District Metals: Polymetallic Explorer Following in Neighbor's Giant Footsteps

• District Metals is exploring for high-grade polymetallic deposits in the Bergslagen district of south central Sweden. Their flagship property is Tomtebo which shows similar geology and mineralization to the nearby Garpenberg mine.
• The Garpenberg mine operated by Boliden is a massive polymetallic deposit that produces 3 million tons per year. At current metal prices, it generates about $165 per ton in situ value with only $43 per ton operating costs.
• District Metals sees potential for a 10 million ton standalone mining operation in the Bergslagen district which could be economic given the good infrastructure and low costs. Their goal is to delineate a resource and advance to PFS level to attract interest from a major mining company.
• District Metals recently acquired two additional advanced exploration projects, Gårvorietäkt and Svärdsjö, to complement Tomtebo. All three will be drilled in 2022 as they systematically explore and try to connect the dots between mineralized zones.
• With a strengthened treasury, District Metals plans an active 2022 exploration program across their three polymetallic projects in Sweden with potential for a maiden resource estimate and increased interest from major mining companies.

About District Metals

District Metals Corp. is a mineral exploration company focused on polymetallic deposits in the prolific Bergslagen mining district of south-central Sweden. The company's flagship project is the Tomtebo property, located just 25 km southeast of Boliden's Garpenberg mine, one of the largest and most profitable polymetallic mines in the world. Garpenberg has over 50 million tonnes of zinc, lead, copper, silver and gold in reserves and has been in production since the 1300s.

In addition to Tomtebo, District also recently acquired two other advanced-stage exploration projects in the district called Gruvberget and Svärdsjö. With a tight share structure of only 68 million shares outstanding and around $2 million in the treasury, District Metals is well-positioned to continue exploring and expanding resources at its projects in this mining-friendly jurisdiction.

Interview with Garrett Ainsworth, President & CEO of District Metals

Tomtebo's World-Class Neighbor Offers Tremendous Upside

The Garpenberg mine is the ideal model for what District hopes to achieve at Tomtebo. Garpenberg contains a diverse array of metals including 3.2% zinc, 1.2% lead, 0.2% copper, 95 g/t silver and 0.4 g/t gold. Despite lower metals prices, the mine still generates an in-situ value of $165/tonne, with cash costs of only around $43/tonne. This results in tremendous cash flow for operator Boliden at current production rates of 3 million tonnes per year.

Tomtebo shares key similarities with Garpenberg in terms of mineralization style, geology and alteration. Of particular interest is the high-grade discovery hole at Tomtebo's Steffenburgs zone, which intersected 14.3 meters of 14.2% zinc equivalent. This exceptional polymetallic mineralization confirms that Tomtebo has the potential to host very significant resources.

Advancing Towards a Maiden Resource Estimate

To date, over 10,000 metres of drilling has been completed at Tomtebo, successfully identifying widespread volcanogenic massive sulphide (VMS) mineralization across multiple zones. The current 5,000 metre Phase 2 drill program is focused on expanding these zones along strike and at depth, as well as testing several high-priority electromagnetic targets.

Assay results from Phase 2 drilling are pending, but Phase 1 returned impressive intercepts such as the aforementioned 14.3m of 14.2% ZnEq at Steffenburgs. Once Phase 2 is completed later this year, District will initiate a Phase 3 drill campaign with the goal of connecting mineralized zones and gathering data for an initial NI 43-101 resource estimate in 2022.

Developing a Pipeline of Projects in a World-Class District

In addition to Tomtebo, District recently acquired two other past-producing polymetallic projects in the Bergslagen district - Gruvberget and Svärdsjö. Both projects have seen limited modern exploration but contain several zones of VMS mineralization left open at depth and along strike from historical drilling. These projects provide District with an entire pipeline of drill-ready targets to pursue in parallel with Tomtebo.

Initial work is underway on the new projects, including airborne geophysics, surface sampling and geological modeling. This will be followed up with targeted drilling of the most prospective areas. The aim is to advance Gruvberget and Svärdsjö in a similar systematic fashion as Tomtebo, with the goal of securing development or takeover by one of the major mining companies already operating in the Bergslagen district such as Boliden and Lundin Mining.

Conclusion

With three promising polymetallic projects located near world-class mines in a top-tier mining jurisdiction like Sweden, District Metals offers investors tremendous upside potential. Phase 2 drilling and pending assay results from Tomtebo could be major catalysts in the coming months, as the company advances towards its maiden resource estimate. The recently acquired Gruvberget and Svärdsjö projects also provide significant blue sky opportunities and will help build District into a multi-asset district-scale explorer. For investors looking for undervalued junior mining exposure, District Metals deserves serious consideration.