District Metals Corp. Responds to Swedish Government’s Revised Mining Policy

District Metals Corp. (TSXV: DMX) issued a statement on February 5 2026 addressing recent Swedish media reports that outlined a revised approach to municipal veto rights concerning uranium and alum shale mining. The company noted that the Swedish government is reportedly considering lifting the municipal veto for uranium mining and processing, while initiating an inquiry into the mining of alum shale deposits. The inquiry may include the introduction of a new municipal veto specifically for alum shale extraction, a host rock that contains uranium as well as other critical raw materials such as vanadium, nickel, copper, zinc, and rare‑earth elements.

The company’s CEO, Garrett Ainsworth, emphasized that the proposed policy changes are “a constructive step toward a framework that supports responsible mining development and meaningful local participation, while protecting the environment and advancing Sweden’s strategic role in the European Union’s critical raw‑material agenda.” Ainsworth also stated that the potential impact of these developments on District Metals’ Swedish projects, particularly the Viken uranium discovery in Jämtland, remains uncertain at this stage.

In a separate communication, District Metals highlighted that exploration and mining of uranium from Swedish deposits were legalized on January 1, 2026, and that the new legislative change remains in effect. The company reiterated its commitment to engaging with regulatory authorities and local stakeholders to ensure compliance with evolving policies and to secure the long‑term viability of its projects.

Market Reaction

The announcement coincided with a significant decline in District Metals’ share price, dropping almost 50 % in a single trading day. The Swedish business newspaper Affärsvärlden maintained its sell recommendation for the stock, citing the uncertainty surrounding the company’s value following the government’s statements. The publication reiterated that the recent development “removes the foundation for District Metals, and we do not see any significant value remaining in the company.”

Company Position

District Metals expressed confidence in its ability to navigate the changing regulatory landscape. The company underscored its focus on responsible resource development and its intent to collaborate constructively with regulatory bodies and community stakeholders. While acknowledging the potential challenges posed by the Swedish policy shift, District Metals remains committed to advancing its exploration activities in Canada and abroad.

The information contained herein is based on publicly available news sources and the company’s official statements as of February 5 2026.