#POW Power Metal Resources – Insider Warrant Extension

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an extension of the December 2019 financing warrants held by Paul Johnson and Edmund Shaw, Directors of the Company (the “Insider Warrants”).

Extension of Insider Warrants

As at 17 June 2022 the following Insider Warrants remained outstanding:

The Insider warrants were issued following participation in the December 2019 financing and had an original expiry date of 17 December 2021 which was extended by 3 months to 17 March 2022, then a further 3 months to 17 June 2022 as announced on 17 March 2022.

The Company is undertaking numerous exploration programmes and corporate activities across its portfolio where current and near term expected work streams include:

North America:

–  Preparatory work for the planned near-term London listing of Golden Metal Resources PLC focused on Nevada, USA

–  Receipt and review of exploration findings relating to the Alamo gold project in Arizona, USA

–  Finalisation of next stage exploration work in respect of the Authier lithium project in Quebec, Canada

–  Finalisation of next stage exploration and specific corporate activities related thereto for the Athabasca Basin uranium interests, Saskatchewan, Canada

–  Next stage plans in respect of the Silver Peak project in British Columbia, Canada

Africa:

–  Diamond drill programme underway at the Ditau Camp Project JV in southwest Botswana

–  Field work to delineate drill targets in the Kalahari Copper Belt JV interests in Botswana

–  Corporate work and next stage exploration planning in respect of the Molopo Farms Project in southwest Botswana

–  Finalisation of next stage plans for the Tati greenstone gold project in Botswana

–  Interpretation of diamond drill results and next steps for the Haneti Project in Tanzania, including development of lithium opportunities

Australia:

–  Preparatory work for the planned near-term London listing of First Development Resources PLC focused on Western Australia and Northern Territory exploration interests

–  Further desktop, field and drill results from the New Ballarat Gold Corporation Victoria goldfields JV, following recent diamond drill programme, and matters pertaining to the planning for a listing of the holding company

As a result, the December 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal) and Ed Shaw (Non-executive Director of Power Metal) cannot be exercised on the expiry date of 17 June 2022 and may be extended under the warrant instrument, as outlined below.

Under the December 2019 Warrant instrument clause 2.3 provides that should any December 2019 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson and Ed Shaw to exercise the December 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date to a new expiry date of 31 December 2022. No other changes to the terms of the Insider Warrants have been made.

Related Party Note

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as outlined above, have been treated as related party transactions for the purposes of AIM Rule 13.

Scott Richardson Brown being the independent Director for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Ed Shaw considers, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the warrant expiry date to 31 December 2022 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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: