District Strengthens Its Swedish Footprint by Nearly Doubling the Size of the Alum Shale Properties

Vancouver, British Columbia--(Newsfile Corp. - December 17, 2025) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQX: DMXCF) (FSE: DFPP); ("District" or the "Company") is pleased to report that Bergslagen Metals AB (a 100% owned Swedish subsidiary of District) has applied for 11 mineral licenses covering a total area of 72,078 hectares (ha) as shown in Figure 1 (the "New Alum Shale Mineral Licenses"). These applications target Alum Shale deposits and have been registered with Bergsstaten (Mining Inspectorate of Sweden), which are located in central to north-central Sweden. Bergsstaten is expected to reach a decision on the Company's mineral license applications in the coming weeks.

Highlights:

• The New Alum Shale Mineral License applications will almost double the size of the existing Alum Shale Properties from 79,250 ha to 151,328 ha.
  
  
• The New Alum Shale Mineral License applications were submitted to secure high priority airborne geophysical MobileMT anomalies identified along the boundaries of the following existing mineral licenses:
  
  
  • Österkälen nr 102 (see October 29, 2025 news release)
  • Tåsjö nr 110 to 113 (see November 18, 2025 news release)
  • Malgomaj nr 1004 (see December 2, 2025 news release)
    
    
• The following New Alum Shale Mineral License applications were selected from the results of a comprehensive study that took into account areas with favourable geology, geochemistry, and geophysics for mineralized Alum Shales:
  
  
  • Tåsjö nr 109.
  • Hallviken nr 1 and 2.
  • Forsåsen nr 1 and 2.

Alum Shale deposits in Sweden typically contain a large inventory of important energy metals and critical raw materials that will be required as part of the green energy transition. Potentially viable Alum Shale deposits are large and shallow, which simplifies and lowers the cost of the exploration, discovery, and development stages.

Districts' 100% owned Viken Energy Metals Deposit is an Alum Shale deposit that hosts the world's largest undeveloped uranium Mineral Resource Estimateⁱ, together with significant Mineral Resource Estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials, as reported in District's April 29, 2025 news release.

On November 5, 2025 the Swedish Government approved a proposal to lift the ban on uranium exploration and mining (see news release dated November 5, 2025), and the associated legislation is expected to be enacted on January 1, 2026.