District Metals Announces $4 Million Bought Deal Private Placement Financing

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

Telephone: (604) 288-4430

District Metals Announces $4 Million Bought Deal Private

Placement Financing

Vancouver, B.C. January 16, 2024

January 16, 2024 – District Metals Corp . (TSX -V: DMX) (OTCQB: DMXCF) (FRA:

DFPP); (“District” or the “Company”) is pleased to announce that it has entered into an

agreement with PI Financial Corp. to act as lead underwriter and sole bookrunner, on behalf of a

syndicate of underwriters (the “ Underwriters”), whereby the Underwriters will purchase, on a

“bought deal” basis, 18,200,000 units (the “Units”) of the Company at a price of C$0.22 per Unit

(the “Offering Price”) for aggregate gross proceeds of C$4,004,000 (the “Offering”).

Each Unit shall be comprised of one common share (“ Common Share”) in the capital of the

Company and one half of one transferable Common Share purchase warrant (each whole such

Common Share purchase warrant, a “ Warrant”). Each whole Warrant shall entitle the holder

thereof to acquire one additional Common Share at a price of C$0.30 for a period of 36 months

from the closing date of the Offering (the “Closing Date”).

The net proceeds raised will be used to fund the advancement of the Company’s projects and

for general working capital purposes.

The Offering is anticipated to close on or around February 1, 2024 (the “ Closing Date”), or

such later date as the Company and the Underwriters may determine. Closing is subject to

certain conditions including, but not limited to, the receipt of all necessary regulatory and other

approvals, including the approval of the TSX Venture Exchange. All securities issued under the

Offering are subject to a hold period expiring four months and one day from the Closing Date.

In consideration for their services, the Underwriters will receive a cash commission equal to

6.0% of the gross proceeds of the Offering and non- transferable compensation options (the

“Compensation Options”), entitling the Underwriters to purchase, at the Offering Price, that

number of Common Shares equal to 6.0% of the aggregate number of Units issued by the

Company under the Offering for a period of 36 months from the Closing Date.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any

of securities in the United States. The securities have not been and will not be registered

under the United States Securities Act of 1933, as amended (the “U. S. Securities Act”) or

any state securities laws and may not be offered or sold within the United States or to U.S.

Persons unless registered under the U.S. Securities Act and applicable state securities laws

or an exemption from such registration is available.

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 shareholder 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 uranium-vanadium Viken

Deposit, which is an asset with substantial exploration and development expenditures that resulted

in the definition of large historic polymetallic resource estimates in 2010 and 2014. The Viken

Deposit is amongst the largest deposits by total historic mineral resources of uranium and

vanadium in the world.

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

of south- central Sweden and is situated between the historic 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 technical report entitled “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 ca n 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 “bel ieves”, 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 Offering and

closing thereof; the Company’s Swedish polymetallic properties; the Company’s planned exploration activities; 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, assumptions about the reliability of historical data and the accuracy of publicly rep orted

information regarding 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 raise sufficient capital to fund planned exploration activities, maintain corporate capacity; 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 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 Metals’ 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 t he 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 any mineral resources and mineral reserves; the substantial

expenditures required to establish mineral reserves through drilling and the estimation of mineral reserves or mineral resources;

the uncertainty of estimates u sed 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 foreign currency exchange rates; legal

proceedings and the enforceability of judgment s; 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 t he Company’s Annual Information Form dated July 11, 2022, 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 diffe r

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 rel iance 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.