Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON URANIUM MINING ANNOUNCEMENT FROM THE SWEDISH GOVERNMENT - LEGISLATIVE PROPOSAL TO BE BROUGHT TO PARLIAMENT

At a media briefing held by the Swedish Minister for Environment and Climate, Romina Pourmokhtari, on Aug. 28, 2025, it was announced that the Swedish government intends to submit a legislative proposal to Parliament to remove the current ban on uranium mining in Q4 2025. If approved, the new legislation permitting uranium mining and exploration will come into effect on Jan. 1, 2026.

The proposed changes will allow the extraction and exploration of uranium under the Swedish Minerals Act. As proposed, the amendments would also allow applications for exploration permits and processing concessions for uranium under specific conditions.

This announcement follows a government inquiry into abolishing the existing ban on uranium mining, which concluded in December, 2024, that the ban should be removed and a subsequent submission to the Council on Legislation in June, 2025, requested that uranium be permitted to be exploited like other natural resources regulated under the Minerals Act (please refer to the company's earlier news releases dated Dec. 23, 2024, and June 16, 2025). This significant policy shift marks a crucial step toward exploring new energy solutions and securing Sweden's energy future.

Garrett Ainsworth, chief executive officer of District, commented: "We are pleased to see that the Swedish government is moving forward with the removal of the uranium ban. It is obvious that the Swedish government's ambition is to create a regulatory framework where uranium is treated in the same fashion as other metals and minerals and with the same permitting requirements. If approved, the lifting of the uranium ban will create long-term clarity for us and increase our ability to attract investors, a necessity to continue to develop our uranium polymetallic projects going forward."

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.

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 polymetallic exploration and development company focused on the Viken and Tomtebo properties in Sweden. The Viken property covers 100 per cent of the Viken energy metals deposit, which contains the largest undeveloped mineral resource estimate of uranium in the world along with significant mineral resource estimates of vanadium, molybdenum, nickel, copper, zinc and other important and critical raw materials.

The advanced-exploration-stage Tomtebo property is located in the Bergslagen mining district of south-central Sweden and is situated between the historical Falun mine and Boliden's Garpenberg mine that are located 25 kilometres to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo property along an approximately 17-kilometre trend that exhibits similar geology, structure, alteration and VMS/sedex-style (volcanogenic massive sulphide/sedimentary exhalative) mineralization as other significant mines within the district.

For further information on the Tomtebo property, please see the technical report titled "NI 43-101 Update Technical Report on the Tomtebo Project, Bergslagen Region of Sweden," dated effective Oct. 15, 2020, and amended and restated on Feb. 26, 2021, which is available on SEDAR+.

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