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Company’s Inaugural Drill Programme Confirms Target Geological Formations, Returns Near Surface Gold and Application for Adjacent Prospective Land Successfuly Lodged

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 drilling programme on the Tati Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana.

Highlights:

– Drill programme completed safely and on-budget. Primary programme objective to confirm prospective geological formations was completed successfully.

–  Near surface gold mineralisation intersected, including shallow depth Reverse Circulation (“RC”) drilling results of up to 5.17g/t gold (“Au”) over 3m from 9m downhole.

–  Further Prospecting Licence (“PL”) application lodged, covering along strike extension of identified major regional gold prospective structure.

–  The 1614-hectare lodged PL application covers a strong gold-in-soil anomaly and the historical Cherished Hope Gold Mine.

Maps highlighting various aspects of the 2021 drilling programme can be found below at the following link:

https://www.powermetalresources.com/tati-project-drill-results/

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

“It took a certain boldness for our team to advance the Tati Project to the drilling stage so quickly.  However, due to the thin sand cover over most of the Project, we felt that gaining knowledge of the underlying geological formations through relatively inexpensive RC drilling was crucial in order to better gauge the overall prospectivity of the Project. The drilling results achieved will now allow us to continue to push our Tati exploration forward at pace.

The RC drillholes completed within PL126/2019 targeted a relatively small area within a much broader gold-in-soil anomaly. Our main goal was to better understand how the geochemical anomaly correlated with the thinly blanketed geological formations.  What we found was very encouraging.

Whilst our main programme goals were to gain a better understanding of the subsurface geology over the Project, we were encouraged to obtain near surface gold including results of up to 5.17g/t Au over 3m from a shallow depth of only 9m. Importantly, as noted above, these results were achieved from only a small area tested within a much larger geochemical anomaly.

In parallel with our ground exploration work programmes, we completed a further detailed analysis of the broader Tati Greenstone Belt surrounding the Project – with the hopes of identifying additional gold targets located near to the Project.

Significantly, we were able to identify a 1614-hectare area adjacent to our PL126/2019 licence, and further along strike of a regionally important northwest-southeast trending structure, which contained widespread, strong gold soil anomalism – including several targets of greater than 100ppb gold-in-soil (much stronger than the area tested by the 2021 drilling campaign). As a result, we moved swiftly to secure this area by submitting a new licence application to cover all anomalous zones identified.

By applying the positive drill findings from this early RC programme across the entire Project and specifically into this new application area, we have in our view confirmed that the Tati Project is a major target for gold discoveries.

We are seeking to accelerate our work on this exciting Project.”

Programme Background:

Key Findings Include:

A northwest-southeast oriented quartz reef was intersected in multiple drillholes over a combined strike length of 200m; including highlight results of 5.17g/t Au over 3m (TGRC00017) from 9-12m and 1.3g/t Au over 3m from 15-18m.

· The drillholes were targeting only 200m of strike length along a 2,000m Au-in-soil anomaly (open to east and west) discovered by the Company during a Phase I geochemical survey completed over PL126/2019 and announced on 14 September, 2021. The Au-in-soil anomaly is coincident with a prominent northeast-southwest oriented structure which extends for at least 14km to the nearby Monarch Gold Mine.

· Based on the work undertaken to date, Power Metal, through its 100%-owned Botswana subsidiary Tati Greenstone Resources Pty Ltd., lodged a new Prospecting Licence (“PL”) application in order to cover the southeastern extension of this regionally important gold prospective structure.

· The PL applicaton covers an additional 6km of strike-length along this significant structure, including several large-scale Au-in-soil anomalies as well as the historical Cherished Hope Mine. If granted, this area represents a high-priority exploration target for the Company going forward.

All RC samples were shipped to Johannesburg for sample preparation at Intertek Genalysis’ (“Intertek”) prepararatory facility, and further sent on to Intertek’s laboratory located in Perth, Australia, where they underwent analysis. All samples from this programme were sent as 3m composite samples. Subsequently, 1m samples from the zones of interest returned from the sample composites have been compiled and sent off to Intertek for further sample preparation and analysis.

PL126/2019 Drill Results

A total of 7 RC drillholes (TGRC00017-TGRC00023) were completed on PL126/2019 targetting 200m of strike length within a >2,000m long (open to the east and west) Au-in-soil anomaly defined by the company during its 2021 Phase I geochemical work programme. 6 of the drillholes were completed within a fan array, at a set dip of -50 ° , with each hole being stepped back 20m from another. The two fans were positioned exactly 200m along strike from one another, with the 7^th hole being completed within the middle of the array – approximately 100m equidistant from each drillhole fan.

Drillholes intersected a modest to shallow dipping quartzite unit with variable gold grades including highlight results up to 3m of 5.17g/t Au. The drill results highlighted the down dip extent of the quartzite, which remains open at depth and along strike.  

Mapping within the area identified a northwest-southeast oriented structure which extends at least 17km, intersecting the nearby Monarch Gold Mine along its extent. The structure extends from the 2021 drilling area, as well as to previously unstaked ground to the southeast of PL126/2019. Additionally, Power Metal was able to obtain historically geochemical data collected over this ground, which showed a larger and higher-tenor Au-in-soil anomaly than the area targeted during the 2021 drilling campaign. As a result, a Prospecting Licence application was lodged with the Botswana Department of Mines (“DOM”). The Company is waiting for the results of this PL application, and will update the market once an update is available.

PL127/2019 Drill Results

A total of 6 RC drillholes (TGRC0001-TGRC0006) were drilled targeting along the strike extension of the Signal Hill gold mine. The drillholes were drilled along two fan arrays, which included 3 holes per fan. The holes were drilled to a maximum depth of 81m. No significant results were achieved in these holes. The drillholes all intersected various banded iron formation (“BIF”), schist and siltstones intervals with variable calcite alteration.

A total of 6 RC drillholes (TGRC0007-TGRC0012) were drilled targeting a nickel (“Ni”)-in-soil anomaly which was postulated to represent an extension of mafic-ultramafic units which host the nearby Selkik and Tekwane nickel mines. The drillholes were drilled along two fan arrays, which included 3 holes per fan. The holes were drilled to a maximum depth of 81m. Several holes intersected variable BIF, dacite, shale and schist intervals, and locally, disseminated pentlandite and pyrite mineralisation were logged.

A total of 4 RC drillholes (TGRC0013-TGRC0016) were drilled targeting a northwest-southeast oriented As-in-soil anomaly identified by the Company during its Phase I soil sampling programme. The holes were drilled to maximum depth of 51m. The drillholes were drilled along two fan arrays, which included 2 holes per fan. The drillholes intersected variable meta andesite, dolerite, schist and quartzite with variable hematite alteration.

In all instances, the drillholes completed as part of the programme on PL127/2019 were targeting geochemical anomalies identified by Power Metal during its 2021 Phase I soil samping programme. In many cases, these Ni- and arsenic (“As”)-in-soil anomalies were kilometre scale, and as a result only minimal parts of these anomalies were adequately tested during this programme.

Programme Data:

Tati 2021 Drill Programme Assay Table

*Overlimit assay anaylsed via FA25/OE (25g Fire-Assay)

Tati 2021 Drill Programme Collar Table

**  Projection: WGS84 – UTM Zone 35S

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 (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic 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.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below: