MFC Project Update – Drill Programme Mobilisation

8 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex Botswana - Drill Programme Mobilisation Underway

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 relation to the Molopo Farms Complex Project ("Molopo Farms" or the "Project") targeting a large scale nickel-copper-platinum group element ("PGE") discovery in southwestern Botswana.

On 30 August 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-drill-contract-signed/15604332

Key Updates:

§ Mindea Exploration and Drilling Services (Pty) ("Mindea"), an experienced Botswana-based company with extensive experience in-country has officially commenced mobilisation for the upcoming drilling programme.

§ The planned drilling start date is now set for mid-September 2022. A further RNS will be provided to the market once drilling has officially commenced.

§ The current planned programme is for circa 2,600m of drilling across an expected 6 drillholes, with at least two drillholes planned into the newly identified conductor within the T1-6 target area.

§ As announced on 5 September 2022 the Company raised additional funds totalling £1,080,000, before expenses allowing for the potential expansion of the ongoing geophysics and upcoming drilling programme.

§ Additional geophysics, including further Moving Loop Electromagnetic ("MLEM") surveys as well as high-resolution ground-based magnetic surveys are underway. A further update in regard to this work, as well as survey results, are expected shortly.

§ The programme is being designed to ensure expeditious core analysis to include: geologists on site to conduct continuous core inspection and logging, identification of visible sulphides, selection of core samples for assay testing and the arrangement where appropriate of expedited laboratory assays to minimise turnaround time. Hiring of the personnel required for the above is in the process of being finalised with crews arriving to site shortly.

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

"The preparations for this important diamond drill programme continue at pace, with mobilisation of equipment to site and a target date for drill commencement next week.

This is a big moment for Power Metal and we are eager to commence drilling as soon as possible. Investors will appreciate that, with the financing we announced on Monday, we mean business and have the financial means to commit fully to this work in Botswana."

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required. 

These interests are summarised in the table below: