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Power Metal (POW.L) Botswana Molopo Farms Complex – Drilling Update

Power Metal Resources plc (LON: POW) the AIM-listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Identification of additional visible sulphides deeper in hole KKME 1-6 gives further encouraging signals to the prospect of discovering significant mineralisation within the Molopo Farms Complex.

So far we are encouraged by the indications from core logging, and await assay results and mineralogical studies to confirm the sulphide minerals present. To be absolutely clear we make no assumption as to which sulphide minerals are present and await the assay results, and those results will likely guide the next exploration steps.

The identification of up to 14 new targets for ground exploration in the feeder zone from the Aster Mapping also adds to the evidence of district scale prospectivity.

Substantial new data continues to be generated on a relatively untested environment, advancing a journey of discovery in a geological setting where there is the clear potential for large scale metal deposits.”

Highlights:

· The second diamond drill hole at the MFC Project, KKME 1-6, has been continued from 547m to a final depth of 598 metres in ultramafic rocks. The extra hole depth will provide further core from the geophysical target depth and will assist in further geophysical interpretation.

· Core from KKME 1-6 and from the first drill hole at KKME 1-14 has been transported to Lobatse where it is being cut by the Botswana Geoscience Institute. Selected half core samples will be sent to a South African assay laboratory for base and precious metal analysis, this week.

· Logging KKME 1-6 cut core has identified disseminated sulphide mineralisation below 500m drill hole depth, notably in the section marked as a target by the geophysics. This is further to disseminated sulphide mineralisation identified around 308-313m drill hole depth from the initial KKME 1-6 core inspection (announced 11 January 2021).

· An agreement has been signed with the University of Witwatersrand in Johannesburg and selected quarter core samples will be sent to the University’s Geology Department this week for mineralogical and thin section analysis.

· A report received from Aster Funds Ltd (“Aster”) based in Toronto entitled ‘Satellite-Based Long Wave Infrared (LWIR), Short Wave Infrared (SWIR) and Synthetic Aperture Radar (SAR) Mapping, Molopo Farms Exploration Licences has identified about 14 new targets in the feeder zone, with priority targets recommended to be ranked for follow-up ground exploration.

· Down-hole geophysics data is expected to be acquired in the next phase of the current programme, this should help identify any massive sulphide mineralisation proximal to the disseminated sulphides encountered at around 308-313m drill hole depth and below 500m drill hole depth, in angled hole KKME 1-6.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”). To date Power Metal have paid US$392,641 leaving a balance remaining of US$107,359 (approximately £76,801) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m. Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m. The hole was completed safely and securely and achieved near 100% core recovery.

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 supports the geological proposition that the geology at Molopo Farm is that of a feeder zone.

DRILL HOLE KKME 1-6

Hole KKME 1-6, the second hole, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION

Kalahari Key have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing Kalahari Key airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement Kalahari Key’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three Kalahari Key Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016).

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

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