Mr. Garrett Ainsworth reports

DISTRICT INTERSECTS UP TO 198 M OF CUMULATIVE ALUM SHALE IN DRILL HOLE VIK-26-005 AT TARGET A ON THE VIKEN PROPERTY

Drill holes VIK-26-002 to VIK-26-005 completed at Target A continue to encounter significant intervals of Alum shales on District Metals Corp.'s Viken property in Jamtland county, central Sweden.

Highlights:

• Drill hole VIK-26-005 intersected a cumulative 198.3 metres of Alum shale within downhole depths from 24.0 to 274.1 m.
• Drill hole VIK-26-004 intersected a cumulative 177.1 m of Alum shale within downhole depths from 26.6 to 233.5 m.
• Drill hole VIK-26-002 intersected a cumulative 82.0 m of Alum shale within downhole depths from 12.0 to 146.2 m.
• Drill hole VIK-26-003 intersected a cumulative 73.0 m of Alum shale within downhole depths from 15.5 to 193.5 m (Table 1).

The successful Alum shale intersections in drill holes VIK-26-002 to VIK-26-005 continue to demonstrate 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. These results validate the company's geophysical targeting approach of testing MobileMT conductive anomalies that appear to have effectively mapped out the Alum shales outside of the Viken deposit.

Garrett Ainsworth, chief executive officer of District, commented: "We are very encouraged by the consistency of the drilling results at Target A, with all four holes in this release intersecting significant cumulative intervals of Alum shale, highlighted by 198.3 m in VIK-26-005 and 177.1 m in VIK-26-004. The degree of structural stacking observed at Target A is particularly impressive, given that the natural thickness of Alum shale typically ranges from five to 20 m. From a potential mining perspective, cumulative Alum shale thicknesses of 50 m or greater are of particular interest, making these results highly encouraging.

"These drill results further validate our 2025 MobileMT geophysical survey and demonstrate its potential to identify shallow, thick sequences of Alum shale extending beyond the boundaries of the Viken deposit. We are systematically evaluating these conductive targets across the Viken property to determine whether they host additional potentially economic mineralized systems. Success in identifying such systems could significantly expand the development optionality of the property and provide District with greater flexibility in evaluating potential development scenarios."

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.), 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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