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District Intersects 7.85 m at 88 g/t Ag, 3.0% Zn and 1.9% Pb on the Tomtebo Property

Drill Results

District Intersects 7.85 m at 88 g/t Ag, 3.0% Zn and 1.9% Pb

on the Tomtebo Property

Vancouver, B.C. July 29, 2025

July 29, 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 (extension TOM-22-038, TOM-25-044, TOM-25-045, KVI-25-

001 and KVI-25-002) completed during the February to April 2025 drill program at the base metal

polymetallic Tomtebo Property located in the Bergslagen Mining District in south -central

Sweden.

A total of 2,485 m were drilled in five holes at the Steffenburgs zone within the historic Tomtebo

Mine area and at Kvistaberget, which is a prospective target located 5 km northeast of the historic

Tomtebo Mine area within the Tomtebo Property. This drill program was carried out from early

February to late April 2025 as part of the collaboration with Boliden Mineral AB.

The main objective of this drilling phase was to systematically test the broader Steffenburgs zone

and its prospective polymetallic mineralized horizon with aggressive step outs of 150 m at depth

in order to identify high- grade sea floor massive sulphide lenses in several directions. The

Kvistaberget target was identified by a SkyTEM geophysical conductive anomaly associated with

historic sulphide workings where rock sampling returned strong grades of copper and zinc.

Property-wide geological mapping and geochemical sampling provided evidence that the

“Volcanic Massive Sulphide ( VMS) mineralized horizon ” at the historic Tomtebo Mine area

extends into the Kvistaberget target area that has never been previously drill tested. A drilling

update with detailed information was presented in the news release on April 24, 2025.

Highlights:

• Drill hole TOM -25-044 intersected multiple zones of stringer style chalcopyrite

(copper and gold) mineralization including:

o 0.40 m at 4.3% Cu, 34 g/t Ag, 0.66 g/t Au (45.70 to 46.10 m)

o 1.35 m at 1.2% Cu, 8 g/t Ag, 1.21 g/t Au (53.70 to 55.05 m)

o 4.10 m at 1.7% Cu, 11 g/t Ag, 0.76 g/t Au (58.50 to 62.60 m)

o 1.20 m at 0.5% Cu, 8 g/t Ag, 4.48 g/t Au (138.40 to 139.60 m)

• Drill hole TOM-25-044 intersected 13.0 m at 36 g/t Ag, 2.0% Zn and 0.8% Pb, (561.0

to 574.0 m) including:

o 5.0 m at 65 g/t Ag, 3.1% Zn and 1.3% Pb (569.0 to 574.0 m)

• Drill hole TOM -25-045 intersected multiple zones of strongly altered and mineralized

footwall rocks including disseminated sphalerite-galena-pyrrhotite-pyrite (zinc, lead,

silver) with abundant gahnite (zinc) mineralization which is currently interpreted as

the prospective “VMS mineralized horizon” including:

o 7.85 m at 88 g/t Ag, 3.0% Zn and 1.9% Pb (680.40 to 688.25 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 1, and all holes within the broader Steffenburgs zone

showed both in- hole and off -hole EM conductors that likely represent sulphide

mineralization.

Drill hole plan maps are shown in Figures 1 and 2 and drill assay results are shown in Table 1.

Garrett Ainsworth, CEO of District, commented: “ These latest drill results from the Tomtebo

Property, particularly the intersection of 7.85 meters at 88 g/t silver, 3.0% zinc, and 1.9% lead in

hole TOM-25-045, show that extensive polymetallic mineralization at the Steffenburgs zone

continues at depth with aggressive step outs that remain open. These grades and thicknesses of

base metal polymetallic mineralization encountered at the Steffenburgs zone are consistent with

the presence of VMS mineralized systems, which are characteristic of the prolific Bergslagen

Mining District.

Importantly, the integration of down-hole EM surveys has revealed multiple off-hole conductors,

providing us with highly compelling targets for follow -up drilling. These findings validate our

geological model and exploration strategy.

In September 2025, w e aim to commence drilling at the historic Lövås Mine located at the

northeast end of the Tomtebo Property. The Lövås Mine shows substantial base metal

polymetallic mineralization that is wide open below the mine workings at a depth of 190 m, and

the most recent drilling at the Lövås Mine was in the 1950’s.”

All of the holes recently drilled at the Tomtebo Property have been systematically sampled for

whole rock lithogeochemistry. Interpretation of these results should help with the understanding

of the geological setting, alteration signature and guide exploration in defining new targets.

The Kvistaberget drilling did not intersect significant mineralization, except weakly disseminated

chalcopyrite (copper) mineralization in KVI-25-002 with 2.85m at 0.2% Cu between 239.65 m

and 242.50 m. The SkyTEM anomaly tested in KVI-25-001 could not be explained nor could the

BHEM identify any off-hole conductive signature supporting further investigation.

Drilling at the historic Lövås Mine, located in the northeastern part of the Tomtebo Property, will

commence in September 2025 followed by additional drilling at the Stollberg Property in Q4

2025.

Figure 1: Plan Map (-350m level) of 2025 Drilling at the Historic Tomtebo Mine

Figure 2: Plan Map of 2025 Drilling at Kvistaberget Target

Table 1: Tomtebo and Kvistaberget 2025 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

(%)

TOM22-038 35 -56 659.40 499.30 502.05 2.75 51 0.35 0.05 0.18 0.01

TOM25-044 0 -47 665.50 45.70 46.10 0.40 34 0.04 0.00 0.66 4.30

53.70 55.05 1.35 8 0.01 0.00 1.21 1.15

58.50 62.60 4.10 11 0.02 0.00 0.76 1.67

138.40 139.60 1.20 8 0.01 0.00 4.48 0.47

561.00 574.00 13.00 36 1.99 0.75 0.14 0.08

incl 569.00 574.00 5.00 65 3.11 1.31 0.22 0.07

TOM25-045 335 -51 779.50 70.00 74.00 4.00 5 0.01 0.00 0.27 0.80

80.30 82.00 1.70 3 0.01 0.00 0.10 1.33

554.95 560.80 5.85 56 1.20 0.78 0.27 0.01

603.00 607.00 4.00 13 1.84 0.85 0.10 0.03

662.00 663.00 1.00 19 0.73 0.68 0.14 0.06

667.00 667.75 0.75 11 1.38 0.34 0.08 0.09

680.40 688.25 7.85 88 3.02 1.93 0.24 0.02

KVI25-001 341 -50 452.80 No significant results

KVI25-002 322 -50 319.90 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

References

1 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

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.

The drill core reported in this news release was logged and prepared at the District Metals AB

core facility in Säter, Sweden before submittal to Palsatech Oy in Sala, Sweden where the NQ -

size drill core is cut and bagged. The samples were prepared for analysis at ALS Geochemistry

in Piteå, Sweden (“PREP -31Y”). Sample pulps were sent to ALS Geochemistry in Ireland (an

accredited mineral analysis laboratory) for analysis. Samples were analyzed using a multi -

element ultra trace method combining a four -acid di gestion with ICP -MS analytical package

(“ME-MS61”). Over limit sample values were re -assayed for: (1) values of copper >1%; (2)

values of zinc >1%; (3) values of lead >1%; and (4) values of silver >100 g/t using the high-grade

material ICP -AES analytical p ackage (“ME -OG62”). Gold, platinum, and palladium were

analyzed using the 30 g lead fire assay with ICP-AES finish analytical package (“PGM-ICP23”).

Samples values zinc >1% for the historic Tomtebo Mine area were re -assayed for zinc using an

aqua regia digestion with analytical package (“ME-OG46”) to determine and test the gahnite vs

sphalerite content. Certified standards, blanks, and duplicates were inserted into the sample

shipment to ensure integrity of the assay process. Selected samples were chosen for duplicate

assay from the coarse reject and pulps of the original sample. No QA/QC issues were noted with

the results reported.

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 (“MRE”) of uranium

in the world 2 along with significant M ineral Resource Estimates of vanadium , molybdenum,

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

For further information on the Viken Property, please see the technical report titled “ Updated

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

County, Sweden” dated effective April 25, 2025, which is available under the Company’s profile

on SEDAR+ at www.sedarplus.ca.

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 exhibits 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

under the Company’s profile 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 management’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; the results of exploration and drilling and interpretations

thereof, and future exploration; the Company’s Swedish polymetallic 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 with 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 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 receiv e dividends 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 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. 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.

2 S&P Global Market Intelligence - Market Intelligence Research