Power Metal Resources PLC Regulatory News (POW)

19 September 2025

Power Metal Resources plc

("POW", "Power Metal" or the "Company")

Proposed Capital Reduction

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed natural resources exploration company and project incubator with a global project portfolio, announces a proposed normal course reduction of capital (the "Capital Reduction"), to ensure there are sufficient distributable reserves to facilitate a return of capital to shareholders.

The Company recognises the importance of providing returns for the Company's investors and considers it highly desirable that the Company has the maximum flexibility to return value to Shareholders via a distribution of reserves.

The capacity of a UK company to make distributions is restricted by the sufficiency of distributable reserves. Under the Companies Act, a company may, with the sanction of a special resolution passed by its Shareholders and confirmation of the High Court of Justice in London ("the Court"), reduce or cancel its share capital, share premium account, capital redemption reserve and other reserves. It may then apply the sums resulting from such reduction to its distributable reserves. These sums may then be treated as distributable for the purposes of making future returns to Shareholders.

The Company will, accordingly, be seeking Shareholder approval to cancel the entire amount standing to the credit of its Share Premium account as at the date when the relevant Court order is made. Subject to confirmation by the Court and the reduction of capital taking effect, the amount so cancelled will be credited to the Company's distributable reserves. This will improve the Company's distributable reserves position and will provide the Company with flexibility to support, amongst other things, Ordinary Share buy-backs and the payment of dividends or other distributions to Shareholders in the future.

The Company will, in due course, update Shareholders on the timing of a Notice of General Meeting to approve the Capital Reduction and the subsequent application to the Court.

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 (AIM: POW, OTCQB: POWMF) is a London-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, Saudi Arabia, Oman 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.

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