District Increases Land Position At The Sågtjärn Property After Successful UAV Survey In Sweden

2025-09-03 02:04:51

(MENAFN- Newsfile Corp) Vancouver, British Columbia--(Newsfile Corp. - September 3, 2025) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) (FSE: DFPP) ; (" District " or the " Company ") is pleased to announce that MWH Geo-Surveys International Inc. ("MWH") has completed a detailed Unmanned Aerial Vehicle ("UAV") radiometric and magnetic survey at the Sågtjärn Property (Figures 1 and 2) located in the Jämtland and Västernorrland Counties, Sweden.

The UAV survey at the Sågtjärn Property has successfully confirmed known uranium-molybdenum-rare earth elements (REEs) polymetallic occurrences whilst also identifying new target areas (Figures 1 and 2). Coincident uraniferous radiometric and magnetic high anomalies along the southern boundary of mineral license Sågtjärn nr 102 prompted mineral license application Sågtjärn nr 103, which encompasses these now closed off anomalies.

Garrett Ainsworth, CEO of District, commented: "The results from our first-ever UAV-based detailed radiometric and magnetic survey in Sweden are truly compelling. Known uranium polymetallic occurrences, such as the Sågtjärn Deposit and associated uraniferous boulder field, stand out prominently and suggest the potential for extensions beyond the currently recognized mineralized zones. Additionally, the survey has revealed several new target areas in regions that were previously underexplored or obscured by glacial till, based on coincident uraniferous radiometric and distinctive magnetic anomalies.

At the Sågtjärn Property, the radiometric data has pinpointed uranium-enriched zones warranting follow-up ground-based exploration, including prospecting, geological mapping, and sampling. The property hosts uranium polymetallic mineralization within bedrock that correlates with moderate to high magnetic responses.

Further field work will be essential to evaluate the significance of the numerous discrete magnetic anomalies accompanied by uraniferous radiometric "boulder trains" - features that are clearly defined in the detailed UAV survey data."

Uranium is commonly used as a geochemical pathfinder in mineral exploration due to its close association with various valuable mineral deposits, including REEs, base metals, and iron-oxide-copper-gold (IOCG) systems. In Sweden, certain geological environments show elevated uranium concentrations that may indicate the presence of other economically significant metals and minerals. However, while uranium anomalies can guide exploration efforts, it is important to note that there is currently a moratorium on uranium exploration and mining in Sweden that the Government has stated they intend to abolish as of January 1, 2026 (see news release dated September 2, 2025 ).

Figure 1: Sågtjärn nr 101 Uraniferous Radiometric and Magnetic Compilation

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Figure 2: Sågtjärn nr 102 & 103 Uraniferous Radiometric and Magnetic Compilation

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Sågtjärn Property Highlights:

Contains the Sågtjärn Uranium Deposit and several other uranium polymetallic occurrences.
The Sågtjärn Deposit has an historical inferred mineral resource estimate of 756,000 tonnes grading 0.068% U 3 O 8 containing 1,137,585 lbs of U 3 O 8 using a 200 ppm uranium cut off.
The Sågtjärn Deposit remains open in all directions, and contains the following drill result highlights^1,2:
- Hole SGT-77-007 intersected 8.7 m at 0.13% U 3 O 8 from 60.3 to 69.0 m .
- Hole SGT-77-011 intersected 7.0 m at 0.18% U 3 O 8 from 86.0 to 93.0 m .
- Hole SGT-79-011 intersected 5.2 m at 0.13% U 3 O 8 from 132.6 to 137.8 m .
- Hole SGT-80-001 intersected 4.6 m at 0.13% U 3 O 8 from 146.5 to 151.1 m .
The Sågtjärn Property has never seen systematic modern exploration.

Notes:

¹ The drill results can be found in the Geological Survey of Sweden (SGU) database: . Drill results have been converted from U to U308 (U308=U*1.1792).

² The Company is not treating the Sågtjärn Deposit as a mineral project material to the Company. District has not undertaken any independent investigation of the drill results nor has it independently analyzed the drill results in order to verify the results. District considers these drill results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.

Historical Estimate Disclosure:

See report titled "Revised Introductory Technical Report on Eight Uranium Properties in Northern Sweden" prepared for Continental Precious Metals Inc., revised and restated September 20, 2005 with an effective date of July 15, 2005 (the "Sågtjärn Report").
The Company views the historical estimate included in the Sågtjärn Report to be relevant and reliable.
Based upon 47 drill holes, 50-100 m drill space fencing, 20-100 m spacing along drill fence. Partially drilled on a wide grid and is considered under-drilled. The authors of the Sågtjärn Report utilized a standardized cut-off of 300 ppm wherever possible to facilitate length weighted borehole grade and historical reserve comparisons.
Sågtjärn Report resources are based on Geological Survey of Sweden ("SGU") documentation and the auditing by the authors of the Sågtjärn Report of their 'reserve' calculation methodology, certain of the historical SGU estimates should be classified as (then) CIM-style inferred resources on the basis that these estimates are relevant and appear reliable.
Both XRF analysis and pulse gamma logging were used in grade determinations, with the pulse gamma logging giving substantially higher volumes and grades. Despite this bias, the authors of the Sågtjärn Report (Forsberg and Kullman, 1981) believed that the pulse gamma logging results were more representative as they measured a greater rock volume.
Forsberg and Kullman, 1981, calculated a wide variety of historical 'reserve' estimates, using a range of cut-off values (200 to 600 ppm in 100 ppm steps), analytical methods (XRF and PGL) and blocking techniques (profiles and triangles). is based on their profile method (for comparability with other deposit estimates), using a minimum 2 m 'width' and 300 ppm cut-off based on XRF analysis.
It should be noted, however, that the bulk of the historical estimates, which serve as the basis for the Sågtjärn Report historical estimate, are based on volume weighted grades which do not take the log normal nature of the mineralization's grade populations into account and that, due to this non-recognition of log normality, these historical grades are likely to be slightly overstated. It is impossible to judge the degree of grade overstatement without having carried out actual estimates, but it is considered unlikely (but not impossible) to exceed 10 % overall. This type of grade over reporting is a common problem with older, traditional reserve estimates and it was/is often accounted for by cutting high values.
Mineral resources under the Sågtjärn Report were classified under previous definition standards and do not match the current categories under NI 43-101.
The Company is not aware of any more recent estimates or data available to the Company on the Sågtjärn Uranium Property.
The Company would need to conduct an exploration program, including twinning of historical drill holes in order to verify the Sågtjärn Uranium Property historical estimate as a current mineral resource.
The mineral resource estimates is considered to be a "historical estimate" under NI 43-101 and a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and District is not treating the historical estimate as a current mineral resource.

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by Garrett Ainsworth, P.Geo, President and CEO of the Company. Mr. Ainsworth is a Qualified Person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

The data disclosed in this news release is related to historical drilling results. District has not undertaken any independent investigation of the sampling nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical drill results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.

Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than the Sågtjärn Mineral Licenses. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Sågtjärn Mineral Licenses.

About District Metals Corp.

District Metals Corp. is led by industry professionals with a track record of success in the mining industry. The Company's mandate is to seek out, explore, and develop prospective mineral properties through a disciplined science-based approach to create shareholder value and benefit other stakeholders. District is a 2025 TSX Venture 50 company, ranking among the top-performing issuers on the TSX Venture Exchange in the past year.

District is a polymetallic exploration and development company focused on the Viken and Tomtebo Properties in Sweden. The Viken Property covers 100% of the Viken Energy Metals Deposit, which contains the largest undeveloped Mineral Resource Estimate of uranium in the worldⁱ along with significant Mineral Resource Estimates of vanadium, molybdenum, nickel, copper, zinc, and other important and critical raw materials.

The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-central Sweden and is situated between the historic Falun Mine and Boliden's Garpenberg Mine that are located 25 km to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo Property along an approximate 17 km trend that exhibits similar geology, structure, alteration and VMS/SedEx style mineralization as other significant mines within the district.

For further information on the Viken Property, please see the technical report entitled "NI 43-101 Updated Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jämtland County, Sweden" dated effective April 25, 2025, which is available on SEDAR+ at .

On Behalf of the Board of Directors

"Garrett Ainsworth"

President and Chief Executive Officer
(604) 288-4430

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding "Forward-Looking Information"

This news release contains certain statements that may be considered "forward-looking information" with respect to the Company within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved" and any similar expressions. In addition, any statements that refer to expectations, predictions, indications, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward-looking information in this news release relating to the Company include, among other things, statements relating to potential lifting of the current ban on uranium mining in Sweden.

These statements and other forward-looking information are based on opinions, assumptions and estimates made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances, as of the date of this news release, including, without limitation the reliability of exploration and drill results; reliability of data and the accuracy of publicly reported information regarding current, past and historic mines in the Bergslagen district and in respect of the Swedish properties; that the Swedish government will eventually lift or amend its moratorium on uranium exploration and mining in Sweden; the Company's ability to raise sufficient capital to fund planned exploration activities, maintain corporate capacity; stability in financial and capital markets; the Company's ability to complete its planned exploration programs; the absence of adverse conditions at mineral properties; no unforeseen operational delays; no material delays in obtaining necessary permits; the price of metals remaining at levels that render mineral properties economic.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks associated with the following: the reliability of historic data on District's properties; the Company's ability to raise sufficient capital to finance planned exploration; that the Swedish government maintains its moratorium on uranium exploration and mining in Sweden for the foreseeable future; the Company's limited operating history; the Company's negative operating cash flow and dependence on third-party financing; the uncertainty of additional funding; the uncertainties associated with early stage exploration activities including general economic, market and business conditions, the regulatory process, failure to obtain necessary permits and approvals, technical issues, potential delays, unexpected events and management's capacity to execute and implement its future plans; the Company's ability to identify Mineral Resources and Mineral Reserves; the substantial expenditures required to establish Mineral Reserves through drilling and the estimation of Mineral Reserves or Mineral Resources; the uncertainty of estimates used to calculated mineralization figures; changes in governmental regulations; compliance with applicable laws and regulations; competition for future resource acquisitions and skilled industry personnel; reliance on key personnel; title matters; conflicts of interest; environmental laws and regulations and associated risks, including climate change legislation; land reclamation requirements; changes in government policies; volatility of the Company's share price; the unlikelihood that shareholders will receive dividends from the Company; potential future acquisitions and joint ventures; infrastructure risks; fluctuations in demand for, and prices of metals; fluctuations in foreign currency exchange rates; legal proceedings and the enforceability of judgments; going concern risk; risks related to the Company's information technology systems and cyber-security risks; and risk related to the outbreak of epidemics or pandemics or other health crises. For additional information regarding these risks, please see the Company's MD&A for the fiscal year ended June 30, 2024, under the heading "Risk Factors", which is available at . These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information or information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of such factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to publicly update or revise such forward-looking information, except as required by applicable securities laws.

ⁱ S&P Global Market Intelligence - Market Intelligence Research

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SOURCE: District Metals Corp.

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