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District Receives Notice of Boliden’s Termination of the Option Agreement on the Tomtebo and Stollberg Base Metal Properties

Mergers & Acquisitions Property Options & Staking

918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3

Telephone: (604) 288-4430

District Receives Notice of Boliden’s Termination of the Option

Agreement on the Tomtebo and Stollberg Base Metal Properties

Vancouver, B.C. August 25, 2025

August 25, 2025 – District Metals Corp. (TSX-V: DMX) (Nasdaq First North: DMXSE SDB)

(OTCQB: DMXCF) (FRA: DFPP) ; (“District” or the “ Company”) announces that it has

received notice from Boliden Mineral AB (“Boliden”) of its decision to terminate the earn-in and

joint venture agreement (the “Option Agreement”) on the Tomtebo and Stollberg base metal

polymetallic properties located in the Bergslagen Mining District of south -central Sweden with

District’s Swedish subsidiary (District Metals AB).

The Option Agreement, originally signed in October 2023, granted Boliden the right to earn up

to an 85% interest in the Tomtebo Property by incurring exploration expenditures of up to

CAD$10 million over a four -year period. Under the Option Agreement District had the right to

earn up to a 15% interest in the Stollberg Property. Boliden’s withdraw al from the Option

Agreement will see District retain a 100% interest in the Tomtebo Property, and Boliden will

retain a 100% interest in the Stollberg Property.

As per the terms of the Option Agreement , Boliden will leave the Tomtebo Property in good

standing until the end of the 90- day termination notice period and will fulfill all contractual

obligations as defined by the Option Agreement provisions.

Garrett Ainsworth, CEO of District, commented: “ While we are disappointed that Boliden has

elected to withdraw from the collaboration on the Tomtebo and Stollberg base metal polymetallic

properties, we have appreciated our positive partnership with Boliden and the technical progress

made on the projects.

We remain highly encouraged by the exploration results at our now 100% owned Tomtebo

Property. The technical work completed has significantly advanced our understanding of the

volcanic massive sulphide mineralized systems and reinforces our confidence in the potential for

expanding upon and discovering new high grade base metal polymetallic mineralization at

Tomtebo.”

Jon Keisu-Lundh, Director Exploration – Boliden Mines, commented: “ Our collaboration with

District Metals has been both constructive and professionally executed. The exploration work

carried out at Tomtebo and Stollberg was of high technical quality, and while we have chosen to

reallocate our exploration capital to other priorities within our portfolio, we continue to view the

Bergslagen District as a highly prospective region. We wish District Metals continued success in

advancing their promising portfolio of assets.”

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by

Garrett Ainsworth, P .Geo., President and CEO 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 Corp. is led by industry professionals with a track 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% of the Viken Energy Metals

Deposit, which contains the largest undeveloped Mineral Resource Estimate (“MRE”) of uranium

in the world 1 along with significant M ineral Resource Estimates of vanadium, molybdenum ,

nickel, copper, zinc, and other important and critical raw materials.

For further information on the Viken Property, please see the technical report titled “ Updated

Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jämtland

County, Sweden” dated effective April 25, 2025, which is available under the Company’s profile

on SEDAR+ at www.sedarplus.ca.

The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District

of south- central Sweden and is situated between the historic al Falun Mine and Boliden’s

Garpenberg Mine that are located 25 km to the northwest and southeast, respectively. Two historic

polymetallic mines and numerous polymetallic showings are located on the Tomtebo Property

along an approximate 17 km trend that exhibits similar geology, structure, alteration and

VMS/SedEx style mineralization as other significant mines within the district.

For further information on the Tomtebo Property, please see the t echnical report titled “NI 43 -

101 Update Technical Report on the Tomtebo Project, Bergslagen Region of Sweden” dated

effective October 15, 2020 and amended and restated on February 26, 2021, which is available

under the Company’s profile on SEDAR+ at www.sedarplus.ca.

On Behalf of the Board of Directors

“Garrett Ainsworth”

President and Chief Executive Officer

(604) 288-4430

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

Cautionary Statement Regarding “Forward-Looking Information”

This news release contains certain statements that may be considered “forward- looking information” with respect to the

Company within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward- looking

information can be identified by the use of forward- looking terminology such as “plans”, “targets”, “expects” or “does not

expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does n ot

anticipate” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”,

“could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved” and any similar expressions. In addition, any

statements that refer to expectations, predictions, indications, projections or other characterizations of future events or

circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts

but instead represent manage ment’s expectations, estimates and projections regarding future events. Forward- looking

information in this news release relating to the Company include, among other things , statements relating to the results of

exploration and drilling and interpretations thereof, and future exploration; the Company’s Swedish polymetallic properties; and

the Company’s interpretations and expectations about the results on the Swedish properties.

These statements and other forward- looking information are based on opinions, assumptions and estimates made by the

Company in light of its experience and perception of historical trends, current conditions and expected future developments, as

well as other factors that the Company believes are appropriate and reasonable in the circumstances, as of the date of this news

release, including, without limitation the reliability of exploration and drill results; reliability of data and the accuracy of publicly

reported information regarding current, past and historic mines in the Bergslagen district and in respect of the Swedish

properties; that the Swedish government will eventually lift or amend its moratorium on uranium exploration and mining in

Sweden; the Company’s ability to raise sufficient capital to fund planned exploration activities, maintain corporate capacity;

stability in financial and capital markets ; the Company’s ability to complete its planned exploration programs; the absence of

adverse conditions at mineral properties; no unforeseen operational delays; no material delays in obtaining necessary permits ;

the price of metals remaining at levels that render mineral properties economic; and the ability to realize on the mineral resource

estimates.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered

reasonable by the Company as of the date such statements are made, are subject to known and unknown risks, uncertainties,

assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially

different from those expressed or implied by such forward-looking information, including but not limited to risks associated with

the following: the reliability of historic data on District’s properties; the Company’s ability to raise sufficient capital to finance

planned exploration; that the Swedish government maintains its moratorium on uranium exploration and mining in Sweden for

the foreseeable future; the Company’s limited operating history; the Company’s negative operating cash flow and dependence

on third-party financing; the uncertainty of additional funding; the uncertainties associated with early stage exploration activities

including general economic, market and business conditions, the regulatory process, failure to obtain necessary permits and

approvals, technical issues, potential delays, unexpected events and management’s capacity to execute and implement its future

plans; the Company’s ability to identify M ineral Resources and M ineral Reserves; the substantial expenditures required to

establish Mineral Reserves through drilling and the estimation of M ineral Reserves or M ineral Resources; the uncertainty of

estimates used to calculated mineralization figures; changes in governmental regulations; compliance with applicable laws and

regulations; competition for future resource acquisitions and skilled industry personnel; reliance on key personnel; title matters;

conflicts of intere st; environmental laws and regulations and associated risks, including climate change legislation; land

reclamation requirements; changes in government policies; volatility of the Company’s share price; the unlikelihood that

shareholders will receive divid ends from the Company; potential future acquisitions and joint ventures; infrastructure risks;

fluctuations in demand for, and prices of metals; fluctuations in foreign currency exchange rates; legal proceedings and the

enforceability of judgments; going c oncern risk; risks related to the Company’s information technology systems and cyber -

security risks; and risk related to the outbreak of epidemics or pandemics or other health crises. For additional information

regarding these risks, please see the Company’s Annual Information Form dated July 11, 2022 for the fiscal year ended June 30,

2021, under the heading “Risk Factors”, which is available at www.sedarplus.ca. These factors and assumptions are not intended

to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions,

however, should be considered carefully. Although the Company has attempted to identify factors that would cause actual

actions, events or results to differ materially from those disclosed in the forward-looking information or information, there may

be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of such factors

are beyond the control of the Company. Accordingly, readers should not place undue reliance on for ward-looking information.

The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to publicly

update or revise such forward-looking information, except as required by applicable securities laws.

1 S&P Global Market Intelligence - Market Intelligence Research