24 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Portfolio Update - Athabasca Basin Canada

Extensive Uranium Prospectivity Identified at Cook Lake and E-12 Uranium Properties

Commissioning of NI 43-101 Technical Report at Reitenbach Property

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a uranium portfolio update from its properties surrounding the Athabasca Basin in Saskatchewan, Canada.

Through its wholly owned Canadian operating companies Power Metal holds seven 100% owned uranium focused properties (see Table 1) covering an area of 417.24 km² (41,724 hectares).

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

"Power Metal recently retained a UK-based geological consultant with extensive Athabasca Basin experience to help push forward the Company's various initiatives and projects within the exciting uranium space. The consultant previously completed a M.Sc. thesis from the University of Ottawa where they researched the geochemistry, alteration, and structural geology of one of the many world-class unconformity-related uranium deposits located within the Athabasca Basin.

We have been able to accelerate our Athabasca technical review work and have now completed  the technical review of historical data for four of our seven Athabasca properties.  All four properties show considerable uranium prospectivity which is notable.

At Reitenbach, we have decided to move expeditiously into the production of a NI 43-101 technical report, which is an important step should we wish to utilise the property within a corporate transaction.

We see considerable value within our uranium interests, and through a combination of ground exploration, technical review and corporate activities we intend to maximise that value."

Reitenbach Uranium Property

-      Power Metal has engaged Dahrouge Geological Consulting Ltd., out of Edmonton, Alberta, to undertake a National Instrument 43-101 compliant report on the 100% owned Reitenbach uranium Property.

-      Commissioning, and completion of the report will better position Power Metal to enable potential commercial transactions with the Reitenbach Property in the future.

Cook Lake Property Overview

-      The Cook Lake Property ("Cook Lake") covers a total of 980 hectares (c. 9.8 km²) located in north-eastern Saskatchewan, Canada. It is located less than 50 km southeast from the Athabasca Basin edge, within the prospective Wollaston Domain - a historically underexplored geological belt. Saskatchewan ranked third in the most recent 2020 Fraser Institute Investment Attractiveness Index rankings of global mining jurisdictions.¹

-      Cook Lake is centred around six Saskatchewan Mineral Deposit Index ("SMDI") uranium occurrences. Of these, four are boulder uranium occurrences with reported uranium results of up to 1% to 3% Uranium (U),² and a further two outcrop uranium occurrences are also present within the Property.

-      Historical work at Cook Lake, collated by Power Metal, has identified elevated U-in-lake sediment results, extensive uraniferous boulder fields, multiple instances of elevated uranium values in soils coincident with elevated scintillometer readings and prospective lithologies without outcrop. The encouraging historical results compiled will help guide Power Metal as it plans for future work programmes on the Property.  

-      Cook Lake is considered by the Company to be prospective for basement-hosted unconformity related, as well as intrusive and pegmatite-hosted uranium mineralisation.

E-12 Property Overview

-      The E-12 Property ("E-12") covers a total of 1,300 hectares (c. 13 km²) and is located 58 km to the west of the Cook Lake Property. E-12 is less than 20 km from the Athabasca Basin edge.

-      The Saskatchewan 905 Provincial Highway passes through the property, allowing for easy and efficient access for exploration crews during future work programmes.

-      E-12 is centred around two SMDI occurrences, including boulder results up to 0.17% U (1,700ppm U). Historical work has highlighted elevated U-in-lake sediment results within the northern part of the property, as well as extensive uraniferous boulder fields coincident with elevated scintillator readings within nearby soils and shallow gravels.

-      E-12 is considered by the Company to be prospective for basement-hosted unconformity related, as well as intrusive and pegmatite-hosted, uranium mineralisation.

COMPILATION TECHNICAL INFORMATION

Power Metal recently completed in-depth historical data compilation across its entire uranium property portfolio surrounding the prolific Athabasca Basin, Saskatchewan, creating a robust fully-digitised database covering all historical work programmes completed across the various properties, including the Cook Lake Property.

A total of 9 historical reports were digitised from work programmes covering at least some part of the Cook Lake Property. These cover all the documented exploration works relating to the Cook Lake, undertaken between 1969 and 1988, the last time any known work was carried out.

The E-12 Property is similarly underexplored, being the subject of 11 work programmes between 1964 and 1979, with only two minor exploration programmes completed in 1993 and 2011.

Cook Lake Property Data Compilation

A map highlighting some of the results from the historical data compilation completed on the Cook Lake Property can be found below at the following links:

https://www.powermetalresources.com/cook-lake-property-overview-map/

-      Power Metal has identified 43 northeast-southwest oriented uranium-rich boulder trains with elevated scintillator readings (>1,000 counts-per-second ("CPS")) within the Cook Lake Property. This NE-SW orientation direction is consistent with the general direction of ice movement within the region (SW). A SMDI point on the Cook Lake Property highlighted a significant historical boulder result between 1%-3% U (10,000ppm - 30,000ppm U) alongside elevated thorium (Th) and molybdenum (Mo) values, located in the northern part of the Property.² Historical reports have highlighted the presence of a boulder which assayed 0.6% U (6,000ppm U), located in the eastern part of Cook Lake.³ Significantly, historical prospecting demonstrates that the boulders are composed of lithologies that have been identified within outcrops on the Cook Lake Property, suggesting the boulders could be derived from, or local to Cook Lake.

-      Marling Oil Corporation (1980) defined numerous areas of at Cook Lake with elevated U-in-soil values that were coincident with elevated scintillometer readings (>100 CPS) in soils potentially due to radioactive shallowly buried gravels and boulders.³ These locations are coincident with extensive boulder trains identified at Cook Lake and suggest that the surficial expression of mineralisation is widespread and potentially local. In addition, two instances of boulder fields with elevated scintillometer readings (>250 CPS) in the north of Cook Lake have been identified³.

-      Historical radiometric surveys have highlighted several elevated airborne radiometric results across Cook Lake.  Many of these are coincident with interpreted electro-magnetic ("EM") geophysical conductors, which are commonly associated with unconformity related uranium deposits within the Athabasca Basin.

-      A review of historical work has identified two promising outcrop occurrences; These include a pegmatite which assayed 640ppm (0.06%) U and frost heaves of felsic metasediments, which contained radioactive pegmatitic veins.

-      A total of 5 historical lake sediment results were digitised within the Cook Lake Property, with one result >90^th percentile (14.2ppm U), and one >95^th Percentile (25.6ppm U) compared to regional lake sediment data.

E-12 Property Compilation

A map highlighting some of the results from the historical data compilation completed on the E-12 Property can be found below at the following links:

https://www.powermetalresources.com/e-12-property-overview-map/

-      Power Metal has identified a 36 uranium-rich boulder trains, trending in a northeast-southwest direction, within the E-12 Property. Seven elevated boulders trains (>1,000 CPS) are located within the northern part of the E-12 Property, including localised, anomalously enriched boulders with scintillator results up to 8,000 CPS (>95^th percentile of regional data).

-      L.A. Bayrock (1980) defined numerous areas on E-12 with elevated scintillometer readings (>250 CPS), these locations are close to the uraniferous boulder trains identified by Power Metal.⁵  

-      Historical geophysical surveys have highlighted multiple elevated airborne radiometric anomalies localised within the northern and central parts of the E-12 Property.⁴  In addition, E-12 hosts multiple EM conductors, which are commonly associated with unconformity related uranium deposits within the Athabasca Basin. 

The Company continues to uncover exciting historical results from its uranium portfolio within Saskatchewan, Canada. These results, and the fully digitised dataset now held by Power Metal, continue to add value to the portfolio. Additional news releases highlighting these findings will be released to the market over the coming weeks and months as and when they become available.

Uranium Property Holding Structure

Power Metal has a wholly owned subsidiary, Power Metal Canada Inc ("Power Canada"), which acts as the holding company for certain Canadian project operations. Power Canada has a wholly-owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company's Saskatchewan uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

GLOSSARY

Athabasca Basin - Is a major sandstone basin located in northern Saskatchewan, Canada, with a surface area of almost 100,000 km².  The Athabasca Basin is the world's premier uranium district, and the worlds leading source of high-grade uranium. Uranium mineralisation has historically been identified at, or close to the contact between a thick unit of sandstone that overlay the crystalline basement rocks known as the Athabasca Basin edge; much of the sandstone has subsequently been eroded way.  Recently the lands outside and around the basin have been recognised as being highly prospective for uranium mineralisation as they laid within the basin prior to erosion of the sandstone cover sequence. These areas outside the basin are now host to extensive ongoing exploration. 

Boulder Trains - Occurrence of multiple clustered boulders, which have been transported by the movement of glaciers away from a bedrock source. Boulder trains can be traced 'up ice' (i.e. towards the source) and back towards a potential deposit, they are an established and effective exploration technique which have been used in the discovery of multiple deposits.  

Scintillometer - A device that measures the number of ionising particles (such as those derived from radioactive decay) in the air or derived from an object. Commonly they measure in 'Counts Per a Second', with each 'Count' being ionising radiation entering the device. Higher readings are generally indicative of radioactive material within the sample being tested. 

Electro-Magnetic Conductors - Geophysical features that indicates highly conductive lithologies can be due to waterlogged faults, weakened or fractured rocks, or graphitic units. Many high-grade unconformity-type Athabascan uranium deposits are associated with these geophysical features, and thus they area major target for exploration programs.

Frost Heave - Movement of soil and superficial deposits due to repeated growth of ice in sub-zero conditions, which, over time, can reveal the underlying rocks and outcrop.

Lake Sediment - Material collected from the bottom of lakes through specialist equipment and analysed. In areas of poor outcrop, lake sediment surveys are often used as a proxy to the nearby geology and can help identify potential areas of mineralisation within nearby bedrock.

References

¹ https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf

³ https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1893

⁴ Jean Descarreaux, Rejean Gosselin (Marling Oil Corporation): Permit No.1 Pendleton Lake Esker Complex, CBS-4959, CBS-5333, MPP-1056, Saskatchewan Report On The Field Work Done In 1980 (64E11-0031)

⁵ Ian G. Park (Marling Oil Corporation): Airbourne Radiometric and VLF Surveys Cairns Lake Permit 1 Extension Projects Saskatchewan (64E11-0031)

⁵ L. A. Bayrock, Cairns Lake, Saskatchewan Anomaly, January 1980 (64E12-0043)

Reference Notes:

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

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: