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District Intersects 11.0 m at 5.8% Zn, 1.1% Pb, 20 g/t Ag on the Stollberg Property

Drill Results

District Intersects 11.0 m at 5.8% Zn, 1.1% Pb, 20 g/t Ag on the

Stollberg Property

Vancouver, B.C. March 26, 2025

March 26, 2025 – District Metals Corp. (TSX-V: DMX) (Nasdaq First North: DMXSE SDB)

(OTCQB: DMXCF) (FRA: DFPP); (“District” or the “Company”) is pleased to report on drill

assay results for five drill holes (GRAGR -151 to - 155) completed during the Fall 2024 drill

program at the base metal polymetallic Stollberg Property located in the Bergslagen Mining

District in south-central Sweden.

A total of 2,438 m was drilled in five holes around the historic Gränsgruvan Mine (operated

intermittently from 1943 to 1978) located within the Stollberg Property. This drill program was

carried out from mid- October to mid -December 2024 as part of the collaboration with Boliden

Mineral AB.

Under the terms of a definitive agreement dated October 27, 2023, Boliden and District will

collaborate in the development of District’s wholly -owned polymetallic Tomtebo Property and

Boliden’s wholly-owned polymetallic Stollberg Property. Initially, Boliden will be granted the

right to earn (the “Earn -In Option”) up an eighty- five percent (85%) interest in the Tomtebo

Property. Following exercise of the Earn-In Option, the Tomtebo Property will be contributed to

a joint venture, along with Boliden’s Stollberg Property, under which District will control an

initial fifteen percent (15%) interest. A summary of the terms of definitive agreement as between

Boliden and District is presented in the news release on October 30, 2023.

A summary of the Stollberg Property is presented in the news release on October 16, 2024.

Compilation work in combination with extensive review and sampling of historic drill core from

the historic Gränsgruvan Mine resulted in a better understanding of the geological setting,

alteration system and tectonic framework of the area. Whole rock lithogeochemistry from historic

drill core samples revealed that the alteration system and style of mineralization are analogous to

that at Boliden’s operating Garpenberg Mine, which is located approximately 50 km east of the

Stollberg Property. As a reference point 3.5 million tonnes with grades of 3.4% Zn, 1.5% Pb, 97

g/t Ag, and 0.33 g/t Au was mined at the Garpenberg Mine in 2024 1. This tonnage and grade s

from the Garpenberg Mine is to provide context, but is not necessarily indicative that the Stollberg

Property hosts similar tonnages or grades of mineralization.

Highlights:

• Drill hole GRAGR-152 intersected 28.00 m at 3.68% Zn, 0.70% Pb, 23 g/t Ag, 0.11

g/t Au, and 0.05% Cu (420.0 to 448.0 m)

o including 11.00 m at 5.80% Zn, 1.1% Pb, 20 g/t Ag, 0.16 g/t Au, and 0.10%

Cu (420.0 to 431.0 m)

• Drill hole GRAGR-154 intersected 9.85 m at 4.52% Zn, 2.44% Pb, 21 g/t Ag, 0.1 g/t

Au, and 0.01% Cu (351.3 to 361.15 m)

o including 4.5 m at 7.81% Zn, 3.57% Pb, 34 g/t Ag, 0.14 g/t Au, and 0.01%

Cu (352.1 to 356.6 m)

• Down-hole electromagnetic results show multiple off -hole conductors: all drill holes

were followed up by Boliden’s in- house, state of the art, down- hole, three component

electromagnetic (DHEM) survey 2, and all holes showed both in- hole and off -hole EM

conductors that likely represent sulphide mineralization.

• The Stollberg Property contains similar host rocks, structure, alteration, and

mineralization styles as the Garpenberg Mineralized Trend, which gives significant

support in making a similar new discovery3,4,5.

A drill hole plan is shown in Figures 1 and drill assay results are shown in Table 1.

Rodney Allen, Technical Advisor for District, commented: “Our geological work shows that at

the old Gränsgruvan mine, the mineralization occurred as massive to semi -massive polymetallic

sulphide lenses, within and at the contact of, a limestone unit, and also as impregnation and

network vein mineralization (stringer vein system) within the volcanic rocks on the stratigraphic

footwall side of the limestone. This situation is analogous to the mineralization at Boliden's near-

by giant Garpenberg deposit. In the 1970s, towards the end of mining at Gränsgruvan, the mine

geologist made a tentative interpretation that the main limestone unit and perhaps the

mineralization were folded. Our strategy has been that yes, the geological structure at

Gränsgruvan could well be more complicated than originally thought, as this has been shown to

be true in recent work at many of the polymetallic sulphide ore deposits in Bergslagen. If this is

the case, the complicated geometry of the mineralization and host rocks could be the main reason

that the high- grade mineralization could not previously be traced along strike and to depth at

Gränsgruvan. Consequently, our strategy has been that if we can understand the geological

structure better, confirm whether the mine stratigraphy is folded, and determine the geometry and

continuation of the folds, then we would generate new drill targets for high-grade ore. The current

drill program reported here, has been a major success in achieving that goal. We have intersected

good mineralization, but perhaps even more importantly, we have made a major breakthrough in

understanding the geological structure of the Gränsgruvan mine area. We can now confirm that

the mine stratigraphy is tightly folded. Furthermore, our geological work shows that the limbs of

the folds are deformed (attenuated, stretched and sheared) and cut by faults. This is the main

reason that the mineralized zone has been difficult to follow and has been missed by many

previous drill holes. Our preliminary geological interpretation indicates that there are several fold

and fault repetitions of the main mineralized host zone within the Gränsgruvan mine area. We

have intersected a couple of these repetitions in the current drill program. In future drilling, we

will be able to extend our geological interpretation further and target the mineralized zone in areas

that have been missed previously. The knowledge we have gained also encourages us to explore

the extensions of the fold structures to the north, south and down-plunge.”

Garrett Ainsworth, CEO of District, commented: “ The Fall 2024 drill program at the Stollberg

Property was the first under the current District and Boliden collaboration, and has delivered some

good base metal polymetallic drill assay results. More importantly, the joint technical committee

has uncovered some geological breakthroughs at the historic Gränsgruvan Mine, which will make

follow up drilling very exciting in H2 2025.

Similarities between the Stollberg Property and Boliden’s operating Garpenberg Mine suggest

exploration potential to make a significant discovery at Stollberg. There are numerous historic

drill holes with wide intervals of base metal polymetallic mineralization at the Gränsgruvan Mine,

which gives us an advantageous head start.”

Figure 1: Plan map of Fall 2024 Drilling at the historic Gränsgruvan Mine, Stollberg Property

Table 1: Stollberg Drill Assay Results

Drill Hole Depths and Interval Assay

Results

Hole ID Azimuth Dip Total Depth

(m)

From

(m)

To

(m)

Interval

(m)

Ag

(g/t)

Zn

(%)

Pb

(%)

Au

(g/t)

Cu

(%)

GRAGR-151 267 -60 315 239.00 241.00 2.00 16 2.40 1.09 0.04 0.04

GRAGR-152 270 -50 542.9 368.40 369.10 0.70 147 0.24 2.28 0.41 0.01

377.70 400.75 23.05 13 2.65 0.95 0.03 0.04

incl 377.70 386.15 8.45 20 3.19 1.48 0.03 0.03

420.00 448.00 28.00 23 3.68 0.70 0.11 0.05

incl 420.00 431.00 11.00 20 5.80 1.06 0.16 0.10

incl 436.00 445.45 9.45 34 2.84 0.68 0.10 0.01

451.00 453.00 2.00 42 4.22 2.00 0.03 0.00

456.00 457.00 1.00 24 4.38 1.33 0.05 0.00

522.85 524.45 1.60 16 3.69 0.67 0.02 0.00

GRAGR-153 270 -50 635.8 462.40 471.70 9.30 7 1.23 0.36 0.01 0.02

478.35 486.95 8.60 22 2.28 1.08 0.03 0.01

618.35 621.40 3.05 10 0.41 1.33 0.05 0.01

GRAGR-154 272 -53 398.8 351.30 361.15 9.85 21 4.52 2.44 0.10 0.01

incl 352.10 356.60 4.50 34 7.81 3.57 0.14 0.01

GRAGR-155 266 -53 545.8 No significant results

Notes:

• All intervals are core lengths, and true thicknesses are yet to be determined. Mineral resource modeling is required before true thicknesses can be estimated.

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

Telephone: (604) 288-4430

Drill Hole Summaries

The Fall 2024 drilling at the historic Gränsgruvan Mine on the Stollberg Property is summarized

below and the location of the mentioned drilling can be found in Figure 1. Information on azimuth,

dip and total depth can be found in Table 1.

GRAGR151 (northern extension Gränsgruvan)

The first part of the hole (up to ~100 m) is composed of unmineralized, schistose, moderately,

locally strongly altered (muscovite-biotite-silica>garnet) felsic volcanic rocks. The following 100

m are represented by strongly altered (silica-k-feldspar>biotite-muscovite>albite) felsic volcanic

rocks, possibly a coherent rhyolitic lava or intrusion. Trace to locally 2% py- po>cpy-gn occur

throughout this interval. Both early and late, 1 to 6 m thick, mafic dykes occur up to ~175 m

depth. Between 200 to 310 m the hole intersected strongly altered (biotite\phlogopite-muscovite-

k-feldspar>silica) felsic volcanic rocks. From ~220 to 305 m the section shows a weak, stringer

style mineralization, average of 2-5% sulphide content (py-po>cpy-sph-gn), with a more intense

mineralized section, 5-10% sulphides (2 32-235.5 m). The last 5 meters (310 -315 m) consist of

strongly altered ( biotite\phlogopite-garnet-muscovite) felsic volcanic rock with trace sphalerite

and galena.

GRAGR152 (southern extension Gränsgruvan)

About 70% of the hole stayed in the hanging wall part of the mineralization and intersected the

following lithologies: i) unmineralized and weakly to moderately altered ( muscovite-biotite-

silica-cordierite, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits

which locally show a fining upward sequence; ii) two unmineralized marble units , 269.1-289.7

m and 326.5-332.5 m; iii) early, foliated and phlogopite altered, amphibole rich mafic sills\dykes,

92.5-97.2 m and 220.1-255.6 m; and iv) late, undeformed and unaltered, weakly porphyritic mafic

dyke, 361.7-366.3 m.

Moderate to intense mineralization was intersected between 375.55 m and 445.4 m. Highest

sulphide (py-po>sph-gn-aspy) contents are hosted in marble ~10 -20% sulphides, 375.5-380.5 m

and semi -massive sulphides (up to 80%) , 380.5-382.5 m. Moderate to strong stringer style

mineralization extends for over 60m (between 382.5 – 445.4 m) with an average of ~10% sulphide

content (py-po>cpy-sph-gn), in strongly altered ( silica-k feldspar-muscovite-biotite and patchy

magnetite, garnet) felsic volcanic rocks. A less intense, ~5% stringer style, minerali zed section

occurs between 447 and 469 m, within the following lithologies: i) marble and pyroxene skarn

beds, 447-453.6 m; ii) interlayered/banded skarn and silica-biotite/phlogopite-garnet altered felsic

volcanic rocks , 453.6-457 m; and iii) silica -biotite/phlogopite-garnet-magnetite altered felsic

volcanic rocks, 457-469 m.

A thick marble unit was intersected , 469-531.7 m. From 500 to 531 m the unit is weakly

mineralized (1-5%, patchy to stringer style s ph-gn>py-po). Fine grained felsic volcanic layers

occur within the marble, 522.85-524.45 m and host ~10-20% sphalerite rich stringers.

The last 11.2 meters (531.7-542.9 m EOH) are characterized by weakly to moderately altered fine

grained felsic volcanic rocks which look like the felsic siltstone layers from the hanging wall unit.

Thus, these are interpreted as hanging wall rocks that were structurally repeated through a fold

structure. Thin, sph-py-po stringers occur throughout this interval (<5% sulphide content).

GRAGR153 (southern extension Gränsgruvan)

Up to 454.5 m the hole stayed in the h anging wall part of the deposit composed mostly of

unmineralized and weakly to moderately altered ( muscovite-biotite-silica-cordierite>garnet,

patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits. Thin,

unmineralized, marble and skarn beds occur , 159.5-165.3 m. Several 1 to 7 m thick, foliated,

phlogopite altered and amphibole rich mafic dykes occur throughout.

Mineralized marble unit was intersected at 447.9-463.35 m. This is intruded by a young, unaltered

and undeformed mafic dyke , 457.15-461.9 m. Stringer sulphides (10- 20% sph-gn-py-po) and

disseminated magnetite occur in the lower part of the marble. The mineralization is stronger close

to the contact with strongly altered ( silica-k-feldspar-muscovite-biotite and patchy magnetite,

garnet) felsic volcanic rocks (463.35- 516.7 m). The latter unit hosts intense stringer style

mineralization (py-po>sph-gn-cpy) that decreases downhole: 10-20% sulphides, 463.35-484 m;

5-10% sulphides, 484-500 m; 1-5% sulphides. Weak, patchy to stringer style mineralization (1-

5% py-po>cpy) also occurs downhole, within interlayered/banded skarn and s ilica-

biotite/phlogopite-garnet altered felsic volcanic rocks, 516.7-532.5 m).

A thick, overall unmineralized, marble unit was intersected, 532.5-580 m. This is followed

downhole (580 to 614 m) by weakly to moderately altered fine grained felsic volcanic rocks which

look like the felsic siltstone layers from the hanging wall unit. Therefore, these are interpreted as

hanging wall rocks that were structurally repeated through a fold structure. The felsic rocks transit

downhole into an interbedded section (614- 618.3 m) composed of thin (dm to meter sized)

marble, pyroxene skarn, and sili ca-biotite altered felsic volcanic rocks. Patchy to stringer style

mineralization (~5% py-po-cpy±sph-gn) occurs in the last part of this interval and continues into

the unit below (618.3- 623.3 m), phlogopite-garnet schists, locally with skarn bands. The hole

ends into a strongly altered (phlogopite-muscovite-silica±k feldspar) felsic volcanic unit (623.3-

635.8 m).

GRAGR154 (southern extension Gränsgruvan)

Up to 334 m the hole stayed in the hanging wall part of the deposit composed mostly of

unmineralized and weakly to moderately altered ( muscovite-biotite-silica-cordierite>garnet,

patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits. Trace sulphides

occur throughout the section, except for the last 10 meters which show a very weak, patchy

mineralization (1-2% py-po±sph-cpy). A young, undeformed and unaltered mafic dyke intrudes,

265.85-270.1 m.

The hanging wall felsic volcanic rocks transit into an unmineralized, marble and skarn dominated

unit (334 - 349 m), which subsequently transits into an interlayered/banded unit of skarn, marble

and silica-biotite/phlogopite-garnet altered felsic volcanic rocks (349 – 359 m). This section is

characterized by intense stringer style mineralization , with an average of ~20% s ph-gn>py-po

between 352 and 359 m. The mineralization continues downhole in the following unit (359-367m,

biotite/phlogopite-garnet-amphibole-silica altered felsic volcanic rocks) but decreases gradually

(5-10%, 359-361 m, <5% from 361 m to 367 m).

The last part of the hole (367-398.8 m, EOH) is represented by strongly altered (silica-k feldspar-

muscovite-biotite and patchy garnet) felsic volcanic rocks which show a weak (<5%), patchy to

stringer style mineralization (py-po>sph-gn-cpy).

GRAGR155 (southern extension Gränsgruvan)

The first 13 meters (11-24 m) are characterized by typical hanging wall felsic volcanic siltstones.

From 24 to 34.3 m, the rocks are strongly sheared, locally brecciated by quartz and phlogopite

veins, and strongly altered (silica -biotite/phlogopite-garnet-amphibole-andalusite). This section

is probably linked to a fault zone. Trace py- po stringers are common along foliation. The

following unit, (34.3-40 m) is composed of a coarse grain, unmineralized, actinolite -tremolite

skarn. From 40 to 83.2 m the hole intersects a magnetite -rich, and partially mineralized

marble>skarn unit: 50-69 m patchy, 1- 2%, po>py±gn-sph-py; 69-76 m stringer style, 2 -5% py-

cpy-po±gn-sph; 76-83.2 m patchy, 1-2% po>py±gn.

From 83.2 to 451.2 m the hole stays in unmineralized and moderately altered (muscovite-biotite-

silica-cordierite>garnet, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows

deposits, typical of hanging wall part of the deposit. Young, unaltered and undeformed, weakly

porphyritic mafic dyke intrudes , 451.2-458.85 m. Between 458.85 m to 488.5 m the hole

intersects a strongly altered ( silica-biotite>garnet>muscovite) felsic volcanic rocks which are

partially mineralized: 466-473 m, patchy to stringer style, 1-5% py-po>sph; 473-488.5 m, stringer

style, ~5% py-po>sph±cpy. This unit transits into a n interlayered/banded unit (488.5-522.6 m),

characterized alternating dm to meter size layers of pyroxene skarn, marble, and s ilica-biotite-

garnet altered felsic volcanic rocks. Heterogenous, patchy to stringer style mineralization occurs

throughout, with higher sulphide content , 500-507 m, 1-10% py-po-sph-gn±cpy. The hole ends

in strongly altered (silica -biotite-garnet,522.6-529.15 m and silica-k feldspar-muscovite-biotite,

529.15-545.8 EOH) felsic volcanic rocks with trace, patchy, sulphides (gn-sph-py).

References

1 https://www.boliden.com/490349/globalassets/operations/exploration/mineral-resources-and-

mineral-reserves-pdf/2024/resources-and-reserves-garpenberg-2024-12-31.pdf

2 Allen, Rodney L., Jonsson, Rolf H. 2014. Boliden’s Garpenberg Zn- Pb-Ag mine, Sweden –

Critical factors behind the discoveries that turned mine closure into a large expansion project.

SEG Conference Abstract 0393- 000191. https://www.segweb.org/SEG/Events/Conference-

Archive/2014/Conference-Proceedings/data/papers/abstracts/0393-000191.pdf?v=020606

3 Frank, K.S., Spry, P.G., Raat, H., Allen, R.A., Jansson, N.F and Ripa, M. (2019). Variability in

the Geologic, Mineralogical, and Geochemical Characteristics of Base Metal Sulfide Deposits in

the Stollberg Ore Field, Bergslagen District, Sweden. Econ Geol 114: 473–512. doi:

https://doi.org/10.5382/econgeo.4646