Mr. Jevin Werbes reports

DISTRICT COPPER ACQUIRES FINAL CLAIM BLOCK BETWEEN COPPER KEG AND HIGHLAND VALLEY AS THIRD-PARTY STAKING ACTIVITY INTENSIFIES ACROSS NORTHERN GUICHON CREEK BATHOLITH

District Copper Corp. has entered into an agreement to acquire mineral claim 1137534, a 368.4-hectare property situated adjacent to the Copper Keg project area. The acquisition secures the last remaining mineral claim between the company's Copper Keg project and Teck Resources' Highland Valley copper operation, approximately 20 kilometres (km) to the south, and consolidates the company's land position at a time of heightened staking and exploration activity across the northern Guichon Creek batholith.

Acquisition details

Under the terms of the agreement, the company will acquire a 100-per-cent interest in mineral claim 1137534 (368.4 hectares) in consideration of $2,500 in cash and 375,000 common shares of the company. Following completion of the acquisition, the Copper Keg project will comprise 23 claims totalling 6,525.83 hectares (319 cells).

The claim is underlain by Kamloops Group volcanics and covers several magnetometer highs identified in the company's existing airborne magnetic data set. The magnetic signatures on this claim will be incorporated into the company's continuing exploration model and interpreted alongside results from the DCIP geophysical survey scheduled to commence end of September, 2026.

Strategic context

The company notes that recent mineral tenure filings on B.C. Mineral Titles Online indicate that Teck Highland Valley Copper Corp. acquired eight mineral claims totalling approximately 12,139 hectares in the area directly surrounding and adjacent to the Copper Keg project on Aug. 17, 2026. The acquisition of claim 1137534 ensures that the company maintains a continuous and consolidated land position within the northern Guichon Creek batholith.

Management commentary

Jevin Werbes, chief executive officer, commented: "This acquisition secures a critical piece of ground. It is the last remaining mineral claim between Copper Keg and Teck's Highland Valley copper operation. When we see increased staking activity by third parties across the northern batholith, consolidating the integrity of our land package becomes a strategic priority. The claim covers several magnetometer highs that complement our existing geophysical data set and will be incorporated into our exploration model as we advance toward drill target definition. We look forward to updating shareholders as the DCIP survey progresses and we move toward defining drill targets for what will be the first drill program in Copper Keg's 130-year history."

About Copper Keg

The Copper Keg project comprises 23 claims totalling 6,525.83 hectares at the northern end of the Guichon Creek batholith, the same intrusive complex that hosts every major porphyry copper deposit in the Highland Valley district. The project benefits from excellent infrastructure with power, gas and rail access, located within the Kamloops mining division, a few hours drive from the regional centre of Kelowna.

Historical exploration at Copper Keg dates back to the late 1800s. The British Columbia Minister of Mines annual report for 1898 documented a spectacular gossan several kilometres long, located approximately nine kilometres from Ashcroft, B.C., describing "a large body of ore, carrying gold and silver, but principally copper," where a 24-metre adit was driven into the mineralized zone. Despite this early recognition, subsequent exploration was limited and superficial in nature, and the property has never been tested by modern diamond drilling.

District Copper has carried out four years of systematic exploration between 2021 and 2025, including DCIP geophysics, high-sensitivity airborne magnetics and radiometrics, soil and rock geochemistry, detailed geological mapping, and petrographic and whole rock geochemical studies. A comprehensive review of the full data package was presented in the company's news release dated Aug. 19, 2026, the first integrated geological model relating these data sets to one another and explaining the rationale for the current DCIP survey design.

The company's DCIP geophysical survey, conducted by Quantec Geoscience using its Titan DCIP system, is scheduled to commence at the end of September, 2026, and is designed to delineate drill targets for the property's first-ever diamond drill program.

Resurgence of activity in the Highland Valley district

The Copper Keg project is located within one of Canada's most active copper exploration and development corridors. Teck Resources' Highland Valley copper operation, approximately 20 kilometres to the south, is Canada's largest copper mine and received a $2.1-billion to $2.4-billion mine life extension approval to continue operations through 2046. The government of Canada has committed $50-million in conditional funding to upgrade BC Hydro's regional transmission system in support of the Highland Valley expansion.

Getty Copper Inc., the Getty project of which is located in the Highland Valley district directly between Copper Keg and Teck's operation, recently reported initial drill results from Getty South, including 68.5 metres (m) of 0.81 per cent Cu from 39.5 m depth and 184 m of 0.37 per cent Cu, with mineralization extended 72 m below historical intercepts and remaining open within a broader IP geophysical anomaly.

British Columbia's mineral exploration sector posted record spending of $751-million in 2025, with copper overtaking gold as the province's top exploration target for the first time on record.

Qualified person

Chris M. Healey, PGeo, chief geologist and a director of District Copper, is the qualified person under National Instrument 43-101 guidelines who is responsible for the technical content of this news release and approves its news release.

About District Copper Corp.

District Copper is a Canadian company engaged in the exploration for porphyry copper deposits in south-central British Columbia.

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