2020

August 11, 2020 – District Metals Corp. (TSX-V: DMX) (FRA: DFPP); ("District" or the “Company”) is pleased to provide a further update on the historical drill data compilation work, and the Leapfrog 3D geological model of the historic Tomtebo Mine located within District’s polymetallic Tomtebo Property in the Bergslagen Mining District of south-central Sweden.  In partnership with EMX Royalty Corp. (TSX-V:EMX), this work represents an important development for the Tomtebo Property that has never been previously conducted, and continues to identify exceptional drill ready targets.

Historic drill highlights from the Gårdsgruvans zone at the Tomtebo Mine reveal shallow and high grade copper mineralization from near surface to a depth of 200 m that remains open along strike and at depth.  The historic drill results from the Tomtebo Mine are from campaigns carried out by state-owned Stora AB between 1916 to 1972.

Gårdsgruvans Zone Historic Drill Highlights

The Gårdsgruvans zone covers the southwest quadrant of the Tomtebo Mine where open pit and underground mining to the -90 m level extracted high grade copper.  The majority of historic drill core from this zone was only analyzed for copper, although significant gold and silver values are often associated with copper mineralization, as observed in holes TOMT70015 and TOMT71010.  The holes highlighted below show mineralization as disseminated, stringer, semi-massive and massive sulphides that remains open along strike and at depth.   

• Hole TOMT16008b was drilled at -67° from surface and intersected 3.6 m at 3.98% Cu (9.50 to 13.10 m), 4.0 m at 11.79% Cu (51.60 to 55.60 m), and 3.4 m at 2.38% Cu (68.60 to 72.00 m).

• Hole TOMT16005 was drilled at -60° from surface and intersected 1.9 m at 6.12% Cu (47.00 to 48.90 m).

• Hole TOMT57002 was drilled at -70° from surface and intersected 8.3 m at 1.69% Cu (58.80 to 67.10 m), 3.83 m at 2.21% Cu (73.70 to 77.53 m), and 2.4 m at 1.20% Cu (79.60 to 82.00 m).

• Hole TOMT68003 was drilled at -55° from surface and intersected 9.36 m at 1.38% Cu (7.21 to 16.57 m).  

• Hole TOMT70015 was drilled horizontally from the -200 m level exploration drift, and intersected 0.66 m at 14.35% CuEq¹ (4.72 to 5.38 m). 

•  Hole TOMT71010 was drilled at -60° from surface and intersected 5.5 m at 3.80% CuEq¹ (147.43 to 152.93 m).  

Historic production at the Tomtebo Mine comprised 120,000 tonnes at 4.4% Cu where seams up to 20 m wide of semi-massive to massive sulphides (dominantly chalcopyrite) were extracted².  Available production records contain limited information on the actual tonnage extracted and do not contain evidence of any analysis for Au, Ag, Zn, and Pb having been completed.  

The highlighted historic drill holes are shown on plan map and long section in Figures 1 and 2, respectively.  Table 1 shows individual assay results for copper, silver, and gold that comprise the CuEq values, and there is no record of zinc and lead analysis. 

Garrett Ainsworth, CEO of District, commented: “The presence of high grade copper enriched with precious metals at the former Tomtebo Mine is very important.  This type of mineralization and associated alteration confirms that intensely strong feeder zones were active, which is an essential component of a robust polymetallic mineralizing system in the Bergslagen Mining District.  Boliden’s Garpenberg Mine and Lundin Mining’s Zinkgruvan Mine are excellent examples of robust polymetallic mineralizing systems that exhibit high grade copper feeder zones.  This set of historic drill results highlights the potential to expand and discover additional high grade copper mineralization at Tomtebo with potential significant gold and silver values.”

Context of Historic Drill Results

The presence of high grade copper mineralization at the historic Tomtebo Mine is important in that it confirms that an intensely hot and long lasting feeder zone with metal-rich hydrothermal fluids was active.  High grade copper feeder zones are important features of Boliden’s Garpenberg Mine and Lundin Mining’s Zinkgruvan Mine located within the Bergslagen Mining District.

Drill holes TOMT16005, TOMT16008b, TOMT57002, and TOMT71010 encountered high grade copper mineralization 6 m, 45 m, 47 m and 113 m, respectively, down dip from the southernmost mine workings.  Hole TOMT16009 intersected high grade copper mineralization 14 m along strike to the south of the southernmost mine workings, which remains wide open.

Holes TOMT68003 and TOMT68004 encountered high grade copper mineralization in between open pit workings, and show good continuity of mineralization within the mine workings.  Hole TOMT71005 encountered high grade copper mineralization 45 m down dip from the northernmost mine workings.

Drill hole TOMT71018 was drilled upwards at 44° from the -200 m level exploration drift, and encountered high grade copper mineralization enriched with gold and silver 107 m down dip from the northernmost mine workings.  Holes TOMT67001, TOMT70015, and TOMT71007 drilled high grade copper mineralization 146 m, 120 m, and 146 m, respectively, down dip from the northernmost mine workings where mineralization is wide open at depth.

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.

Next Steps at Tomtebo Property

• Historical data from the Tomtebo Mine continues to be digitized, compiled and interpreted, and further results will be released as interpretations are completed.

• A detailed airborne electromagnetic and magnetic survey (SkyTEM) was recently flown across the Tomtebo Property.  The final SkyTEM data is expected by late-August, and then interpretive work will begin.  Any conductive or magnetic high anomalies from the survey will be followed up as promising targets for high grade polymetallic mineralization.

• Conductive and magnetic high anomalies will be targeted as part of a broader prospecting, mapping, and sampling program in late-August.  Detailed work will focus on the historic Tomtebo and Lövås Mines, and the numerous mineral occurrences on the Tomtebo Property.

• Dr. Rodney Allen, BSc, PhD, from Volcanic Resources has been retained to review all historical data and available drill core along with ongoing exploration data to assist in prioritizing drill targets.  Dr. Allen was Manager, Geology Research and Development for the Boliden Group, in Sweden for ten years. Prior to that position, he studied several polymetallic ore deposits in Sweden. His geological interpretations were instrumental in the discovery of new ore bodies at Garpenberg and Renström.  

Figure 1: Plan View of Gårdsgruvans Zone at the Tomtebo Mine

Figure 2: Long Section Facing East from Southwest Quadrant of Tomtebo Mine

Table 1: Gårdsgruvans Zone Historical Drill Results

Drill Hole				Depths and Interval			Historical Assay Results
Hole ID	Azimuth	Dip	Hole Type	From (m)	To (m)	Interval (m)	Ag (g/t)	Au (g/t)	Cu (%)	Zn (%)	Pb (%)	CuEq (%)
TOMT16005	81	-60	Surface	47.00	48.90	1.90	na	na	6.12	na	na	na
TOMT16008b	136	-67	Surface	9.50	13.10	3.60	na	na	3.98	na	na	na
				51.60	55.60	4.00	na	na	11.79	na	na	na
				68.60	72.00	3.40	na	na	2.38	na	na	na
TOMT16009	79	-45	Surface	28.40	31.90	3.50	na	na	2.56	na	na	na
TOMT57002	77	-70	Surface	58.80	67.10	8.30	na	na	1.69	na	na	na
				73.70	77.53	3.83	na	na	2.21	na	na	na
				79.60	82.00	2.40	na	na	1.20	na	na	na
TOMT67001	289	0	Underground	154.50	158.75	4.25	na	na	1.35	na	na	na
				162.53	163.50	0.97	na	na	3.83	na	na	na
TOMT68003	102	-55	Surface	7.21	16.57	9.36	na	na	1.38	na	na	na
TOMT68004	77	-13	Surface	1.40	10.65	9.25	na	na	1.01	na	na	na
TOMT70015	316	0	Underground	4.72	5.38	0.66	189.00	4.00	7.94	na	na	14.35
TOMT71005	81	-60	Surface	117.35	117.55	0.20	na	na	9.44	na	na	na
				124.10	124.75	0.65	na	na	1.26	na	na	na
				127.35	127.70	0.35	na	na	4.95	na	na	na
				129.70	130.35	0.65	na	na	2.79	na	na	na
TOMT71007	289	0	Underground	47.48	48.14	0.66	25.00	0.40	2.52	na	na	3.22
TOMT71010	102	-60	Surface	147.43	152.93	5.50	58.26	1.02	2.07	na	na	3.80
TOMT71018	299	44	Underground	60.70	61.79	1.09	73.00	0.80	1.10	na	na	2.74

Notes:

• True widths of the reported mineralized intervals have not been determined
• Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu
• CuEq equals = Cu% + (Ag g/t × 0.0102) + (Au g/t x 1.1192)

• Metal equivalent calculations assume 100% recoveries
• na - not assayed
• 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.

References

¹ CuEq equals = Cu% + (Ag g/t × 0.0102) + (Au g/t x 1.1192).  Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu. Metal equivalent calculations assume 100% recoveries.

² Ed. Eilu, Pasi, 2012, Geological Survey of Finland, Special Paper 53, Metallogenic areas in Sweden, p. 154.

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.

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

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

604-628-2669

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.

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