobileMT survey in identifying and targeting conductive horizons interpreted to represent graphitic Alum shale;
• Approximate total composite downhole thickness of interpreted Alum shale formation:
  • 50.5 to 65.0 m in holes OST-26-001 to OST-26-007 within Osterkalen No. 101;
  • 87.5 to 141.0 m in holes MAJ-26-001 to MAJ-26-004 within Malgomaj No. 1003;
  • 79.0 to 86.5 m in holes MAJ-26-007, MAJ-26-009 to MAJ-26-011 within Malgomaj No. 1002;
• The observed shales are visually differentiated into strongly graphitic black shales with abundant calcite veining and pyrite concretions and weakly to moderately graphitic grey to dark-grey, laminated shales, all likely belonging to the Alum shale formation. All shale intervals (tables 1 and 2) will be sampled for assay.
• The shale intervals returned background to weak radioactivity from hand-held radiometric measurements using an Exploranium GR-110 scintillometer;
• 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;
• Drill core logging, sampling and analytical work are under way, with geochemical results to be reported once received, compiled and interpreted by the company.

Garrett Ainsworth, chief executive officer of District, commented: "We are very encouraged that every drill hole completed at the Osterkalen and Malgomaj mineral licences intersected graphitic black shale, marking a successful first phase of drilling our MobileMT conductive targets.

"While we await geochemical results to determine the metal content and geological characteristics of the intersected graphitic black shale, the consistent intersection of the conductive target horizon in every drill hole is an excellent outcome, especially for an area which has not seen any historic exploration work. The geological information obtained from this drill program will help to further constrain the interpretation and modelling of the MobileMT data, enabling us to refine the geological model and more effectively delineate and prioritize targets for future exploration.

"With drilling now completed at the Malgomaj mineral licences, we will pause our drilling activities during September to accommodate the moose hunting season and plan to resume drilling at the Viken property in October.

"Additional updates, including assay results and geological interpretations, will be provided as they become available."

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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