20 October 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Molopo Farms Complex - Botswana Drilling Update

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a drilling update from the Molopo Farms Complex Project ("Molopo Farms" or the "Project") targeting a large-scale nickel-copper-platinum group element ("PGE") discovery in southwestern Botswana.

In September 2022 Power Metal commenced a planned 2,600m diamond drill programme at Molopo Farms focused on the drilling of three Company designated priority (A+) electromagnetic ("EM") geophysics conductors, located at target areas T1-6, T2-3 and T1-3. The first diamond core drillhole, DDH1-6B is within priority target area T1-6 and is located 530m south of previous drillhole KKME1-6 drilled in 2020, which returned multiple nickel sulphide intervals which are detailed in the Company's announcement of 24 September 2021 accessible via the link below:

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-further-assays/15148836

HIGHLIGHTS:

§ The first diamond hole, DDH1-6B, has now achieved a depth of 576m.

§ Ultramafic rocks have been intersected immediately beneath relatively shallow  (~24m) Kalahari Group sediments and have continued to the current hole depth.

§ Preliminary inspection of DDH1-6B shows interbedded mafic units, predominantly comprised of pyroxenites and serpentinites. Pyroxenites were the host rock for nickel sulphide mineralisation found within drillhole KKME1-6.

§ Visible sulphide mineralisation has been logged within pyroxenites toward the end of the current drillhole DDH1-6B. As a result, the Company has decided to extend the hole from the original 600m target depth, with the goal of intersecting additional pyroxenite layering. Drillhole DDH1-6B now has a planned target depth of at least 650m.

§ Drill core recovery has been excellent, with core now being transported to the processing area. Core logging and the preparation of samples for assay testing will be expedited where possible.

§ Following the completion of DDH1-6B, a down hole EM survey will be undertaken in order to gather further geophysical data which will assist in the vectoring of subsequent drillholes planned to test the priority T1-6 target area.

§ In the interim on completion of DDH1-6B, the Company will undertake a further new shallow drill hole into target area T1-6, DDH1-6B(2), from a drill location proximal to that for the original hole KKME1-6.  The new drill hole is planned to a target depth of 250m. This hole will test for the potential up dip extension (shallower) of the nickel mineralised pyroxenites identified in drillhole KKME1-6, and should help the Company to demonstrate the full extent of the mineralised system at this priority target area.

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

"The initial findings from hole DDH1-6B are exciting, confirming the extension of pyroxenite layering to the south of original hole KKME1-6 and providing significant core intervals for expedited processing and subsequent assay testing.

The presence of visible sulphide mineralisation toward the end of the current hole has led us to make the decision to extend the planned target depth of DDH1-6B to at least 650m.

The preliminary logging of the ongoing drillhole has confirmed the angle of dip of geological units from original hole KKME1-6 to the current hole DDH1-6B to be approximately 30°, it is also clear that we should test the northerly extension of the pyroxenite layering up-dip, to the north of KKME1-6, where we are targeting nickel sulphide mineralisation nearer to surface.

The opportunity at Molopo Farms is considerable, so I am particularly pleased to report the findings above so early in this ongoing programme and look forward to releasing further information as soon as possible.

My thanks to the drill team and our technical advisers in the field for a great job on the programme thus far."

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

QUALIFIED 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 Qualified 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:

NOTES TO EDITORS

Power Metal Resources plc - Background

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.

Exploration Work Overview

Power Metal has multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company's priority exploration projects is outlined in the table below.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below: