District Metals Corp press release

District Reports PEA Results for the Viken Deposit that Strengthens Sweden's Critical Raw Materials Future

2026-06-02

TSXV - TSX Venture Exchange · Uranium · Vanadium · Molybdenum · Nickel · Copper · Zinc · Potash · Phosphate · Cesium · Yttrium · Lanthanum · Lead · Silver · Gold · Cobalt · Iron · Rare Earth Elements · Canada · Technical Studies

Vancouver, British Columbia--(Newsfile Corp. - June 2, 2026) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQX: DMXCF) (FRA: DFPP); ("District" or the "Company") is pleased to announce the results of the Preliminary Economic Assessment ("PEA") for the Viken Energy Metals Deposit (the "Viken Deposit") within the Viken Property located in Jämtland County, central Sweden. Through its wholly-owned subsidiary, Bergslagen Metals AB, the Viken Property is 100% owned by the Company and is also completely free of any net smelter returns royalty. Unless otherwise indicated, all dollar amounts are stated in United States dollars ("$").

Garrett Ainsworth, CEO of District, commented: "Today's reported Viken Deposit PEA results mark a transformational milestone for District, and validates the immense scale, quality, and economic strength of this project. Delivering a robust after-tax NPV of $2.88 billion at an 8% discount rate and strong 45.9% IRR alongside initial CAPEX of $876 million. The low operating costs enable negative-cost uranium production of 3.3 million pounds of U3O8per year, which meets the full uranium demand of Sweden's current nuclear reactor fleet.

These PEA results are globally significant and position the Viken Deposit amongst the most compelling development opportunities for important and critical raw materials in the mining sector today. These results underscore not only the project's potential for profitability and resilience, but also our team's vision and disciplined execution in advancing an asset we believe will be capable of generating substantial long-term value for shareholders, stakeholders, and the communities in which we operate."

Viken Deposit PEA Highlights

Strong financial metrics: After-tax net present value ("NPV8%") of $2.88 billion, internal rate of return ("IRR") of 45.9%, and payback period of 2.1 years.

Significant after-tax free cash1flow: Initial capital cost of $876 million to generate average after-tax free cash flow of $531 million per year over the 13 years of life of mine (LOM) production.

Negative cost to produce uranium: Average cash cost1(net of by-product credits) per pound of uranium of negative $121/lb U₃O₈ and an all-in sustaining cost2("AISC") per pound of uranium of negative $118/lb U₃O₈ (net of by-product credits) over the life of mine.

Simplicity of mining: Conventional truck-and-surface miner open pit operation (no drill and blast) with an average strip ratio of 0.2 to 1.0 (waste to mill feed).

Enhanced metallurgical recoveries: Modified pug roast processing conceptually shows metallurgical recoveries of 90% for uranium, 70% for vanadium, 70% for sulphate of potash (SOP), 30% for nickel, and 50% for molybdenum and zinc.

Significant production profile: The Base Case scenario proposes mining at 10 million tonnes per annum (Mtpa) producing approximately: 3.3 million pounds per year of U₃O₈ production capacity-enough to meet the uranium fuel requirements of all currently operating nuclear reactors in Sweden2. 16 million pounds per year of vanadium pentoxide (V₂O₅) flake, further refined into downstream vanadium products including 37 million litres per year of vanadium electrolyte and 6 million kilograms per year of ferrovanadium (FeV) at a ratio of 35:65, respectively. The world's annual V2O5flake supply is currently dominated by Russia and China3.

250,000 tonnes per year sulphate of potash (SOP) by-product for sale as fertilizer capable of supplying 16% of Europe's annual SOP demand that is currently import-dependent, and forecast to grow at a CAGR of 3.9% to 20344. Mixed sulphide product for smelting to refined molybdenum (4.5 million pounds per year), nickel (1.6 million pounds per year), and zinc (2.1 million pounds per year) products.

Extraordinary optionality: The PEA outlines total life of mine production of 127 million tonnes sourced exclusively from within the 456 million tonne Indicated Mineral Resource Estimate published in April 20255. The additional 4.3 billion tonne Inferred Mineral Resource Estimate highlights the immense scale and optionality with planned life of mine production representing only a small fraction of the broader Mineral Resource base. The PEA does not include, nor is it based upon, the Inferred Mineral Resource Estimate.

Exceeding Environmental Regulations: New and proven technologies proposed for dust suppression, water management and protection, and dry stack tailings to reclaim the land back to its previous use.

The Viken Deposit PEA was prepared in accordance with National Instrument 43-101 - _Standards of Disclosure for Mineral Projects_("NI 43-101") standards. The base case was completed at a uranium price of $85/lb, a vanadium electrolyte price of $9/L, a ferrovanadium price of $38/kg, a sulphate of potash price of $650/tonne, a molybdenum price of $27.22/lb, a nickel price of $7.71/lb, and a zinc price of $1.45/lb.

Viken Deposit PEA Details

District engaged P&E Mining Consultant Inc. and METS Engineering Group Pty Ltd who are independent consultants with a deep understanding of economic studies on Alum Shale deposits in Sweden.

The study envisions a conventional open pit mining and processing operation with a low strip ratio that is amenable for a continuous mining system and truck transport. The nominal initial nameplate processing capacity has been set to 27,400 tonnes per day (tpd) or 10 Mtpa, but the areal extent of the Viken Deposit provides significant scalability if desired. This PEA only considers a Phase 1 open pit mining operation, and it is expected that future phases of mining would benefit from reduced capital expenditures by using the existing mineral processing plant and infrastructure.

The recovery of uranium, vanadium, sulphate of potash, and a mixed metal precipitate (molybdenum, nickel, zinc) has been evaluated through a pug roast mineral processing plant that includes crushing, pug roasting, grinding, flotation, and acid leaching. The resulting solution is run through a potassium salt crystalliser for recovery of SOP, followed by sulphide precipitation to produce a Mixed Sulphide Precipitate. The uranium and vanadium are recovered by solvent extraction. The vanadium (V2O5) flake product will be further refined into vanadium electrolyte (used in batteries for renewable energy storage) and ferrovanadium (used as alloy for strengthening steel) that have higher saleable value than the V2O5flake product.

The waste slurry will be de-watered and thickened for dry stack tailings placement that will be progressively rehabilitated.

Table 1 - Viken Deposit Preliminary Economic Assessment Highlights

| After-Tax Net Present Value (NPV8) | US$2.88 billion | | Initial Capital Costs (CAPEX) | US$876 million | | Internal Rate of Return (IRR) | 45.9% | | Average Annual After-Tax Free Cash Flow (Life of Mine) | US$531 million | | Payback Period | 2.1 years | | Uranium Average Annual Production | 3.3 million lbs U3O8 | | Vanadium Average Annual Production | 16 million lbs V2O5 | | Vanadium Electrolyte (V Electrolyte) Average Annual Production | 37 million L V Electrolyte | | Ferrovanadium (FeV) Average Annual Production | 6 million kg FeV | | Sulphate of Potash (SOP) Average Annual Production | 250,000 t SOP | | Life of Mine (LOM) Production | 13 years | | Average Unit Operating Cost of U3O8(net of by-product credits) | (-) US$121/lb U3O8 | | Uranium Price Assumption | US$85/lb U3O8 | | Vanadium Price Assumption (35% vanadium electrolyte at $9/L, 65% FeV at $38/kg) | US$15.7/lb V2O5 | | SOP Price Assumption | US$650/t SOP | | State Mineral Fee Paid to Landowners (0.15% for LOM) | US$22 million | | State Mineral Fee Paid to Sweden (0.05% for LOM) | US$7 million | | Corporate Taxes Paid to Sweden (20.6% for LOM) | US$1.6 billion |

Table 2 - PEA Sensitivity to Commodity Prices

| Sensitivity | -30% | -20% | -10% | Base Case | +10% | +20% | +30% | | FeV Price (US$/kg) | 27 | 30 | 34 | 38 | 42 | 46 | 49 | | V Electrolyte Price (US$/L) | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | U3O8Price (US$/lb) | 60 | 68 | 77 | 85 | 94 | 102 | 111 | | SOP Price (US$/t) | 455 | 520 | 585 | 650 | 715 | 780 | 845 | | After-Tax NPV (8%) (US$M) | 1,023 | 1,642 | 2,262 | 2,881 | 3,498 | 4,115 | 4,732 | | After-Tax IRR (%) | 24.3 | 32.2 | 39.3 | 45.9 | 52.0 | 57.8 | 63.3 | | After-Tax Payback (years) | 3.7 | 2.9 | 2.5 | 2.1 | 1.9 | 1.8 | 1.6 |

Capital Costs

The LOM capital costs (CAPEX) for the contemplated conventional open pit mining, processing operation, vanadium refinement facilities and supporting infrastructure at the Viken Deposit are estimated at $1.0 billion including initial capital costs of $876 million as shown in Table 3 below. The initial capital cost includes a contingency of approximately 22% or $159 million. P&E Mining and METS Engineering estimated the capital costs based on input and consultation with leading expert service providers who have experience with mine construction projects and cost estimation both in Sweden and globally.

Table 3 - Summary Breakdown of Capital Cost Estimates

| Capital Costs (US$ Millions) | Initial | Sustaining | Total | | Mine | 60 | 44 | 105 | | Process Plant & Infrastructure & Indirect Costs | 657 | 79 | 736 | | Rehabilitation | 0 | 8 | 8 | | Contingency | 159 | 26 | 185 | | Total Capital Costs | 876 | 158 | 1,034 |

Operating Costs

The operating cost estimate (OPEX) is based on a conventional open pit mine using surface miners (cutting machinery that does not require drilling and blasting) and haul trucks to a conventional mineral processing plant, and a dry stack tailings facility. The Viken Deposit's polymetallic endowment allows for the average cash cost (net of by-product credits) per pound of uranium of negative $121/lb U₃O₈ and an AISC per pound of uranium of negative $118/lb U₃O₈ (net of by-product credits) over the life of mine as further detailed below in Table 4.

Table 4 - Summary of Viken PEA Production Profile

| | Unit | Annually | Life of Mine | | Tonnes Processed | million t | 10 | 127.4 | | Average Grade U3O8 | ppm | | 197 | | Average Grade V2O5 | ppm | | 3,715 | | Average Grade SOP | % | | 4.12 | | Total Pounds U3O8 | million lbs | 3.3 | 41.8 | | Total Pounds V2O5 | million lbs | 16 | 203.9 | | Vanadium Electrolyte (V Electrolyte) | million litres | 37 | 474.4 | | Ferrovanadium (FeV) | million kg | 6 | 76.2 | | Sulphate of Potash (SOP) | thousand t | 250 | 3,200 | | Unit Operating Cost | | | | | Open Pit Mining | US$/t | | 3.50 | | Processing | US$/t | | 37.43 | | Dry Stack Tailings | US$/t | | 1.81 | | General & Administrative | US$/t | | 1.33 | | SOP Freight | US$/t | | 2.51 | | Total Operating Cost | US$/t | | 46.58 | | Unit Operating Cost | US$/lb U3O8 | | 34.57 | | US$/lb V2O5 | | 2.64 | | | Operating Margin | % | | 145 |

Mine Plan

The PEA contemplates that the Viken Deposit mine will consist of a single open pit mining operation with surface miners capable of cutting 0.3 m deep into the Alum Shale, and conventional loading and hauling equipment. Open pit mining will be initiated in Year -1 (pre-stripping period) and mining will be completed by the end of Year 13. The mine plan consists of delivering 7.5 Mt of mill feed in Year 1, followed by 10 Mtpa thereafter, at a low LOM strip ratio of 0.2:1.

An inter-ramp angle of 45° was used to design the open pit. The pit is planned to be mined in two phases, allowing for in-pit waste rock disposal.

The Viken mining operation is envisioned to be owner operated. The Company will undertake all cutting, loading, hauling, and mine site maintenance activities. Drilling and blasting are not required. The anticipated truck size is 91 tonnes, similar to the CAT 777 truck, to be loaded by appropriately sized wheel loaders. The Company will provide mine management and technical services, and support equipment such as dozers, graders, and maintenance vehicles.

The Main Waste Rock Storage Facility will be located to the west of the open pit. 127.4 Mt of mill feed will be mined, along with 23.4 Mt of waste rock (primarily limestone).

Processing and Metallurgical

The process feed is crushed, grinded and floated before being mixed with concentrated sulphuric acid in a pug mill and thermally roasted to convert vanadium, uranium, potassium and associated metals into water soluble sulphate species. This configuration targets high leach recoveries and allows a liberal flotation regime, which can enhance recovery of by-products such as mixed metal precipitate (MMP) and sulphate of potash (SOP). Approximately 35% of the total V₂O₅ production will be directed to vanadium electrolyte production, with the remaining V₂O₅ allocated to FeV production. The processing steps are:

Crushing Grinding Flotation Pug Roasting SOP Crystallisation Ion Exchange Solvent Extraction Uranium and Vanadium Precipitation Mixed Metals Precipitation Residue Handling

Next Steps

The results for the PEA, using the base case assumptions, indicate that the Viken Deposit has both technical and financial merit. The project's next steps include:

Drilling to convert Inferred Mineral Resources to the Indicated classification; An extensive program of confirmatory, variability, and optimization testwork to improve confidence in the proposed process flowsheets, validate recovery assumptions, reduce technical uncertainty, and support future pre-feasibility level process design, engineering development, and cost estimation; Geotechnical and hydrogeological drilling and studies; and An environmental baseline study to characterize the existing features of the air, water and soil both on the Viken Property and in the surrounding area.

A technical report prepared in accordance with NI 43-101 on the PEA will be filed within 45 days of this news release on District's issuer profile on SEDAR+ at www.sedarplus.ca. Additional supporting details regarding the information in this news release, will be provided in the PEA technical report, including all qualifications, assumptions and exclusions that relate to the PEA. The PEA technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Viken Mineral Resource1Estimate and Geology5

The Viken Mineral Resource Estimate ("MRE") has been prepared in accordance with NI 43-101, has effective date of April 25, 2025, and takes into account the results from a total of 122 drill holes (by previous operators between 2006 and 2012) on the Viken Property, which consists of the Viken nr 1, Norr Viken, Lill Viken, Norra Leden, and Storviken mineral licenses that are 100% owned by the Company. The spacing of the drill holes ranges from 30 to 380 metres and averages approximately 300 metres. The mineralized Alum Shale extends under the entire Viken Property and beyond its boundaries.

The principal assay laboratory, ALS Minerals in Piteå, Sweden, used three different certified reference materials to monitor the accuracy of copper, nickel, uranium and zinc analytical results. Two of the standards were certified for copper, nickel and zinc, whereas the third one was certified for copper, nickel, uranium and zinc. For QA/QC purposes, every 25thsample was sent to a second laboratory for re-analysis. Analyses were performed by ALS Chemex in Öjebyn and ALS Analytica in Luleå, Sweden. There were a total of 48 certified reference materials inserted by the lab for the drill programs.

Table 5: 2025 Pit-Constrained Mineral Resource Estimate for the Viken Deposit(1-8)

| Indicated | Tonnes M | U3O8 ppm | V2O5 ppm | Mo ppm | Ni ppm | Cu ppm | Zn ppm | P2O5 ppm | Ce2O3 ppm | Y2O3 ppm | La2O3 ppm | K2O % | | 456 | 175 | 2,836 | 257 | 330 | 113 | 411 | 2,461 | 88 | 492 | 7 | 3.84 | | | | Mlb | Mt | | | | | | | | | | | | Contained Metal | 176 | 2,851 | 258 | 332 | 114 | 413 | 1.12 | 0.04 | 0.22 | 0.00 | 17.53 | | | | | | | | | | | | | | | | | Inferred | Tonnes M | U3O8 ppm | V2O5 ppm | Mo ppm | Ni ppm | Cu ppm | Zn ppm | P2O5 ppm | Ce2O3 ppm | Y2O3 ppm | La2O3 ppm | K2O % | | 4,333 | 161 | 2,543 | 240 | 321 | 118 | 417 | 2,541 | 88 | 528 | 7 | 3.70 | | | | Mlb | Mt | | | | | | | | | | | | Contained Metal | 1,538 | 24,295 | 2,293 | 3,067 | 1,127 | 3,984 | 11.01 | 0.38 | 2.29 | 0.03 | 160.27 | |

Notes:

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 2. The Inferred Mineral Resource in this MRE has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. 3. The Mineral Resource in this MRE was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. 4. The MRE was based on consensus economics forecast US$ metal prices of $72/lb U3O8, $5/lb V2O5, $17/lb Mo, $8.50/lb Ni, $4.25/lb Cu and $1.30/lb Zn with respective process recoveries of 80%, 80%, 70%, 70%, 50% and 75%. 5. Overburden, waste and mineralized US$ mining costs per tonne mined were respectively $2.00, $2.50 and $3.00. 6. Processing and G&A US$ costs per tonne processed were respectively $20 and $2. 7. Constraining pit shell slopes were 45 degrees. 8. The PEA does not include, nor is it based upon, the Inferred Mineral Resource Estimate.

The Viken Deposit is hosted within the Cambrian Viken Shale, which is regionally extensive in Sweden and referred to as the Alum Shale. The Alum Shale is enriched in metals such as vanadium, uranium, molybdenum, zinc, copper and nickel.

The stratigraphy across the Viken property consists of upper Middle and Upper Cambrian age Alum Shale occurring as both in situ and fault-detached blocks. The latter having greater potential for economic mineralization, due to imbrication of mineralized blocks. The Alum Shale is mostly exposed at surface and is underlain by Proterozoic granites and gneisses thrust eastward over Archean granitoid basement rocks. The thickness of the Alum Shale host rock has been tectonically increased from 20 to 30 m to approximately 180 m by thrusting and folding during the Silurian.

Mineralization of potential economic significance is hosted in Middle and Upper Cambrian Alum Shale, with the Upper Cambrian age strata more enriched in vanadium and uranium than the Middle Cambrian. Vanadium is held in the lattice of a mica mineral named roscoelite. Uranium values are predominantly associated with sub-micrometric uraninite crystals. Nickel, molybdenum, copper and zinc are present as sulphides.

The previous technical report on the Viken Deposit recognized additional targets for further exploration with a potential range of 980 to 1,040 million tonnes at grade ranges of 140 to 180 ppm U3O8, 2,170 to 2,740 ppm V2O5 and 210 to 260 ppm Mo. These targets for further exploration are based on the estimated strike length, depth and width of the mineralization, as supported by intermittently spaced drill holes and observations of mineralized outcrops. The targets for further exploration are located adjacent to the margins of the current MRE.

The potential quantities and grades of the targets for further exploration are conceptual in nature. There has been insufficient work done by a qualified person to define these estimates as Mineral Resources. The Company is not treating these estimates as Mineral Resources, and readers should not place undue reliance on these estimates. Even with additional work, there is no certainty that these estimates will be classified as Mineral Resources. In addition, there is no certainty that these estimates will prove to be economically recoverable.

References

1 See "_Cautionary Note Regarding Non-GAAP Financial Measures_" below. 2https://www.uniper.energy/sweden/power-supply-delivers/nuclear-power-sweden 3https://min-met.com/blog/vanadium-production-and-supply-gaps/ 4https://www.industryresearch.biz/fr/market-reports/sulphate-of-potash-sop-market-105211 5Technical Report titled "Updated Mineral Resource Estimate and Technical Report on the Viken Energy Metals Project, Jämtland County, Sweden," prepared for District Metals Corp., dated June 13, 2025 with an effective date of April 25, 2025.