Power Metal Resources PLC Regulatory News (POW)

4 January 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Ditau Project Botswana - Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update for the Ditau Project ("Ditau" or "the Project") in Botswana.

Ditau includes two prospecting licences (PL169/2012 and PL010/2019) in a Strategic Joint Venture ("SJV") with Kavango Resources plc (LSE:KAV) ("Kavango") with Power Metal and Kavango each having a 50% interest in the SJV.

Highlights:

· First stage of orientation work at Ditau complete:

- Orientation work conducted on magnetitic anomaly "I10", the first of ten geophysical "ring structures" previously identified at Ditau

- Results from the I10 orientation exercise will shape the calibration of survey equipment for follow-on surveying of the remaining 9 ring structures

- Each ring structure is believed by the Company to have the potential to host carbonatite rocks which are the principal source of rare earth elements ("REEs")

· Initial work completed at I10 comprises:

- Controlled-source audio-frequency magnetotellurics ("CSAMT") geophysics orientation on a 5km line run at 50m station interval

- Soil geochemistry samples taken over the same line at 200m spacing

- Soil geochemistry sampling assay results and processed geophysics expected by early February

· Follow up surveys at I10 planned for mid-January:

- Gravity survey at 50m intervals

- Ground magnetic geophysics survey at 12.5m station spacing

· Further planned work at Ditau to include:

- Extensive geophysical surveying and soil sampling planned in Q1/Q2 2021

- Subject to successful exploration outcomes an exploratory drill campaign is anticipated in Q2/Q3 2021

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

"The Strategic Joint Venture with Kavango is surging ahead with work completed and announced from the Kalahari Copper Belt, and now from the Ditau Project.

With the Ditau Project we are seeking a discovery of rare earth elements (REEs), which are highly valuable and sought after commodities, particularly from secure and stable jurisdictions such as Botswana.

I look forward to reporting further updates from Botswana and the Ditau Project as material developments occur."

THE DITAU PROJECT

The Ditau Project comprises two prospecting licences ("PLs") (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 magnetic geophysics "ring structures" (including at least one possible kimberlite structure).

The "ring structures" are potential carbonatites.

Carbonatites are the principal source of REEs including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles ("EVs"), magnets and other high-tech applications.

One of the geophysical ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to "fenitization", a type of extensive alteration associated with alkali magmatism and carbonatites.

Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.

Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.

DITAU EXPLORATION

Kavango had previously planned to complete the orientation work to calibrate its surveying equipment at the Falconbridge carbonatites. However, by focussing its efforts on the I10 magnetic anomaly, the Company will be able to accelerate its plans for the more extensive surveying of all 10 "ring structures" identified at Ditau.

The initial CSAMT orientation line over I10 is 5km long and has been plotted at 50m station intervals. Soil samples were taken at stations every 200m.

Gravity surveying at 50m intervals and ground magnetic surveying at 12.5m intervals is planned along the orientation line in mid-January.

The objective of the CSAMT survey is to identify the position of the various rock types below surface by testing their electrical resistivity

Evidence from carbonatites found in the area by Falconbridge in the 1970s suggests that the Ditau intrusive bodies are located at the bottom of the Kalahari cover sands, approximately 75m below surface.

The fractured nature of carbonatites means mineralisation can be dispersed within long, thick veins of carbonatite material.

Kavango's immediate priority is to confirm whether the 10 "ring structures" at Ditau contain carbonatite. The exploration process for this is relatively straightforward. Assuming the CSAMT surveys isolate specific drill targets, these can be tested by low-cost, shallow Reverse Circulation (RC) drilling.

Kavango and Power Metal will provide further updates 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.

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:

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 metal exploration in Africa. 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.