District Metals outlines anomaly at Osterkalen

Executive Summary

• District Metals Corp. has released positive results from an airborne mobile magnetotelluric (MobileMT) survey conducted at its 100%-owned Osterkalen mineral licence in Sweden, identifying a significant low-resistivity anomaly interpreted as Alum shale.
• Based on these encouraging geophysical results, the company has filed an application for a new mineral licence adjacent to the northwest of the existing Osterkalen No. 101 licence to cover the extension of the identified anomaly.
• The findings support the company's strategy to define drill-ready targets in an underexplored region known for Alum shales containing critical metals, with the anomaly's signature consistent with that observed at the company's Viken deposit.

Key Details

• Survey Methodology: The high-resolution MobileMT survey covered approximately 7,800 hectares at the Osterkalen No. 101 mineral licence, comprising 291 line kilometres at 400-metre line spacing.
• Anomaly Dimensions: The survey identified an eight-kilometre-long by up-to-3.5-kilometre-wide low-resistivity (highly conductive) anomaly.
• Geological Interpretation: The anomaly is interpreted to be Alum shale, consistent with the MobileMT signature observed at the company's Viken deposit. The Alum shale is described as typically flat-lying, rich in graphite and sulphides, making it highly conductive and easily detectable.
• Target Selection: The high-priority target area was selected based on the shallow depth and thickness of the interpreted Alum shale.
• Licensing Action: District Metals filed an application for a new mineral licence adjacent to the northwest of the Osterkalen No. 101 licence to cover the extension of the MobileMT anomaly.
• Portfolio Context: The Osterkalen, Tasjo, and Malgomaj licences form the company's Alum shale properties, collectively covering approximately 79,250 hectares. All three were surveyed during the summer of 2025.
• Strategic Significance: The results advance the company's goal of building a uranium polymetallic portfolio of district-scale assets in Sweden. The Osterkalen property is located approximately 100 kilometres northeast of the company's Viken property.
• Regulatory Context: The release notes a current moratorium on uranium exploration and mining in Sweden, which the government intends to abolish as of January 1, 2026.

Notable Quotes

• Garrett Ainsworth, CEO: "The MobileMT survey results from our Osterkalen property are highly encouraging and reveal a strong and large conductive anomaly that aligns with the interpreted Alum shale horizon. This supports our geological model and corporate strategy and highlights the significant potential to host Alum shale with important and critical raw materials."
• Garrett Ainsworth, CEO: "With these results, we are not only confirming the presence of a potentially high-tonnage Alum shale target but also advancing toward our goal of building a uranium polymetallic portfolio of district-scale assets in Sweden capable of delivering meaningful value to our shareholders and stakeholders. The combination of a large, coherent geophysical anomaly, strong geological support and proximity to infrastructure ranks Osterkalen as one of our most compelling growth opportunities to date outside of our Viken property."