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DMX.V ·

District Commences Fieldwork at the Tomtebo Property

Exploration Programs

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

Telephone: 604-628-2669

District Commences Fieldwork at the Tomtebo Property

Vancouver, B.C. September 2, 2020

September 2, 2020 – District Metals Corp. (TSX-V: DMX) (FRA: DFPP); ("District" or the

“Company”) is pleased to report that it has commenced field work on its polymetallic Tomtebo

Project in the Bergslagen Mining District of south -central Sweden. Initial work consisting of

geological mapping, prospecting and geochemical sampling has started at the former Tomtebo

Mine, and regionally across the 5,144 hectare Property. This work will be further complemented

by a review of available historic drill core from the Tomtebo Mine starting in mid -September.

These fieldwork programs will augment the historical compilation work and recently flown

SkyTEM survey in preparation for a drilling campaign at Tomtebo planned for early-2021.

Tomtebo Property Highlights

• Boliden’s Garpenberg Mine is located 25 km to the southeast, and the historic Falun Mine

is located 25 km to the northwest. Lundin Mining’s Zinkgruvan Mine is located 175 km

to the southwest.

• Tomtebo contains similar host rocks, structure, alteration, and mineralization styles as the

Garpenberg, Falun, and Zinkgruvan Mines.

• Two historic mines, and numerous mineralized prospects are situated along a 17 km trend

on the property. Mineralization at the historic Tomtebo and Lovas Mines appears to be

open in all directions (Figure 1).

• Historic production at the Tomtebo Mine comprised 120,000 tonnes at 4.4% Cu1. Historic

production at the Lovas Mine comprised 330,000 tonnes at 3.5% Zn, 2.5% Pb, and 30g/t

Ag2.

• Development work and mining at the historical Tomtebo and Lovas Mines reached depths

of 200 m and 190 m, respectively. Mining operations at Boliden’s Garpenberg Mine and

Lundin Mining’s Zinkgruvan Mine are currently at depths of 1400 m and 1 300 m,

respectively, with resources that remain open at 1600 m.

• Previously reported historic drill results at the former Tomtebo Mine include:

o Hole TOMT65001 intersected 4.67 m at 1,087.0 g/t AgEq 3 or 28.0% ZnEq4 at

the Oscarsgruvan zone (see July 6th, 2020 news release).

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

Telephone: 604-628-2669

o Hole TOMT70004 intersected 16.17 m at 535.7 g/t AgEq 3 or 13.8% ZnEq 4 at

the Steffenburgs zone (see July 27th, 2020 news release).

o Hole TOMT16008b intersected 3.6 m at 3.98% Cu, 4.0 m at 11.79% Cu, and

3.4 m at 2.38% Cu at the Gårdsgruvans zone (see August 11th, 2020 news

release).

• Modern systematic exploration has never been previously conducted on the Tomtebo

Property.

Garrett Ainsworth, CEO of District, commented: “ Compilation of historical drill results at the

Tomtebo Mine is complete, and Leapfrog 3D modeling of the mineralized zones continues, which

will be greatly enhanced by the additional data obtained from the recently commenced fieldwork.

As an authority in the Bergslagen Mining District, the presence of Dr. Rodney Allen at Tomtebo

is significant given his key role in the discovery of polymetallic mineral resources at the world

class Garpenberg Mine. The final SkyTEM data will be available very soon, and thereafter

interpretations on the magnetic and conductive data will be developed as an additional layer to

define our priority drill targets at the Tomtebo Mine and regionally across the Tomtebo Property.”

Fieldwork Program

Fieldwork comprising geological mapping, prospecting, and geochemical sampling at the historic

Tomtebo Mine will be conducted by Dr. Rodney Allen and Hein Raat. Dr. Allen was Manager,

Geology Research and Development for the Boliden Group in Sweden for ten years. Prior to that

position, he studied several polymetallic ore deposits in Sweden. His geological interpretations

were instrumental in the discovery of new ore bodies at Garpenberg and Renström. Mr. Raat was

a Geologist for the Boliden Group in Sweden for eight years with the last four years being focused

on polymetallic projects in the Bergslagen Mining District.

The review of historical drill results at the Tomtebo Mine prior to initiating fieldwork has

provided valuable background information that will assist with the geological interpretation of

trends, patterns, and zonation related to polymetallic mineralization. Mapping at the historic mine

will focus on identifying controls of mineralization through detailed mapping of the geology,

alteration, and structure in the open pits and where outcrop is present. Identification of strongly

altered limestone to tremol ite skarn will be a priority given the importance of this unit to other

large polymetallic deposits in the Bergslagen Mining District. The structural data obtained will

improve the 3D modeling of the mineralized zones at depth where frequent structural

measurements were historically recorded from the -200 m exploration drift.

Regional fieldwork at Tomtebo will be conducted by Nicolai Metzger who is an economic

geologist with a focus on precious and base metal exploration in Scandinavia. The regional work

will focus on known polymetallic mineral occurrences, preliminary SkyTEM conductive and

magnetic anomalies, and outcrop exposures. Special attention will be given to mapping out

characteristic mafic volcanics and marble horizons that are often spatially related to polymetallic

mineralization at the Garpenberg, Zinkgruvan, historic Falun, and historic Sala Mines.

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

Telephone: 604-628-2669

Figure 1: Location Map of Tomtebo Property

Note: The nearby mines provide geologic context for Tomtebo, but this is not necessarily indicative that the Property hosts similar

grades or tonnages of mineralization.

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

Telephone: 604-628-2669

References

1 Ed. Eilu, Pasi , 2012, Geological Survey of Finland, Special Paper 53, Metallogenic areas in

Sweden, p. 154.

2 Geological Survey of Sweden report grb_097, 1997.

3 AgEq equals = Ag g/t + (Au g/t × 110) + (Cu% × 98.286) + (Zn% × 38.857) + (Pb% × 34.286).

Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag,

$1650/oz for Au, $2.15/lb for Cu, $0.85/lb for Zn and $0.75/lb for Pb . Metal equivalent

calculations assume 100% recoveries.

4 ZnEq equals = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu% × 2.529) + (Pb% × 0.882).

Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag,

$1650/oz for Au, $2.15/lb for Cu, $0.85/lb for Zn and $0.75/lb for Pb . Metal equivalent

calculations assume 100% recoveries.

5 Allen, R.L., Lundström, I., Ripa, M., and Christofferson, H., 1996, Facies analysis of a 1.9 Ga,

continental margin, back-arc, felsic caldera province with diverse Zn-Pb-Ag-(Cu-Au) sulfide and

Fe oxide deposits, Bergslagen region, Sweden: Economic Geology, v. 91, p. 979–1008.

6 https://www.boliden.com/globalassets/operations/exploration/mineral-resources-and-mineral-

reserves-pdf/2019/resources_and_reserves_garpenberg_2019-12-31.pdf

Technical Information

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

Garrett Ainsworth, PGeo, 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.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects

referred to herein other than the Tomtebo and Trollberget Properties. Mineralization on any other

properties referred to herein is not necessarily indicative of mineralization on the Tomtebo and

Trollberget Properties.

The data disclosed in this news release relat ed to drilling results is historical in nature. 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 drill results relevant as the Company will use this data as a guide to plan

future exploration programs. The Company's future exploration work will include verification of

the data through drilling.

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

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

Telephone: 604-628-2669

properties through a disciplined science -based approach to create s hareholder value and benefit

other stakeholders.

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

of south -central Sweden is the Company’s main focus. Tomtebo comprises 5,144 ha, and is

situated between the historic 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. Mineralization that is open at depth and along strike at the

historic mines on the Tomtebo Property has not been followed up on, and modern systematic

exploration has never been conducted on the Property.

On Behalf of the Board of Directors

“Garrett Ainsworth”

President and Chief Executive Officer

(604) 288-4430

Neither 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 t hat may be considered “forward -looking statements” 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 not anticipate” or “believes”, or variations

of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be

taken”, “occur” or “be achieved” and other similar expressions. In addition, statements in this news release that not histori cal

facts are forward looking statements including anticipated results of future exploration and the results of additional compilation

work.

These statements and other forward-looking information are based on assumptions and estimates that the Company believes are

appropriate and reasonable in the circumstanc es, , including, without limitation, assumptions about the reliability of historical

data and the accuracy of publicly reported information regarding past and historic mines in the Bergslagen District the

Company’s ability to raise sufficient capital to f und planned exploration activities, maintain corporate capacity and satisfy the

exploration expenditure requirements required by the definitive purchase agreement between the Company and the vendor of the

Tomtebo property (the "Definitive Purchase Agreement") by the times specified therein (failing which the Tomtebo Property will

be forfeited without any repayment to the Company); and stability in financial and capital markets.

There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ

materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from

the Company's expectations include ; the risk that historic data regarding the Tomtebo property is unreliable, the risk that

information concerning production and mineralization at current and historic mines within the Bergslagen District proves to b e

inaccurate; the risk that the Company will be unable to raise sufficient capital to finance planned exploration (including incurring

prescribed exploration expenditures required by the Definitive Purchase Agreement, failing which the Tomtebo Property will be

forfeited without any repayment of the purchase price); future metal prices, , general economic, market or business conditions, \

and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities

regulators, including those described under the heading “Risks and Uncertaintie s” in the Company’s MD&A for the financial

year ended June 30, 20 19. The Company does not undertake to update or revise any forward -looking statements, except in

accordance with applicable law. Readers are cautioned not to put undue reliance on these forward-looking statements.