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District Comments on the Swedish Parliament’s Approval of the Proposal on Appropriate Safety and Radiation Protection Requirements for the Extraction and Processing of Nuclear Materials

Corporate Updates

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

Telephone: (604) 288-4430

District Comments on the Swedish Parliament’s Approval of the

Proposal on Appropriate Safety and Radiation Protection

Requirements for the Extraction and Processing of Nuclear

Materials

Vancouver, B.C. June 15, 2026

June 15, 2026 – District Metals Corp. (TSX-V: DMX) (Nasdaq First North: DMXSE SDB)

(OTCQX: DMXCF) (FRA: DFPP); (“District” or the “Company”) welcomes today's approval

by the Swedish Parliament (Riksdag) of legislation that streamlines the permitting framework for

the extraction and processing of nuclear materials, including uranium.

The approved amendments align the permitting process for nuclear materials more closely with

the regulatory framework applicable to other mining projects in Sweden. The changes are

intended to create a more transparent, efficient, and predictable permittin g process while

maintaining appropriate safety and radiation protection standards based on the risks associated

with the activity.

A key aspect of the legislation is that the extraction and processing of uranium will now be treated

in a manner consistent with other metals and minerals within Sweden's overall permitting

framework. The amendments remove the requirement for a separate ad missibility assessment

under the Environmental Code and eliminate the requirement for municipal council consent for

uranium extraction and processing projects, commonly referred to as the municipal veto.

The Swedish Government ha ve stated that these regulatory changes are designed to improve

permitting efficiency and provide greater certainty for projects of strategic importance to

Sweden's energy security and critical minerals supply chain. The legislation is also expected to

support Sweden's contribution to increasing European Union self -sufficiency in critical raw

materials while advancing the broader energy transition.

Parallel to this, on June 11, 2026, the Swedish Government presented the terms of reference for

a new inquiry that will investigate ways to enhance local and municipal influence for Alum Shale

depositsi. The inquiry also mentions that it will include concerned parties from the private sector

in their stakeholder dialogue. It will also provide an analysis of commercial consequences of any

proposal made and will also take into account Sweden’s commitments according to the Critical

Raw Materials Act (CRMA).

Garrett Ainsworth, CEO of District Metals, commented: “Today's decision by the Swedish

Parliament represents another significant milestone in Sweden's ongoing efforts to strengthen its

domestic nuclear fuel and critical minerals supply chains. This change to the permitting

framework for uranium fits with Sweden’s ongoing nuclear expansion.

District's commitment to earning and maintaining a strong social and local license remains

unchanged. We will continue to engage openly and transparently with municipalities, landowners,

Sámi, and other stakeholders , ensuring that our projects are advanced responsibly and to

appropriate standards of environmental stewardship, communication, and stakeholder

collaboration.

By establishing a more predictable permitting framework for uranium extraction and processing,

Sweden is aligning these activities with other mining projects while maintaining robust

environmental and safety standards. We believe these changes further enhance the strategic

importance of the Viken Deposit and our broader Alum Shale Properties as Sweden and the

European Union seek secure, long-term sources of uranium and other important and critical raw

materials required for energy security and low-carbon economic competitiveness.

We have also taken note of the separate alum shale inquiry that has now been initiated, and we

will engage in the inquiry process with the ambition that Swedish regulators can find ways for

enhanced local influence without any new veto mechanisms, such as the veto that has been

abolished today.”

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 (“NI 43-101”).

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 s hareholder 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 and development company focused on its flagship

Viken Property in Sweden. The Viken Property covers 100% of the Viken Deposit, which

contains the largest undeveloped Mineral Resource Estimate of uranium in the worldii along with

significant Mineral Resource Estimates of vanadium, potash, molybdenum, nickel, copper, zinc,

and other important and critical raw materials.

For further information on the Viken Property, please see the technical report entitled “NI 43-101

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

Jämtland County, Sweden” dated effective April 25, 2025, which is available 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 b y 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 uranium and Alum

Shale mining regulation in Sweden and the Company’s related beliefs and expectations; potential of the Viken Deposit; Mineral

Resource estimates; and other activities, events or developments that are expected, anticipated or may occur in the future.

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; uranium and Alum Shale exploration and mining regulation 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.

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 results of the inquiry into the mining of Alum Shale in Sweden and the possibility that it will be the subject of

a municipal veto; uranium exploration and mining regulation in Sweden; the reliability of historic data on District’s properties;

the Company’s ability to raise sufficient capital to finance planned exploration; 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 Mineral Resources and

Mineral Reserves; the substantial expenditures required to establish Mineral Reserves through drilling and the estimation of

Mineral Reserve s or Mineral 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 interest; 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 dividends from the Company; potential future

acquisitions and joint ventures; infrastructure risks; fluctuations in demand for, and prices of metals; fluctuations in fore ign

currency exchange rates ; legal proceedings and the enforceability of judgments; going concern 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. 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 intende d. Also, many of such factors are beyond the control of the Company. Accordingly, readers

should not place undue reliance on forward-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.

i https://regeringen.se/regeringsuppdrag/2026/06/starkande-av-kommunalt-inflytande-over-koncession-for-bearbetning-av-koncessionsmineral-

i-alunskiffer/

ii S&P Global Market Intelligence - Market Intelligence Research