5th January 2026

Power Metal Resources PLC

("Power Metal" or the "Company")

Balthaga Project Saudi Arabia: Exploration Update

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed mineral exploration company and project incubator with a global project portfolio, and its majority held subsidiary Power Arabia Ltd ("Power Arabia"), are pleased to provide an exploration update on the Balthaga project ("Balthaga" or the "Project") in the Kingdom of Saudi Arabia ("KSA").

Balthaga is the subject of a mutually binding earn-in agreement with RIWAQ Al-Mawarid for Mining ("RIWAQ"), announced 26 March 2024.¹ RIWAQ is a subsidiary of EV Metals Group plc ("EVM"), which is focused on the development of the supply chain for critical raw materials from the exploration, mining and processing of minerals and metals in KSA. Power Metal has fulfilled the initial expenditure requirement, to fund US$350,000 within 12 months and is now a 20% stakeholder in the Project.

Highlights:

·    Power Metal Resources has achieved a 20% stakeholding in the Project.

·    Comprehensive data review and prospectivity re-assessment completed, following acquisition of new geological, geochemical and geophysical data.

·    Reassessment has identified new prospective targets for rare earth and critical elements ³, including technology and specialty metals associated with granite-hosted mineralisation.

·    Delineation of 12 revised targets associated with granitic intrusion related fractionated zones, greisens and veins and pegmatites.

·    Comprehensive technical report produced and independently reviewed by SRK Consulting (UK).

·    Further exploration activities, including soil sampling and trenching, are planned.

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

"We have made further progress in our projects across the Arabian Shield. Over the past year Power Arabia has carried out exploration activities at the Balthaga Project, having now fulfilled the initial funding requirement in return for a 20% stake in the Project. We have the right to earn a further 10% interest through US$150,000 of expenditure within the next six months.

"The exploration work carried out so far has continued to support the historical reports confirming the prospectivity of the area for a range of critical metals. As we progress the Project further through additional soil sampling, trenching and drilling, we look forward to sharing updates with the market."

Luke Fitzgerald, Chief Executive Officer of EV Metals Group plc, commented:

"The outcomes of the comprehensive technical assessment of all available desktop data and field program results at the Balthaga Project represent a constructive step for RIWAQ and for EVM's exploration activities in Saudi Arabia. The identification of several additional rare metal targets, together with confirmation of favourable geological indicators, supports the ongoing evaluation of the Project. This work contributes to the technical foundation of EVM's broader mine-to-refine strategy and is aligned with the Kingdom's objective of advancing its critical minerals sector under Vision 2030".

Balthaga property

The Balthaga property is located midway between Riyadh and Jeddah in Saudi Arabia and comprises 13 contiguous exploration licences that encompass a total area of 1,290 square kilometres ("km²") (Figure 1).

Based on the geological setting, available data and field observations, the property is prospective for rare-metal granite related mineralisation, particularly tin ("Sn"), tungsten ("W"), lithium ("Li"), beryllium ("Be"), molybdenum ("Mo"), niobium ("Nb") and tantalum ("Ta") and rare earth elements ("REE"). Rare-metal granites are highly evolved, peraluminous crustal intrusions characterised by extreme enrichments in incompatible metals, such as Li, Sn, Nb, Ta, W, and Be.⁴

Figure 1: Location of the Balthaga property, Saudi Arabia

Further to the initial exploration programme that included the field investigation of preliminary Li pegmatite targets, announced 1 July 2024 ², a follow-up field programme was completed in January 2025. Whilst numerous samples were collected, the results reflected the simple mineralogy of the pegmatites observed to date and prompted a re-assessment of the prospectivity of the property.

New data acquisition

A large volume of data was acquired from the Saudi Geological Survey ("SGS") in Jeddah. This included historical reports, geochemical results and maps (showing geophysical anomalies, geochemically anomalous zones and target areas). The acquired contemporary data (collected as part of the government regional geological programme) included various airborne magnetic geophysics products and multielement stream sediment geochemical results. A selection of previously collected but unanalysed soil samples by EVM were also submitted for multielement analysis.

Comprehensive data review

The acquired data was processed, validated, analysed and reviewed as part of the prospectivity re-assessment. Analysis of the geochemical data included univariate, multivariate and ratio analysis, the use of element correlation matrices, probability and cumulative frequency plots, and the use of z- and prospectivity scores.

The review resulted in a much improved understanding of the technical aspects of the property, summarised as follows:

·   In a regional context, Balthaga is underlain by a prospective tectonic terrane (the Khida terrane) that consists of old and geochemically evolved continental crust.

·   At a Project-scale, it contains prospective country rocks (the Tays formation) that include metasedimentary pelitic / aluminium-rich units.

·   Both the terrane and country rock units are genetically important precursors for the formation of granite-related rare metal mineralisation.

·   The regional metamorphic grade is amphibolite facies, which represents critically important conditions for the formation of mineralisation.

·   The Dahul intrusion, in the northern part of the Project, is a peraluminous to peralkaline ring complex that is geochemically specialised and enriched in Be, La, Mo, Nb, Sn and W.

·   The Huqban intrusion, in the southern part of the Project, is a large peraluminous specialised granite that is enriched in Be, fluorine (F), Li, Nb, lead (Pb), rubidium (Rb), Sn, Ta, thorium (Th), uranium (U) and yttrium ("Y").

·   The Project includes eight documented granite related rare metal occurrences, including the only two primary lithium occurrences in Saudi Arabia.

·   Historical exploration activities identified and delineated geophysical anomalies, geochemically anomalous zones and target areas within the Balthaga property.

·   Field observations by the Power Arabia team have confirmed that the uppermost (more prospective) parts of the intrusions are intact.

·   Observed alteration includes greisenisation, muscovitisation, silicification and pyritisation.

·   Geochemical data sets indicate some very elevated rare metal values, some well above average rock abundances.

·   The Project is prospective for granite-related rare metals (Be, Li, Mo, Nb, Ta, Sn, W, etc.) hosted by fractionated zones, greisens, veins and pegmatite intrusions (within, proximal to and intruded from parental intrusions).

The stream sediment prospectivity score results were calculated by adding the individual z-scores for the main elements of interest (Be, Li, Nb, Sn, Ta and W). The results clearly show that the highest scores are mainly associated with the Dahul and Huqban intrusions with other significant results immediately north of Huqban and at Jabal Maziad (Figure 2).

Figure 2: Balthaga stream sediment prospectivity score results

The stream sediment data also revealed elevated prospectivity scores for light REEs ("LREE"), heavy REEs ("HREE"), scandium (Sc), and Y. These elevated z-scores are spatially associated with the Dahul intrusion and discrete locations northeast and west of the Huqban intrusion, with some of the actual values well above average rock abundances (Table 1).

Table 1: Balthaga maximum REE values in stream sediment samples

The selected soil prospectivity score results covering the northern part of the Huqban intrusion have identified a large zone enriched in Be, Li, Nb, Sn, Ta and W (Figure 3). The anomaly corresponds to a 2 km wide SE-NW trending fault-bound 'corridor' that transects the intrusion. The results also include discrete elevated Li to the north of the intrusion (not shown).

Figure 3: Balthaga selected soil prospectivity score results

Although the rock samples collected to date do not include ore-grade results, some of them do contain elevated rare metal values (Table 2), at least signifying rare metal enrichment.

Table 2: Balthaga maximum metal values in rock samples

Revised critical metal targets

Based on the compiled data, 12 revised target areas have been delineated (Figure 4). The areas include prospective features such as pelitic/aluminium-rich metasedimentary units, historical geochemical results, observed alteration (greisenisation, muscovitisation, silicification, etc.), elevated rare metal results (in soil and rock samples), and preserved intrusion roof zones.

Figure 4: Balthaga revised metal targets

The next-stage strategy and activities are:

·   Focus on granite-related rare metal mineralisation (fractionated zones, greisens and veins, in addition to pegmatite intrusions).

·   Systematic ground verification, prospecting and rock sampling of the target areas (with an emphasis on identifying intrusion roof zones and prospective hosting features).

·   Moderate-density soil sampling of regolith-covered targets.

·   Infill soil sampling over elevated geochemical responses.

·   Trenching (over shallower regolith), drilling and sampling (over deeper regolith).

Technical reporting and SRK review

A comprehensive 95-page technical report was produced for the property and independently reviewed by SRK Consulting (UK) Ltd. The review was completed by a highly qualified and experienced geologist who specialises in rare and critical metal mineralisation. The review contributed positive commentary on the prospectivity of the property for both pegmatite-hosted and other types of rare metal mineralisation, particularly in a regional context.

Summary statement

Balthaga is a sizeable and exciting exploration property that is prospective for a variety of  and critical metals (Be, Li, Mo, Nb, REE, Sn, Ta and W) and well-aligned with the Kingdom of Saudi Arabia's 2030 vision and the emphasis on energy transition minerals.

References

1:            Company Announcement, Binding Earn-in Agreement Signed with RIWAQ Al-Mawarid for Mining a Majority-Owned Subsidiary of EV Metals Group plc, First Major Agreement for Exploration in the Kingdom of Saudi Arabia, dated 26 March 2024 (https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmkem8w)

2:            Company Announcement, Initial Exploration programme completed on Balthaga Lithium Project in Saudi Arabia, dated 1 July 2024 (https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w9412px)

3:            Policy paper Vision 2035: Critical Minerals Strategy, Published 22 November 2025, Dept Business & Industry, UK Government.

4:         Océane Rocher et al, Unravelling the magmatic and hydrothermal evolution of rare-metal granites through apatite geochemistry and geochronology: The Variscan Beauvoir granite (French Massif Central), Chemical Geology, Volume 670, 2024.

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, 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.

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

NOTES TO EDITORS

Power Metal Resources PLC (AIM: POW, OTCQB: POWMF) is a London-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, Saudi Arabia, Oman 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.