8 September 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Highly Significant Helium Anomaly Discovered on Perch River Uranium Project

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company, announces the discovery of a significant helium anomaly at its 100% owned Perch River Uranium Project ("Perch River" or the "Project") within the Athabasca Basin, Saskatchewan, Canada.

Highlights

·    Hyperspectral data analysis using Sentinel-2 satellite data on mineral reflectance ("Hyperspectral Analysis") conducted at Perch River has identified several helium anomalies on the Project, including the discovery of one extremely strong helium response in the centre of the Project (see figure 1).

·    The very strong helium response could be indicative of significant buried uranium mineralisation or leakage of helium from a buried helium reservoir at depth (further detailed below).

·    As a response to the discovery of this significant helium target, the crews currently active on the Company's uranium portfolio have been repositioned in order to complete a high-resolution soil sampling grid over this target area.

·    The Company plans to engage a helium gas specialist to determine optimal next steps to further develop this target.

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

"It is very exciting to be able to deliver this news to shareholders. As we have previously reported, this season's wider uranium fieldwork remains ongoing and further updates will be provided in due course.

"However, the indications we have had from Perch River could be hugely significant and warranted immediate release.

"Whilst it is always important to manage expectations, it is fair to say that the discovery of such a strong anomaly has far exceeded our expectations and sets the scene for what we hope to be a strong schedule of newsflow from our uranium portfolio overall."

HYPERSPECTRAL ANALYSIS OF THE PERCH RIVER PROPERTY

Power Metal commissioned Dr Neil Pendock, a highly respected remote sensing consultant, to complete a hyperspectral data compilation and processing study over Perch River. Results from the study highlighted the presence of several very strong helium anomalies on the Project. The source of these anomalies is currently unknown but has been postulated by Dr Pendock to be related to either:

Ø Buried uranium mineralisation - Helium is a daughter product of the radiogenic decay of uranium and is known to be enriched over uranium deposits elsewhere in the Athabasca Basin including Cameco Corporation's Millenium deposit.

Ø Gas leakage up along the north-south oriented fault structure from a buried helium reservoir at depth.

Ø Leakage from a buried hydrocarbon reservoir - often helium is trapped alongside natural gas in hydrocarbon reserves which is considered by the Company and Dr Pendock to be the least likely scenario.

Significantly, the strongest helium response identified by the Hyperspectral Analysis is almost perfectly coincident with, 1) the large and most significant gravity low anomaly on the Project (2007 survey completed by Bell Geospace on behalf of Purepoint Uranium Group Inc)¹, 2) an area of uranium-in-soil enrichment (surveys completed in 2011, 2013 and 2014 by Purepoint Uranium Group Inc.), 3) east-west oriented government defined geophysical conductors (see figure 2), and 4) a north-south oriented fault splay.²

The Company believes the coincidence of these various features further adds weight to the significance of this newly discovered helium target in particular the gravity low anomaly which is a response to an area with lower density than its surroundings (which is deemed by the Company to possibly be a gaseous reservoir).

Furthermore, the presence of previously identified soil geochemical uranium anomalies over the helium target area further supports the possible presence of uranium enrichment in the immediate area, and the interpreted fault structure could act as the conduit for the leakage of helium gas to surface from uranium mineralisation located at depth (see figure 2).

Power Metal is looking to contract an in-country gas specialist in order to review possible next steps which may include a detailed desktop analysis as well as a helium-in-soil survey (subject to crew availability) in order to advance this exciting new target. Other possible exploration steps will be determined as the review continues. 

Figure 1: Perch River Project Helium Occurrence Map.

Figure 2:  Perch River Project Helium Occurrence Inset Map.

GLOSSARY

Hyperspectral - Hyperspectral imaging concerns the collection and processing of information from continuous and contiguous ranges of wavelengths across the electromagnetic spectrum.

NOTES AND REFERENCES

1:                    Purepoint Uranium Group. September 2007; Final Report Acquisition & Processing; Airborne Full Tensor Gravity Gradiometry (Air-FTG) survey, Umfreville Project Athabasca Basin, Canada. (74P02-0023)

2:             Terraquest Ltd; September 2010; Horizontal AeroMagnetic Gradient & XDS VLF-EM Survey Newnham & Umfreville Blocks Athabasca Basin, Saskatchewan (74P02-0024)

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 (LON: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.