Mr. Garrett Ainsworth reports

DISTRICT COMMENTS ON THE SWEDISH PARLIAMENT'S APPROVAL OF THE PROPOSAL ON APPROPRIATE SAFETY AND RADIATION PROTECTION REQUIREMENTS FOR THE EXTRACTION AND PROCESSING OF NUCLEAR MATERIALS

District Metals Corp. has welcomed today's approval by the Swedish parliament (Riksdag) of legislation that streamlines the permitting framework for the extraction and processing of nuclear materials, including uranium.

The approved amendments align the permitting process for nuclear materials more closely with the regulatory framework applicable to other mining projects in Sweden. The changes are intended to create a more transparent, efficient and predictable permitting process while maintaining appropriate safety and radiation protection standards based on the risks associated with the activity.

A key aspect of the legislation is that the extraction and processing of uranium will be treated in a manner consistent with other metals and minerals within Sweden's overall permitting framework. The amendments remove the requirement for a separate admissibility assessment under the Environmental Code and eliminate the requirement for municipal council consent for uranium extraction and processing projects, commonly referred to as the municipal veto.

The Swedish government has stated that these regulatory changes are designed to improve permitting efficiency and provide greater certainty for projects of strategic importance to Sweden's energy security and critical mineral supply chain. The legislation is also expected to support Sweden's contribution to increasing European Union self-sufficiency in critical raw materials while advancing the broader energy transition.

Parallel to this, on June 11, 2026, the Swedish government presented the terms of reference for a new inquiry that will investigate ways to enhance local and municipal influence for alum shale deposits. The inquiry also mentions that it will include concerned parties from the private sector in its stakeholder dialogue. It will also provide an analysis of commercial consequences of any proposal made and will also take into account Sweden's commitments according to the Critical Raw Materials Act.

Garrett Ainsworth, chief executive officer of District Metals, commented: "Today's decision by the Swedish parliament represents another significant milestone in Sweden's ongoing efforts to strengthen its domestic nuclear fuel and critical minerals supply chains. This change to the permitting framework for uranium fits with Sweden's ongoing nuclear expansion.

"District's commitment to earning and maintaining a strong social and local licence remains unchanged. We will continue to engage openly and transparently with municipalities, landowners, Sami and other stakeholders, ensuring that our projects are advanced responsibly and to appropriate standards of environmental stewardship, communication and stakeholder collaboration.

"By establishing a more predictable permitting framework for uranium extraction and processing, Sweden is aligning these activities with other mining projects while maintaining robust environmental and safety standards. We believe these changes further enhance the strategic importance of the Viken deposit and our broader alum shale properties as Sweden and the European Union seek secure, long-term sources of uranium and other important and critical raw materials required for energy security and low carbon economic competitiveness.

"We have also taken note of the separate alum shale inquiry that has now been initiated, and we will engage in the inquiry process with the ambition that Swedish regulators can find ways for enhanced local influence without any new veto mechanisms, such as the veto that has been abolished today."

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 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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