Power Metal Regulatory News (POW)

21 July 2022

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

Exercise of Warrants & Warrant Update

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exercise of warrants and warrant update.

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

"Including the exercise of warrants below, in the last week Power Metal has announced an additional £382,666 raised through final conversions of the July 2022 expiry warrants. This is a material sum and added to our existing working capital puts the Company in a strong financial position for the next stage of its development.

That next stage is potentially the most exciting in our history as Power Metal, with key exploration programmes planned including those at the Tati and Molopo Farms Complex projects in Botswana, two of our key internal exploration interests.

Corporately, we are looking forward to the planned listings of First Class Metals, Golden Metal Resources and First Development Resources; and the completion of various other crystallisation events for the Company.

I look forward to Power Metal driving through this next important stage and to the announcement of key developments as they occur in the coming weeks and months. To help articulate in full the latest position of all our interests, Power Metal expects to release its quarterly report for the period April to June 2022, (including a summary of events so far in July) early next week."

Warrant Exercise

The Company has received notices to exercise warrants over 18,548,700 new ordinary shares of 0.1 pence each in the Company ("Warrant Shares") at an exercise price of 0.75p per Warrant Share and raising an additional £139,115 for the Company. 

Insider Warrant Update

In the July 2020 financing undertaken by the Company participants received warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.75p per share with an expiry date of 20 July 2022 ("July 2020 Warrants").

As at the expiry date Paul Johnson, Chief Executive Officer of the Company and Ed Shaw, Non- executive Director (together the "Directors") held the following July 2020 Warrants ("Insider Warrants"):

The Insider Warrants were issued following participation in the July 2020 financing.

The Directors are unable to exercise the Insider Warrants due to the extensive exploration and corporate activities underway within the Company which preclude exercise at this time.

This activity includes, but is not limited to, the following:

North America

- Final preparations for the planned listings of First Class Metals plc (Schreiber-Hemlo region Canada exploration vehicle - POW 36.3% interest) and Golden Metal Resources plc (Nevada USA focused exploration and development vehicle - POW 83.13% interest)

- Exploration and corporate activities in respect of the Company's Athabasca Basin region uranium interests

Africa

- Exploration and corporate activities in respect of the Company's Tati project and Molopo Farms Complex project, in Botswana.

Australia

- Exploration progress and IPO process in respect of First Development Resources Ltd, (Western Australia and Northern Territory exploration vehicle - POW 62.12% interest)

- Exploration and corporate activities in respect of New Ballarat Gold Corporation plc (Victoria Goldfields exploration and development vehicle - 49.9% POW interest)

Under the July 2020 Warrant instrument Clause 2.3 provides that should any July 2020 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

It is the Directors intention to exercise the warrants as soon as they are free to do so however given the level of activity within the Company this may not be possible for some time. In the interim the Insider Warrants will remain available to exercise under Clause 2.3 and for clarity should the Insider Warrants not be exercised the Company will provide an update as to their status 3 months from today's date.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 18,548,700 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 28 July 2022 ("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 1,531,808,465 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.

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 internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within 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:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

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