District Metals Intersects 155 Meters of Alum Shale in First Drill Hole at Target A on the Viken Property in Sweden

District Metals Corp. (DMX) has released initial drill results from the Viken Property in Jämtland County, Sweden, focusing on Target A. The first hole drilled at this location, VIK-26-001, intersected graphitic black shale belonging to the Alum Shale Formation. This intersection occurred from 43.7 meters to 198.5 meters downhole, representing a core-length interval of 154.8 meters.

The hole collar geometry was recorded with an azimuth of "-", a dip of -90 (vertical), and a total depth of 299.50 meters. Radioactivity measurements taken with a handheld Exploranium GR-110 scintillometer showed values ranging from 240 to 625 counts per second (CPS) across the interval.

No assay grades were reported for this hole. There are no data points for uranium, vanadium, molybdenum, nickel, copper, zinc, or potash. Consequently, no cut-off grade or compositing was applied. The company noted that all intervals represent core lengths and that true thickness has yet to be determined, stating that a mineral resource estimate is required before true thickness can be estimated.

According to the company, geochemical results will be necessary to determine the presence, grade, and continuity of mineralized Alum Shale horizons, as visual drill core logging and radioactivity alone are not sufficient to establish mineralization. No drill tables were provided for any other holes; only VIK-26-001 is reported. The release indicates that drilling will continue broadly across Target Areas A and B.

Context provided in the release highlights that the Viken Deposit hosts what is described as the "largest undeveloped Mineral Resource Estimate of uranium in the world." A Preliminary Economic Assessment (PEA), filed on July 17, 2026, and effective June 26, 2026, outlines the following financial metrics:

• After-tax NPV8%: US$2.88 billion
• IRR: 45.9%
• Payback: 2.1 years
• Initial capex: US$876 million
• Average annual after-tax FCF: US$531 million over 13 years

District Metals Corp. (DMX) released prior-period financial context rather than current earnings data. As of June 30, 2026, the company reported a net loss of C$4,141,203, zero revenue, and cash holdings of C$16,187,420 with no debt. The company did not flag going concern issues. These figures serve as background and do not constitute new information from this specific release.

The company’s Viken resource, Preliminary Economic Assessment (PEA), and mine plan remain unchanged. The recent drilling at Target A, a satellite exploration target, focused on de-risking the exploration method by confirming that MobileMT maps Alum Shale, rather than identifying a deposit with grade.

This finding aligns with the immediately preceding drill release on September 9, 2026, which reported that all 15 holes at Österkälen and Malgomaj intersected graphitic black shale. Those assays were pending at the time but indicated "background to weak radioactivity." That earlier release established that MobileMT conductive anomalies correspond to graphitic Alum Shale across 15 holes. The new single hole at Target A repeats this conclusion without providing new grade or scale data. The primary difference is the location: Target A is on the Viken property, 1.7 km from the deposit, and exhibits a conductive signature larger than that of Viken.

District Metals stock has experienced significant volatility, round-tripping from C$1.53 in October 2025 to C$0.43. This included a 55%+ single-day collapse on February 5, 2026, when the price fell from $0.97 to $0.38 following an announcement regarding the Swedish government's alum-shale and municipal-veto stance. The current price reflects regulatory and financing risks rather than expectations for drilling repetition.

As a developer with a PEA and a defined multi-billion-dollar net present value, District Metals' equity typically moves only when exploration holes extend or upgrade the resource or add a new mineralized zone. A host-rock confirmation at a satellite target does not meet this threshold. Consequently, the expected price effect of this release is minimal, likely resulting in no net move unless the market is already active.

District Metals Corp. (DMX) is a uranium-polymetallic explorer and developer listed on the TSX-V, Nasdaq First North, OTCQX, and FSE, focused on assets in Sweden. Its flagship asset is the 100%-owned Viken Property in Jämtland County, held via Bergslagen Metals AB. The property covers the Viken Deposit, which the company describes as the largest undeveloped uranium Mineral Resource Estimate in the world, containing vanadium, potash, molybdenum, nickel, copper, and zinc.

According to a Preliminary Economic Assessment (PEA) released on June 2, 2026, the Viken resource includes an Indicated category of 456 million tonnes (Mt) grading 175 parts per million (ppm) U3O8, 2,836 ppm V2O5, 257 ppm Mo, 330 ppm Ni, 113 ppm Cu, and 411 ppm Zn. The Inferred category totals 4,333 Mt grading 161 ppm U3O8 and 2,543 ppm V2O5.

The PEA, filed on July 17, 2026, and effective June 26, 2026, was prepared by P&E Mining Consultants and METS Engineering. The study outlines a 13-year mine life with an initial capital expenditure of US$876 million and total life-of-mine capital expenditure of US$1.034 billion. The project projects an after-tax net present value at an 8% discount rate (NPV8%) of US$2.88 billion, an internal rate of return (IRR) of 45.9%, and a payback period of 2.1 years. Annual production is estimated at 3.3 million pounds (Mlb) of U3O8, 16 Mlb of V2O5, 37 million litres of vanadium electrolyte, 6 million kilograms (M kg) of ferrovadium (FeV), and 250,000 tonnes (kt) of sulfate of potash (SOP). At a uranium price of US$85/lb, the uranium cash cost net of by-products is negative US$121/lb.

The company’s exploration pipeline includes the Altum/Alum Shale Properties in Österkälen, Tåsjö, and Malgomaj. The land package was expanded from 79,250 hectares to approximately 151,328 hectares in December 2025. Approximately 2,253 line-kilometers of MobileMT surveying are planned, and the first Alum Shale drilling campaign consisted of approximately 15 holes totaling 1,943 meters, with assays pending. Other Swedish properties include Ardnasvarre, which contains the historic Labbas zone; Sågtjärn; Nianfors; and the historically VMS/SedEx-oriented Tomtebo and Gruvberget assets. Gruvberget was impaired by C$906,185 in fiscal year 2026.

An investor presentation provided by the company is dated March 2021 and describes a VMS/SedEx strategy in Bergslagen centered on Tomtebo. This document is materially out of date and does not reflect the company’s current uranium and Alum Shale focus, nor is it usable as a current guide to the business.