Power Metal Resources PLC (LON: POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces that the Company and its wholly owned subsidiary Golden Metal Resources Ltd have signed a Strategic Option Agreement allowing Golden Metal to acquire a 100% interest in the Pilot Mountain Project ('Pilot Mountain' or the 'Project'), in Nevada, United States of America ('USA'), subject to completion of detailed due diligence.

HIGHLIGHTS

Project: The Pilot Mountain Tungsten-Copper-Silver-Zinc Project is located approximately 200km southeast of Reno, in Nevada, USA

Pilot Mountain hosts a JORC (2012)1 compliant Mineral Resource Estimate of 12.53Mt @ 0.27% WO3 for 34.3kt of contained tungsten metal plus significant silver, copper and zinc.

The Project has undertaken metallurgical testwork and a 2018 Scoping Study for a conceptual open pit mining operation with an 8-year mine life.

There is a clear pathway for upgrading and supplementing the scoping study work, addressing the permitting requirements and advancing the Project towards a mining Feasibility Study.

Pilot Mountain has significant upside exploration potential.

The Option

Power Metal and its wholly owned subsidiary Golden Metal have secured an option (the 'Option') to acquire a 100% interest in the Pilot Mountain Project.

60 day Option Period to undertake detailed Project due diligence and during which it may exercise the Option.

Option Exercise

Upon Option exercise, Golden Metal will acquire a 100% interest in Pilot Mountain (the 'Acquisition'), the consideration for which will be paid by Power Metal, as outlined in detail below, but principally including the issue of US$1.65million of Power Metal new ordinary shares of 0.1p each at an issue price of 2.5p (48,118,920 shares - equivalent to 3.88% of current Power Metal issued share capital and subject to a minimum 6 month hold period as outlined below).

Listing of Golden Metal

Power Metal plans to spin-out Golden Metal into a new listing on the London capital markets, and assuming Option exercise Golden Metal will hold 100% interests in Pilot Mountain together with the Garfield and Stonewall projects. Golden Metal will also hold the right to earn-in to a 100% interest in the Golconda Summit project. All projects are in Nevada USA.

Further announcements will be made to outline listing plans and project exploration/development plans.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented: 'We plan to list our wholly owned subsidiary Golden Metal as soon as possible in the London capital markets. The Pilot Mountain project, subject to due diligence, will be an important strategic interest embedded within that listing, and provide a significant increase to the value of the Golden Metal listing proposition.

In addition to the JORC (2012) compliant Mineral Resource at Pilot Mountain we are of the view that there is considerable exploration upside potential.

Historic work undertaken, including a Scoping Study completed in 2018, has demonstrated the potential viability of production from the Pilot Mountain deposit, further bolstered by strong metallurgical test results.

On a standalone basis Pilot Mountain is a significant advanced asset and complements the earlier stage exploration interests currently held by Golden Metal.

Importantly on completion of the acquisition we believe the Golden Metal portfolio will be one of the most exciting resource exploration and development opportunities in Nevada, USA.

We are now working with advisers to complete Project due diligence and undertake an accelerated listing process.'

Contact:

Paul Johnson

Tel: +44 (0) 7766 465 617

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