22 March 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Kalahari Key Update - Ditau Camp Project Drill Programme Commencement

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update in respect of certain Botswana interests.

Proposed Offer for Kalahari Key

Further to previous announcements, Kavango Resources plc ("Kavango")(LON:KAV) has at this time withdrawn from making an offer for the entire issued share capital of Kalahari Key Mineral Exploration Pty Limited ("Kalahari Key" or "KKME") in order to focus on its other business interests.

Kavango made a proposal that was supported by the majority of Kalahari Key shareholders, including Power Metal. It was not possible, on the timescale required, to secure unanimous support to move the proposal forward and therefore with the upcoming planned drill programme at Ditau, Kavango have decided to withdraw their proposal.

Kalahari Key has a 60% interest in the Molopo Farms Complex Project ("Molopo").  Molopo is targeting nickel sulphides, copper and platinum group elements in Botswana.

Power Metal holds 5,313 shares in Kalahari Key (circa 21.5% of the issued Kalahari Key shares) and together with an earned-in 40% direct Molopo project interest has an effective economic interest of circa 53% in Molopo.

Power Metal will now engage with Kalahari Key and its shareholders to review alternative strategies and take Molopo forward.

Ditau Camp Drill Programme

Power Metal has a 50% interest (with Kavango 50%) in the Ditau Camp Project ("Ditau") in Botswana.

Following site preparations, a diamond drill rig is now mobilising to the first drill location, targeting rare earth elements through the drilling of potential carbonatites at Ditau.

A further update will be released by Kavango and Power Metal, providing further information with respect to key drill targets and drill plans in the coming days.

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

"I would have preferred to announce that the Kavango proposal to acquire Kalahari Key was proceeding with full Kalahari Key shareholder approval.  Unfortunately, corporate activities don't always go according to expectations, particularly where ownership of a company is fragmented with varying minority interests.

Life goes on and the default position is that Power Metal retains its circa 53% effective interest in the Molopo Farms Complex Project and will now liaise with Kalahari Key to see what should be done to move things forward.  Expeditious solutions are key here.  Molopo is in my view a superb exploration opportunity with nickel sulphides confirmed through our first drill programme and we should look to move the project forward with due dispatch.

Turning to Ditau, I am extremely happy to see this drill programme launched, having followed the Ditau Camp project for years, I think we have real potential to make company changing discoveries.  A further detailed update on the planned drill programme will be released to market shortly.  Meanwhile the rig is now mobilising to site."

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

Power Metal Resources plc - 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 has exploration programmes completed or underway, with results awaited, as outlined below: