Mr. Garrett Ainsworth reports

DISTRICT COMMENCES DRILLING AT THE STOLLBERG PROPERTY IN SWEDEN

District Metals Corp. has commenced core drilling at the high-grade polymetallic Stollberg property, located 35 kilometres to the southwest of the Tomtebo property within the Bergslagen mining district of south-central Sweden. The Stollberg-Tomtebo properties are being explored in collaboration with Boliden Mineral AB.

Highlights:

• A total of 2,200 metres of drilling in five to six holes are planned at the historic Gransgruvan mine (operated from 1943 to 1978), located within the Stollberg property.
• All drill holes will be followed up by Boliden's in-house, state-of-the-art, downhole, three-component electromagnetic (DHEM) survey.
• The Stollberg property contains similar host rocks, structure, alteration and mineralization styles as the Garpenberg mineralized trend, which gives significant support in making a similar new discovery.

Garrett Ainsworth, chief executive officer of District, commented: "Over the last year, important geological, geochemical and geophysical data from the Stollberg property has been obtained and compiled by the technical team through a collaborative process that has delivered priority areas for drilling. During this process, the historic Gransgruvan mine stood out as one of several priority areas to drill within the Stollberg property. From a propertywide perspective, the whole-rock geochemistry from historic drill core and outcrop rock sampling at the Stollberg property is highly analogous to the setting associated with Boliden's operating Garpenberg mine, which is a global Tier 1 asset.

"There are numerous historic drill holes with wide intervals of high-grade polymetallic mineralization at the Gransgruvan mine. The fall 2024 drill program will focus on stepouts from known mineralization at the Gransgruvan mine to expand upon known mineralized bodies and to potentially discover new polymetallic mineralized bodies.

"Leading-edge whole-rock geochemistry and DHEM will be completed on all drill holes to increase the team's technical understanding of the Stollberg mineralized trend and to increase the probability of making new discoveries."

Stollberg property description

The Stollberg mineralized trend is located in the Bergslagen region of the Fennoscandian shield. The Stollberg trend comprises a 5.0-kilometre-long, steeply east-dipping belt of manganese-rich, magnetite and zinc-lead-silver sulphide deposits hosted by marble, skarn and hydrothermally altered metavolcanic rocks. The deposits have been mined continuously from medieval times until 1982.

Most deposits in the Stollberg mineralized trend occur along the north-south-striking eastern limb of an upright to steeply east-dipping, steeply south-plunging syncline. The historic Gransgruvan zinc-lead-silver mine is located two kilometres west of the historic Stollberg workings and is interpreted to be stratigraphically equivalent, representing the western limb of the syncline.

The core of the syncline comprises metasediments, which are separated from the mineralized horizon by 800 metres of massive to banded rhyolitic metavolcanic rocks. These hangingwall rocks are generally not strongly altered but locally contain abundant patchy, calc-silicate aggregates and local zones of elevated cordierite, muscovite and quartz, interpreted as regional metamorphosed synvolcanic alteration zones. Proximal to the mineralized horizon on the eastern limb, gradation into biotite and quartz rocks with abundant porphyroblasts (locally more than 50 volume per cent) of garnet, gahnite, cordierite, andalusite, sillimanite and amphibole is observed. These grade farther eastward into marble and skarn, which is the main host to mineralization. Formation of these polymetallic deposits directly followed a major rhyolitic, volcanic eruption and formation of a submarine caldera. The earliest mineralization comprised exhalative iron oxides concurrent with limestone formation. Postcaldera subsidence and burial induced a shift in style of mineralization, whereby the limestone became a trap to replacement-type magnetite and zinc-lead-silver sulphide mineralization.

The polymetallic sulphide mineralization is dominated by sphalerite (zinc), pyrrhotite, arsenopyrite and lesser chalcopyrite (copper) and pyrite. They grade irregularly into semi-massive and locally massive sulphide bodies, which are considerably richer in galena (lead/silver). Average grades in the mined deposits ranged between 0.5 per cent to 5.0 per cent zinc, 0.5 per cent to 15.6 per cent lead and five grams per tonne to 320 grams per tonne silver.

Boliden acquired the historic Gransgruvan zinc-lead-silver mine in 1972 and produced 260,000 tonnes at 4.8 per cent zinc, 2.1 per cent lead and 29 grams per tonne silver down to minus-225-metre depth until mine closure in 1978. Boliden restarted exploration activities in the Stollberg mineralized trend in 2000.

The newly discovered mineralization at the Vastansjo deposit is situated on the eastern limb of the Stollberg syncline. A mineral resource estimate, compliant with SveMin's procedures, was delineated by Boliden in 20165. Similarities in structural setting, alteration and mineralization style to the marble-skarn-hosted zinc-lead-silver (copper-gold) deposit of Garpenberg imply potential for finding significant mineralization at the Stollberg property.

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 data disclosed in this news release are related to historical results. District has not undertaken any independent investigation of the sampling, nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical results relevant as the company is using these data as a guide to plan exploration programs. The company's current and future exploration work includes verification of the historical data through drilling.

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

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 uranium-vanadium Viken deposit, which is an asset with substantial exploration and development expenditures that resulted in the definition of large historic polymetallic resource estimates in 2010 and 2014. The Viken deposit is amongst the largest deposits by total historic mineral resources of uranium and vanadium in the world.

The advanced-exploration-stage Tomtebo property is located in the Bergslagen mining district of southern-central Sweden and is situated between the historic Falun mine and Boliden's Garpenberg mine, which 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 volcanogenic massive sulphide/sedimentary exhalative style mineralization as other significant mines within the district.

For further information on the Tomtebo property, please see the technical report entitled "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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