Power Metal Regulatory News (POW)

19 June 2020

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

Result of Annual General Meeting and Statement

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is  pleased to announce that at its Annual General Meeting ('AGM') held today, all resolutions were duly passed by the Company's shareholders.

In light of the Covid-19 pandemic and the difficulty for shareholders wishing to attend the meeting, the Chairman elected to move straight to a poll to reflect all proxy votes received for the AGM. The proxy votes received are detailed below by resolution.

At the AGM Paul Johnson, Chief Executive Officer, made the following statement:

"I would like to thank our shareholders for their support and engagement over the last year, which has been a turbulent period in financial markets, particularly with the disruption of late caused by the Covid-19 pandemic.

Our primary objective is to make large scale metal discoveries that can see a significant revaluation in the value of the Company, potentially changing the lives of shareholders through a material uplift in the value of their investment in POW.

As CEO I have 6.08% of the issued share capital of POW and have invested just short of £130,000 of personal cash through participation in placings and on market share purchases. In total the Board of POW hold approximately 10.6%% of its issued share capital, a proper commitment to align the Board with shareholders.

The Board also have options with an exercise price of 1.0p which is a 122% premium to the share price of the Company on market close yesterday. However, these options only activate when POW shares trade at a volume weighted average price of 1.5p for 5 consecutive days, and that activation hurdle is a 233% premium to the share price. Again, this is a clear alignment of the Board with shareholder interests.

The large-scale metal discoveries we seek depend on a portfolio of substance containing projects of sufficient technical merit to justify the exploration spend that may generate a discovery. At POW we have been building our portfolio during 2019 and 2020, which has been a challenging period for our sector. Market turbulence however yields opportunity and we have seized that with highly strategic acquisitions and corporate developments that may not have been possible during more buoyant market conditions.

The most recent development has been our 49.9% held gold Joint Venture in Australia where we have secured a 1,835 sq km land package of ten licence applications in the heart of the Victoria Goldfields. In a short time horizon we have become a major participant in one of the most sought after gold exploration territories in the world.

In Africa we have through our work identified a 6.8km copper anomaly in The Democratic Republic of the Congo at our Kisinka Project and we are actively exploring that project at present. We also have interests in drill ready exploration projects in Botswana and Tanzania targeting large scale nickel-copper-platinum group metal deposits.

We have some corporate development work to conclude with the Alamo Gold project in Arizona, USA and the Ditau Project in Botswana which are both under due diligence and we still have a pipeline of new opportunities feeding into the Company.

It is fair to say however that our corporate acquisition work is slowing as we turn to more intensive exploration of our existing portfolio to seek out that major discovery.

To maximise the chance of discovery we are focused on working with experienced in-country teams who have a robust local knowledge base to ensure we focus on the highest profile target areas and work in a cost and operationally efficient manner.

Turning back to shareholders POW will continue to strive to the build the value of your investment and as we venture along the pathway toward our targeted discovery, we would welcome your feedback.

Please feel free to contact us on info@powermetalresources.com and if you wish to review the latest developments in the business these are captured in our newly updated corporate presentation which may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

PROXY VOTES BY RESOLUTION

ORDINARY RESOLUTIONS

1 To receive the report and accounts for the year ended 30 September 2019.

2 To re-appoint BDO LLP as auditors to the Company to hold office until the conclusion of the next general meeting at which accounts are laid before the members and to authorise the directors to determine their remuneration.

3 To elect Edmund Shaw as a director of the Company.

4 To elect re-appoint Iain Macpherson as a director of the Company.

5 THAT the directors of the Company be generally and unconditionally authorised, under and in accordance with Section 551 of the Companies Act 2006 ("the Act"), to exercise all the powers of the Company to allot shares in the Company or grant rights to subscribe for or convert any security into shares in the Company ("equity securities") up to an aggregate nominal amount of £750,000 provided that this authority shall expire (unless previously renewed, varied or revoked by the Company in general meeting) on the earlier of 15 months from the passing of this resolution or the conclusion of the Company's next AGM save that the Company may before such expiry make an offer or agreement which would or might require relevant securities to be allotted after such expiry and the directors of the Company may allot relevant securities under such offer or agreement as if the authority conferred by this resolution had not expired and provided further that this authority shall be in substitution for, and to the exclusion of, any existing authority conferred upon the directors.

SPECIAL RESOLUTIONS

6 THAT, subject to and conditional upon the passing of Resolution 5 above, the directors of the Company be empowered under section 570 of the Act to allot equity securities (within the meaning of Section 560 of the Act) for cash pursuant to the authority conferred under Section 551 of the Act by Resolution 5 above as if section 561 of the Act did not apply to any such allotments. Such power shall expire on the earlier of 15 months from the passing of this resolution or the conclusion of the Company's next AGM provided that the Company may before such expiry make offers or agreements which would or might require equity securities to be allotted after such expiry and the directors of the Company may allot equity securities under such offers or agreements as if the power conferred by this resolution had not expired and provided further that this authority shall be in substitution for, and to the exclusion of, any existing authority conferred on the directors.

7 THAT the Company be and is generally and unconditionally authorised to make market purchases (within the meaning of Section 693(4) of the Companies Act 2006) of its ordinary shares of 0.1 pence each provided that in doing so it:

(a) purchases no more than in aggregate 100,000,000 ordinary shares;

(b) pays not less than 0.4 pence (excluding expenses) per ordinary share; and

(c) pays a price not more than 2 pence (excluding expenses) per ordinary share.

This authority shall expire on the earlier of 15 months from the passing of this resolution or the conclusion of the Company's next AGM, but the Company may, if it agrees to purchase ordinary shares under this authority before it expires, complete the purchase wholly or partly after this authority expires.

As at 19 June 2020, there were 552,690,226 ordinary shares in issue. Shareholders are entitled to one vote per share. Votes withheld are not votes in law and so have not been included in the calculation of the proportion of votes for and against a resolution.

The above proxy votes received in relation to resolutions at the AGM will also be uploaded shortly on the Company's website: https://www.powermetalresources.com/p/188/corporate-governance.

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 discovery of precious or base metals.

The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania. The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

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 metals exploration.