31 August 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Exploration & Project Development Update

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company, announces an exploration and project development update covering multiple projects within the Company's portfolio.

The update includes the Company's North Wind Lithium Project located in Ontario, Canada, the Tati Gold Project located near Francistown, Botswana, as well as the ongoing exploration targeting Power Metal's uranium-focused portfolio in Saskatchewan, Canada.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

"I am very pleased to be able to provide this update on three of our high priority exploration programmes.

"Shareholders will, I am sure, be reassured that despite difficult conditions in the capital markets, we are pressing ahead with our operational plans and, in our view, continue to generate significant value.

"I am very grateful to all our teams for the efforts they continue to make in often challenging environments, and I look forward to being able to provide further updates when appropriate."

HIGHLIGHTS:

North Wind Lithium Project

-      The 100% Power Metal owned North Wind Lithium Project ("North Wind") is considered by the Company to be prospective for the discovery of pegmatite hosted lithium mineralisation. Lithium (Li)-caesium (Cs)-tantalum (Ta) bearing pegmatite ("LCT-pegmatite") accounts for approximately a quarter of the world's lithium production.¹

-      The exploration programme at North Wind was outlined in the Company's announcement dated 10 August 2023 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/ion-battery-resources-lithium-exploration-underway/16077625   

-      The exploration work programme is now complete and a total of 389 soil geochemical samples were taken.  The samples will soon be delivered to an accredited laboratory for assay testing focussed on Li-Cs-Ta mineralisation.

-      Significantly, several pegmatites were identified across North Wind, with five pegmatite samples collected - which was a key ground exploration objective.  The mineralisation present within the identified pegmatites will be determined during the assay testing process and based on interpretation of this data further exploration steps will be determined.

Tati Gold Project

-      The 100% owned Tati Gold Project ("Tati") is centred on a historic gold mine, Cherished Hope, and extensions of high-grade near surface gold mineralisation were confirmed during drilling campaigns carried out by Power Metal in 2021 and 2022.

-      The exploration programme at Tati was outlined in the Company's announcement dated 30 May 2023 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-exploration-update/15977383

-      Next stage exploration focused on geochemical soil sampling at Tati is now complete. A total of 280 individual samples were collected across two grids:

o  One high-resolution in-fill grid is focussed on an area approximately 2km northwest of the historical Cherished Hope Gold Mine and is centred on one point anomaly which historically returned an impressive soil sample of 2.15g/t Au. To date, this anomaly has never been further investigated to determine the provenance of this gold mineralisation; and

o  The second grid covers the immediate southwestern extension of Cherished Hope where individual point anomalies returned a soil sample as high as 0.84g/t Au.

-      The soil samples have been sent to Intertek Genalysis in Perth, Western Australia for assay and final results are expected shortly.

-      Site rehabilitation of the fines dumps covering Tati have been completed in preparation for the next phase of exploration and development.  This rehabilitation work included removal of the fines dump and clearing the site of material considered by Power Metal to be suitable for processing at a local facility.

-      The Company has received inbound interest regarding the potential for small-scale mining at its Cherished Hope Gold Mine area where near-surface drilling results in 2022 returned bonanza gold up to 47.1g/t Au over 1m (from 6m downhole).²

-      Further updates on next stage exploration and potential site developments at Tati will be provided to the market in due course.

Athabasca Uranium Projects

-      The exploration programmes at the Company's Athabasca uranium properties were outlined in the Company's announcement dated 21 June 2023 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/key-uranium-exploration-and-corporate-developments/16007249

-      The exploration programme at the key Reitenbach property has been successfully completed with a further update expected following receipt and interpretation of exploration results.

-      At present, work is underway at Tait Hill with field work expected to commence at Soaring Bay and Perch River shortly.  For this phase of work, Power Metal has sent direct company representation to Saskatchewan to work alongside our in-country geological consultants from Dahrouge Geological Consulting Ltd - whom have extensive experience in Saskatchewan and across Canada.

-      Shareholders may be aware of significant active wildfires in the Athabasca region including in nearby Northwest Territories, which have caused disruption to various areas and some restrictions on availability of key resources, including helicopter availability.  Wildfires have occurred within the boundaries of certain Power Metal properties, and, in response, certain exploration plans have required adjustment. Work programmes on certain projects, particularly select geophysical surveys, will be completed later into the autumn and winter season.

-      The board of Power Metal would like to note the commitment and resilience of the in-country exploration teams who have continued operations despite the ongoing challenging conditions.

References

1:            United States Geological Survey, Scientific Investigations Report 2010-5070-O, Mineral-Deposit Model for Lithium-Cesium-Tantalum Pegmatites, 2017.
( https://pubs.usgs.gov/sir/2010/5070/o/sir20105070o.pdf )

2:            Company announcement, Tati Project Botswana Initial Drill Assay Results, 02 November 2022
( https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862 )

QUALIFIED 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 Qualified 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 (AIM:POW) is an AIM listed metals exploration company which finances and manages global resource projects.

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 grow the Company or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.