District Samples up to 1,397 g/t AgEq and Reports on Additional Historic Drill Results on the Tomtebo Property

In addition, the Company has located additional historic drill hole data from the area of the Tomtebo Mine at the archive named Arkivcentrum Dalarna in Falun. These additional historic drill holes were completed by state-owned Stora AB from 1944 to 1957, and are located at the Gårdsgruvans zone (see news release dated August 11^th, 2020), and 150 m southeast of the Tomtebo Mine.  The majority of this batch of historic drill core was only analyzed for copper, although significant gold and silver values are often associated with the copper mineralization.

Garrett Ainsworth, CEO of District, commented: "Rock samples recovered during the geological fieldwork at the historic mines and mineral occurrences across the Tomtebo Property have returned very high grades associated with semi-massive to massive polymetallic sulphide mineralization. High grade assay results from the Kvistaberget area has drawn greater attention given the lack historic exploration data, and the areas location along trend and between the historic Tomtebo and Lövås Mines.  The recently located historical drill results reported on in this release are from the south end of the Tomtebo Mine, which has generated additional priority drill targets and firmed up our existing 3D model of mineralized domains."    

Rock Sample and Historic Drill Hole Highlights

• Six grab samples recovered in September 2020 from dump piles at the historic Lövås Mine and within the Nyberget area returned 216.3 to 1,396.6 g/t AgEq² and 0.98 to 5.32% CuEq³ (Table 1 and Figure 1).
   
• Seven grab samples recovered in September 2020 from dump piles at historic mineral showings at the Kvistaberget area returned 7.8 to 421.4 g/t AgEq² and 0.04 to 3.81% CuEq³(Table 1 and Figure 1).
   
• Eight grab samples were recovered in 2018 from dump piles at the historic Tomtebo Mine area in 2018, which returned 196.3 to 1,295.4 g/t AgEq²and 0.63 to13.18% CuEq³(Table 1 and Figure 1).
   
• Historical drill hole TOMT56005 tested west dipping mineralization beneath the southernmost open pit of the Gårdsgruvans zone at the Tomtebo Mine, and intersected 22.0 m at 2.57% Cu (63.7 to 85.7 m), which has increased the confidence of previously modeled mineralized domains. Silver, gold, zinc, and lead assays for hole TOMT56005 are not available (Table 2).
   
• Historical drill hole TOMT56003 was collared 150 m southeast from the Tomtebo Mine and intersected 2.3 m at 0.6% Cu, 21.0% Zn, and 5.0% Pb (50.00 to 52.30 m), which remains open along dip and strike. Silver and gold assays for hole TOMT56003 are not available, and the majority of the hole only has copper assays available (Table 3).

These drill results are historical in nature. 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 will use this data as a guide to plan future exploration programs. The Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will include verification of the data through drilling.

Figure 1: Rock Assay Results with Magnetics on the Tomtebo Property

Table 1: Rock Assay Results on the Tomtebo Property

Table 2: Historical Drill Results from Gårdsgruvans Zone at Tomtebo Mine

Table 3: Historical Drill Results 150 m Southeast of Tomtebo Mine

References

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by Garrett Ainsworth, PGeo, 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 grab and chip samples reported in this news release were recovered from mine dump piles and outcrops, respectively. A total of 19 rock samples were transported to ALS Geochemistry in Malå, Sweden for preparation, and subsequently pulps were sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis.  Samples were analyzed using forty-one element inductively coupled plasma method ("ME-ICP41").  Over limit sample values were re-assayed for: (1) values of copper >1%; (2) values of zinc >1%; (3) values of lead >1%; and (4) values of silver >100 g/t.  Samples were re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical package.  Gold determinations by this method are semi-quantitative due to the small sample weight used (0.5g).  Certified standards and blanks were inserted into the sample shipment to ensure integrity of the assay process.  Selected samples were chosen for duplicate assay from the coarse reject and pulps of the original sample. No QA/QC issues were noted with the results reported.

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

The data disclosed in this news release related to drilling results is historical in nature. 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 will use this data as a guide to plan future exploration programs. The Company's future exploration work will include verification of the data through drilling.

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.

The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-central Sweden is the Company's main focus. Tomtebo comprises 5,144 ha, 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. Mineralization that is open at depth and along strike at the historic mines on the Tomtebo Property has not been followed up on, and modern systematic exploration has never been conducted on the Property.

On Behalf of the Board of Directors

"Garrett Ainsworth"
President and Chief Executive Officer

(604) 288-4430

Neither 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 statements" 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 state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved" and other similar expressions. In addition, statements in this news release that not historical facts are forward looking statements including anticipated results of future exploration and the results of additional compilation work. 

These statements and other forward-looking information are based on assumptions and estimates that the Company believes are appropriate and reasonable in the circumstances, , including, without limitation, assumptions about the reliability of historical data and the accuracy of publicly reported information regarding past and historic mines in the Bergslagen District  the Company's ability to raise sufficient capital to fund planned exploration activities, maintain corporate capacity and satisfy the  exploration expenditure requirements required by the definitive purchase agreement between the Company and the vendor of the Tomtebo property (the "Definitive Purchase Agreement") by the times specified therein (failing which the Tomtebo Property will be forfeited without any repayment to the Company); and stability in financial and capital markets. 

There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include ; the risk that historic data regarding the Tomtebo property is unreliable, the risk that information concerning production and mineralization at current and historic mines within the Bergslagen District proves to be inaccurate; the risk that the Company will be unable to raise sufficient capital to finance planned exploration (including incurring prescribed exploration expenditures required by the Definitive Purchase Agreement, failing which the Tomtebo Property will be forfeited without any repayment of the purchase price); future metal prices, , general economic, market or business conditions, \ and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's MD&A for the financial year ended June 30, 2020. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law. Readers are cautioned not to put undue reliance on these forward-looking statements.

SOURCE District Metals Corp.