District Metals Corp. Completes Successful Drilling Program at Alum Shale Properties

District Metals Corp. has announced the successful completion of its inaugural diamond drilling program at the Österkälen and Malgomaj mineral licenses, part of the company’s 100% owned Alum Shale Properties in central Sweden. The drilling, aimed at confirming geophysical anomalies identified by the company’s 2025 Mobile MagnetoTellurics (MobileMT) survey, intersected graphitic black shale in every one of the 15 completed drill holes.

Over the course of the drilling program, a total of 1,943 meters of rock was drilled across seven drill holes at the Österkälen mineral license and eight drill holes at the Malgomaj mineral license. Despite the challenges encountered at the Malgomaj nr 1002 mineral license, where three of the eight drill holes were abandoned due to the unconsolidated and weathered nature of the black shale bedrock, the company’s efforts have yielded promising results.

The drill holes at the Malgomaj mineral licenses, in particular, returned significant thicknesses of graphitic black shale, ranging from 87.5 to 141.0 meters in the first four drill holes and 79.0 to 86.5 meters in the last three drill holes. The 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 interpreted as belonging to the Alum Shale Formation.

While the geophysical and visual observations provide initial encouragement, the company emphasizes that the ultimate determination of mineralization will require geochemical analysis. All shale intervals are being sampled for assay to determine the presence, grade, and continuity of any mineralized Alum Shale horizons.

District Metals Corp. CEO Garrett Ainsworth stated, "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 be used to further constrain the interpretation and modeling of the MobileMT data, enabling the company to refine the geological model and more effectively delineate and prioritize targets for future exploration. With drilling now completed at the Malgomaj mineral licenses, District Metals Corp. will pause its activities during September to accommodate the moose hunting season and plans to resume drilling at the Viken Property in October.

The company’s focus remains on its flagship Viken Property, which covers the largest undeveloped mineral resource estimate of uranium in the world along with significant resource estimates of vanadium, potash, molybdenum, nickel, copper, zinc, and other important and critical raw materials. The Preliminary Economic Assessment (PEA) for the Viken Deposit, released on June 2, 2026, outlines an after-tax NPV of US$2.88 billion, an IRR of 45.9%, and a payback period of 2.1 years.