District Receives Drill Permit for the Osterkalen Mineral License at the Alum Shale Properties in Sweden

Executive Summary

• District Metals Corp. announced a valid work plan to commence diamond drilling at its 100%-owned Österkälen Mineral License in central Sweden, targeting a large, untested geophysical and geochemical anomaly.
• Arctic DS AB has been contracted to execute the core drilling program, with the total meters and number of holes dependent on initial results and falling within an approved annual budget of 5,000 to 7,000 meters.
• The release references a recent Preliminary Economic Assessment (PEA) for the company's flagship Viken Deposit, highlighting an after-tax NPV of US$2.88 billion and an IRR of 45.9%.

Key Details

• Drilling Location & Target: Österkälen Mineral License, part of the Alum Shale Properties. The program will test a large MobileMT geophysical conductive anomaly identified in 2025, interpreted to represent prospective Alum Shale stratigraphy.
• Anomaly Dimensions: The conductive anomaly extends approximately 8 km in length and up to 3.5 km in width. It has never been previously drill tested and is considered a district-scale target.
• Contractor & Timeline: Arctic DS AB (a Swedish subsidiary of Arctic Drilling AS) was awarded the drilling contract. Operations are expected to commence in late June or early July 2026.
• Program Scope: The number of drill holes and total meters completed will be contingent on early results, operating within the company's approved annual drilling budget of approximately 5,000 to 7,000 meters.
• Flagship PEA Financials (Viken Deposit): Announced June 2, 2026, the PEA outlines an after-tax NPV8% of US$2.88 billion, an IRR of 45.9%, and a payback period of 2.1 years. Initial capital cost is US$876 million, projecting average after-tax free cash flow of US$531 million per year over a 13-year mine life.
• Technical Oversight: All scientific and technical information was prepared by or approved by Garrett Ainsworth, P.Geo, President and CEO, who serves as the Qualified Person under NI 43-101.

Notable Quotes

• "Our valid work plan for Österkälen represents the commencement of our Alum Shale exploration strategy in Sweden to discover the next potential Viken-style Alum Shale deposit." – Garrett Ainsworth, CEO
• "Our objective is to determine whether this target hosts the characteristics of a Viken-style mineralized system and to continue building on the significant exploration potential across our extensive Alum Shale land package." – Garrett Ainsworth, CEO
• "We are very pleased to have retained Arctic to conduct our planned drilling campaigns for 2026 and look forward to a successful and long-term collaboration." – Garrett Ainsworth, CEO