Power Metal (AIM:POW) Uranium Exploration Update – Athabasca Basin

2022 Phase I Field Programme Underway Targeting Clearwater, Thibault Lake and Tait Hill Uranium Properties

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

HIGHLIGHTS

– Phase I work programme now underway at Clearwater, Tait Hill and Thibault Lake properties, with a Phase II programme being prepared for the Soaring Bay property.

– Exploration team are prioritising the initial follow-up work on the Thibault Lake property where the 2021 mapping and sampling programme returned high grade uranium sample assays of up to 38,600 ppm or 3.86% uranium oxide (“U308”)

– Programme will utilise a handheld gamma-ray field spectrometer for real time radiometric analysis and mapping with anomalous samples collected for assay at an accredited analytical laboratory. Laboratory assays will include testing for uranium, rare earth elements (“REE”), transition metals and precious/base metals.

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

“The Athabasca uranium portfolio constitutes a priority exploration project for Power Metal, and today’s update demonstrates our commitment to getting on with the exploration work.

This 2022 Phase I Field Programme now underway covers three Athabasca properties: Clearwater; Thibault Lake; and Tait Hill. The planned work will build on the positive findings of the 2021 fieldwork, providing more extensive and in-depth results over each area property.

We have seen considerable interest in the Athabasca area, which we believe is inspired by an extremely positive forward dynamic in the uranium sector. The value of the ground held through our uranium properties is, in our view, increasing considerably and this value will be further enhanced through the current exploration work designed to underpin the uranium prospectivity.

With the commencement of this work, Power Metal now has three field-based exploration programmes currently underway: the Athabasca Portfolio in Canada; and the Molopo Farms Complex Project and Tati Project in Botswana.”

2021 URANIUM EXPLORATION PROGRAMME BACKGROUND

Due to a short field season window available after the staking of the Company’s first seven uranium focused mineral properties, a single day of prospecting was spent on each of the Clearwater, Tait Hill and Thibault Lake uranium properties during October and November 2021. The results from the 2021 work programme were released on 20 December 2021 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15256838

2021 Programme Highlights

· Despite minimal time being spent on each of the three properties, significant uranium mineralisation was encountered including grab sample results up to 38,600 ppm or 3.86% U308 (uranium oxide) from the Thibault Lake uranium Property.

· In addition, to significant uranium mineralisation being encountered on all three properties, other notable results including REE and transition metal mineralisation in the form of thorium (Th) up to 1,150 ppm and zirconium (Zr) up to 1,860 ppm were recorded from the Tait Hill uranium property, as well as base-metal results including lead (Pb) up to 8,320 ppm recorded from the Thibault Lake uranium property.

· Several target areas, identified during the 2021 programme, were designated for high priority follow up during the current work programme.

During the 2021-2022 winter, the Company conducted thorough reviews of all data available across the Athabasca focused portfolio. In addition, Dr Neil Pendock was engaged by the Company to undertake a detailed hyperspectral data analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance. The results of this hyperspectral work programme were released on 12 July 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/uranium-targets-confirmed-athabasca-basin-canada/15537428

As a result of the work completed to date, the Company was able to identify several new uranium exploration targets as well as further refine pre-existing targets. The 2022 work programme which is now underway, has been designed to further investigate several of these exciting targets. Additional 2022 programme details are discussed below.

2022 URANIUM EXPLORATION PROGRAMME FURTHER INFORMATION

· Field teams with extensive Athabasca basin focused uranium exploration experience have been engaged by the Company to undertake the Phase I Field Programme. The teams will be based in Uranium City, Saskatchewan, which is roughly equidistant from several of Power Metal’s uranium properties, which will allow for rapid and efficient mobilisation to site.

· The planned Phase I field programme will involve field teams spending three days on each of the three properties, completing transverses over pre-defined targets utilising a handheld gamma-ray spectrometer (to detect radioactivity), mapping and collection of rock samples for analysis by an accredited laboratory. Daily correspondence will be maintained between the field teams and the company’s exploration manager, ensuring efficient and targeted exploration throughout the entire campaign. A Phase II work programme is scheduled for later in the month at Soaring Bay and will be similar in nature to this Phase I exploration, but with the addition of Radon surveying.

· Following completion of the fieldwork, all information will be integrated and categorised into the in-house data rooms. Samples collected will be analysed by Saskatchewan Research Council laboratories for multi-element analysis including uranium, REE, transition and base metals.

The Company’s Phase I and Phase II work programmes are intended to further refine various uranium focused exploration targets, with the intention of eventually progressing the highest priority targets to a drill-ready stage.

URANIUM PROPERTIES – HOLDING STRUCTURE

Power Metal has a 100% 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 Athabasca uranium portfolio.

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

* Property acquisition announced on 25 July 2022 – licence transfers in progress

# Reitenbach Property conditionally disposed to Teathers Financial PLC as announced 8 August 2022

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:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617