Power Metal Regulatory News (POW)

9 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources - Pre-IPO Financing £750,000

Power Metal Subsidiary Golden Metal Resources Raises £750,000 in Pre-IPO Financing to Fund its Planned IPO and Operational Expenses

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces its wholly-owned subsidiary Golden Metal Resources Limited ("Golden Metal" or "GMT") has completed its £750,000 Pre-IPO financing ("Financing").

Golden Metal is a Nevada, USA, focused exploration and development company and is undertaking a planned listing on the London capital markets in 2022.

The latest exploration update in respect of Golden Metal is available through the following link:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-exploration-update/15229671

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

"With Golden Metal Resources we have created an attractive Nevada, USA, focused investment opportunity, which we plan to list on the London capital markets as soon as possible.

The Nevada portfolio is carefully balanced, including the Pilot Mountain project which hosts a substantial JORC compliant tungsten focused resource, (with copper, silver and zinc in addition) which we believe has significant exploration potential and development upside.

The portfolio also includes Golconda Summit, where Golden Metal can earn a 100% interest, positioned in a neighbourhood of dramatic Carlin-style gold deposits and where our initial exploration work has indicated the potential for a significant gold discovery.

The Financing announced today means Golden Metal becomes self-financed and Power Metal will no longer be required to fund Golden Metal operations but instead will be a major strategic Golden Metal shareholder.

Alongside self-financing, Golden Metal has its own dedicated management team with broad spectrum knowledge and capabilities, and above all with the energy and focus to drive this exciting new junior exploration opportunity forward within the London markets."

HIGHLIGHTS:

- Capital restructuring of Golden Metal share capital underway to enable additional shares to be issued and to amend the underlying Par Value in readiness for the planned listing of Golden Metal ("Restructuring").

- Golden Metal has raised £750,000 through a Pre-IPO financing undertaken with First Equity Limited, corporate broker, at a price of 6.67p per Golden Metal new ordinary share of 1 pence each ("Ordinary Share), which will represent 18.75% of the issued share capital of Golden Metal on completion of the Restructuring and the Financing.

- 50% of Financing monies will be payable to Golden Metal by 31.12.21 and 50% by 31.01.22 whereupon Financing completion will occur ("Completion") and shares will be issued to Financing participants.

- Power Metal has subscribed for £75,000 of the Financing, subscribing for 1,124,437 Ordinary Shares ("POW Subscription").

- Following the Restructuring and completion of the Financing, Power Metal will hold a total of 49,874,437 Ordinary Shares representing 83.13% of Golden Metal.

- On the basis of issued share capital on completion of the Restructuring and Pre-IPO Financing the valuation of Golden Metal will be circa £4million, and Power Metal's 83.13% holding will be valued at circa £3.33million.

- The monies raised enable Golden Metal to fully self-finance its operations including IPO listing advisory costs, corporate expenses and various project expenditures.

- Paul Johnson, Chief Executive Officer of Power Metal and director of Golden Metal has subscribed for £50,000 (749,625 Ordinary Shares) in the Financing.

- Should Golden Metal not be listed on a recognised stock exchange in London within 12 months of today's date, subscribers to the Financing may elect to sell back their Golden Metal shares to Power Metal at the financing price of 6.67p, with the number of Power Metal shares to be issued based on the ten day volume weighted average price of Power Metal shares immediately prior to the 12 month anniversary ("Buyback Right") of today's date. Paul Johnson, CEO of Power Metal, has elected to relinquish this Buyback Right. Power Metal will also not hold the Buyback Right.

- No warrants are included automatically with the Financing, however should warrants be offered as part of the planned IPO financing, participants in this Pre-IPO Financing will receive warrants on the same terms.

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 (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:

1 assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company's announcement of 19.11.21 resulting in the issue of First Development Resources Limited shares to vendors.