District Comments on Uranium Mining Announcement from the Swedish Government

Vancouver, British Columbia--(Newsfile Corp. - June 16, 2025) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) (FSE: 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 Deposit 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 shareholder value and benefit other stakeholders.