District Identifies Large and Robust Targets from Airborne MobileMT Survey at Malgomaj Alum Shale Property in Sweden

The most recent news release (2025-12-02) announces positive results from an airborne MobileMT survey at District Metals' 100%-owned Malgomaj Alum Shale Property in Sweden. The survey outlined six low resistivity anomalies, with two primary targets (A and B) demonstrating size and scale surpassing anomalies previously identified at the Viken Property. Following these findings, the company has filed an application for a new mineral license adjacent to the existing Malgomaj license to cover the potential extensions of these significant anomalies. CEO Garrett Ainsworth emphasized the large and strong nature of these conductive anomalies, suggesting the presence of thick, mineralized Alum Shales with potential for significant uranium and associated critical raw materials, and reinforced confidence in Malgomaj as a highly prospective opportunity for a scalable Alum Shale discovery.

This news is a positive development, indicating successful early-stage exploration and identification of prospective areas on the Malgomaj property. The MobileMT survey results align with the company's geological model for Alum Shale mineralization and its strategy to leverage advanced geophysics to define drill targets. The CEO's comments about the anomalies surpassing those at Viken are noteworthy, as Viken hosts a very large historical uranium resource. The application for an expanded license area demonstrates proactive management in securing potential extensions.

However, the impact is considered routine-positive rather than material-positive or game-changing. This is primarily because these are geophysical results, not direct drill intercepts or resource calculations. While they are a crucial step in the exploration process, they still require ground-truthing, sampling, and drilling to confirm mineralization and delineate an economic deposit. The news builds upon the significant "Material - Game Changer" announcement on 2025-11-05 regarding the Swedish Parliament's decision to repeal the uranium moratorium, which was a broader, more fundamental shift for the company's core assets. This Malgomaj update is a subsequent, logical progression of exploration work within that more favorable regulatory environment.

The market reaction to this news, given the stock price closed at $0.90 on 2025-12-01 (before the 2025-12-02 news), and the trend has been downward since early November, suggests that this specific early-stage exploration update, while positive, did not generate significant new buying interest or reverse the broader short-term downtrend. It confirms expectations but does not exceed them in a way that would fundamentally alter the company's valuation in the immediate term.

District Metals Corp. is a Canadian mineral exploration company primarily focused on developing its portfolio of energy metals and polymetallic properties in Sweden. The company employs a science-based approach to exploration, seeking to identify and develop deposits of critical raw materials.

Flagship Project: * Viken Energy Metals Deposit (Jämtland County, central Sweden): This is District Metals' most significant asset, covering 100% of the Viken deposit. It is known as the world's second-largest uranium deposit by contained pounds (1.5 billion lbs U3O8 in Inferred, 176 million lbs U3O8 in Indicated, as per the April 29, 2025 NI 43-101 MRE). The deposit is hosted within Alum Shales and also contains significant mineral resource estimates of vanadium, molybdenum, nickel, copper, zinc, and other critical raw materials, as well as potential for sulphate of potash. District acquired 100% ownership in January 2024 and eliminated all net smelter royalties (NSRs) on the property in February 2025, making it royalty-free. The future of Viken is highly dependent on the Swedish government's repeal of the uranium mining moratorium, expected to be effective January 1, 2026.

Other Key Properties: * Tomtebo Property (Bergslagen mining district, south-central Sweden): An advanced-exploration-stage polymetallic (VMS/sedex-style) property that was previously under an earn-in and joint venture agreement with Boliden Mineral AB. Boliden terminated this agreement in August 2025, returning 100% ownership of Tomtebo to District. EMX retains a 2.5% NSR royalty on this property. * Stollberg Property (Bergslagen mining district, south-central Sweden): Also part of the former Boliden earn-in and joint venture agreement. Following the termination, District Metals no longer holds an interest in Stollberg. * Alum Shale Properties (Tåsjå, Malgomaj, Österkålen, Ardnasvarre, Sagtjarn, Nianfors): These early-stage properties, located across Jämtland, Västernorrland, and Norrbottens Counties in Sweden, are prospective for uranium and polymetallic mineralization hosted in Alum Shales. The company is actively conducting airborne geophysical surveys (MobileMT, UAV radiometric and magnetic surveys) to identify and prioritize drill targets on these properties, building on historical data.