Power Metal Regulatory News (POW)

19 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Project Botswana - Drilling Commences

Diamond Drilling Commences at the i10 Target - Seeking Rare-Earth Element Carbonatite Intrusives

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces that diamond drilling has now commenced at the i10 Target ("i10" or the "Target") located within the Ditau Camp Project ("Ditau"), southwestern Botswana.

The i10 Target is marked by a discrete, circular, geophysical anomaly that is 2.2km in diameter and under an estimated 120m of sand cover. Kanye's primary objective is to retrieve diamond core to establish whether the Target's geophysical anomaly is caused by a carbonatite intrusive. Carbonatites are the world's primary source of rare-earth elements ("REEs") and other strategic/industrial metals including copper.

The Ditau Camp Project is held by Botswana based Kanye Resources Pty Limited ("Kanye"), which is a 50/50 joint-venture partnership with Kavango Resources plc (LSE:KAV) ("Kavango") - who are the operators.

Highlights

- Drill motivation

- The i10 Target is highlighted by a discrete circular magnetic anomaly, measuring 2.2km in diameter

- The Target is interpreted to lie at a shallow depth, below an estimated 120m of Kalahari sand cover - based on Audio-Magnetotelluric ("AMT") data obtained over i10.

- Kanye has successfully completed aeromagnetic and AMT inversions over the Target.

- The Target has been independently verified to conform to an idealised model for carbonatite intrusives, based on its aeromagnetic signature.

- Idealised Ore Deposit Model

- I10 is a carbonatite pipe intrusive target

- Based on the magnetic signature, the Target has concentric "ring-like" lithological zonation, which could relate to rare-earth element mineralised horizons

- Target lies near the margin of the Kaapvaal Craton, a tectonic context common to other carbonatites globally

- Drill operations

- Camp secured, road access and drill pads completed

- Water borehole successfully drilled and solar powered water pump installed

- First of two planned drillholes at i10, hole DITDD003, commenced drilling on 15 April 2022, which is targeting the core of the magnetic high and has a target depth of 400m

- Drilling is being conducted by Mindea Exploration & Drilling Services (Pty) ("Mindea")

- The plan is to drill up to six ~400m deep diamond drillholes at Ditau, including 2 drillholes at three separate magnetic anomlies, including i10.

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

"I have talked previously about the confidence we hold in the geological prospectivity across our projects in Botswana. That confidence means within an 18 month period, with Molopo, Tati and now Ditau, we have launched three drill programmes.

The Molopo drill programme successfully confirmed the presence of nickel, Tati confirmed the presence of gold and now we seek confirmation of rare earth elements at Ditau. 

To say we are excited about the prospects for our interests in Botswana is an understatement. Let's see what this drill programme delivers."

Background Targeting

The Ditau Camp Project is centred around 12 unique geophysical anomalies (targets i1 through i12), which Kanye believes could be caused by possible carbonatites and/or intrusive complexes that may host rare-earth element mineralisation.

Targets i1 - i12 are seperated into two main target types:

1) Discrete kilometre-scale carbonatite pipe targets, and

2) Larger, multi-kilometre scale intrusive complex targets that may also be host to carbonatites and/or mafic intrusive bodies prospective for base-metal mineralisation.

The 12 Ditau geophysical targets are not known to have been drill tested for either REEs or base-metal mineralisation historically. Kanye originally identified these targets, which range in size from 1km to 20km in diameter, using interpretation of airborne magnetic data. To date, Kanye has used combined airborne- and ground-magnetic, and AMT surveys in the exploration at Ditau.

Target i10

Kanye believes the i10 Target anomaly could be caused by a discrete, 2.2km wide carbonatite pipe. The Target is interpreted as a simple, single phase carbonatite pipe with a possible outer ring indicated by a weak magnetic low ringing the main magnetic high feature.

A 3D inversion of the aeromagnetic data with an AMT section overlay of the I10 Target can be found at Kavango's website at the link below:

https://www.kavangoresources.com/media-library/news-release-media/rns19april2022

Based on analysis of the AMT data over i10, the Kalahari sand cover is estimated to be roughly 120m thick. The magnetic inversion results confirm that the primary target zone lies just underneath this sand cover.

To confirm the current geophysical interpretation of the i10 Target, Kanye is currently planning to drill two diamond drillholes into i10. The first drillhole, which is currently underway, will target the core of the magnetic high, while the second hole is designed to test the edge of the geophysical anomaly.

Target i10 Idealised Ore Deposit Model

In the analysis of geophysical data over i10, Kavango has used the rare-earth element bearing Kangankunde carbonatite pipe ("Kangankunde") located in Malawi as a model.

Kangankunde is one of the largest carbonatites within the Chilwa Alkaline Province ("Chilwa") at ~1.5km in diameter. Chilwa is a roughly 300km in diameter, and is comprised of Late Jurassic-Early Cretaceous alkaline rocks with clusters of carbonatite pipes - including Kangankunde.

At the surface, Kangankunde forms a low hill, which rises approximately 200m above the surrounding plains, with lower slopes composed of fenitised and locally fractured (brecciated) rocks with the upper slopes predominantly of carbonatite intrusive rocks.

Although the i10 target is buried under roughly 120m of Kalahari sand cover, Kanye's geological team believe that the geophysical signatures are comparable to that of Kangankunde. The highlight the various similarities, a geological map of Kangankunde can be found on Kavango's website at the link below:

https://www.kavangoresources.com/media-library/news-release-media/rns19april2022

Carbonatites can exhibit significant lithological and structural variation, both between and within individual pipes. As such, to maximise the chances of exploration success in exploring for carbonatite hosted REE deposits, it is common practice to drill multiple boreholes along a fence pattern into a single target. The geological map of Kangankunde illustrates its concentric geological complexity and therefore the necessity for drilling multiple drillholes within i10 to elucidate the geology and locate potential indicators of REE or base-metal mineralisation.

Ongoing Drilling Operations

The drill camp has been constructed. All supporting equipment and key personnel are currently located on site.

Kanye has successfully drilled a 180m deep water borehole, which should yield enough water to support ongoing drilling operations. A solar powered pump has been installed and is currently operational.

Road access between the drill camp, drill collar locations and water sources is also complete.

Drilling operations successfully commenced on Friday 15 April 2022. In total, Kanye expects to drill up to 6 diamond drillholes as part of the current campaign (totalling ~2,400m). Each hole has an anticipated target depth of 400m, and Kanye aims to test 3 of the 12 geophysical targets as part of the ongoing drilling campaign.

Kanye and its contractors have designed the current Ditau drill campaign to be flexible and guided by ongoing visual results. Kanye will release field and laboratory results on the current planned 6-hole drill campaign once all data has been received, processed and verified.

Contingent on results from the ongoing drilling campaign, Kanye has identified a further 17 drill collar locations for future drill testing across all 12 geophysical targets/structures at Ditau.

Regional Geological Setting

Carbonatite intrusives often occur in swarms or clusters, oriented along favourable and clearly defined deep continental scale geological and structural trends. The 12 geophysical structures at Ditau occur within a southwest-northeast oriented corridor, part of the same corridor that host the Mabuasehube and Kokong kimberlites. Desktop analysis of regional geological and geophysical data by Kanye's geologists suggest that this trend is sub-parallel to other corridors that host other kimberlite groups in Botswana and northwest Angola. In the latter, these trends are known to host both kimberlite and carbonatite intrusives, meaning that the presence of one is a strong indicator for the other.

In addition to the known presence of kimberlites within the geological corridor where Ditau is located, and further enhancing the prospectivity for Carbonitites on the Project, there is a small known cluster of carbonatite intrusives including KW2, Definite, KS12 and KS36 (the "Falconbridge Carbonatites") which are located near to the Project. The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970s and early 1980s, to the immediate north of and 30km along strike to the northeast of the Ditau Project.

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:

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.

Power Metal Exploration Programmes Underway/Results Awaited

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