Mr. Garrett Ainsworth reports

DISTRICT COMMENCES DRILLING AT THE VIKEN PROPERTY IN SWEDEN

District Metals Corp. has commenced diamond drilling at its Viken property in Jamtland county, central Sweden.

Arctic DS AB, a Swedish subsidiary of Arctic Drilling AS, has resumed core drilling at the company's Viken property with most of its drill crew from Jamtland and Vasterbotten counties. The 2026 drill program at the Viken property is focused on target areas A and B, two large conductive anomalies identified by the company's 2025 airborne MobileMT survey. Both target areas remain largely untested by drilling and represent priority exploration targets at the Viken property.

Target areas A and B have not been systematically drill tested, with historical drilling in 2008 limited primarily to their periphery. Those drill holes intersected significant intervals of mineralized Alum shale, providing geological support for further investigation of the broader target areas.

Target areas A and B are located approximately 1.7 kilometres and 7.5 kilometres, respectively, north to northwest of the Viken energy metals deposit. Notably, the conductive responses identified by the MobileMT survey are larger and stronger than the conductive signature associated with the Viken deposit itself, making these compelling targets for the current drill program.

The number of drill holes and total metres completed will be guided by geological observations and uraniferous radiometric measurements collected during drilling. The program forms part of District's approved 2026 exploration budget of approximately 5,000 to 7,000 metres across the Viken and Alum shale properties.

Garrett Ainsworth, chief executive officer of District, commented: "We are excited to commence drilling at target areas A and B, which represent some of the most compelling untested targets identified at the Viken property. The combination of large and strong conductive anomalies from our 2025 MobileMT survey and the presence of peripheral mineralized Alum shale from historical drilling provides a strong geological rationale for testing these areas laterally and at depth. This program is designed to determine whether the significant MobileMT conductive responses are associated with uranium and other energy metals mineralization similar to the Viken deposit."

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 National Instrument 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.), an internal rate of return of 45.9 per cent and a 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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