28 October 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Kalahari Copper Belt - Operational Update

Environmental Management Plan Approved for the Kalahari Copper Belt Licences in Northwestern Botswana; Field Exploration Continues to Confirm Key Targets in Preparation for Drilling

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an operational update from the Company's interests in the Kalahari Copper Belt (the "KCB") held through the Kanye Resources joint venture ("JV") with partner Kavango Resources (LON:KAV)("Kavango").

Power Metal holds a 50% ownership interest in the JV which includes ten prospecting licences in the KCB covering an area totalling 4,257km². Kavango is operator.

HIGHLIGHTS:

·    Environmental Management Plan ("EMP") approved covering the Kanye Resources KCB Prospecting Licences ("PLs") for a two year period.

·    Exploration vectoring underway, towards initial target selection, including:

-      Re-logging of physical core data from historic drill holes

-      Ground magnetic geophysics survey underway on the southern limb of the Acacia target, in the JV's South Ghanzi Project

-      Work underway to optimise future soil-sampling programmes, to account for changing ground conditions across the JV's PLs

-      Initial drill strategy being finalised

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:  

"Environmental Management Plan approval is a vital step forward for the JV and something we have been keen to secure, opening up the ability to move forward with planned drill programmes.

The size and scale of the JV prospecting licences means we must take all necessary measures to refine exploration data, notably with regard to drill hole targeting, and so this work is being done expeditiously.

Power Metal has a portfolio of four Botswana exploration interests.  Drilling has already been undertaken in 2021 at the Molopo Farms Complex and Tati projects, and we aim to see drilling commence at the Ditau Camp and South Ghanzi KCB projects in the near term."

OPERATIONAL UPDATE

Kavango has commenced a ground magnetic geophysics survey of the southern limb of the Acacia target (the "Ground Survey"), in the South Ghanzi Project. This survey will help tighten the interpretation of the electromagnetic ("EM") data it acquired from airborne geophysics surveys flown in the spring.

The Ground Survey will be conducted over a 14km by 4.5km block and will cover 676.5 line kilometres, including 634.5km of traverse lines and 42km of tie lines. Line spacing will be 100m and readings will be taken continuously.

In parallel to this, Kavango has also commenced a detailed sampling exercise to confirm the geochemical anomalies identified across the JV PLs in the KCB.

Acacia (in PL036/2020) is now the JV's highest priority target for possible drilling in the KCB. Kavango anticipates the Ground Survey and further soil sampling will enable Kavango to confirm initial drill collar locations.

Kavango expects to commence "fence" drilling of lines of shallow boreholes. This will likely involve a combination of reverse circulation and diamond drilling. This drilling will act as an orientation exercise and should act as a precursor to a much more comprehensive, subsequent drill campaign. The "fence" drilling will also enable Kavango to assess structural trends and any associated geochemical and/or EM anomalies.

In parallel to this, Kavango has also started work on re-logging regional historic drill hole data. At this stage, Kavango is keen to deepen its understanding of the local stratigraphy, lithology and geology in its main areas of interest.

Further updates will be provided in due course.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

NOTES TO EDITORS

Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal now has the following exploration completed with results awaited or exploration underway:

-      Silver Peak Project (Canada) - diamond drill programme completed targeting high-grade silver (laboratory assay results awaited)

-      Authier North Lithium Project (Canada) - soil & rock sampling completed (laboratory assay results awaited)

-      Athabasca Uranium (Canada) - Phase I exploration commenced and field results, together with laboratory assay testing of samples collected, awaited.

-      Tati Gold/Nickel Project (Botswana) - reverse circulation drilling completed (field results, together laboratory assay results awaited)

-      Molopo Farms Complex (Botswana) - further samples being tested for nickel sulphide and platinum group elements ("PGEs") from diamond drill programme completed (laboratory assay results awaited)

-      Ditau Project (Botswana) - preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare earth elements and base metals

-      Kalahari Copper Belt (Botswana) - results from the above ongoing exploration across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas

-      Wallal Gold/Copper Project (Australia) - geophysics results from 2D seismic processing and passive seismic awaited

-      Victoria Goldfields (Australia) - results from ongoing exploration across 848km² of granted exploration licences