District Metals Corp. reported on assay results from grab and chip rock samples recovered from geological fieldwork carried out in late-2021 at its polymetallic Svärdsjö Property in the Bergslagen Mining District of south-central Sweden. This fieldwork consisted of reconnaissance prospecting and geochemical sampling at some of the historical mines and showings along a four kilometer mineralized trend within the 1,037 hectare Svärdsjö Property.

Chip sampling from outcrop at the Kompanigruvan Pit returned 37.3% ZnEq1 (253.0 g/t Ag, 22.8% Zn, 8.6% Pb, 0.1 g/t Au, and 0.02% Cu). Kompanigruvan is a southwest extension of the historic Svärdsjö Mine where mine maps show that polymetallic mineralization at Kompanigruvan remains open at depth and to the southwest. Grab sampling from mine dumps at the Stormyrgruvan showing returned 29.0% ZnEq1 (133.0 g/t Ag, 15.7% Zn, 7.8% Pb, 0.1 g/t Au, and 1.0% Cu).

Stormyrgruvan remains open in all directions with no record of historic drilling. Grab sampling from a historic pit at the Hagsfallgruvan showing returned 18.3% ZnEq1 (58.2 g/t Ag, 9.8% Zn, 7.1% Pb, 0.1 g/t Au, and 0.2% Cu). Hagsfallgruvan remains open in all directions with no record of historic drilling.

Historical records show that mining on the Svärdsjö Property commenced during the 15th century, and the Svärdsjö deposit itself was mined from the mid-1700's until 1989. There is excellent potential for extensions of the known polymetallic mineralization at the Svärdsjö and Kompanigruvan mines, and for new mineralization to be discovered within the Svärdsjö Property. Exploration drilling was conducted by Boliden at the Svärdsjö Mine after it closed in 1989, which revealed a continuation of the Svärdsjö deposit and Kompanigruvan at depth and to the southwest as two separate polymetallic bodies named the Fäbodgruvan and Vilnäset zones.

The polymetallic mineralization at these zones consists of sphalerite (zinc), galena (lead and silver), and chalcopyrite (copper and gold), which remains open. In November 2021, District Metals retained SkyTEM Surveys ApS based out of Denmark to undertake a detailed heliborne SkyTEM312 HP (transient electromagnetic - high power) and magnetic survey over the Svärdsjö Property. Electromagnetic and magnetic data from this airborne survey is currently being interpreted and will be reported on when completed.

This is the first step of exploration at Svärdsjö that will be followed by detailed geological fieldwork in order to prioritize drill targets.