Power Metal Res. (AIM:POW) Binding Earn-in Agreement Signed with RIWAQ

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

Power Metal Resources PLC (AIM: POW), the London listed exploration company with a global project portfolio, is pleased to announce the signing of a mutually binding earn-in agreement with RIWAQ Al-Mawarid for Mining (“RIWAQ”), an industrial and mining company based in the Kingdom of Saudi Arabia (“KSA”). RIWAQ is a special purpose subsidiary of EV Metals Group plc (“EVM”) focused on the development of the Saudi supply chain for critical raw materials from the exploration, mining and processing of minerals and metals in KSA.

HIGHLIGHTS:

RIWAQ is the sole beneficial owner and the sole registered holder of 15 tenements in the Balthaga Suite, approximately 400km east of Jeddah in the south of the Arabian Shield, covering a total area of 1487.11km² (the “Tenements”), further details of which are set out below.

11 of the tenements currently have exploration licences granted, with the remaining four pending grant.

13 of the tenements are considered prospective for hard rock lithium, one for nickel sulphides and one for a copper/molybdenum porphyry system.

RIWAQ has granted POW the right to earn a 20% ownership interest in the Tenements (“First Interest”) by sole funding US$350,000 in expenditure on the Tenements within 12 months from the date of execution of the binding agreement.

RIWAQ has granted POW the right to earn a further 10% ownership interest in the Tenements (“Second Interest”) by sole funding US$150,000 on the Tenements within six months following earning of the First Interest.

Following earning of the First Interest or Second Interest, whichever occurs later, the Parties have entered into a non-binding agreement to form a contributing joint venture in proportion to their Tenement interests.

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

“I am delighted to be able to report the signing of this binding agreement, our first major agreement for exploration activity in KSA. This is a very exciting collection of tenements and we are eagerly anticipating starting work with the RIWAQ team after Ramadan and Eid al-Fitr.

Our intention is to form a long-term partnership with EVM, RIWAQ’s majority owner to provide upstream opportunities for EVM’s growing midstream processing operations. RIWAQ have a number of other licences currently under application, highlighting further growth opportunities beyond this initial agreement.

These assets will reside within our majority-owned subsidiary Power Arabia Ltd, which as announced on 12^th March 2024, is currently undergoing a pre-IPO financing round to fund activities in the region with a view to a listing on the London capital markets in due course.”

The Tenements

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: