Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON ALUM SHALE ANNOUNCEMENT FROM THE SWEDISH GOVERNMENT

On Feb. 4 and Feb. 5, there were several Swedish media reports that outline a revised approach to municipal veto rights in the context of uranium and alum shale mining in Sweden. The proposed approach includes lifting the municipal veto for uranium mining and processing and commence an inquiry into mining of alum shale deposits. The introduction of a potential new municipal veto for alum shale extraction is announced to be part of the scope in such an inquiry. Under the plan, an investigation will be initiated to focus on aspects of mining alum shale -- a host rock that contains uranium and other important and critical raw materials such as vanadium, potash, molybdenum, nickel, copper, zinc and rare earth elements.

Exploration and mining of uranium from Swedish deposits were made legal on Jan. 1, 2026, and that legislative change remains in effect.

Garrett Ainsworth, chief executive officer of District, commented: "We view the government's engagement with local stakeholders as a constructive step towards a framework that supports responsible mine development and meaningful local input that both protects the environment and advances Sweden's strategic role in the European Union's critical raw materials agenda.

"It is important that regulatory clarity evolves in a way that recognizes both the strategic value of Sweden's important and critical raw materials resources and the legitimate environmental and community considerations. It is also important that exploration and extraction have a permitting process that is robust, uniform and provides the industry with long-term predictability. The latter is essential to protect investments and the ability to develop successful projects.

"Advancing the Viken property through a preliminary economic assessment and economic impact study will allow us to showcase its economic, social and strategic benefits for Sweden, supported by leading-edge technologies designed to protect the environment."

The company is advancing its flagship Viken property and extensive sedimentary alum shale and basement rock hosted uranium properties, and actively monitors government announcements, policy and legislative developments with respect to uranium exploration and mining in Sweden. While the company views the Swedish government's announcement as constructive, the impact of these developments on the company's mineral properties remains uncertain. The company looks forward to engaging constructively with regulators, local authorities and other stakeholders to support a transparent, environmentally responsible and commercially viable mining framework in Sweden. The company continues to advance its 2026 exploration and development plans as disclosed by the company on Jan. 13, 2026.

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 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 and development company focused on its flagship Viken property in Sweden. The Viken property covers 100 per cent of the Viken energy metal 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.

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