District Confirms the Viken Energy Metals Deposit and Identifies High Potential Targets Elsewhere on the Viken Property in Sweden with Airborne MobileMT Survey Results

Rhea-AI Summary

District Metals Corp. (OTCQB: DMXCF) has announced positive results from its airborne Mobile Magnetotelluric (MobileMT) survey at the 100% owned Viken Energy Metals Property in Sweden. The survey successfully identified large-scale low resistivity anomalies correlating with the Viken Deposit, which contains the world's largest undeveloped uranium mineral resource.

The comprehensive survey, covering 2,350 line kilometers at 200-meter spacing, revealed several additional large-scale anomalies outside the Viken Deposit, with Target Areas A, B, and C showing larger and stronger responses than the main deposit. The Viken Property, spanning 37,211 hectares, shows potential to host multiple deposits containing uranium, vanadium, molybdenum, nickel, copper, zinc, and other critical raw materials.

The company plans to conduct a Preliminary Economic Assessment pending the anticipated lifting of Sweden's uranium moratorium, expected on January 1, 2026.

Positive

• Discovery of multiple large-scale low resistivity anomalies indicating potential for additional deposits
• Three newly identified target areas (A, B, C) show stronger signatures than the main Viken Deposit
• Property contains world's largest undeveloped uranium mineral resource
• Successful validation of MobileMT technology for Alum Shale exploration in Sweden
• 100% ownership of the extensive 37,211-hectare property

Negative

• Current uranium moratorium in Sweden restricts development until potential lift in 2026
• Economic assessment and development plans contingent on moratorium removal

Vancouver, British Columbia--(Newsfile Corp. - September 24, 2025) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) (FSE: DFPP); ("District" or the "Company") is pleased to report positive results from its airborne Mobile Magnetotelluric ("MobileMT") survey at the 100% owned Viken Energy Metals Property located in Jämtland County, central Sweden.

The high resolution MobileMT survey conducted by Expert Geophysics Limited successfully identified large-scale low resistivity (highly conductive) anomalies that correlate with the Viken Energy Metals Deposit (the "Viken Deposit"), as confirmed by historic drill holes from 2006 to 2012 (Figures 1 and 2). The MobileMT survey has also uncovered several additional large-scale low resistivity anomalies located outside of the Viken Deposit (Target Areas A to I in Figure 1), highlighting new high-priority targets for follow-up exploration. Target areas A, B, and C in Figure 1 have a larger and stronger low resistivity response compared to the Viken Deposit.

The Viken Deposit contains the largest undeveloped Mineral Resource Estimate of uranium in the worldⁱ along with significant Mineral Resource Estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials as reported in District's news release from April 29, 2025.

The MobileMT survey covered approximately 2,350 line kilometers at 200-meter spacing across the entire Viken Property, completed in two phases. Phase 1 captured the low resistivity signature of the mineralized Alum Shale that hosts the Viken Deposit. Phase 2 covered the rest of the 37,211-hectare Viken Property and identified additional low resistivity signatures resembling those of the Viken Deposit. High-priority target areas were selected based on the shallow depth and thickness of the mineralized Alum Shale. The relatively flat-lying Alum Shale is rich in graphite and sulphides, making it low resistivity (highly conductive) and easily detectable using the airborne MobileMT system.

Garrett Ainsworth, CEO of District, commented: "The Viken Deposit is already known to contain the largest undeveloped uranium mineral resource in the worldⁱ, so it's incredible to see from the MobileMT results that the Viken Property has the potential to host multiple Viken Deposits. Furthermore, three of these newly identified target areas on the Viken Property appear to be larger and more robust in signature compared to the Viken Deposit.

"The MobileMT survey results have successfully mapped the mineralized Alum Shale at the Viken Deposit, which marks a significant technological advancement in the exploration for Alum Shale in Sweden. The MobileMT results at the Viken Deposit reveal the depth and thickness of the Alum Shale, aligning with geological data from past drill holes. In a potential mining context, a shallow and thick deposit is crucial for optimizing the strip ratio and achieving the best economic outcomes.

"Now that the interpretation of the MobileMT data from the Viken Property is complete, we are evaluating the optimum location to conduct a Preliminary Economic Assessment, which is anticipated to commence upon, and if, the uranium moratorium in Sweden is lifted, as anticipated.

"We plan to leverage this newly identified MobileMT signature of Alum Shales to prioritize target areas outside of the 2025 Viken Deposit mineral resource estimate, as well as across all of our Alum Shale Properties."

Uranium is commonly used as a geochemical pathfinder in mineral exploration due to its close association with various valuable mineral deposits, including rare earth elements, base metals, and iron-oxide-copper-gold (IOCG) systems. In Sweden, certain geological environments show elevated uranium concentrations that may indicate the presence of other economically significant metals and minerals. However, while uranium anomalies can guide exploration efforts, it is important to note that there is currently a moratorium on uranium exploration and mining in Sweden that the Government has stated they intend to abolish as of January 1, 2026 (see news release dated September 2, 2025).

Figure 1: Viken Property MobileMT Survey Results in Plan View

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7971/267730_56be832a84417a4f_002full.jpg

Figure 2: Cross Section through Viken Deposit with MobileMT Survey Results

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7971/267730_56be832a84417a4f_003full.jpg

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.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Viken Mineral Licenses. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Viken Mineral Licenses.

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 2025 TSX Venture 50 company, ranking among the top-performing issuers on the TSX Venture Exchange in the past year.

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 of uranium in the worldⁱ along with significant Mineral Resource Estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials.

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 Viken Property, please see the technical report entitled "NI 43-101 Updated Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jämtland County, Sweden" dated effective April 25, 2025, 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 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 not 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 potential lifting of the current ban on uranium mining in Sweden.

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 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.

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 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 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 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 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 MD&A for the fiscal year ended June 30, 2024, 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 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.

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ⁱ S&P Global Market Intelligence - Market Intelligence Research

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267730

FAQ

What did District Metals' MobileMT survey reveal about the Viken Property?

The survey identified multiple large-scale low resistivity anomalies, with three new target areas showing stronger signatures than the main Viken Deposit, suggesting potential for additional significant mineral deposits.

How large is District Metals' Viken Property and what resources does it contain?

The Viken Property spans 37,211 hectares and contains the world's largest undeveloped uranium mineral resource, along with significant deposits of vanadium, molybdenum, nickel, copper, zinc, and other critical materials.

When can District Metals (DMXCF) begin uranium development at the Viken Property?

Development can begin after Sweden's uranium moratorium is lifted, which is expected on January 1, 2026. The company plans to conduct a Preliminary Economic Assessment following the moratorium removal.

What was the scope of District Metals' MobileMT survey at Viken?

The survey covered 2,350 line kilometers at 200-meter spacing across the entire property, completed in two phases to map the mineralized Alum Shale and identify additional exploration targets.

What are the next steps for District Metals at the Viken Property?

The company plans to evaluate optimal locations for a Preliminary Economic Assessment and prioritize exploration of newly identified target areas outside the 2025 Viken Deposit mineral resource estimate.