Mr. Garrett Ainsworth reports

DISTRICT REPORTS ON GEOCHEMICAL RESULTS FROM NIANFORS URANIUM PROPERTY IN SWEDEN

District Metals Corp. has released the results of its summer 2026 reconnaissance field program at the 100-per-cent-owned Nianfors property located in Gavleborgs county, Sweden. The field program was designed to follow up on prominent uraniferous radiometric anomalies identified by the company's property-wide unmanned aerial vehicle (UAV) radiometric and magnetic survey completed in 2025 and to advance priority areas toward drill targeting.

The 2026 field program included geological mapping, prospecting, radiometric surveying and geochemical sampling of bedrock outcrops and boulders. Geological observations and radiometric measurements using a hand-held scintillometer (Exploranium GR-110) were recorded at 111 field stations across the property.

A total of 34 rock samples were collected from boulders and outcrops and submitted for geochemical analysis. The samples returned the following geochemical ranges:

• Uranium (U3O8 (triuranium octoxide)): four to 937 parts per million;
• Yttrium (Y2O3 (yttrium oxide)): seven to 667 ppm;
• Molybdenum (Mo): less than one to 509 ppm.

Boulders and outcrop with the highest uranium values up to 937 ppm U3O8 were sampled at the Majsaberget uranium-yttrium-molybdenum occurrence. This occurrence historically consists of 889 mineralized boulders over an approximate area of 500 metres by 200 metres. Historical assay results from the Majsaberget mineralized boulders returned a weighted average of 1,600 ppm U3O8 and 1,015 ppm Y2O3. A 1982 report by the Swedish Geological Survey (SGU) reported mineralized boulder assays ranging from 100 to 14,000 ppm U3O8, 1,015 to 8,756 ppm Y2O3 and 500 to 2,200 ppm Mo. Despite the extensive surface mineralization and significant uranium values identified, the Majsaberget occurrence has never been drill tested, providing an opportunity for District to evaluate the potential for bedrock-hosted mineralization beneath the extensive boulder field.

The field program was specifically focused on investigating the most prominent uraniferous radiometric anomalies identified by the 2025 UAV radiometric and magnetic survey, as previously announced by District in its news release dated Sept. 9, 2025. Field observations, scintillometer readings, geological mapping and geochemical results will be integrated to refine the geological interpretation of the property and identify areas for follow-up exploration and potential drilling.

Garrett Ainsworth, chief executive officer of District, commented: "Results from our 2026 field program at Nianfors provide further support for the property's uranium polymetallic exploration potential, especially at the Majsaberget occurrence. The identification of elevated uranium, yttrium and molybdenum in samples collected from airborne radiometric anomalies demonstrates that the anomalies identified by our 2025 UAV survey warrants continued follow-up. We are now integrating the geochemical data with our geological mapping and radiometric results to refine our understanding of the property and advance the most prospective areas toward drill targeting."

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.

The grab and chip samples in this news release were recovered from outcrops and boulders. The samples were logged and bagged before submittal to ALS Geochemistry in Pitea, Sweden, where the samples were prepared for analysis, including crushing and pulverizing (PREP-31Y). The prepared pulp samples were sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis. The samples were analyzed using a complete characterization (whole-rock analysis) package (CCP-PKG01). Overlimit sample values were reassayed for values of uranium greater than 0.1 per cent using fusion XRF (X-ray fluorescence) with oxidizing flux (U-XRF10). Certified standards were inserted into the sample shipment to ensure integrity of the analytical process. No quality assurance/quality control issues were noted with the results reported.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Nianfors mineral licences. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Nianfors mineral licences.

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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