District Confirms MobileMT Geophysical Anomalies by Intersecting Graphitic Black Shale in Every Drill Hole at the Alum Shale Properties in Sweden

Vancouver, British Columbia--(Newsfile Corp. - September 9, 2026) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQX: DMXCF) (FSE: DFPP) ; (" District " or the " Company ") is pleased to announce the successful completion of its inaugural diamond drilling program at the Österkälen and Malgomaj mineral licenses, which forms part of the Company's 100% owned Alum Shale Properties in central Sweden.

Drilling was completed at the Österkälen and Malgomaj mineral licenses, where all 15 completed drill holes successfully intersected graphitic black shale interpreted to represent Alum Shale. These areas have never been drilled for mineral exploration.

A total of 787 m in seven drill holes was completed at the Österkälen mineral license (Figure 1 and Table 1), followed by 1,156 m in eight drill holes completed at the Malgomaj mineral licenses (Figures 2 and 3, and Table 2), for a combined 1,943 m of drilling.

Three drill holes at the Malgomaj nr 1002 mineral license were abandoned due to the unconsolidated and weathered nature of the black shale bedrock, which resulted in no recovery of drill core.

The drill program targeted prominent conductive anomalies identified by the Company's 2025 helicopter-borne Mobile MagnetoTellurics ("MobileMT") survey, which has demonstrated its effectiveness in mapping graphitic Alum Shale at the Company's Viken Property.

The MobileMT anomalies targeted by drilling also coincided with soil geochemical anomalies, providing additional support for the presence of mineralized Alum Shale horizons.

Highlights:

1,943 metres drilled in 15 holes across the Österkälen and Malgomaj mineral licenses.

All 15 drill holes intersected graphitic black shale , which demonstrates the effectiveness of the MobileMT survey in identifying and targeting conductive horizons interpreted to represent graphitic Alum Shale.

Approximate total composite down-hole thickness of interpreted Alum Shale Formation: 50.5 to 65.0 m in holes OST-26-001 to -007 within Österkälen nr 101 87.5 to 141.0 m in holes MAJ-26-001 to -004 within Malgomaj nr 1003 79.0 to 86.5 m in holes MAJ-26-007, -009 to -011 within Malgomaj nr 1002

The observed shales are visually differentiated into strongly graphitic black shales with abundant calcite veining and pyrite concretions and weakly to moderately graphitic grey to dark-grey, laminated shales, all likely belonging to the Alum Shale Formation.

All shale intervals (Tables 1 and 2) will be sampled for assay. The shale intervals returned background to weak radioactivity from handheld radiometric measurements using an Exploranium GR-110 scintillometer.

Geochemical results will be required to determine the presence, grade and continuity of mineralized Alum Shale horizons , as visual drill core logging and radioactivity alone is not sufficient to establish mineralization.

Drill core logging, sampling and analytical work are underway, with geochemical results to be reported once received, compiled and interpreted by the Company.

Garrett Ainsworth, CEO of District, commented: "We are very encouraged that every drill hole completed at the Österkälen and Malgomaj mineral licenses intersected graphitic black shale, marking a successful first phase of drilling our MobileMT conductive targets. While we await geochemical results to determine the metal content and geological characteristics of the intersected graphitic black shale, the consistent intersection of the conductive target horizon in every drill hole is an excellent outcome, especially for an area which has not seen any historic exploration work.

The geological information obtained from this drill program will help to further constrain the interpretation and modelling of the MobileMT data, enabling us to refine the geological model and more effectively delineate and prioritize targets for future exploration.

With drilling now completed at the Malgomaj mineral licenses, we will pause...