District Reports PEA Results for the Viken Deposit that Strengthens Sweden’s Critical Raw Materials Future
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
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District Reports PEA Results for the Viken Deposit that
Strengthens Sweden’s Critical Raw Materials Future
Vancouver, B.C. June 2, 2026
June 2, 2026 – District Metals Corp. (TSX -V: DMX) (Nasdaq First North: DMXSE SDB)
(OTCQX: DMXCF) (FRA: DFPP); (“District” or the “Company”) is pleased to announce the
results of the Preliminary Economic Assessment (“ PEA”) for the Viken Energy Metals Deposit
(the “Viken Deposit ”) within the Viken Property located in Jämtland County, central Sweden.
Through its wholly-owned subsidiary, Bergslagen Metals AB, the Viken Property is 100% owned
by the Company and is also completely free of any net smelter returns royalty. Unless otherwise
indicated, all dollar amounts are stated in United States dollars (“$”).
Garrett Ainsworth, CEO of District, commented: “Today’s reported Viken Deposit PEA results
mark a transformational milestone for District, and validates the immense scale, quality, and
economic strength of this project. Delivering a robust after -tax NPV of $ 2.88 billion at an 8%
discount rate and strong 45.9% IRR alongside initial CAPEX of $876 million. The low operating
costs enable negative -cost uranium production of 3.3 million pounds of U 3O8 per year, which
meets the full uranium demand of Sweden’s current nuclear reactor fleet.
These PEA results are globally significant and position th e Viken Deposit amongst the most
compelling development opportunities for important and critical raw materials in the mining
sector today. These results underscore not only the project’s potential for profitability and
resilience, but also our team’s vision and disciplined execution in advancing an asset we believe
will be capable of generating substantial long-term value for shareholders, stakeholders, and the
communities in which we operate.”
Viken Deposit PEA Highlights
• Strong financial metrics: After-tax net present value (“NPV8%”) of $2.88 billion, internal
rate of return (“IRR”) of 45.9%, and payback period of 2.1 years.
• Significant after-tax free cash 1 flow: Initial capital cost of $ 876 million to generate
average after-tax free cash flow of $531 million per year over the 13 years of life of mine
(LOM) production.
• Negative cost to produce uranium: Average cash cost1 (net of by-product credits) per
pound of uranium of negative $121/lb U₃O₈ and an all-in sustaining cost2 (“AISC”) per
pound of uranium of negative $118/lb U₃O₈ (net of by- product credits) over the life of
mine.
• Simplicity of mining: Conventional truck-and-surface miner open pit operation (no drill
and blast) with an average strip ratio of 0.2 to 1.0 (waste to mill feed).
• Enhanced metallurgical recoveries: Modified pug roast processing conceptually shows
metallurgical recoveries of 90% for uranium, 70% for vanadium, 70% for sulphate of
potash (SOP), 30% for nickel, and 50% for molybdenum and zinc.
• Significant production profile: The Base Case scenario proposes mining at 10 million
tonnes per annum (Mtpa) producing approximately:
o 3.3 million pounds per year of U₃O₈ production capacity—enough to meet the
uranium fuel requirements of all currently operating nuclear reactors in Sweden2.
o 16 million pounds per year of vanadium pentoxide (V₂O₅) flake, further refined
into downstream vanadium products including
37 million litres per year of vanadium electrolyte and 6 million kilograms
per year of ferrovanadium ( FeV) at a ratio of 35:65, respectively. The
world’s annual V 2O5 flake supply is currently dominated by Russia and
China3.
o 250,000 tonnes per year sulphate of potash (SOP) by-product for sale as fertilizer
capable of supplying 16% of Europe’s annual SOP demand that is currently
import-dependent, and forecast to grow at a CAGR of 3.9% to 20344.
o Mixed sulphide product for smelting to refined molybdenum (4.5 million pounds
per year), nickel (1.6 million pounds per year) , and zinc (2.1 million pounds per
year) products.
• Extraordinary optionality: The PEA outlines total life of mine production of 127 million
tonnes sourced exclusively from within the 456 million tonne Indicated Mineral Resource
Estimate published in April 2025 5. The additional 4.3 billion tonne I nferred Mineral
Resource Estimate highlights the immense scale and optionality with planned life of mine
production representing only a small fraction of the broader M ineral Resource base. The
PEA does not include, nor is it based upon, the Inferred Mineral Resource Estimate.
• Exceeding Environmental Regulations: New and proven technologies proposed for dust
suppression, water management and protection, and dry stack tailings to reclaim the land
back to its previous use.
The Viken Deposit PEA was prepared in accordance with National Instrument 43- 101 –
Standards of Disclosure for Mineral Projects (“NI 43 -101”) standards. The base case was
completed at a uranium price of $85/lb, a vanadium electrolyte price of $9/L, a ferrovanadium
price of $38/kg, a sulphate of potash price of $650/tonne, a molybdenum price of $27.22/lb, a
nickel price of $7.71/lb, and a zinc price of $1.45/lb.
Viken Deposit PEA Details
District engaged P&E Mining Consultant Inc. and METS Engineering Group Pty Ltd who are
independent consultants with a deep understanding of economic studies on Alum Shale deposits
in Sweden.
The study envisions a conventional open pit mining and process ing operation with a low strip
ratio that is amenable for a continuous mining system and truck transport. The nominal initial
nameplate processing capacity has been set to 27,400 tonnes per day (tpd) or 10 Mtpa, but the
areal extent of the Viken Deposit provides significant scalability if desired. This PEA only
considers a Phase 1 open pit mining operation, and it is expected that future phases of mining
would benefit from reduced capital expenditures by using the existing mineral processing plant
and infrastructure.
The recovery of uranium, vanadium, sulphate of potash, and a mixed metal precipitate
(molybdenum, nickel, zinc) has been evaluated through a pug roast mineral processing plant that
includes crushing, pug roasting, grinding, flotation, and acid leaching. The resulting solution is
run through a potassium salt crystalliser for recovery of SOP, followed by sulphide precipitation
to produce a Mixed Sulphide Precipitate. The uranium and vanadium are recovered by solvent
extraction. The vanadium (V2O5) flake product will be further refined into vanadium electrolyte
(used in batter ies for renewable energy storage) and ferrovanadium (used as alloy for
strengthening steel) that have higher saleable value than the V2O5 flake product.
The waste slurry will be de-watered and thickened for dry stack tailings placement that will be
progressively rehabilitated.
Table 1 - Viken Deposit Preliminary Economic Assessment Highlights
After-Tax Net Present Value (NPV8) US$2.88 billion
Initial Capital Costs (CAPEX) US$876 million
Internal Rate of Return (IRR) 45.9%
Average Annual After-Tax Free Cash Flow (Life of Mine) US$531 million
Payback Period 2.1 years
Uranium Average Annual Production 3.3 million lbs U3O8
Vanadium Average Annual Production 16 million lbs V2O5
Vanadium Electrolyte (V Electrolyte) Average Annual Production
37 million L V
Electrolyte
Ferrovanadium (FeV) Average Annual Production 6 million kg FeV
Sulphate of Potash (SOP) Average Annual Production 250,000 t SOP
Life of Mine (LOM) Production 13 years
Average Unit Operating Cost of U3O8 (net of by-product credits) (-) US$121/lb U3O8
Uranium Price Assumption US$85/lb U3O8
Vanadium Price Assumption (35% vanadium electrolyte at $9/L,
65% FeV at $38/kg) US$15.7/lb V2O5
SOP Price Assumption US$650/t SOP
State Mineral Fee Paid to Landowners (0.15% for LOM) US$22 million
State Mineral Fee Paid to Sweden (0.05% for LOM) US$7 million
Corporate Taxes Paid to Sweden (20.6% for LOM) US$1.6 billion
Table 2 - PEA Sensitivity to Commodity Prices
Sensitivity -30% -20% -10% Base Case +10% +20% +30%
FeV Price (US$/kg) 27 30 34 38 42 46 49
V Electrolyte Price (US$/L) 6 7 8 9 10 11 12
U3O8 Price (US$/lb) 60 68 77 85 94 102 111
SOP Price (US$/t) 455 520 585 650 715 780 845
After-Tax NPV (8%) (US$M) 1,023 1,642 2,262 2,881 3,498 4,115 4,732
After-Tax IRR (%) 24.3 32.2 39.3 45.9 52.0 57.8 63.3
After-Tax Payback (years) 3.7 2.9 2.5 2.1 1.9 1.8 1.6
Capital Costs
The LOM capital costs (CAPEX) for the contemplated conventional open pit mining, processing
operation, vanadium refinement facilities and supporting infrastructure at the Viken Deposit are
estimated at $1.0 billion including initial capital costs of $876 million as shown in Table 3 below.
The initial capital cost includes a contingency of approximately 22% or $ 159 million. P&E
Mining and METS Engineering estimated the capital costs based on input and consultation with
leading expert service providers who have experience with mine construction projects and cost
estimation both in Sweden and globally.
Table 3 - Summary Breakdown of Capital Cost Estimates
Capital Costs (US$ Millions) Initial Sustaining Total
Mine 60 44 105
Process Plant & Infrastructure & Indirect Costs 657 79 736
Rehabilitation 0 8 8
Contingency 159 26 185
Total Capital Costs 876 158 1,034
Operating Costs
The operating cost estimate (OPEX) is based on a conventional open pit mine using surface
miners (cutting machinery that does not require drilling and blasting) and haul trucks to a
conventional mineral processing plant , and a dry stack tailing s facility. The Viken Deposit’s
polymetallic endowment allows for the average cash cost (net of by -product credits) per pound
of uranium of negative $121/lb U₃O₈ and an AISC per pound of uranium of negative $118/lb U₃O₈
(net of by-product credits) over the life of mine as further detailed below in Table 4.
Table 4 - Summary of Viken PEA Production Profile
Unit Annually Life of
Mine
Tonnes Processed million t 10 127.4
Average Grade U3O8 ppm 197
Average Grade V2O5 ppm 3,715
Average Grade SOP % 4.12
Total Pounds U3O8 million lbs 3.3 41.8
Total Pounds V2O5 million lbs 16 203.9
Vanadium Electrolyte (V Electrolyte) million litres 37 474.4
Ferrovanadium (FeV) million kg 6 76.2
Sulphate of Potash (SOP) thousand t 250 3,200
Unit Operating Cost
Open Pit Mining US$/t 3.50
Processing US$/t 37.43
Dry Stack Tailings US$/t 1.81
General & Administrative US$/t 1.33
SOP Freight US$/t 2.51
Total Operating Cost US$/t 46.58
Unit Operating Cost US$/lb U3O8 34.57
US$/lb V2O5 2.64
Operating Margin % 145
Mine Plan
The PEA contemplates that the Viken Deposit mine will consist of a single open pit mining
operation with surface miners capable of cutting 0.3 m deep into the Alum Shale, and
conventional loading and hauling equipment. Open pit mining will be initiated in Year - 1 (pre-
stripping period) and mining will be completed by the end of Year 13. The mine plan consists of
delivering 7.5 Mt of mill feed in Year 1, followed by 10 Mtpa thereafter, at a low LOM strip ratio
of 0.2:1.
An inter-ramp angle of 45° was used to design the open pit. The pit is planned to be mined in two
phases, allowing for in-pit waste rock disposal.
The Viken mining operation is envisioned to be owner operated. The Company will undertake all
cutting, loading, hauling, and mine site maintenance activities. Drilling and blasting are not
required. The anticipated truck size is 91 tonnes, similar to the CAT 777 truck, to be loaded by
appropriately sized wheel loaders. The Company will provide mine management and technical
services, and support equipment such as dozers, graders, and maintenance vehicles.
The Main Waste Rock Storage Facility will be located to the west of the open pit. 127.4 Mt of
mill feed will be mined, along with 23.4 Mt of waste rock (primarily limestone).
Processing and Metallurgical
The process feed is crushed, grinded and floated before being mixed with concentrated sulphuric
acid in a pug mill and thermally roasted to convert vanadium, uranium, potassium and associated
metals into water soluble sulphate species. This configuration t argets high leach recoveries and
allows a liberal flotation regime, which can enhance recovery of by-products such as mixed metal
precipitate (MMP) and sulphate of potash (SOP). Approximately 35% of the total V₂O₅
production will be directed to vanadium electrolyte production, with the remaining V₂O₅ allocated
to FeV production. The processing steps are:
• Crushing
• Grinding
• Flotation
• Pug Roasting
• SOP Crystallisation
• Ion Exchange
• Solvent Extraction
• Uranium and Vanadium Precipitation
• Mixed Metals Precipitation
• Residue Handling
Next Steps
The results for the PEA, using the base case assumptions, indicate that the Viken Deposit has both
technical and financial merit. The project’s next steps include:
• Drilling to convert Inferred Mineral Resources to the Indicated classification;
• An extensive program of confirmatory, variability, and optimization testwork to improve
confidence in the proposed process flowsheets, validate recovery assumptions, reduce
technical uncertainty, and support future pre-feasibility level process design, engineering
development, and cost estimation;
• Geotechnical and hydrogeological drilling and studies; and
• An environmental baseline study to characterize the existing features of the air, water and
soil both on the Viken Property and in the surrounding area.
A technical report prepared in accordance with NI 43-101 on the PEA will be filed within 45 days
of this news release on District’s issuer profile on SEDAR+ at www.sedarplus.ca. Additional
supporting details regarding the information in this news release, will be provided in the PEA
technical report, including all qualifications, assumptions and exclusions that relate to the PEA .
The PEA technical report is intended to be read as a whole, and sections should not be read or
relied upon out of context.
Viken Mineral Resource1 Estimate and Geology5
The Viken Mineral Resource Estimate (“MRE”) has been prepared in accordance with NI 43 -
101, has effective date of April 25, 2025, and takes into account the results from a total of 122
drill holes (by previous operators between 2006 and 2012) on the Viken Property, which consists
of the Viken nr 1, Norr Viken, Lill Viken, Norra Leden, and Storviken mineral licenses that are
100% owned by the Company. The spacing of the drill holes ranges from 30 to 380 metres and
averages approximately 300 metres. The mineralized Alum Shale extends under the entire Viken
Property and beyond its boundaries.
The principal assay laboratory, ALS Minerals in Piteå, Sweden, used three different certified
reference materials to monitor the accuracy of copper, nickel, uranium and zinc analytical results.
Two of the standards were certified for copper, nickel and zinc, whereas the third one was certified
for copper, nickel, uranium and zinc. For QA/QC purposes, every 25th sample was sent to a second
laboratory for re -analysis. Analyses were performed by ALS Chemex in Öjebyn and ALS
Analytica in Luleå, Sweden. There were a total of 48 certified reference materials inserted by the
lab for the drill programs.
Table 5: 2025 Pit-Constrained Mineral Resource Estimate for the Viken Deposit(1-8)
Indicated
Tonnes
M
U3O8
ppm
V2O5
ppm
Mo
ppm
Ni
ppm
Cu
ppm
Zn
ppm
P2O5
ppm
Ce2O3
ppm
Y2O3
ppm
La2O3
ppm
K2O
%
456 175 2,836 257 330 113 411 2,461 88 492 7 3.84
Mlb Mt
Contained
Metal 176 2,851 258 332 114 413 1.12 0.04 0.22 0.00 17.53
Inferred
Tonnes
M
U3O8
ppm
V2O5
ppm
Mo
ppm
Ni
ppm
Cu
ppm
Zn
ppm
P2O5
ppm
Ce2O3
ppm
Y2O3
ppm
La2O3
ppm
K2O
%
4,333 161 2,543 240 321 118 417 2,541 88 528 7 3.70
Mlb Mt
Contained
Metal 1,538 24,295 2,293 3,067 1,127 3,984 11.01 0.38 2.29 0.03 160.27
Notes:
(1) Mineral resources which are not m ineral reserves do not have demonstrated economic viability. The estimate of
mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio -political,
marketing, or other relevant issues.
(2) The Inferred Mineral Resource in this MRE has a lower level of confidence than that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred
Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(3) The Mineral Resource in this MRE was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019)
prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
(4) The MRE was based on consensus economics forecast US$ metal prices of $72/lb U 3O8, $5/lb V 2O5, $17/lb Mo,
$8.50/lb Ni, $4.25/lb Cu and $1.30/lb Zn with respective process recoveries of 80%, 80%, 70%, 70%, 50% and 75%.
(5) Overburden, waste and mineralized US$ mining costs per tonne mined were respectively $2.00, $2.50 and $3.00.
(6) Processing and G&A US$ costs per tonne processed were respectively $20 and $2.
(7) Constraining pit shell slopes were 45 degrees.
(8) The PEA does not include, nor is it based upon, the Inferred Mineral Resource Estimate.
The Viken Deposit is hosted within the Cambrian Viken Shale, which is regionally extensive in
Sweden and referred to as the Alum Shale. The Alum Shale is enriched in metals such as
vanadium, uranium, molybdenum, zinc, copper and nickel.
The stratigraphy across the Viken property consists of upper Middle and Upper Cambrian age
Alum Shale occurring as both in situ and fault-detached blocks. The latter having greater potential
for economic mineralization, due to imbrication of mineralized blocks. The Alum Shale is mostly
exposed at surface and is underlain by Proterozoic granites and gneisses thrust eastward over
Archean granitoid basement rocks. The thickness of the Alum Shale host rock has been
tectonically increased from 20 to 30 m to app roximately 180 m by thrusting and folding during
the Silurian.
Mineralization of potential economic significance is hosted in Middle and Upper Cambrian Alum
Shale, with the Upper Cambrian age strata more enriched in vanadium and uranium than the
Middle Cambrian. Vanadium is held in the lattice of a mica mineral named roscoelite. Uranium
values are predominantly associated with sub- micrometric uraninite crystals. Nickel,
molybdenum, copper and zinc are present as sulphides.
The previous t echnical report on the Viken Deposit recognized additional targets for further
exploration with a potential range of 980 to 1,040 million tonnes at grade ranges of 140 to 180
ppm U3O8, 2,170 to 2,740 ppm V2O5 and 210 to 260 ppm Mo. These targets for further exploration
are based on the estimated strike length, depth and width of the mineralization, as supported by
intermittently spaced drill holes and observations of mineralized outcrops. The targets for further
exploration are located adjacent to the margins of the current MRE.
The potential quantities and grades of the targets for further exploration are conceptual in nature.
There has been insufficient work done by a qualified person to define these estimates as Mineral
Resources. The Company is not treating these estimates as Mineral Resources, and readers should
not place undue reliance on these estimates. Even with additional work, there is no certainty that
these estimates will be classified as Mineral Resources. In addition, there is no certainty that these
estimates will prove to be economically recoverable.
References
1 See “Cautionary Note Regarding Non-GAAP Financial Measures” below.
2 https://www.uniper.energy/sweden/power-supply-delivers/nuclear-power-sweden
3 https://min-met.com/blog/vanadium-production-and-supply-gaps/
4 https://www.industryresearch.biz/fr/market-reports/sulphate-of-potash-sop-market-105211
5 Technical Report titled “Updated Mineral Resource Estimate and Technical Report on the Viken
Energy Metals Project , Jämtland County, Sweden,” prepared for District Metals Corp. , dated
June 13, 2025 with an effective date of April 25, 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 and Eugene Puritch, P.Eng, FEC,
CET, President of P&E Mining Consultants Inc. Messrs. Ainsworth and Puritch are each a
Qualified Person for the purposes of NI 43-101. Mr. Puritch is independent of the Company. Mr.
Puritch is responsible for reporting Mineral Resources for the Viken Deposit. Additional P&E
independent Qualified Persons contributing to t he PEA are Andrew Bradfield, P.Eng., William
Stone, PhD, P.Geo., Fred Brown, P.Geo., David Burga, P.Geo., Jarita Barry, P.Geo. and D. Grant
Feasby, P.Eng. The METS independent Qualified Person contributing to the PEA is Damian
Connelly, FAusIMM (CP) Met. MMSA. FIEAust.