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DMX.V ·

District Commences SkyTEM Survey at the Tomtebo Property

Exploration Programs

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

Telephone: 604-628-2669

District Commences SkyTEM Survey at the Tomtebo Property

Vancouver, B.C. July 13, 2020

July 13, 2020 – District Metals Corp . (TSX -V: DMX; " District" or the “Company”) is

pleased to announce that an airborne electromagnetic (“EM”) and magnetic survey has

commenced on the Tomtebo Property (“Tomtebo” or the “Property”), located in the Bergslagen

Mining District in south-central Sweden.

Garrett Ainsworth, CEO of District, commented: “The Bergslagen Mining District is known for

large high grade polymetallic mineralized systems that can be identified by their conductive and

magnetic properties. For such a prolific district, the lack of EM and detailed magnetic coverage

is astounding. The recently commenced SkyTEM312 HP survey represents the first time a deep

penetrating airborne EM survey (greater than 200 m depth) has been carried out on the Tomtebo

Property. This is significant because we know that these systems in the Bergs lagen Mining

District can have mineral resources from surface to depths of 1600 m , such as is the case at

Boliden’s Garpenberg Mine and Lundin Mining’s Zinkgruvan Mine.”

The Company retained SkyTEM Surveys ApS based out of Denmark to undertake this detailed

heliborne SkyTEM312 HP (transient electromagnetic – high power) and magnetic survey over

the Tomtebo Property. T he survey will cover the entire 5,144-hectare Tomtebo Property with

approximately 600 line -kilometers at a line spacing of 1 00 m, and is capable of detecting

conductive polymetallic sulphide mineralization at depths of 500 m or more . The Tomtebo

Property is underlain by an ideal geological environment for effective EM data collection in that

the volcanic and intrusive country rocks are very resistive, in contrast to the conductive sulphide

mineralization, which will provide excellent resolution of any EM conductive anomaly identified.

Also, the absence of graphitic geological units on the Property is positive because distinguishing

between sulphide- and graphite-sourced EM conductors is otherwise a challenge that typically

requires follow-up ground EM surveys to resolve.

In general, it is anticipated that the SkyTEM312 HP survey will identify the copper-gold dominant

sulphide mineralization (feeder zones) as a moderate to strong conductor while the silver -zinc-

lead dominant sulphide mineralization (distal zones) may show as non-conductive to weakly

conductive due to the zinc sulphide mineralization. However, the silver-zinc-lead mineralization

in the district often has associated magnetic sulphides, which is expected to be detected as a

moderate to strong magnetic high. The EM and magnetic data acquired from the SkyTEM312

HP survey wi ll be interpreted by Condor Consulting and Geovista AB , and 3D inversions and

Maxwell plates will be produced to identify high priority target areas.

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

Telephone: 604-628-2669

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 Property. M ineralization on any other properties

referred to herein is not necessarily indicative of mineralization on the Tomtebo Property.

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 discipl ined science-based approach to create shareholder value and benefit

other stakeholders.

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

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

and is situated between the historic Falun Mine and Boliden’s Garpenberg Mine located 25 km

to the northwest and southeast, respectively. Two historic polymetallic mines and numerous

polymetallic showings are located on the Tomtebo Prop erty 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 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

604-628-2669

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 that may be considered “forward-looking statements” with respect to

District Metals Corp. (“District” or the “Company”) within the meaning of applicable securities laws. In some

cases, but not necessarily in all cas es, 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”. In addition, any statements that refer to expectations,

predictions, indications, projections or other characterizations of future events or circumstances contain forward -

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

Telephone: 604-628-2669

looking information. Statements containing forward -looking information are not historical facts but instead

represent manag ement’s expectations, estimates and projections regarding future events. Forward-looking

statements relating to District include, among other things, statements relating to District’s planned exploration

activities and the anticipated results thereof.

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

District in light of its experience and perception of historical trends, current conditions and expected future

developments, as well as other fact ors that the Company believes are appropriate and reasonable in the

circumstances, as of the date of this news release, including, without limitation, assumptions about the reliability of

historical data and the accuracy of publicly reported information re garding past and historic exploration and

production in the Bergslagen Mining District; the Company’s ability to raise sufficient capital to fund planned

exploration activities, maintain corporate capacity and satisfy the exploration expenditure requireme nts 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.

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

considered reasonable by District 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 informat ion,

including but not limited to the following factors; 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 Mining District proves to be 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); risks related to management and conflicts of interest; fluctuations in demand for, and prices of gold,

silver and copper; inherent risks of exploration for mineral deposits, including that commercial quantities or grades

of minerals may not be discovered; risks associated with the uncertainty of estimates of mineral resources

governmental regulations, particularl y those applicable to the mineral exploration and development industry;

environmental laws and regulations and associated risks, including climate change legislation; land reclamation

requirements; the ability to obtain and maintain necessary rights, conce ssions and permits; risks of operating in a

foreign jurisdiction and through foreign subsidiaries; a dependence on ability to attract and retain qualified

management; limitations of insurance and uninsured risks; public social activism against companies un dertaking

natural resource development; risks associated with First Nations relations; competition; legal proceedings and the

enforceability of judgments; anti-corruption and bribery regulations market events and general economic conditions

globally(including the outbreak of the novel Coronavirus ; and currency exchange rate risk s. These factors and

assumptions are not intended to represent a complete list of the factors and assumptions that could affect District.

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 statements or information, there may be other factors t hat

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 forward-looking statements or

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.