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Power Metal Resources #POW – Haneti Project, Tanzania – Exploration Update

31st May 2022 / Leave a comment

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces results from the Company’s inaugural diamond drilling programme on the nickel-copper-cobalt-platinum group element Haneti Project (“Haneti” or the “Project”) and the new Babayu Lithium Prospect (“Babayu”), both located in central Tanzania.

The Haneti Project is held in Joint Venture (“JV”) with Power Metal holding a 35% Project interest and JV partner and London listed Katoro Gold (LON:KAT) holding a 65% interest.

In tandem with the early 2022 diamond drilling campaign at Haneti, a prospecting and rock sampling programme was completed at the Babayu Lithium Prospect located approximately 40km southwest of Haneti and included in the same project JV. Both work programmes were completed by in-country geological consulting teams managed by the operator Katoro Gold. The Haneti drilling and Babayu prospecting results were received around the same time and are both presented herein.

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

“The Joint Venture has now completed its first diamond drill programme at Haneti, a district scale exploration opportunity in Tanzania.

Drilling has confirmed the presence of nickel albeit not as yet in economically significant intersections. However with the information from the programme we can now undertake more advanced targeting for next stage exploration. We are targeting the discovery of economic nickel with the work programme going forward.

The completion of this programme also enables the JV to re-engage with potential project partners to discuss the findings and next steps in further detail.

The work undertaken was extended to include an assessment of lithium prospectivity which was perhaps less of a focus in the past. The results of this work have confirmed significant lithium potential and the JV is now implementing a lithium consolidation strategy to build our interests in this area.

At this important time in the advancement of Haneti, Power Metal is working with our JV partners Katoro Gold to undertake expedited work programmes and move the Haneti project forward.”

PROGRAMME HIGHLIGHTS

Haneti Nickel

· All drill holes intersected significant sequences of altered ultramafic and mafic rocks, representing the first ever fresh rock drill core samples extracted from the Project.

· Integration of thin section petrographic analyses with bulk rock geochemical results across multiple intersected lithological units suggest that the platinum-group element (“PGE”) potential at Haneti is limited to serpentinite units, and that nickel and copper mineralisation should preferentially be targeted within the intrusive gabbro units.

· Whilst the drilling results showed anomalous results for nickel (Ni), copper (Cu), gold (Au) and PGE that are subject to further interpretation, economically significant intersections of these metals were not encountered in the drilling.

Babayu Lithium

· Rock sampling results from the Babayu Lithium Prospect highlight significant lithium and tantalum potential with lithium-caesium-tantalum (Ta) (“LCT”) pegmatite mineralisation outlined over a 600m strike-length. The chip sample results (up to >10,000ppm Li and 2,680ppm Ta) and strike length combined with the perceived shallow dip of the main pegmatite body show the potential for a significant near-surface mineralised body that warrants further assessment and evaluation.

· Licence applications have been made in respect of the lithium prospective areas and the JV is currently implementing a lithium consolidation strategy including existing lithium applications and reviewing potential partnerships with local licence holders.

ADDITIONAL HANETI DRILL PROGRAMME INFORMATION

Historical geophysical and geochemical sampling programmes completed prior to the 2022 drilling campaign were successful in identifying at least three high-priority drilling targets at Haneti. As no fresh rock samples had ever been obtained from the Project, the decision was made to drill these targets. The main programme goal was to extract fresh rocks to obtain a better understanding of the subsurface geology as well as to intersect Ni-Cu sulphide mineralisation.

The 2022 diamond core drilling programme was completed successfully with a total of 900 m drilled. This included three drill holes which were targeting previously outlined mafic-ultramafic Ni- Cu-PGE sulphide targets at the Mihanza and Mwaka Hill prospects (on PL no. 11797/2022). The three holes completed are outlined and summarised below:

· Mwaka Hill Prospect: Hole MWDD01 was drilled to 245.8m down hole depth at an inclination of -63 ° and MWDD02 to 224.0m at a -64° inclination. The two holes intersected significant thicknesses of altered ultramafic rocks (serpentinite) and mafic rocks (gabbro). Hole MWDD01 gave the highest Ni intersection of 2.00 m @ 0.45% from 81.5m downhole. In MWDD02 two wider intersections were encountered with 4.0m @ 0.38% Ni from 151.4m and 4.0m @ 0.35% Ni from 159.4m. All elevated Ni results were found exclusively within serpentinite.

· Mihanza Hill Prospect: Hole MHDD01 at the was drilled to 430.2m at a -64° inclination. The hole intersected similar rock types as at the Mwaka Hill prospect but contained no significant Ni intersections but did contain anomalous PGE, Au and Cu results including: 2.0m of 0.08g/t platinum (Pt) + palladium (Pd) from 241.3m; 2.0m of 0.21g/t Au from 392.4m; and 2.0m @ 0.11 % Cu from 236.2m.

Drill Hole ID	Target	Datum	Easting (m)	Northing (m)	Azimuth	Dip	Hole depth (M)
MWDD01	Mwaka	ARC1960_UTM36S	823818	9398759	224 °	64 °	224.81
MWDD02	Mwaka	ARC1960_UTM36S	823050	9398324	223 °	63 °	245.78
MHDD01	Mihanza	ARC1960_UTM37S	169035	9399220	254 °	64 °	430.24

Haneti 2022 Drill Programme Collar Table

The drilling field work phase was followed by laboratory analyses, performed at SGS’s laboratory located in Mwanza, Tanzania with samples also then transferred to SGS South Africa to mitigate certain operational difficulties at SGS Tanzania. This re-routing of samples and the additional work required in respect of the lithium prospectivity added some additional time to the return of completed findings to the operational team.

Following receipt and analysis of the assay results Haneti personnel prepared a comprehensive report, a summary of which is included below:

Thin Section Petrography, Bulk Rock Geochemistry and Lithological Associations:

An analysis of the thin section petrography, bulk rock geochemistry and geochemical and lithological associations of the drill core was performed by independent geologist Dr Martin Klaussen of the University of Stellenbosch.

· All three drill holes intersected one or more serpentinised ultramafic units of uncertain origin and a gabbroic intrusion.

· Drill holes MWDD01 and MWDD02 intersected the same stratigraphic sequence. These two drill holes orthogonally tested approximately 420m of the litho-structural inventory of the Mwaka Hill prospect.

· Drill hole MHDD01 intersected massive serpentinites from the start to the end of hole, with the serpentinite being texturally and chemically like the serpentinites encountered in MWDD01 and MWDD02.

· No disseminated or massive magmatic sulphide mineralisation (e.g. visible pyrrhotite, pentlandite, chalcopyrite, bornite, etc.) was encountered visually or geochemically in any of the three drill holes.

Babayu Lithium Prospectivity:

A reconnaissance site visit was completed in order to investigate historical reports of potentially significant pegmatite-hosted lithium mineralisation located near to the rural settlement of Babayu, Dodoma District. One pegmatite at the Babayu Prospect was investigated during this site visit. Some general observations were made during this visit.

The main pegmatite referred to above was traced for a strike length of approximately 600m. Along its strike length outcrop is sporadic and in no instances could its hanging wall and footwall contacts be ascertained with high confidence; however, its true width likely ranges between 1m – >7m, which is considered by the Company to be potentially significant. The pegmatite strikes west-northwest to east-southeast and is shallowly northeast-southwest dipping (20 – 30°) – it is gently folded and appears to be slightly sheared.

Five chip samples were collected over the main pegmatite to confirm lithium mineralisation. Based on the analytical results several relevant observations were made:

· Strong lithium mineralisation is present, most likely in the form of lepidolite/spodumene mineralisation, with two of the five rock samples returning >10,000ppm Li.

· The tantalum (Ta) values in two samples (2,608ppm and 1,354ppm) are exceptionally high, considering that a value of around 250ppm would be of economic interest.

· The Ta:Nb (niobium) ratio is favourable with Ta being much more abundant, representing the more valuable member of the two.

Based on the results, it is suggested that the Babayu lithium prospect should be further followed up on and the consistency of the high concentrations of tantalum and lithium should be evaluated further.

Haneti Drilling Programme Conclusions:

· The Haneti Project is associated with very-high, regional, background Ni values that are associated with various mafic-ultramafic lithologies. Most of the identified historical Ni-in-soil anomalies at Haneti, including those identified over the Mwaka and Mihanza Hill prospects, are likely being related to sub-economic Ni-laterite that developed over nickel-olivine rich serpentinites.

· The lack of distinct Cu and PGE anomalism in association with nickel suggests that high nickel values are primarily associated with the weathering of nickel silicates (particularly altered olivine). Therefore, any future target should be defined not only based on a discrete nickel anomalism but also by elevated Cu, PGE, and Cr values.

· Drilling confirmed that the serpentinites are highly magnet, which could have influenced results obtained from historical electromagnetic and magnetic geophysics surveys.

· The detailed work done by Dr Martin Klaussen of the University of Stellenbosch, suggests that the serpentinites are likely of ophiolitic origin, whilst the gabbros represent a younger, possibly layered mafic intrusion. In such a geological setting, the PGE potential is limited to the serpentinites, and Ni-Cu mineralisation should be preferentially targeted within the intrusive gabbros and possibly associated structures.

· The gabbros might be structurally controlled, possibly of pan-African age, which can be a positive aspect regarding associated Ni-Cu mineralisation.

Next Steps

Haneti Nickel

A desktop review of all historical exploration data is being undertaken. The review will take into account the knowledge gained from the 2022 Haneti diamond drilling campaign (the first ever completed on the Project). The results are intended to further improve and refine targeting for future exploration programmes on the Project.

Just prior to Covid-19 restrictions a number of companies expressed an interest in Haneti and a key requirement of their due diligence work was access to diamond drill core for analysis. With that drill core now in hand the JV will be engaging again with potential project partners.

Babayu Lithium

Additional liaison with the Tanzanian government regarding the lithium licence applications within the broader Babayu area. Further regional desktop studies focusing on the lithium potential of the broader Dodoma area are to be conducted with the aim of identifying further prospective target areas for staking and other potential opportunities for further investment.

Power Metal Resources #POW – Business Operational Update

30th June 2021 / Leave a comment

Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to provide a business operational update for shareholders.

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

“In the tables below you will see the Power Metal project portfolio, the key value drivers in our business and, the latest position regarding each project interest. The Company portfolio is focused on Africa, Australia and North America; all considered to be great exploration, development and mining destinations.

Whilst each project has individual qualities, many are targeting the discovery of large metal deposits with follow-on district scale potential. The key drivers for our project acquisitions have been positioning and timing, taking strategic footholds before regional popularity strikes.

As we have seen recently with our interests in the Kalahari Copper Belt Botswana, the Victoria Goldfields Australia and the Hemlo-Schreiber Greenstone Belt Canada, early positioning places the Power Metal business in an incredibly strong position.

We have in the last year undertaken extensive exploration with some notable results including significant nickel sulphide intersections from drilling at Molopo Farms Complex Botswana and bonanza grade silver (up to 14,937 g/t silver) from channel sampling at Silver Peak Canada.

We have extensive exploration planned in 2021 including drilling across much of our portfolio. It is worth noting that many of our projects now sit on the cusp of potential discoveries. An exciting time for any junior resources company.

Alongside exploration our corporate work continues at pace focused on the spin-out and IPO activities for certain project interests.

In summation we are, in my view, bursting at the seams with discovery potential and crystallisable value and the balance of 2021 is the proving ground for this opinion.”

Note: in addition to the material presented below, investors are guided to the Power Metal corporate presentation which is available on the Company’s website through the following link:

https://www.powermetalresources.com/presentation/

KEY VALUE DRIVERS

Table 1 below briefly summarises the key value drivers across the Company’s portfolio. Further detailed project information including supporting information behind the value drivers is provided in Tables 2, 3 and 4 later in the announcement.

Table 1 – Key Value Drivers by Project

Project

Key Value Drivers

AFRICA

Molopo Farms Complex

(Nickel – Copper – PGE)

– Update following completion of technical work and review of initial drill programme data including testwork being carried out on holes K1-6, K1-14 and K1-11a sulphide mineralisation zones

– Next steps exploration to understand the potential scale of the mineralisation identified

South Ghanzi

(Copper – Silver)

– Planned exploration drilling at South Ghanzi targeting copper-silver discoveries subject to approval of the Environmental Management Plan

– Updates regarding IPO of holding JV company Kanye Resources plc

Ditau Camp

(Rare Earths)

– Release of exploration findings

– Subject to exploration results, drilling of carbonatite and rare earth deposit targets

Tati Project

(Gold – Nickel)

– Results from due diligence exploration programme including infill geochemical surveys targeting newly identified significant gold and nickel anomalies

Kisinka

(Copper – Cobalt)

– Exploration drilling at Kisinka targeting a copper-cobalt discovery

Haneti Project

(Polymetallic)

– Exploration drilling at Haneti targeting a nickel sulphide discovery

AUSTRALIA

Paterson Province

(Gold – Copper)

– Release of exploration findings including technical comparisons of Wallal targets with regional discoveries including the Winu and Havieron deposits

– Updates regarding IPO of UK holding company

Victoria Goldfields

(Gold)

– Exploration programme initial results

– Updates regarding IPO of core interests

NORTH AMERICA

Hemlo-Schreiber

(Gold – Nickel)

– Exploration updates

Silver Peak

(Silver)

– Completion of Silver Peak drill programme (commenced Q4 2020 but halted due to poor weather)

– Updates regarding IPO of Silver Peak on a recognised stock exchange

Golconda Summit

(Gold)

– Launch of ground exploration targeting near surface high grade gold mineralisation to validate historic work following receipt of permits

Garfield/Stonewall

(Gold – Copper – Silver)

– Launch of exploration programmes

Alamo

(Gold)

– Launch of next stage exploration following receipt of permits

PROJECT OPERATIONAL UPDATE

Tables 2, 3 and 4 below summarise the latest status of each project within the Company’s portfolio.

Table 2 – African Projects – Latest Position

Project

Latest Position

Molopo Farms Complex Project

Botswana

(Nickel – Platinum Group Elements (PGEs))

POW: Effective Economic Interest 50.8%

Power Metal participated in the Molopo Farms Complex (MFC) Project as it provided exposure to a new nickel sulphide – Platinum Group Elements (“PGE”) project in south-west Botswana. The layered ultramafic-mafic intrusion constituting the Molopo Farms Complex holds the potential for a significant nickel discovery, and the ground held within the project licences is interpreted as the feeder zone.

Exploration diamond drilling commenced in Q4 2020 and to date the Company has announced significant nickel sulphide intersections from the second hole drilled, K1-6 . To encounter intervals with the highest nickel grades found to date in the MFC so early in the initial 3 hole drill programme was an outstanding result reflecting the significant investment in preparatory research and exploration prior to drilling.

Much ongoing technical work is being undertaken and further results will follow from testwork being carried out on holes K1-6, K1-14 and K1-11a with market updates expected in the near term.

Following completion of the first drilling phase technical work the next stage of exploration is to build an understanding of the potential scale of the mineralisation identified and work towards defining a Mineral Resource.

This next stage is perhaps the most exciting phase of the project exploration. It is now confirmed that the nickel sulphides sought are present, so now we must seek to delineate an economic deposit through further drilling, which is likely to be preceded by a soil geochemistry programme focussed on the area between K1-14 and K1-6. Clearly if successful, the value of this project may well be transformational for all parties with an ownership interest, including Power Metal.

Power Metal holds its 50.8% effective economic interest through a direct 40% project stake and through an 18% interest in the orginal project holding company Kalahari Key Mineral Exploration (Pty) Limited, a private Botswana Company (“Kalahari Key”).

As announced 6 May 2021 Kalahari Key is to be restructured to reflect the 40% Power Metal project interest and the Company is actively engaged on commercial work streams in respect of this restructuring.

South Ghanzi Project

Botswana

(Copper – Silver)

POW: 50%

The South Ghanzi Project covering a footprint of some 1,294 km² provides Power Metal with exposure to potential copper – silver discoveries within the prolific Kalahari Copper Belt (“KCB”) alongside joint venture (“JV”) partner Kavango Resources plc (LON:KAV).

Power Metal’s CEO Paul Johnson was CEO of Metal Tiger Plc in 2016 when they and ASX listed JV partner MOD Resources made the T3 Deposit discovery nearby in the KCB. The South Ghanzi Project is following a similar exploration methodology to the T3 discovery.

Exploration work at South Ghanzi includes airborne electromagnetic (“AEM”) surveys that have identified eight anomalies representing targets for further ground based exploration.

Follow up soil sampling work has so far has been focused on two targets, Acacia and Morula, with both targets showing significant zinc and copper in soils which closely follow the structures identified through the AEM work.

Both targets present significant scale soil anomaly targets, Acacia measuring 4 km by 4 km and Morula about 2 km wide by 12 km long (open at both ends). They will both be subject to exploration drilling following approval of the project Environmental Management Plan (“EMP”).

In addition on 29 March 2021 Power Metal and JV partners announced two conditional agreements to acquire a 100% interest in eight prospecting licences to significantly expand the KCB land footprint and work continues to finalise these transactions.

The South Ghanzi Project interest is held through JV vehicle Kanye Resources Pty Limited in Botswana, which is held outright by Kanye Resources plc, a UK public company. Currently the licences in respect of South Ghanzi are being transferred into Kanye Resources Pty Limited.

The JV partners are working on an initial public offering (“IPO”) of Kanye Resources plc in the UK capital markets.

Ditau Camp Project

Botswana

(Rare Earths)

POW: 50%

The Ditau Camp Project (“Ditau”) is a rare earths exploration project with licences covering a footprint of 1,386 km² and held in JV with Kavango Resources plc, as with the South Ghanzi Project.

Ditau provides Power Metal with exposure to a potentially large scale rare earths opportunity in a secure operating jurisdiction just at the time that secure and stable sources of rare earths are in demand globally.

Exploration work continues at Ditau with soil sampling and ground magnetic surveys investigating ten potential carbonatite targets.

Further market updates covering the results of exploration findings are expected in the near term.

Following completion of the current work programmes the JV partners expect to undertake shallow drilling to test for the presence of carbonatites and potential rare earth elements.

The Ditau interest is held through the same JV holding company structure as the South Ghanzi Project above.

Tati Project

Botswana

(Gold – Nickel)

POW: Option to Aquire 100%

Power Metal announced on 6 May 2021 a 60 business day option (the “Tati Option”) to acquire a 100% interest in two gold-nickel focused exploration properties in the Tati Greenstone Belt area of eastern Botswana, subject to due diligence (the “Tati Project”). The properties comprise two prospecting licences covering 124 km².

A historical data compilation on the properties, completed as part of the due diligence process, has led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on both properties.

As a result, immediate ground based exploration is being undertaken to include infill geochemical survey grids, as well as mapping and prospecting over these newly delineated geochemical anomalies.

Further market updates will be provided in respect of this due diligence exploration programme in the near term.

Should Power Metal exercise the Tati Option, it will hold the interest in the Tati Project through the newly formed, 100% owned Botswana private subsidiary, Power Metal Resources Botswana Pty Limited. Upon the Tati Option exercise the plan would be to undertake exploration drilling at the project.

Kisinka Project

The DRC

(Copper – Cobalt)

POW: 70%

Exploration work undertaken since 2019 has delineated a 6.8 km copper-cobalt soil anomaly through the heart of the single licence representing the Kisinka Project.

It was previously planned to follow-up the recently completed ground magnetics survey with in an induced polarisation geophysics survey, however following a review of the data sets it is considered that progressing work straight to drill testing is warranted.

This drill programme is being planned at present and a further update will be provided in due course.

The Kisinka Project has secured a 25 year Permis d’Exploitation (or Production Licence) which will significantly enhance the value and flexibility of the project should drilling lead to a discovery.

Haneti Project

Tanzania

(Polymetallic)

POW: 35%

A Rotary Air Blast (“RAB”) 1,965m drill programme was successfully completed at the Haneti Project in early 2021 and the results announced on 7 April 2021. The project is held with JV partner Katoro Gold Plc (LON:KAT).

The next step at the Haneti Project is deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation.

Power Metal is eager to undertake this diamond drill programme and is working with its JV partner to secure commencement of this at the earliest opportunity.

Further work is ongoing with regard to other opportunities at Haneti, which as a polymetallic opportunity also has prospectivity for gold, lithium and rare earths.

Table 3 – Australian Projects Latest Position

Project

Latest Position

Paterson Province

Western Australia

(Gold – Copper)

POW: 75%

First Development Resources Pty Limited (“FDR Australia”) is a private Australian company with 100% ownership (or the right to acquire 100% ownership) in five exploration licence interests (1 granted licence Ripon Hills and 4 licence applications namely Wallal, Wallal West 1, Wallal West 2 and Braeside West) in the Paterson Province, East Pilbara, Western Australia.

Power Metal announced the conditional acquisition of FDR Australia on 28 April 2021 and is working with its Australian partners to finalise matters precedent on the acquisition including the grant of the Wallal licence application.

Good progress is being made with all matters including finalisation of Heritage Agreements locally which are necessary prior to formal grant.

FDR Australia will be acquired outright by a newly formed private UK company First Development Resources Limited (“FDR UK”) in which Power Metal will have a 75% interest.

Following completion of the acquisition above, the intention is to IPO FDR UK in the London capital markets and we are taking preparatory steps to enable that proposed listing.

Alongside the corporate work underway the Power Metal team have also been undertaking a detailed review of exploration data to date, planning principally for drilling of key gold-copper targets.

The Paterson Province is well known for two recent and significant gold-copper discoveries, namely the Winu discovery by Rio Tinto and the Havieron discovery by Greatland Gold plc (LON:GGP).

A desktop review has identified numerous geological analogues between the Wallal Project (comprising three licence applications) held by FDR Australia and both the Winu and Havieron discoveries.

Notably, the magnetic properties of the Havieron discovery were evaluated in comparison to the Wallal Eastern magnetic anomaly which was identified during the recent desktop analysis.

The magnetic amplitude and size of this anomaly was determined to be comparable (Havieron; diameter – 1 km, amplitude – 80nT, Wallal; diameter – 1.5 km, amplitude – 100nT).

Additionally, the geological position of the Winu discovery was determined to be similar to that of Wallal, which includes a position along the western margin of a major shelf (Winu – Anketell Platform, Wallal – Wallal Platform).

The Company is reviewing findings in conjunction with its partners in Australia and expects to release a market update in this regard in the near term.

Victoria Goldfields

Victoria, Australia

(Gold)

POW: 49.9%

This opportunity is held in JV with Red Rock Resources plc (LON:RRR) and represents one of the largest land footprints at the heart of the high profile Victoria Goldfields in Australia.

The footprint totals some 2,334 km² comprising an original sixteen licence applications from which, to date, seven licences covering 848 km² have now been granted.

Having licences granted enables ground exploration work to be launched and we now have an active programme of exploration underway including soil sampling and mapping across the granted licence areas.

Historical data demonstrates the presence of gold mineralisation across all the licence areas, with evidence of historical mine workings across the properties.

Programme planning which is being led by the exploration team, all of whom are residents of Victoria, is utilising the extensive regional and historical exploration datasets and mining records available, combined with local knowledge and land holder relationships.

The holding company for the JV is Red Rock Australasia Pty Limited (“RRAL”) and RRAL is working on the IPO process for certain core interests of RRAL on the Canadian capital markets.

This listing recognises the attractiveness of the Victoria Goldfields area amongst Canadian investors and institutions, with numerous listed companies on the Canadian Securities Exchange (“CSE”) and Toronto Stock Exchange (“TSX”) having achieved success on the markets with business models focused on exploration in the Victoria Goldfields.

To facilitiate this listing process RRAL have previously completed a National Instrument 43-101 technical report on eight of the licence areas (four now granted licences and four licence applications) and this report will form a key part of the listing documentation.

RRAL is working with advisors to complete the work streams necessary for the listing and will be providing further market updates in the near term in connection with this workflow.

Based on the valuation of listed peers who have a focus on the Victoria Goldfields, Power Metal believe the Victoria Goldfields JV to hold considerable value for the Company and our partners Red Rock Resources plc.

Note: in addition to the Victoria Goldfields interests described above RRAL has also submitted three licence applications in the Pilbara/Paterson region of Western Australia. Two applications (260 km²) are competing and therefore subject to ballot and one has RRAL as sole applicant (70 km²). The strategic plans for the three Western Australia licences are under review at present however it is likely that RRAL will seek to house these licences under a new vehicle in due course to allow the core interests of RRAL to move into the Canadian IPO process with focus on the Victoria Goldfields.

Table 4 – North American Projects Latest Position

Project

Latest Position

Hemlo-Schreiber Project

Ontario, Canada

(Gold – Nickel)

POW: 100%

In Q1 2021 Power Metal moved quickly to secure a 100% interest in seven properties in the heart of the Hemlo-Schreiber Greenstone Belt in Ontario, Canada. All properties are held by Power Metal Resources Canada Inc. (“Power Metal Canada”) a newly formed wholly owned subsidiary of Power Metal.

The seven properties have been allocated into five projects including Hemlo North, McKeller, Coco-East, Enable and Magical.

Hemlo North is a package of three properties (Dotted East, Roger Lake and Olga Lake). London listed Panther Metals (LON:PALM) are planning to drill gold targets just to the west of Hemlo North and just to the East, Palladium One Mining (TSX:PDM) has recently announced excellent data from drilling, including significant nickel sulphide intersections.

The accelerated building of the Hemlo-Schreiber Project has been validated by the level of interest shown in the area in 2021 with a number of companies securing ground in the area.

The Hemlo-Schreiber Project has attracted interest already with third party approaches with regard to certain of the projects in the Hemlo – Schreiber portfolio held by Power Metal Canada. This further demonstrates the building interest in the region.

Alongside any corporate discussions Power Metal Canada are planning to implement first stage exploration programmes for the five projects in the summer/early autumn period of 2021 and a further market update will be provided on this when appropriate.

Silver Peak Project

British Columbia, Canada

(Silver)

POW: 30%

In September 2020 Power Metal exercised an option allowing it to earn-in to a 30% holding in the Silver Peak Project. The Company considered Silver Peak, incorporating a former high grade working silver mine, would be a valuable addition to the Power Metal portfolio.

Exploration findings ratified that decision with assay results of up to 14,937 g/t silver from channel sampling from historically mined veins and up to 5,270 g/t silver from drill samples.

On 15 March 2021 the Company announced it was to accelerate the earn-in and has now made all related payments and holds a 30% interest in the project.

Power Metal and partners are working towards the planned IPO of the Silver Peak Project on a recognised stock exchange and work is underway in this regard.

The Company is also working with our partners to complete the drill programme commenced in Q4 2020 but paused due to weather conditions in the project area.

Further corporate and exploration updates are expected in respect of Silver Peak in the near future.

Golconda Summit Project

Nevada, USA

(Gold)

POW: Earn-in to 100%

On 1 June 2021 Power Metal announced the signing of an Assignment and Assumption agreement where the Company acquired an option enabling it to earn-in to a 100% interest in the Golconda Summit gold property (“Golconda”) in Nevada, USA.

Golconda is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200 Moz.

Previous exploration work on the Golconda property encountered significant gold mineralisation including trench assay results of 7.6m @ 24.0g/t gold and 15.2m @ 8.6g/t gold, as well as shallow drilling results of 10.7m @ 3.9g/t gold.

Reflecting all the above, the low cost of entry and modest ongoing costs Power Metal considered the acquisition of the Golconda interest was an important transaction for the Company, providing exposure to a highly prolific gold producing region in Nevada.

Subject to the receipt of appropriate permits, ground exploration will commence shortly with a principle focus on the validation of the historic exploration findings and demonstration of high grade, near surface gold mineralisation.

The Golconda property agreement is held by Golden Metal Resources Limited (“Golden Metal UK”), a UK private company and 100% owned subsidiary of Power Metal which will be the ultimate holding company for all Power Metal Nevada interests.

Garfield/Stonewall Projects

Nevada, USA

(Gold – Copper – Silver)

POW: 100%

The Company announced on 17 June 2021 the acquisition of a 100% interest in the Garfield and Stonewall Projects in Nevada USA. These are prospective for gold, copper and silver.

The projects were acquired by Golden Metal Resources llc (“Golden Metal Nevada”) a newly formed 100% owned subsidiary of Golden Metal UK.

Golden Metal Nevada will be the local operating company of Golden Metal UK.

The Garfield and Stonewall Projects are located in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).

Taken with the Golconda Summit gold project above, Power Metal through its Golden Metal subsidiaries now has a trio of projects within its Nevada focused business model.

Exploration work is planned for the projects following completion of the work planned at Golconda. This includes soil chemical sampling, trenching and drilling.

Alamo Project

Arizona, USA

(Gold)

POW: Earn-in to 75%

Power Metal signed an agreement in July 2020 to earn-in to a maximum 75% interest in the Alamo Project in Nevada USA where the project was considered prospective for gold following the discovery of native gold nuggests near surface in multiple locations across the property.

Reflecting additional information acquired through the ground exploration work undertaken over the last year, additional claims have been added to increase the property size and to ensure coverage of prospective areas.

A further planned exploration programme has been developed and will commence subject to the receipt of relevant permits. This programme is expected to include trenching on one area of the Alamo Project, with associated sampling, assaying and mapping and the drilling of a number of short percussion holes to test for gold and silver mineralisation. For this work to be completed a Notice Level Plan of Operations permit is required prior to commencement.

ADDITIONAL OPPORTUNITIES

Power Metal has access to an extensive pipeline of new opportunities.

However, given the strength, depth and diversity of the Company’s existing portfolio Power Metal will only acquire further interests if there is a significant strategic reason to do so. That strategic reason could be the inherent substantial value of a new project or where an acquisition would fit well with other currently held interests, particularly if that would add value to a corporate spin-out package.

In this regard and at present, Power Metal is currently in discussions with third parties in respect of a lithium exploration project in Canada and potential new gold exploration opportunities in and around Nevada USA. Unless and until any formal transaction is agreed and announced there can be no certainty that any additional interests will be acquired.

Alongside the main Company acquisitions, it is noted that Power Metal has set up Power Capital Investments Limited (“Power Capital”) a new 100% owned resource project incubator subsidiary (announced 4 May 2021). This was formed to provide a means to continue engagement with smaller but potentially valuable resource opportunities.

A maximum investment level of £100,000 per opportunity has been set and a minimum 50% Power Capital holding interest in any opportunitiy following Power Capital’s investment.

A further update specifically in respect of Power Capital’s operations will be provided in due course.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious and base 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.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Business Operational Update

1st March 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business operational update for shareholders.

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

“The team at Power Metal are intent on building a great company for our shareholders. Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.

We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our “balance sheet” through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.

As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.

We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.

We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength. Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities.”

The table below outlines the latest status of each project in the current Power Metal active portfolio. For further project information readers should review the latest Power Metal presentation which may be accessed on the Company’s website through the following link:

https://www.powermetalresources.com/p/193/presentations

PROJECT

LATEST POSITION

AUSTRALIA

Australian Gold JV

Gold

(POW 49.9%)

Initial Public Offer (“IPO”) process has formally commenced with the appointment of legal counsel in Canada. The intention is to list certain core assets of Red Rock Australasia (Pty) Ltd (the JV holding company) by IPO in the Canadian capital markets. Shareholders should note that there can be no certainty that the proposed IPO of certain core assets of Red Rock Australasia (Pty) Ltd will be successful, further updates will be made to shareholders as appropriate.

Following the grant of first three licenses, as announced on 2^ndFebruary 2021, a further seven applications are at an advanced stage of processing.

Application made for a new exploration license covering 227 sq km (EL 45/5859) in Western Australia, which will be subject to a ballot between RRAL and Rumble Resources Ltd (ASX:RTR).

BOTSWANA

Kanye Resources

Copper, Silver, Rare Earths

(POW 50%)

Kanye Resources Plc now formed in the UK, and Kanye Resources Pty Ltd in Botswana. This is the holding company company structure for a planned listing of Kanye Resources on a recognised stock exchange.

Kanye Resources includes the Ditau Project and the Ghanzi South (Kalahari Copper Belt) Project, and the exploration status of each project is outlined below.

Ditau Project

An exploration camp has been established and the field team has continued taking soil samples and conducting ground magnetic surveys. A new senior geologist has been recruited to oversee operations.

Data is currently being analysed on the I10 target. Results from this are expected to guide future exploration of the remaining 9 potential carbonatite targets.

Ghanzi South (Kalahari Copper Belt) Project

Intensified soil sampling, airborne electromagnetic survey and magnetic geophysics survey, all underway.

Sampling and surveys focused on key target areas and seeking delineation of key drill targets.

Environmental Management Plan being finalised, which following approval will allow drilling to be undertaken.

BOTSWANA

Molopo Farms Complex

Nickel, Copper, PGMs

(POW with Economic Interest up to 50.96%)

Following completion of two drill holes, drill core has been cut and inspected.

Drill core samples sent to South African accredited laboratory and assay results awaited. Samples also sent to Witswatersrand University for mineralogical and thin section analysis and results awaited.

Third drill hole to be commenced shortly and ongoing technical review underway.

CANADA

Hemlo/Schreiber

Gold, Base Metals

(POW 100%)

Acquisition of seven projects now complete and comprising exploration Claim packages strategically located across the Hemlo/Schreiber greenstone belt.

Preliminary exploration work planned includes remote sensing data interpretation and ground based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

CANADA

Silver Peak

Silver

(POW Earn-in to 30%)

Recommencement of exploration work including completion of the planned drill programme following the snow thaw in Spring 2021 targeting high-grade silver and to establish vein continuity.

Currently working with our partners to review corporate options including a potential listing of the Silver Peak project on a recognised stock exchange.

THE DRC

Kisinka Project

Copper, Cobalt

(POW 70%)

Ground magnetics completed and induced polarisation to begin over 6.8 kilometre copper-cobalt anomaly nearing completion. Following the completion of fieldwork, and interpretation of findings, likely next step will be exploration drilling of key targets.

Application to secure a 25 year Permis d’Exploitation (production licence) is progressing well and in the final stages of processing.

TANZANIA

Haneti Project

Nickel, PGMs, Copper, Gold, Lithium

(POW 35%)

Following completion of 1,965 metres of Rotary Air Blast drilling, 776 three metre composite samples have been delivered to SGS Tanzania, an accredited assay laboratory in Tanzania.

Samples being analysed using multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum, and palladium.

Assay results expected shortly and the findings will guide next stage exploration.

USA

Alamo Gold Project

Gold

(POW Earn-in up to 75%)

Ground exploration programme (as announced 11 December 2020) now completed and detailed operational report received by Power Metal.

Full technical review underway to determine next exploration and commercial steps.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

Power Metal Resources #POW – Audited Results for the Year Ended 30 September 2020

23rd February 2021 / Leave a comment

Power Metal Resources plc (LON:POW), the AIM listed mineral resources exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2020 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. (“RRIC”), and Power Metal Resources SA, (“PMR”), (together the “Group”).

Highlights from the year under review:

Operational

A strategic Australian gold joint venture was formed with Red Rock Resources plc (LON:RRR), with Power Metal Resources holding 49.9%. By year end the joint venture holding company, Red Rock Resources Australasia (Pty) Limited (“RRAL”) had lodged 12 licence applications covering some 2,188 km² in the Victoria goldfields region. Various technical work was completed in the year including project reports for 11 of the licence applications and a National Instrument 43-101 report for 8 of the licence applications as a group. A new office was secured in Ballarat town and an exploration manager appointed to the joint venture company;
Following completion of ground geophysics in 2019 and the delineation of key drill targets, Power Metal Resources elected on 31 December 2019 to earn in to a 40% project holding at the Molopo Farms Complex Project, Botswana by expending US$500,000 on exploration, notably key target drilling in 2020. A maiden drill programme commenced in October 2020;
A new strategic joint venture was formed between Power Metal Resources and Kavango Resources Plc (LON:KAV) in respect of the Kalahari Copper Belt and Ditau Camp Projects in Botswana, with each party having a 50% interest;
Review work was undertaken in respect of the exploration and commercialisation options in respect of the Cobalt Blue nickel/cobalt project in Cameroon. No formal conclusions as to the way forward were reached in the financial year, with deliberations continuing post year end and leading to a decision to impair the value of the of the Cameroon project in full (£970,000);
A new earn in agreement was formed over the Silver Peak Project, including a former working silver mine, in British Columbia, Canada. Due diligence programme sampling demonstrated bonanza grade silver from channel sampling;
A pitting, sampling and mapping work programme was undertaken successfully at the Kisinka Project in The Democratic Republic of the Congo. X-ray fluorescence testing of the samples confirmed the presence of copper, with samples dispatched to South Africa for analysis and results received post year end. The results announced in November 2020 demonstrated high grade copper and cobalt values;
Power Metal Resources increased its interest in the Haneti Nickel Project by 10% to 35% in the financial year and worked with joint venture partner AIM Listed Katoro Gold plc (LON:KAT) to plan for commencement of maiden drilling for nickel sulphide and Platinum Group Metals (“PGMs”) at the Project;
An agreement was signed in respect of the Alamo Gold Project in Arizona USA which saw Power Metal Resources acquire an option to earn in to a maximum 75% interest in the project. An initial reconnaissance survey conducted following the acquisition identified additional prospective areas which were pegged and added to existing claims, increasing the project footprint;
A further strengthening of the Board saw Edmund Shaw, an experienced City finance professional, join the Board as Non-executive Director in February 2020;
At the year-end 30 September 2020 the Company held a private and listed shares/warrants portfolio worth circa £1,481,000, including a £415,000 fair value uplift in the valuation of the portfolio of listed investments in other junior natural resource companies held by the Company over the course of the year;
· At the year end the Company held cash in GBP, USD, AUD and CAD of £913,000 in GBP equivalent.

Financial

Loss for the year to 30 September 2020 of £1.4 million (2019: £1.6 million);
Pre non-controlling interest total equity of £3.6 million at the year-end (2019: £1.8 million); and
Raised £1.7 million (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors, and an additional £266,000 of cash received by the Company during the year from exercises of Power Metal share warrants.

Post-year end

Expansion of exploration and activity across the Company’s project portfolio including:

Drilling programme commencement at the Molopo Farms Complex Project in Botswana (announced 15 October 2020), the Silver Peak Project in Canada (announced 10 November 2020) and the Haneti Nickel Project in Tanzania (announced 30 December 2020);
Next stage exploration programmes commenced at the Kalahari Copper Belt and Ditau Projects in Botswana, the Alamo Gold Project in Arizona, USA and the Kisinka Project in The Democratic Republic of the Congo (“DRC”);
Continuation of corporate activities since the year end with participation in a rights issue for Kalahari Key Mineral Exploration (Pty) Limited and expansion of the Australian Gold Joint Venture with an application to increase the JV footprint by a further 148 km² surrounding the Ballarat mine area; and
Option agreement signed in January 2021 providing 60 business-days for due diligence which if successful would lead to the acquisition of First Development Resources Pty Limited, a private Australian company with copper-gold exploration interests in Paterson Province, Australia.
Agreement signed by Power Metal Resources in January 2021 to acquire a package of gold exploration properties in Ontario Canada, followed by an option agreement providing 30 days for due diligence which if successful would lead to the acquisition of four additional exploration projects also in Ontario, Canada. In February 2021, the Company announced it had exercised the Option to acquire the McKellar Property by transferring total consideration of CAD$100,000 in cash and shares;
In February 2021 RRAL received confirmation that three licence applications had been granted enabling the commencement of ground exploration in the Victoria Goldfields, Australia;
In February 2021, the Company announced, subject to shareholder approval, a capital reduction to take place in order for distributions to be made to shareholders; and
Warrant exercises since the year end have raised a further £2,638,470 for the Company.

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

“The audited results for the year ended 30 September 2020 demonstrate the pace of business development at Power Metal.

In the previous financial year the Company emerged from the refinancing in February 2019 with a new sense of energy and a promise to deliver an exciting investment proposition in resource exploration and development. As at today’s date Power Metal is a global exploration company with precious and base metal projects across three continents.

Much of the development achieved in the Company was undertaken in the year ended 30 September 2020 and since then we have seen the launch of proactive exploration and corporate activities across multiple projects including district scale opportunities.

Power Metal is well funded with a strong working capital position and an objective to continue to build our “balance sheet” working capital to move the Company toward financial self sustainability.

We believe that 2021 and the coming years presents a great opportunity for junior resource opportunities and where possible we intend to take full advantage.”

Notice of Annual General Meeting and Distribution of Accounts to Shareholders

The Company’s Annual General Meeting will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA. The Company’s Annual Report and Accounts for the year ended 30 September 2020 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com in due course.

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	+44 (0) 20 7583 8304
SP Angel Corporate (Nominated Adviser and Broker)
Ewan Leggat	+44 (0) 20 3470 0470
SI Capital Ltd (Broker)
Nick Emerson	+44 (0) 1483 413 500
First Equity (Joint Broker)
David Cockbill/Jason Robertson		+44 (0) 20 7330 1883

Power Metal Resources #POW – Business Financial Review and Warrant Update

13th January 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a business financial review and warrant update for shareholders.

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

“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.

Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.

Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position. This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.

In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants. Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.

Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020. Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”

BUSINESS AND FINANCIAL REVIEW

Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.

The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.

The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.

The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.

The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.

Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.

Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:

PROJECT	EXPLORATION FOCUS	POW INTEREST	OPERATIONAL POSITION	PROJECT FINANCIAL INFORMATION(Cash Costs)
AUSTRALIA Victoria Goldfields JV with Red Rock Resources plc (LON:RRR)	Gold	49.9%	13 licence applications covering a footprint of 2,336 km^2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives.	Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences.
BOTSWANA Ditau Camp Project SJV with Kavango Resources plc (LON:KAV)	Rare Earths	50%	2 licences (1,386km²) with Rare earths potential established from recent exploration work. First stage orientation work complete and follow up work announced 4.1.21.	Power Metal has made advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule. Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential listing of the SJV in 2021.
BOTSWANA Kalahari Copper Belt Project (SJV with Kavango Resources plc (LON:KAV)	Copper Silver	50%	2 licences (1,294km² ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20.
BOTSWANA Molopo Farms Complex Project	Nickel Copper PGMs	Up to 50.96%	3 licences (1,780km²) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway. Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21.	Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal. To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21.
CAMEROON Cobalt Blue Project	Cobalt Nickel	100%	4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit. Review of exploration and commercialisation options reaching an advanced stage.	Further update to follow regarding the Company’s plans and financial commitment.
CANADA Silver Peak Project	Silver	Earn -in to 30%	Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins. Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20. Planned recommencement of drilling in Spring 2021.	As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021. To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021.
THE DEMOCRATIC REPUBLIC OF THE CONGO Kisinka Project	Copper Cobalt	70%	Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified. Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life.	Advance payments made to cover geophysical programme costs. Further costs of circa US$30,000 are expected in the period to 31.3.21.
TANZANIA Haneti Project JV with Katoro Gold plc (LON:KAT)	Nickel Copper Platinum Group Metals (‘PGM’) Gold etc	35%	Large polymetallic land package of c.5,000 km² including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets. Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20).	Power Metals has already made advance payments towards maiden drill programme costs. Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21.
USA Alamo Gold Project	Gold	Earn-in up to 75%	Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly.	Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21. In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment.

WARRANT UPDATE

On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000 warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”).

The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.

The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.

For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.

Power Metal Resources #POW – Company Q&A

1st December 2020 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide the questions and answers to a number of investor queries received recently by the Company. Where possible the question below is that presented to us, however where multiple questions involve similar themes, we have consolidated into a single question to avoid duplication.

Power Metal also notes that investors wishing to understand the current position of the Company may refer to the recently uploaded Investor Presentation which is available on the Company’s website and may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

COMPANY Q & A

Power Metal Resources has received numerous investor queries recently and we are pleased with the increasing interest shown in our activities. Where possible questions have been grouped into categories as outlined below.

Project Operations – Exploration and Corporate Activities

QUESTION

RESPONSE

Botswana – Molopo Farms Complex

Regarding drill #1 – why was the drill stopped when the anomaly identified via geophysics indicated an anomaly stronger with depth?

The hole was angled at 60 degrees and was over 500m in length and passed between harder and softer rock as it descended.

The possibility of some deviation as we drilled makes it possible that we have missed by a few metres a steeply dipping target identified by geophysics.

The mudstones encountered could be generating a conductive anomaly but are likely to cover a greater areal extent as they are a known horizon in the Molopo Farms Complex of rocks, so this would be inconsistent with the areally restricted conductive anomaly identified from our geophysical work.

One possibility is that the geophysics took a gently dipping anomaly and a steeply dipping anomaly, the latter being our target, and modelled the two as being one.

It was more logical given the above to stop the hole at the target depth and move on to drill the next hole while analysing the core and doing down-hole geophysics. If we had carried on drilling, we could have possibly drilled right past our target.

With the downhole geophysics we can look around and below the hole for 300m in each direction and so get a more accurate 3-D geophysical model and interpret the dip and orientation of the strata encountered in the drill core.

Unless results do not justify it, we will return to the hole and if necessary, deviate from it or drill deeper to test the assumed target.

Botswana – Molopo Farms Complex

Is the geological model for the Molopo Farm Complex looking for geology similar to the Bushveld Igneous Complex, the Great Dyke in Zimbabwe or some other large ultramafic complexes?

Each ultramafic complex has its own characteristics depending on the conditions that produced it. We are drilling a satellite ultramafic intrusive which is part of, and of similar age to, the Large Bushveld Igneous Province, as described on this page of the KKME website: https://www.kalaharikey.co.uk/mopo-farms-project/geology-of-the-molopo-farms-complex/ .

Australia – Victoria Goldfields

What is the status of the Australia gold JV and will shareholders receive a distribution from Power Metal if the Australian Joint Venture Company is listed on a North American stock exchange?

We have various work streams underway in respect of the Australia gold joint venture and it is a very proactive period for this important part of the Power Metal business.

Our immediate focus is the advancement of the technical project information and exploration planning in preparation for the launch of efficient and targeted ground exploration which can only commence on the grant of licence applications.

In parallel we continue to work on the potential listing of some or all of the interests on a North American stock exchange as announced to shareholders.

In all discussions our focus is rapid advancement of exploration and significant commitment by any potential partners to ground exploration where we believe considerable value can be added through proactive implementation of exploration programmes.

The potential listing could generate an asset of considerable value given the strategic nature of the ground under application in Victoria. That valuation would increase, perhaps significantly, with the grant of licences and the ability to launch ground exploration to validate our geological propositions. There is clear evidence of significant gold mineralisation across the licence application footprint.

The question of whether we would specifically seek to distribute any listed activity gains from the Australia JV, or indeed from any other corporate transaction undertaken by Power Metal or its partners, is a little early to definitively answer at this stage.

It is fair to say that we are attracted to the distribution model, which allows shareholders to see a return from their investment in Power Metal in addition to the appreciation in Power Metal share value that commercialisation of our interests could provide.

There are many elements to consider in this including what is best to advance the projects, the approach of any partners to transactional structuring, positioning Power Metal to enable distributions and considering the taxation elements to seek distribution efficiency from a tax planning perspective.

There are many work streams to complete if Power Metal were to consider distributions, but they can be run concurrently, and they could include seeking the approval of shareholders at a General Meeting.

Australia – Victoria Goldfields

How does Power Metal value its interests in the Australian Joint Venture Company and particularly its licences?

This is a complicated exercise as valuation depends on many factors including inherent geological and commercial potential, market conditions, granted or application status, historic and future spend and perhaps significantly the strategic significance of the JV interests.

We are developing valuation metrics, however for a real sense of valuation in the current market we can only look at recent transactions for similar interests and gain a feel for what might be achievable.

As stated previously a major factor for us is the commitment to significant ground exploration and financial investment to support that exploration work. We believe that proactive exploration stands a very good chance of identifying gold mineralisation and that will be a major uplift to any project valuation.

As you can see we are working with so many variables, but we know that having identified and built such an important and strategic land package in Victoria, we now have a duty to manage this professionally and seek the highest returns reasonably achievable from this unique opportunity.

Australia – Victoria Goldfields

Will Power Metal be seeking an income stream from any commercial transactions in respect of the Australian interests?

The main objective is the pursuit of exploration and corporate transactions that will maximise the capital return from the opportunity. Income wise, we will likely focus on royalty income streams from interests as and when we involve third parties in a project or projects.

Australia – Victoria Goldfields

There is a lot of interest being shown in Victoria gold projects including ECR Minerals plc one of your neighbours. Is this something you are also experiencing for the gold JV in Victoria?

It is increasingly clear that the Victoria Goldfields is a particularly attractive destination for gold exploration.

The strategic nature of our Australia gold JV, with the size of land package assembled and the extent of prospectivity that’s evident from our published technical work, means that there will be interest and we have stated this previously.

Australia – Victoria Goldfields

Are there plans to re-process mine dumps in the Victoria Gold Fields in Australia once appropriate licences are granted?

This is not something we have looked at so far, but as licenses are granted, we will investigate the evidence at surface where there has been previous mining activity, which may include small gold-bearing dumps or tailings.

USA – Alamo Gold Project

Do you expect to be able to mine nuggets of gold from near the surface at the Alamo gold project in Arizona?

As announced by the Company via RNS on 20 November 2020, the plan is to undertake mini-bulk sampling alongside other exploration techniques in December 2020. That should tell us more about project mineralisation including the prospectivity for gold nuggets near surface.

We are also looking at the potential for other mineralisation and the potential bedrock source of the gold mineralisation that, as we have clearly established to date, exists near-surface. The latter was also demonstrated during our January 2020 due diligence field trip where we identified gold nuggets during the digging and metal detecting of shallow pits at the project.

This is early stage exploration and the prospect of mining, although ultimately our principal objective, is something we must build towards with exploration. If successful, that exploration will confirm gold mineralisation of a magnitude to support permit applications and associated studies that would be the precursor steps to the launch of mining operations.

Tanzania – Haneti Project

You have announced that mobilisation is underway but when will drilling actually commence at the first drill location?

Power Metal has a communications approach that articulates through regulatory news announcements the status and progress on all of our material project interests. This includes Haneti which is a very material opportunity for the Company.

Power Metal, with our partners Katoro Gold plc have announced pre-mobilisation, mobilisation of drilling and intend to announce an update on full drill commencement as appropriate, including if possible images on our website photo gallery showing the drill in action at the drill location.

Tanzania – Haneti Project

Why has Haneti not been drilled before if it is such an important strategic opportunity?

On a general level the junior resource sector has been experiencing challenging conditions for some time and in many cases, there has not been the financial capital around to pursue project acquisitions or impactful exploration activities.

Many great discoveries have, in our view, been made in scenarios where projects have not been able to attract sufficient project capital to enable progression of exploration.

Haneti is however a project that has received exploration capital over many years and has built to a position where the next stage is drilling.

Importantly Haneti now has two public companies working together to operate and finance drilling.

Given the level of interest shown in the project, and in nickel sulphide exploration opportunities generally, it makes commercial sense all round to crack on with drill programmes which is what is happening at Haneti.

Canada – Silver Peak

When do you expect to receive assay results from the work undertaken recently?

As with all our projects we push for the receipt of assay data as soon as possible. With the Covid-19 restrictions around the world in 2020 the Company has not been in a position to accurately confirm timescales around the receipt of assay data from third parties. As soon as assay results are received and interpreted by the Company, an announcement will be made to shareholders.

Canada – Silver Peak

Given we are now in winter season, how do you expect to take Silver Peak project forward?

We generated highly positive exploration findings from the summer due diligence sampling work including bonanza grade silver and significant copper and lead. We await the assays from limited follow up drilling and sampling we were able to undertake in the short programme that we recently announced was curtailed by poor weather conditions.

Using the above and the historic exploration data available to us, we will, with our partners, determine the next exploration and corporate steps for the Silver Peak project.

We believe the Silver Peak project has great potential and now must identify the appropriate pathways for its development.

Canada – Silver Peak

Were you disappointed with the weather disruption at Silver Peak and what can you do to get the project back on track?

Absolutely. Power Metal is keen to push each project as hard as possible and we put a lot of work into drill programme design and implementation. The weather hit us twice with storms damaging access and meaning our original programme with a larger rig could not go ahead. Then the snow brought our man-portable rig operation to an abrupt and early conclusion.

We believe shareholders prefer a proactive approach to exploration and clearly, we pushed hard to get the Silver Peak drilling done whilst ensuring safety of operations at the site in the more challenging conditions.

DRC – Kisinka

Is it possible to extract value from the Kisinka project in the DRC and are you not concerned that money invested may be locked in?

We have operations around the globe in different jurisdictions and the DRC is one country that we believe investors perhaps do not fully understand or appreciate. We think that will change.

The Company’s experience to date has been very positive however and suggests to us that there is real value to be created in the DRC, not least because of the immense metal prospectivity across the country.

Power Metal is pursuing a potential new copper-cobalt district at Kisinka which is situated near to Lubumbashi in the south-east of the country.

The quality of technical reports that we receive from operations at Kisinka is extremely good demonstrating the professionalism of our partners.

Also, based on our experience the ability to secure licences and permits for operations is in many respects more straightforward than many jurisdictions where the process is more complex and takes longer.

Added to all this there are many international companies that are operating producing mines in the DRC including Ivanhoe’s Kamoa-Kakula under development now and which is expected to become one of the largest global producing mines.

DRC – Kisinka

When do you expect to complete the geophysics and start drilling?

The high-grade copper and cobalt from assays recently announced means that Kisinka is a key project interest and we are looking to commence follow on exploration as soon as possible.

As announced 20 November 2020 the Company is working on setting up a ground magnetic survey and a ground electromagnetic survey, to detect both low magnetic and chargeable lithologies and indicate structures and faulting and areas of carbonate rocks, in order to generate precise drill targets with our in-country partners.

The Company will make a further announcements to the market as appropriate in respect of the proposed programme at Kisinka.

Botswana – Kavango Resources JV

When will we hear more about the exploration work from the Kalahari Copper Belt?

As announced in the Company’s ‘Project Portfolio Update’ on 5 October 2020 the Company is awaiting the results of a soil sampling programme. An update on that programme, its findings and the next steps will be released to the market once results have been received and interpreted.

Botswana – Kavango Resources JV

Have you refined your plans for a listing of the JV on a Canadian or UK stock exchange?

Plans remain on track and we have been putting in place the steps to achieve our listing objective.

We will provide an update on this to the market as appropriate.

General – Project Valuations

Do you have anything you could provide to investors with valuation indications on the projects, such as project NPVs?

We have a portfolio of early stage project interests, albeit some are in a more advanced stage with drill programmes running. It is more difficult to ascribe valuations to earlier stage projects.

A similar situation exists on discovery, where the full extent of a project’s valuation will only be developed as projects are progressed and more is understood about the scale and type of mineralisation.

To a certain extent the involvement of third parties on project earn-in or joint ventures can assist with an assessment of likely value also.

In addition, project spinouts especially involving compensation in marketable assets such as listed equity will also help the developing value assessment.

As soon as we can start to attribute specific values to project interests and investments we will seek to do so.

General – New Opportunities

Are you still looking for new opportunities and are you limited in the regions you would operate in and the commodities you would explore for?

The Company actively assesses any new opportunities it is presented with although it has to be said we have already noted a rise in vendor expectations regarding project valuations.

We are of the belief that we would not have been able to assemble our current portfolio of projects on the same terms today given the stronger natural resources environment.

We were given a tremendous opportunity by the difficult market conditions of 2019/2020 and now shareholders have the advantage of a portfolio constructed in challenging markets, as those same markets move into what we believe will be a stronger phase.

We want to develop the Company around clear themes, demonstrating consistency and clear strategic rationale. Therefore, we think it’s wise to follow the overall business structure of precious metals in North America and Australia and base metals in Africa.

Business Management

QUESTION

RESPONSE

How is the Company able to manage 9 projects and commit adequate management time to each?

Whilst the management of a number of projects is a challenge, the Company ensures that it is adequate staff and management time available for each project as appropriate. The Company is also enhancing management oversight to ensure regular engagement of London plc with the project management and operational teams running each of our interests.

We also have support with back office including financial accounting and compliance through an external provider. In addition, we have assistance to manage and coordinate our extensive external communications.

We will bring in further bespoke managerial resources as our business expands and our working capital grows.

Should Power Metal spin out interests will there be a continuing involvement in management and if so how will that be possible given the management requirements of the core business?

It depends on the nature and type of transaction undertaken. Where needed we will of course apply our management time and other resources to assist.

However, our focus is on ensuring any spin outs or similar are into wrappers or deal structures that come with experienced management able to deal holistically with the commercial challenges without relying too heavily on Power Metal central resources.

What measures do you have in place to ensure your management and operations team have due regard for environmental protection and the protection of local communities?

This is absolutely vital especially as our business expands its active operations in the field. We already have a keen focus on health and safety, environmental and community protection and that will continue.

We seek to follow best practice across the above areas and generally from a corporate governance perspective reflective of the resources available to a smaller company.

To add further weight to this we are currently reviewing a number of trade associations from whom we can secure further support on best practice.

We expect to join trade associations in the near term to further demonstrate our desire to remain proactive in this area.

By way of example our Australian JV has just employed a community relations and environment officer as its second employee showing the high priority we give to these matters.

Financing Strategy

QUESTION

RESPONSE

You have disclosed your working capital position and appear confident you are in a strong financial position, however how reasonable is this given the large spread of projects and work being undertaken on them?

The answer revolves around more than just the absolute amount of working capital we hold and also includes how we spend our money, the level of fixed financial commitments and our access to additional working capital sources. The latter point we deal with in the next question so for now we will focus on the matters of spending and financial commitments.

We are quite keen on the control of spending and have our main areas of spend under control. Much of a junior resource company spend falls into central overhead and exploration spend. When corporately acquisitive, then acquisition costs can also be material.

For central overheads the direct costs in relation to the exchange listing and advisors surrounding that are largely fixed and need to be budgeted for. We pay our central costs promptly and carry almost no trade creditors for any material periods. We have no material debt.

Much central cost in junior resource companies relates to director salaries and expenses. At Power Metal, we believe against our peers in the sector we are modestly paid and have very little outlay for director personal expenses.

The aim for us (as holders beneficially interested in approximately 14% of the Company’s issued share capital) is to see money invested in the ground to make exploration and commercial progress including major metal discoveries.

If we do that our shareholdings may rise considerably in value and the financial returns from that would be way more beneficial to directors than excessive board salaries in the early stages of the Company’s development.

Turning to exploration spending, for the vast majority of our project spend, our exploration outgoings are flexible and generally entirely at our volition. This means we can spend if we wish to, but curtail exploration spend across our business if we wish to, for whatever reason. That spend control is important.

Equally for new acquisitions we have always been controlled and not overly exposed ourselves with heavy acquisition terms. We have used cash as part of acquisition terms but only modestly as cash is king in our sector.

Generally, where possible we have also used our shares for new acquisition vendor payments. So far that model has worked well to preserve cash and acquire opportunities on reasonable terms (with shared upside for vendors who hold interests in Power Metal stock and benefit as the shares increase in value).

Where do you feel most additional working capital will be generated; from financings, warrant exercises or asset disposals?

It’s difficult to be precise on future working capital sources but we do have some degree of expectation subject of course to market conditions and buoyancy in the junior resource sector.

Power Metal could undertake financings and the Board are confident that money could be raised as required. This has been amply demonstrated by the £2.7m raised in financings since February 2019 and, save for the initial restructuring in February 2019, Power Metal financings in December 2019 and July 2020 were conducted at the then market price.

Discounted financings are not what Power Metal seeks to undertake as that we consider that potentially damaging for shareholder value and confidence in general.

Ideally, we are seeking to build our working capital to become financially self-sustaining. This would mean that we would not need to undertake financings unless we chose to do so on strong terms or to value-adding institutional investors.

Warrant exercises have provided a considerable amount of additional working capital. The amount raised through warrant exercises since August 2020 has enabled the company to be aggressive with its exploration and corporate plans. In essence each warrant exercise provides us with funds to accelerate our operational activities.

Alongside the above we have a strategic investment portfolio that is growing in value and should that continue, it would provide a source of further working capital should this be needed for operations.

The area where we feel considerable working capital could be generated is from spinouts or other similar commercial transactions where we exchange some of our direct ownership of an interest for mainly cash or shares in other entities.

If those entities are liquid listed vehicles, then the effect is to have an asset easily translatable into cash when and if needed to fund our own operations.

Can you explain the warrant exercise process, its impact on shareholder dilution and whether there are any restrictions on the warrants?

Power Metal receives an exercise form from a warrant holder and checks the validity of this to an underlying warrant register. If acceptable this exercise is reconciled to a receipt of cash into the Company’s bank account.

For all valid exercises we secure board approval to issue equity, prepare a market announcement and an AIM admission form for the new equity to be admitted to trading on AIM.

The end result is a market announcement confirming the warrant exercises and cash received.

The new shares are generated by the registrar and admitted to trading on AIM thereafter.

The warrant exercises increase the issued share capital with such information provided in the requisite market announcement at the time and the increased amount of shares is updated to the Company’s website AIM Rule 26 page on the Investors’ section of the site accordingly.

Can you provide further information on all outstanding warrants and options to give a better understanding of potential dilution?

Details of all warrants issued by the Company can be found in regulatory announcements released by the Company and within the Company’s Financial Report and Accounts.

Additionally, the Company will be adding to its new website in due course a full schedule of all financial instruments including all warrants and options held generally by investors and also those held by the board of directors.

This schedule will include all final exercise dates and any special terms including accelerators whereby the company can elect to expedite the use of warrants by holders and if not used, cancel the remainder warrants although, as noted above, all such information can be found within the relevant announcements made by the Company.

What amount of revenue do you expect to generate from your projects and how will that revenue be derived?

Power Metal is generally seeking capital returns where an increase in the value of projects is secured through exploration or corporate structuring.

In some cases that value may be crystallised through a disposal of some or all of a project interest for cash or shares in an acquiring company.

In respect of any disposals we are also keen on longer term consideration that could be described as “revenue” including royalties from interests disposed where Power Metal would receive payments should an interest enter production.

Royalties can be a highly valuable source of income or revenue over the longer term so potentially could become a valuable part of our business asset base.

In addition, royalty income streams can be sold for material cash sums, providing optionality to Power Metal on how value should be crystallised.

When do you anticipate institutional investors will be interested in Power Metal?

There are of course institutions of all shapes and sizes, with varying business rationales and many are not suitable partners for our company.

We are open to reputable and recognised institutional investment but are also comfortable without it.

Well regarded institutional finance can increase investor confidence in Power Metal, however we are well funded presently and are entirely comfortable with our access to future working capital as outlined in some detail above.

Marketing and Communications

QUESTION	RESPONSE

Can you produce company level and project specific factsheets to help investors understand the business and its constituent elements?	The Company intends to undertake this exercise once the website update has been completed.
Will you be having updated analyst reports prepared for Power Metal?	Yes, we expect our brokers will provide updated research to the market as they deem appropriate.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

Power Metal Resources #POW – Project Portfolio Update

5th October 2020 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a project portfolio update for shareholders.

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

“Power Metal has built a diverse portfolio of interests and has multiple projects in the active exploration phase. The latest position for all our project interests is outlined below, together with details of targeted near-term news flow across our business.

To assist investors and shareholders keep track as we push ahead with multiple exploration programmes we continue to enhance our communications tools embracing both public and investor relations disciplines. The Company’s corporate website is being updated at present and a new website is to be launched in the coming month. We are also looking to launch or enhance project level websites where appropriate.

We work hard to keep our corporate presentation fully up to date with each Company announcement, so it should remain a primary tool for shareholders wishing to learn more. Today we are also launching a Project Dashboard for shareholders which will be held on our website and contain an updated overview of each project, its status and near-term plans.

Power Metal are seeking large scale metal discoveries through active exploration, much of which is currently underway or about to commence. Given the level of activity it’s important we remain open to feedback. Therefore, should shareholders have any questions, or suggestions, please let us know via info@powermetalresources.com.”

Project Information Sources for Shareholders:

Further details in respect of Power Metal’s nine project interests can be found on the Company’s website https://www.powermetalresources.com/s/30/projects

The Company maintains a frequently updated Corporate Presentation which provides an overview of each project and additional corporate information and this may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

Recognising the breadth of the Company’s projects, and the ongoing active exploration across numerous projects, Power Metal have today launched a Project Dashboard. This provides an updated list of Company’s projects, their current status and each project’s targeted near term newsflow.

The Dashboard is now embedded into the Company’s website and a pdf copy may be downloaded through the following link:

https://www.powermetalresources.com/Uploads/8668-POW_Project_Summary_Updated.pdf

The latest project status and targeted news flow is also outlined below. Shareholders should note that the targeted outcomes and plans may be impacted by a variety of factors, of which readers will be aware the continuing Covid-19 pandemic remains a material factor. Power Metal works with its in-country partners to mitigate and manage all risks proactively and efficiently to ensure where possible the safe continuation of ground operations.

Power Metal Project Status and Targeted News Flow:

PROJECT	METAL	POWINTEREST	CURRENT STATUS	TARGETED KEY NEWS 2020

AUSTRALIAVictoria Goldfields Joint Venture	Gold	49.9%	12 applications over (2,188 km^2.) Completed historic project reports, exploration planning and NI 43-101.	Potential grant of exploration licences, starting with first 3 priority applications, then launch of exploration programmes.Progress updates for listing on North American stock exchange.
BOTSWANADitau Camp Project	Rare Earths	50%	2 licences (1,386km²) Rare earths potential established from recent exploration work.	Commence orientation study to assist in the characterisation and exploration vectoring for the Ditau Project carbonatite ring-structures potentially hosting rare earths.
BOTSWANAKalahari Copper Belt Project	CopperSilver	50%	2 licences (1,386km²) southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries.	Exploration results from soil sampling, then ground magnetic surveying, and possibly airborne electromagnetic surveying, leading into drill target development.
BOTSWANAMolopo Farms Complex Project	NickelCopperPGMs	Up to 50.96%	3 licences (1,780km²) with multiple targets identified from electromagnetic survey and ground geophysics.	Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays.
CAMEROONCobalt Blue Project	CobaltNickel	100%	4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit.	Announce findings from review of exploration strategies and potential commercialisation options.
CANADASilver Peak Project	Silver	30%	Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins.	Planned launch of drill programme targeting high grade silver veins and following channel sampling in September 2020 which highlighted bonanza grade of up to 14,937g/t (482 oz/t).
DRCKisinka Project	CopperCobalt	70%	Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper anomaly identified.	Copper/cobalt assay results pending from 2020 pitting programme.C onversion of the licence to a Permis d’Exploitation (production license) with a 25 year life.
TANZANIAHaneti Project	NickelCopperPGMsGold etc	35%	Large polymetallic land package of c5,000 km² including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets.	Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays
USAAlamo Gold Project	Gold	Up to 75%	Package of mining claims covering c766 acres prospective for gold following the discovery of native gold nuggets near surface.	Planned follow on exploration programme after initial short reconnaissance survey conducted successfully in August 2020.

REGULATORY STATEMENT

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

Power Metal Resources #POW – Increase in Haneti Project Interest

20th August 2020 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of the Haneti Project (“Haneti”) .

BACKGROUND

Previously Power Metal held a 25% ownership interest in Haneti with 75% held by Katoro Gold plc (LON:KAT)(“Katoro”). As announced on 15 March 2019, the Company also held an option to increase its interest to 35% by payment to Katoro of £25,000 in cash by 31 August 2020.

INCREASE IN PROJECT INTEREST EXECUTED

The Company announces that today it has exercised that option, paid £25,000 to Katoro, and now has a 35% interest in Haneti. Therefore the ownership structure of Haneti is now Katoro 65% and Power Metal 35%.

Katoro and Power Metal are now working together to make the necessary changes of ownership in the project holding companies and also in underlying joint venture documentation.

Both parties must meet their proportionate expenditure commitments of future costs to maintain their percentage interest or will dilute in accordance with standard industry dilution provisions.

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

“Haneti is a considerable opportunity in terms of size and geological potential. The focus to date has been largely the nickel sulphide potential, which is understandable given the drill ready targets at Mihanza Hill and Mwaka Hill.

“However, alongside the drill ready targets, the full impact of the 80km potential strike length and the polymetallic opportunities across a 5,000 sq km strategic project footprint, mean that Haneti is a project capable of delivering discoveries in nickel sulphide (and laterite), copper, platinum group metals, gold, lithium and rare earths.

“As Katoro has highlighted, there is significant interest in Haneti from larger companies, and with good reason, given the size and diversity of opportunity.

“Taking all factors into account we felt it was important to exercise the option to increase our interest with immediate effect to 35% and so we have done so.”

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

Power Metal Resources #POW – Haneti Project: Nickel Sulphide Drill Programme Finalised

27th July 2020 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce details of the planned confirmatory drilling programme targeting nickel sulphides at the Haneti Nickel Project in Tanzania (“Haneti” or the “Project”).

HIGHLIGHTS:

Haneti Project	The Haneti Nickel Project covers an area of approximately 5,000 km²in central Tanzania and comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold. The main prospective belt of rocks within the Haneti Project is the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”), which sporadically crops out over a strike length of 80 km.
Exploration Rationale	The JV partners being Power Metal & Katoro Gold Plc (“Katoro”) are to undertake a phased exploration programme to assess the potential for nickel sulphide mineralisation within the HIUC. Confirmation of targeted geological structures and the discovery of a new nickel sulphide deposit or deposits would generate considerable commercial value for the JV partners. Exploration work will align with and complement discussions with third parties, who have expressed interest in the Haneti Project.
Drill Programme	First stage exploration programme verifying and drill-testing potential chonolith-type nickel sulphide mineralisation within the HIUC. A short shallow (100m) rotary air blast drill programme will seek to verify three near-surface targets ahead of a confirmatory deep (300m) diamond drilling programme. Airborne geophysics over the wider project area will seek to delineate additional deep-seated targets.
Programme Funding	Based on the outlined drill programme the proposed Power Metal contribution is to be funded from existing working capital, and an amount covering this has already been allocated in the Company’s USD account.

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “The Haneti story is one I have been following for many years and it was a great opportunity to take a project interest for Power Metal shareholders in 2019.

We have now moved the Haneti JV forward and prepared a nickel sulphide targeting drill programme, through which we aim to advance our understanding of the geological characteristics of the Project and, potentially, make a new nickel sulphide discovery.

We are being disciplined with a two-stage drill programme using shallow rotary air blast drilling to verify the proposed targets for a follow-on deeper diamond drill programme.

The next step is a practical one, as we make preparations for the launch of the drill programme, and we look forward to announcing mobilisation which will be an exciting point for both JV partners.”

HANETI PROJECT OWNERSHIP STRUCTURE

Power Metal currently holds a 25% interest in the Project with a 75% interest held by JV partner Katoro Gold plc (LON:KAT).

Power Metal also holds an option to increase its interest in the Project from 25%% to 35% through a payment to Katoro Gold of £25,000 by 31 August 2020.

PROJECT OVERVIEW

The Haneti Nickel Project (“Haneti”) covers an area of approximately 5,000 km² in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold.

One of the key exploration objectives for the JV partners at the Haneti Project is seeking to delineate the potential for economic nickel mineralisation in central Tanzania.

HANETI GEOLOGY AND NICKEL PROSPECTIVITY

The main prospective belt of rocks within the Haneti Project is the, linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km and mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite.

Geologically the Haneti tenements straddle the boundary between the Archaean Dodoman Craton to the south‐west and gneisses of the Palaeo‐Proterozoic Usagaran Orogenic Complex to the northeast.

Bordering the Haneti block to the west, a new greenstone belt, the Londoni Greenstone Belt has been recognised in recent years within the Archaean Dodoman System. This greenstone geology extends southeast into the Haneti project where work on third party mining claims that occur within the Haneti prospecting licence Offer area, PLA 1162, has reported positive results.

HISTORIC EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a Ni‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green‐stained veins rich in Ni‐silicates and containing several percent nickel.

In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt.

Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.

An airborne electromagnetic (“AEM”) geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019 a number of soil samples, collected during the 2013 exploration programme, were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic subcrop.

PROPOSED EXPLORATION DRILL PROGRAMME

Three preliminary target areas have been selected for exploratory diamond drilling; Milhanza Hill; Mwaka Hill; and Igari Hill, based on the recommendations of the 2012 AEM survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings.

In order to maximise the chances of intersecting mineralisation, the diamond drilling will be preceded by a 20 hole programme of confirmatory rotary air-blast (“RAB”) drilling. This phase will consist of 2,000 metres of RAB drilling consisting of two drill fences, 10 x 100 metre spaced, 100 metre deep holes.

The RAB drilling will seek to verify the existence of near surface mineralisation whilst increasing the geological understanding such that the orientation and the meterage of the follow-up diamond drill holes can be optimised to confirm the scale of potential massive sulphide mineralisation.

All RAB drill samples will be subject to multi element and base metal analysis on three metre composites with select samples analysed for platinum group elements.

The exact number and meterage of diamond drill holes will be refined by the RAB drill studies however the initial plan is for a minimum of three, 300 metre deep diamond holes.

The diamond holes are planned to provide a full intersection through the ultramafic inclusion and to provide fresh rock samples for detailed geochemical, petrographic and isotope analysis.

The aim is to identify nickel sulphide mineralisation.

In addition, an airborne Versatile Time Domain Electromagnetic (“VTEM”) geophysics surveywith the capability to generate targets at a depth of several hundred metres, is planned, to provide coverage of a greater proportion of the Haneti Nickel Project.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, MIMMM, 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.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

Power Metal Resources plc #POW – Strategic, Operational and Financial Update

14th July 2020 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a Strategic, Operational and Financial Update (the “Update”) to shareholders, following the Company’s £1,000,000 financing announced on 06 July 2020 (the “Financing”).

The Financing unlocked the potential of Power Metal, by providing the financial capability to push on with existing interests more innovatively and aggressively.

This announcement explains in more detail important elements of strategy, operations and financial management, in light of the funding raised.

HIGHLIGHTS

· Power Metal has two key strategic objectives:

1. To make one or more major metal discoveries within its gold, base and strategic metal projects and then crystallise the value of such discoveries for shareholders’ benefit;

2. To build its working capital and ‘balance sheet’ toward financial self-sufficiency and to reduce forward reliance on funding from the market to achieve its business objectives.

· The Company currently has five main projects and two additional projects in the later stage of due diligence and commercial discussions. Each project has discrete operational targets which may lead to operational news flow, an outline of which is provided below .

· Following the Company’s Financing announced on 6 July 2020 the Company can confirm its total assets as at 10 July 2020 amounted to £3.04 million. Within total assets, cash, and tradable listed investments amounting to £1.7 million (including monies raised in the Financing).

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

“At Power Metal I am striving to build a diversified exploration business backed by a strong ‘balance sheet’ to drive the Company towards an ability to self-finance its own activities and break the dependency most juniors have on market financings.

I am keen for us to be bold and adventurous with reward weighted risk taking, but with solid underlying principles of risk management covering geopolitical, commodity, operational and financial considerations. In other words, combining boldness with risk management means diversification, which is what we have achieved.

Many companies put their business case forward focused around a single major project and concentrate their energies around that. I understand this, but it’s not the Power Metal approach, where instead, in our view, we have numerous major projects, each of which is capable of delivering a transformational discovery and by virtue of this shareholder wealth.

It has not been easy building our diversified project portfolio during the challenging junior resource sector conditions of the last 18 months, but it may not have been possible but for those conditions that meant excellent opportunities remained available.

So now we find ourselves with a diverse and exciting portfolio of project interests, and with the support of shareholders and investors in the recent Financing, a considerable working capital position with which to drive forward those interests. If we are fortunate in making a major discovery in just one of our projects, we could create significant value for our shareholders.

Now to practicality, and how we move forward.

We have published below a step by step guide to our operational plans and our underlying financial position. As shareholders will appreciate, not everything goes to plan, but I believe if we are transparent with the approach we are taking, and utilise the financial resources available to us, we will make our business model clearer and a more attractive investment proposition.

As a final note, all shareholders and investors are invited to provide feedback on Power Metal, and recommendations or suggestions to enhance what we do are always helpful. Likewise if you have any questions please let us know through info@powermetalresources.com or my telephone number is below and at the bottom of all our market announcements. If you have a question about our business, it will likely be shared by many others, so please ask, and that will also help us to further improve our investor information and market communications.

Thanks to all our shareholders for your interest and support. As investors we are all focused on making money from our investments, however following a company’s story can also be an enjoyable part of the investing experience. I believe Power Metal has a fascinating emerging story.

Now on with the work!”

STRATEGIC OBJECTIVES

Power Metal has two key strategic objectives:

To make one or more major metal discoveries within its gold, base and strategic metal projects and then crystallise the value of such discoveries for shareholders’ benefit.

The Company considers that each of its current projects has the potential to deliver a large-scale metal discovery. The same belief also forms the basis around any selection of new projects brought into the portfolio.

Projects will only remain in the Company’s portfolio while they demonstrate the ongoing potential, through exploration findings, to deliver a discovery, and only where the work programmes needed are comfortably within the available financial resources of the Company.

In the remainder of 2020, Power Metal has a number of stand-out opportunities that through exploration, could expose shareholders to a major metal discovery. These include:

– Molopo Farms Complex project Botswana, (“Molopo Farms Project”) (Following US$500,000 earn-in – 50.96% Power Metal) – drilling is planned for the coming months targeting major nickel – copper – platinum group metal (‘PGM’) targets;

– Haneti Polymetallic project Tanzania, (“Haneti”) (up to 35% Power Metal) – exploration drilling plans are being developed to target major nickel – copper – PGM targets;

– Australia Gold JV – out of 11 licence applications in the Victoria Goldfields, proactive exploration may be undertaken in 2020 subject to license grants, local approvals and finalisation of targets following completion of the historic exploration and mining database, which includes specific drill target locations in priority licenses.

To build its working capital and ‘balance sheet’ toward financial self-sufficiency and to reduce forward reliance on funding from the market to achieve its business objectives.

Power Metal is focused on building a large underlying working capital position with which it can move toward financial self-sufficiency and an ability to fund the central and project operational costs through its own financial resources, with reduced dependency on market financings.

This is not a model pursued proactively by many junior resource companies where a more traditional model of cash burn for exploration, then restore cash balances through placings, tends to apply. Power Metal aims to do things differently.

There are three main ways in which Power Metal intends to build its ‘balance sheet’ working capital:

Adopting a dual approach of taking a position in project holding companies alongside direct project participation.

To date Power Metal have taken this approach three times with Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) – Molopo Farms Project, Katoro Gold Plc (“Katoro”) – Haneti and with Kavango Resources Plc (“Kavango”) – Ditau Camp Project*.

*Subject to the completion of successful due diligence

The aim is that successful project development will drive the value of the ultimate holding company in which Power Metal has a stake, driving the value of our investment in that company higher.

The recent financing has enabled this option to be utilised for further potential transactions should opportunities arise.

Monetisation of existing project interests

Following acquisition of projects Power Metal plans to move each project forward corporately and technically. From our portfolio certain interests may be vended to third parties or into new listings, in exchange for cash, equity and other forms of consideration which will build the Company’s working capital.

Investment in other junior resource sector opportunities

In the current climate there are opportunities for significant capital returns to be generated from investment in junior resource equity or related financial instruments.

Power Metal has created an internal fund for making investments in other junior resource sector opportunities, which will be referred to as the Company’s “Junior Resource Fund“, with a view to building the value of a portfolio of investments to add to working capital. As the vast majority of the Company’s working capital is deployed to operating projects and associated investments in project holding companies, only a small amount of initial capital has been deployed for the Junior Resource Fund (up to a maximum in total of £75,000 representing less than 5% of Power Metal’s current working capital.)

OPERATIONAL PLANS AND KEY TARGETS

Power Metal provides the following overview of its five main projects and two projects under due diligence.

This includes a rationale for each project, the work underway and planned and the near-term targets for shareholders to monitor as the Company moves forward.

PROJECT

RATIONALE/WORK UNDERWAY/NEAR TERM TARGETS

Arizona US – Alamo Gold Project

(GOLD)

(Under Due Diligence)

Rationale:

Power Metal considers Arizona to be a robust mining jurisdiction.

This property is in west-central Arizona, an area with mineral potential though without the historically intensive exploration of other areas of Arizona or Nevada. The local team are experienced project finders, with a clear plan for the project and the potential for a major precious or base metals discovery leading to a commercial mine.

If Power Metal can balance the risk/reward with the right transactional structure and expeditious exploration programmes, Power Metal consider this to be a viable complementary project in the portfolio.

Moreover, there is merit in building a North American gold business within the Company, including the Alamo and other projects, which would come through our established network in the USA and Canada.

The Alamo Gold Project (“AGP”) opportunity is situated in west-central Arizona USA and originally identified as prospective for gold following the discovery of native gold nuggets (the “Nuggets”) near surface and in numerous locations within the project area.

The geological environment supports further exploration to investigate the source of the nugget gold and the potential for a large mineralised gold system.

In addition, the region in which the project is situated is prospective for precious and base metals, with regional mines that have produced silver, lead, gold, copper and zinc.

The POW team visited the project during January this year and concluded the Alamo gold project was an interesting opportunity worth investigating further. The then project footprint was too small so the Company funded an expansion of ground to cover the potential mineralised system. This funding was part of a deal to extend the due diligence period during the Covid-19 lockdown.

Power Metal has since been engaging with the ultimate project owners and the vendors of an option giving a right to earn-in to (“RTEI”) the project.

If the discussions conclude successfully the final terms will include commencement of an immediate exploration programme which is important to all parties.

NEAR TERM TARGETS:

Successful negotiation and completion of transaction with commencement of project earn-in.

If transaction completed – launch of initial exploration programme.

Australia JV – Victoria Goldfields

(GOLD)

Rationale:

Power Metal has been reviewing strategic gold opportunities in the last year. Attention focused on Australia, and specifically the Victoria Goldfields in late 2019. In the first few months of 2020 there was an increase in activity and interest relating to the Victoria Goldfields, driven by many factors, with the notable success of the Fosterville mine (owned by Kirkland Lake Gold (TSX:KL) and the significant success of the listing of Fosterville South (TSX-V:FSX) another junior gold exploration company focussed on the Victoria Goldfields.

As a result Power Metal joined forces in a joint venture (‘JV’) with Red Rock Resources plc (LON:RRR), and utilising their longstanding vehicle Red Rock Australasia (Pty) Limited set about submitting license applications.

Power Metal considers the Victoria Goldfields to be a highly attractive opportunity in a secure jurisdiction offering considerable potential for multiple gold deposit discoveries. This view is backed by the considerable interest in the area in what the Company believe amounts to a “Gold Rush” with a high volume of new license applications submitted in 2020 to date. There is now insufficient free land from which a strategic land package of substance can be constructed.

Power Metal holds a 49.9% interest in Joint Venture company Red Rock Australasia (Pty) Ltd (“RRAL”) with partners Red Rock Resources plc (50.1%).

RRAL has submitted 11 license applications for tenements covering 1,839 sq km in the Victoria Goldfields of Australia, centred around long-established mining centres.

The JV is undertaking an immense amount of work to progress the applications in various work streams including:

– Utilising a team of Victoria-based geologists and local experts to finalise a project database confirming the extent of gold mineralisation and historical production across all eleven licence application areas;

– Using this database to develop a ‘ Geological Review and Development of Exploration Strategy’ report to furtherenhance and target expeditious exploration plans in readiness for licence grants;

– Preparation of a National Instrument 43-101 Technical Report in respect of the land package;

– Formation of a Technical Advisory Board including Victoria-based geologists to advise and co-ordinate on technical matters in connection with a possible listing and has appointed initial members.

RRAL is working proactively with our land management advisors and Earth Resources Victoria to seek the grant of priority licence application areas enabling RRAL to launch into ground exploration, subject to any appropriate local approvals.

The Company’s working capital position, applied through the JV, enables a variety of avenues to be developed in respect of this new project area. Power Metal has funds for selected proactive initial exploration which is our primary interest focused on priority license areas. In addition, for the pursuit of actions that may increase and articulate the value of the license land package created.

We are focused on investing in Victoria fully by supporting active exploration programmes and engaging local staff to undertake that work. This is demonstrated by our engagement with locally resident geologists to undertake our database preparation above.

There has been considerable interest in the work we are undertaking by other listed companies and with some we are considering potential transactions in respect of certain of the licence applications.

RRAL is also working with advisors to review the potential to list the JV Company on a North American Stock Exchange which it appears could draw considerable support, properly value the JV interests and provide an additional amount of project level working capital to fund extensive exploration across the properties.

NEAR TERM TARGETS:

– Granting of priority licences and commencement of ground exploration on high profile targets, including early drilling of areas where high grade gold has been identified and there is evidence of historic production.

– Review the potential for commercial transactions over certain license interests to bring in additional project partners to fund and accelerate ground exploration.

– Review the possibility of listing of some or all of the Victoria licence application interests on a North American Stock Exchange to demonstrate underlying value and access pools of project level working capital for accelerated ground exploration .

Botswana – Ditau Camp Project

(RARE EARTHS)

(Under Due Diligence)

Rationale:

Power Metal considers Botswana to be a premium destination for exploration in Africa, with transparency and good practice embedded at all levels.

The demand for sources of rare earths from secure jurisdictions make strategic rare earth projects inherently attractive. The extensive alkali ring structures on the Ditau Camp Project (the “Ditau Project”), and the association with carbonatites make Ditau an interesting exploration target of some size and scale.

Moreover Power Metal has team members and advisors experienced in rare earths exploration enabling the Company to structure our exploration planning in an efficient and targeted manner.

The Ditau Project comprises two prospecting licences in Botswana covering a combined 1,385 sq km of ground in south-west Botswana.

Power Metal is currently conducting due diligence with current project owner Kavango Resources plc (LON:KAV).

Kavango has reported the Ditau Prospect is considered to host at least 10 alkali ring structures aligned along a SW trend. There is strong evidence that these structures are associated with post Karoo age Carbonatites that lie at shallow depths beneath 60 to 70m of Kalahari sand cover. Carbonatites are the primary source of Rare Earth Metals (REEs), niobium and other minerals

Power Metal and its technical advisers are now expediting the Ditau Camp project due diligence which if successful will see the Company holding a 51% interest and partner Kavango Resources plc (LON:KAV) holding 49%.

The recent financing enables the Company to fully consider all the options in respect of this project, and to potentially accelerate ground exploration to further enhance the current geological understanding.

NEAR TERM TARGETS:

– Complete due diligence and conclude a commercial transaction.

– Launch ground exploration programme.

Botswana – Molopo Farms Complex Project

(Nickel Copper PGMs)

Rationale:

As noted above, Botswana is a leading African jurisdiction for exploration opportunities. Power Metal team members have been following the progress of Kalahari Key Mineral Exploration (Pty) Limited and the Molopo Farms Project (the “MFC Project”) in Botswana for some time and have been impressed with the commitment, dedication and thoughtful geological approach taken to reach each stage and narrow down to drill-ready targets where we are today.

The Kalahari Key team, including a number of experienced geologists, are large shareholders in Kalahari Key Mineral Exploration (Pty) Limited where as shareholders their returns will come from a discovery that they feel confident the project may deliver.

Power Metal is backing the Kalahari Key team, an extensive amount of work and an application of geophysical targeting where the feedback has been that the high-profile targets absolutely justify the investment in drilling.

The MFC Project is a nickel-copper-PGMs project in south-west Botswana owned outright by Kalahari Key. It is Kalahari Key’s single project focus at present.

Power Metal owns 18.26% of Kalahari Key, (the single project ultimate holding company).

By expending US$500,000 in 2020 to undertake the drill programme Power Metal will earn a 40% direct project interest in the MFC Project. That will give Power Metal an effective economic interest of 50.96% in the MFC Project. Power Metal has this spend commitment in the bank and foreign currency accounts, ready to deploy when required.

Kalahari Key has submitted the Environmental Management Plan (“EMP”) for the MFC Project to the Department of Environmental Affairs (“DEA”) and subject to approval being received Kalahari Key can complete final preparations including contractor selection and mobilisation.

Drill targets and holes are well defined and the programme will seek the discovery of a major nickel sulphide deposit. Drilling is currently planned to commence in the coming months however this is subject to receipt of EMP approval, drill contractor finalisation and mobilisation arrangements.

NEAR TERM TARGETS:

– Receipt of Environmental Management Plan approval.

– Confirmation of drill programme arrangements and mobilisation.

– Commencement of drilling.

Cameroon Project

(Cobalt – Nickel)

Rationale:

The Cameroon project licenses sit near or adjacent to the large scale Nkamouna cobalt-nickel deposit.

From a nearology perspective the project had some attractiveness whereby further exploration may demonstrate similar potential mineralisation to Nkamouna.

Being a large-scale project located in a remote and challenging location considerable financial resources would be required to prove up a deposit.

That said Power Metal considered that by the application of reasonably targeted exploration, a greater understanding of our licenses could be achieved. If our work programme demonstrated geological similarity to Nkamouna, this could considerably enhance the project’s valuation for the Company.

Note : With respect to Nkamouna, Geovic published an NI 43-101 compliant Mineral Resource ¹ on the Nkamouna deposit with a total Measured, Indicated and Inferred Mineral Resource of 323mt of 0.21% cobalt, 0.61% nickel and 1.26% manganese .

¹ Source: NI 43-101 Technical Report, Geovic Mining Corp by SRK Consulting, 02 June 2011 (viewable at Edgar Online)

Exploration work undertaken in 2019 identified elevated vanadium and titanium within the project area and also provided further information for targeting of additional exploration to seek cobalt mineralisation at higher elevations than previously, within thicker lateritic cover.

Review work is now to be accelerated to outline the next steps for the 100% owned project.

There is an argument, given the flexibility provided by the recent financing, to undertake a further reasonable cost programme in Cameroon. This would principally target cobalt mineralisation through additional pitting but also further investigate the vanadium and titanium anomalies. We are considering this at present.

There is also interest in Cameroon from other organisations who are more active in the country and there may be the possibility for corporate transactions including joint ventures and/or disposal of our interests.

NEAR TERM TARGET: Launch of a further exploration programme, at reasonable cost and/or the completion of a commercial transaction in respect of the interests.

The DRC – Kisinka Project

(Copper – Cobalt)

Rationale:

The Kisinka project is located within the Democratic Republic of the Congo (‘DRC’) a known location for large scale copper-cobalt deposits and within an interesting region geologically within the DRC.

Review of the available project data in early 2019 indicated the potential to implement reasonable cost initial exploration programmes to test the geological structures and potential copper-cobalt mineralisation.

On a risk-reward basis, and given the local knowledge held by the members of the Power Metal team and their advisor network, it was considered viable to invest in initial exploration.

In mid-2019 Power Metal undertook a termite mound sampling programme at its Kisinka Project in which Power Metal has a 70% interest. This programme demonstrated a 6.8km copper anomaly which has been followed up by a recently completed and successful pitting and mapping programme.

Following the confirmation and extension of the 6.8km copper anomaly recently and positive X-ray fluorescence (‘XRF’) results indicating the presence of copper and cobalt, the company is awaiting receipt of assay results.

This will complete the exploration dataset from the H1 2020 programme and help drive the next steps, which are expected to involve geophysics and further pitting, leading to drilling of key targets.

The recent financing enables the company to accelerate this next programme should this be considered the best course of action.

NEAR TERM TARGET:

– Receive and interpret assay results from the recent pitting programme.

– Design and implement an early follow up exploration programme.

Tanzania – Haneti Project

(Nickel – PGMs – Gold – Lithium)

Rationale:

In 2019 the Haneti project (“Haneti”) provided Power Metal with exposure to a large strategic opportunity in the Haneti Itiso Ultramafic Complex at a time when large scale nickel projects were increasingly becoming of interest, particularly to larger size mining companies.

Katoro Gold and previous owner Kibo Mining plc spent a number of years developing their understanding of the large Haneti land package and geological system to the point of identifying two high profile targets for drilling.

As such the Company entered the Haneti project at a key point in its development and on the cusp of a value inflection as the project moved into drilling and the prospect of a major nickel sulphide discovery.

In May 2019, Power Metal exercised an option with Katoro Gold plc (LON:KAT) to acquire an initial 25% stake in the Haneti project.

The Haneti Project covers an area of circa 5,000 sq km and is a polymetallic system with identified potential for nickel (sulphide and laterite), Platinum Group Metals (‘PGMs’), copper, gold, lithium and rare earth elements (“REEs”).

The principle target zone is an 80 km long ultramafic belt with grades from surface sampling of up to 13.6% nickel and 2.33 g/t combined platinum and palladium.

Within the 80 km ultramafic belt is the principle target, Mihanza Hill, where 2015 geophysical work identified significant extensions to nickel sulphide prospective target rock formations and geochemical interpretation has identified prospectivity for chonolith type nickel-copper-PGM mineralisation.

Power Metal is working now with joint venture partner Katoro Gold plc (LON:KAT) in respect of operational plans for Haneti which is 25% held by Power Metal, and 75% by Katoro Gold. Power Metal may increase its holding to 35% by paying Katoro Gold £25,000 in cash by 31 August 2020.

Power Metal is now financed to a level where it can stand alongside Katoro Gold in a further exploration programme at Haneti and thus maintain its project interest.

Power Metal also notes the interest of third parties in respect of Haneti and therefore that third party involvement in the project, if occurring, could materially change the joint venture partners’ plans.

NEAR TERM TARGETS:

– Work with Joint Venture partner Katoro to launch a maiden drill programme targeting the high-profile Nickel-PGM targets, including Mihanza Hill and Mwaka Hill, seeking a large-scale nickel sulphide discovery.

– Consider third party interest in respect of Haneti with a view to successful earn-in, joint venture or similar.

– Subject to the above consider the ownership structure of the JV to maximise commercial outcome.

FINANCIAL REVIEW

Current Financial Position (unaudited)

Following the subscription financing of £1,000,000 announced on 6^th July 2020 Power Metal had total assets of £3,036,970 as follows:

Total Assets	£
Intangible Assets (project related)	1,144,750
Listed Financial Assets	363,726
Unlisted Financial Assets	185,171
Trade and Other Receivables	66,680
Cash and Cash Equivalents (including £1m financing)	1,276,644
Total Assets	£ 3,036,971

The above ‘Total Assets’ data includes:

– Intangible Assets and Unlisted Financial assets from the Company’s Interim Results release on 30 June 2020.

– Listed Financial Assets based on the valuation of the underlying financial instruments on 10 July 2020.

– Cash and Cash Equivalents drawn from bank and currency account balances on 10 July 2020, together with the 6 July 2020 net subscription financing included.

For normal day to day operations Power Metal relies upon its cash balances and listed investments to provide the resources to fund operations. As at 10 July 2020 Power Metal had Listed Financial Assets of £363,726 and Cash and Cash Equivalents per above of £1,276,644, making £1,707,050 to deploy in business operations.

Power Metal has the ability to sell or joint venture or otherwise monetise its project interests to generate additional working capital to build its ‘balance sheet’ and to fund its business operations. That is an implicit part of the Company’s financial strategy as outlined above and will in the Company’s view be an important constituent in the building of the Company’s financial strength in the future.

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale discovery of precious or base metals.

The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania. The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

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