Power Metal Regulatory News (POW)

24 October 2022

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

Insider Warrant Update

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

The Company would refer readers to its announcement of 21 July 2022 wherein warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.75p per share ("Insider Warrants"), held by Company directors, could not be exercised at the original expiry date of 20 July 2022 ("July 2020 Warrants").

The Insider Warrants were issued to directors following their participation in a Company financing in July 2020.

The Insider Warrants are held by Paul Johnson, Chief Executive Officer of the Company and Ed Shaw, Non- executive Director (together the "Directors") as follows:

Current Status of the Insider Warrants

Within the 21 July 2022 announcement the Company committed to update shareholders as to Insider Warrant status after 3 months.

The Insider Warrants remain valid as the Directors remain unable to exercise at this time due to ongoing proactive exploration and corporate activities.

This activity includes, but is not limited to:

Ongoing developments at the Company's priority exploration projects including:

- the current diamond drill programme underway at the Molopo Farms Complex in Botswana, and

- recently conducted exploration programmes at the Tati gold project in Botswana and the Athabasca uranium interests in Saskatchewan, Canada.

Extensive corporate transactional work including:

- planned spin-out IPOs and disposal activities, and

- the review of next steps on four project interests (Authier North, Haneti, Silver Peak, & Wilan projects).

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. 

The Insider Warrants remain available to exercise under Clause 2.3 however the Company has extended the expiry date on the Insider Warrants to 21 April 2023 to reflect the limitations on exercise as described above.

Related Party Note

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as outlined above, have been treated as related party transactions for the purposes of AIM Rule 13.

Scott Richardson Brown and Owain Morton being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Ed Shaw considers, having consulted with the Company's nominated adviser, SP Angel, that the extension of the Insider Warrant expiry date to 21 April 2023 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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 multiple internal exploration programmes completed or underway, with results awaited. The status for each of the Company's priority exploration projects is outlined in the table below.

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

Exploration work programmes may also be underway within Power Metal investee companies and 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. These interests are summarised in the table below: