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DMX.V ·

District Comments on Uranium Mining Announcement from the Swedish Government

Company Commentary

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

Telephone: (604) 288-4430

District Comments on Uranium Mining Announcement from the

Swedish Government

Vancouver, B.C. June 16, 2025

June 16, 2025 – District Metals Corp. (TSX-V: DMX) (Nasdaq First North: DMXSE SDB)

(OTCQB: DMXCF) (FRA: DFPP); (“District” or the “Company”) is pleased to announce that

that on June 12, 2025 the Swedish Ministry of Climate and Enterprise has submitted a referral to

the Council on Legislation (the “Referral”). The Referral proposes “that the prohibition in the

Environmental Code against granting permits for mining operations or mining facilities relating

to uranium-containing material be removed and that uranium should be a concession mineral

under the Minerals Act ”. The full Referral to the Council on Legislation titled “ The ban on

uranium mining is removed” can be found here.

The proposed changes detailed in the Referral will allow uranium extraction under the Minerals

Act and detailed bedrock investigations in Sweden. The amendments also permit applications for

exploration permits and processing concessions for uranium under specific conditions.

The next steps towards lifting the uranium moratorium in Sweden includes:

• A legislative proposal is to be brought to Parliament in Q3 or Q4 of 2025.

• The legislative changes are proposed to go into effect by January 1, 2026.

Garrett Ainsworth, CEO of District, commented: “The Swedish Government’s consistent and

rigorous approach towards lifting the uranium moratorium appears to be advancing as previously

communicated. We welcome this Referral process that is a significant step for Sweden to unlock

the Country’s vast uranium resources for the green energy transition during a time of increasing

geopolitical unrest. We are well prepared for this potential lifting of the uranium moratorium by

updating the Viken Energy Metals Deposi t mineral resource estimate on April 29, 2025, and

commencing an airborne MobileMT survey at the Viken Property on June 3, 2025.”

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 s hareholder 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 of uranium in the

world1 along with significant M ineral Resource Estimates of vanadium , molybdenum, nickel,

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

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 exhi bits 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

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 Viken Deposit;

results of the Viken Deposit MRE and size thereof; realization of MRE; future price of metals; potential increases to the Viken

Deposit MRE; future economic studies and timing thereof; potential lifting of the current ban on uranium mining in Sweden; the

results of exploration and drilling and i nterpretations thereof, and future exploration; the benefits of mining Sweden; the

Company’s Swedish polymetallic properties; the Company’s planned exploration activities, including its drill target strategy and

next steps for the Swedish 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 satisfy the terms of the Company’s agreement wit h Boliden; 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