17 August 2021

Power Metal Resources plc ("Power Metal" or the "Company")

Exercise of £300,000 Insider Warrants

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the completion of irrevocable Insider Warrant exercises raising £300,000 for the Company.

Further to the announcement dated 11 August 2021, Value Generation Limited a private company beneficially owned by Paul Johnson, Chief Executive Officer of the Company, has completed its irrevocable undertaking to exercise warrants to subscribe for ten million new ordinary shares in the Company of 0.1p each ("Ordinary Shares") at an exercise price of 1.0p per Ordinary Share raising £100,000 for the Company.

Following Admission of the new Ordinary Shares Paul Johnson will have a beneficial holding of 74,500,000 shares, representing 6.12% of the issued share capital of the Company.

In addition, further to the announcement of 16 August 2021 Red Rock Resources plc (LON:RRR)("Red Rock") has completed its irrevocable undertaking to exercise warrants to subscribe for twenty million new Ordinary Shares at an exercise price of 1.0p per Ordinary Share raising £200,000 for the Company. 

Following Admission of the new Ordinary Shares Red Rock will have a beneficial holding of 45,000,000 shares, representing 3.70% of the issued share capital of the Company.

The warrants were issued to participants in a financing undertaken by the Company in February 2019 and in which Value Generation Limited subscribed for ten million shares, receiving ten million warrants to acquire Ordinary Shares at 1.0p (the "Warrants") and Red Rock subscribed for twenty million shares and received twenty million Warrants.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 30,000,000 new Ordinary Shares to be admitted to trading on AIM which is expected to occur on or around 24 August 2021 ("Admission"). The Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company's issued share capital will comprise 1,217,317,944 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information please visit https://www.powermetalresources.com/ or contact:

Notes to Editors:

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 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.

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.