Power Metal Regulatory News (POW)

13 December 2023

?Power Metal Resources plc

("Power Metal" or the "Company")

Uranium Energy Exploration Update

Power Metal Resources plc (AIM:POW), the London listed exploration company with a global project portfolio, is pleased to update the market on progress and key developments relating to the conditional disposal of its Canadian uranium assets as announced previously.

On 8 August 2022 and 4 November 2022, Power Metal announced the conditional disposals of the Reitenbach and E-12 uranium properties respectively into Teathers Financial plc ("Teathers"), which is to be renamed Uranium Energy Exploration plc ("UEE"), the details of which can be found below:

https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269

https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304

Since then, considerable progress has been made on the structure of the transaction and the advancement of the assets, a key component of which has been the successful completion of a pre-IPO financing which is announced today, together with further information in respect of next stage plans.

As noted in the announcement of 10 March 2023, Sean Wade, Chief Executive Officer of Power Metal Resources plc, is a director of Teathers Financial plc. Mr Wade is also a shareholder in Teathers Financial Plc.

PRE-IPO HIGHLIGHTS

- Teathers/UEE has conditionally raised approximately £421,500 through a Pre-IPO financing ("Financing") undertaken at 1.241135p per Teathers new ordinary share ("Ordinary Share").

- Completion of the Financing is subject only to approval of Teathers' shareholders at General Meeting, arrangements for which are being finalised.

- The capital raised enables Teathers/UEE to self-finance its operations including its planned IPO advisory costs, corporate expenses and various project expenditures.

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

FURTHER HIGHLIGHTS

- With the pre IPO Financing work complete, Teathers/UEE is now moving to execute on further corporate initiatives in advance of its planned Q1/Q2 2024 listing on the London capital markets ("IPO listing").

- Based on the Teathers/UEE pre-IPO valuation and planned conditional disposals by Power Metal of the Reitenbach and E-12 uranium properties into Teathers/UEE, it is currently anticipated that upon completion of the planned acquisitions by Teathers/UEE and its IPO listing, Power Metal is expects to hold a significant interest in the newly listed vehicle.

- Further updates are expected shortly in relation to the Power Metal's uranium focused portfolio.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

"I am very pleased to be able to report positive progress towards the UEE IPO. Current market conditions are not conducive to capital raising, and the fact that Teathers/UEE have outperformed expectations in this regard is further validation of investor interest in new uranium focused opportunities.

I look forward to the planned IPO of UEE with a high quality collection of uranium interests and an exciting period of exploration ahead.

Further updates will be provided to shareholders as material progress occurs."

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.

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 grow the Company or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.