Power Metal Signs an Agreement to Earn-in to a 100% Interest in Lithium Exploration Properties in Quebec, Canada

Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to announce that the Company's 100% owned Canadian subsidiary Power Metal Resources Canada Inc. ('Power Metal Canada'), has signed an earn-in agreement (the 'Earn-in Agreement') through which it may acquire a 100% interest in two Canadian lithium pegmatite exploration properties (the 'Properties').

HIGHLIGHTS

Power Metal Canada may earn-in to a 100% interest in two lithium exploration properties, Authier North and Duval East, situated in the prolific Val D'Or mining camp in Quebec, Canada.

Authier North Property is adjacent to Sayona Mining's (ASX: SYA) flagship Authier Lithium Project which has reported JORC compliant Total Reserves of 12.1Mt at 1.0% Lithium Oxide (0.55% Li2O cut-off grade). Sayona has a current market capitalisation of c.AUD$393 million.

Duval East Property is immediately adjacent and east of a northwest-southeast trending lithium pegmatite dyke which was drilled in 1955 with reported intersections equivalent to to 2m @ 1.38 Li2O1. The easternmost historical drill hole on this lithium bearing pegmatite dyke falls within the Duval East Property boundary and the dyke is postulated to extend into the claim.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 'Today's announcement brings a focussed and high-impact lithium opportunity into the Power Metal Canada business.

We believe that lithium is an important strategic commodity to have within our portfolio. However, as an exploration and development company what matters most is the quality of opportunity, which we think we have with these two Earn-in properties.

One property is situated adjacent to a major lithium Reserve that offers significant exploration potential and the second property is interpreted to host the open eastward extension of a historical lithium deposit delineated in the 1950s, which holds potential subject to further drilling.'

FURTHER PROPERTY INFORMATION

The Earn-in Agreement announced today concerns two properties, Authier North and Duval East. Both properties are situated in the prolific Val'd'Or mining camp approximately 45km northwest of the city of Val-d'Or and approximately 500km northwest of Montreal, Quebec.

Quebec is recognised as the sixth highest ranking mining jurisdiction in the world, in the Investment Attractiveness Index in the 2020 Fraser Institute - Annual Survey of Mining Companies.

Quebec provides incentives for exploration and development companies within the province which include significant tax credits on all eligible exploration expenses incurred within the province on a annual basis.

Authier North Property

The Authier North Property consists of fifteen (15) mineral claims covering an area of approximately 560-hectares and is considered to be prospective for lithium-pegmatites and base metal mineralisation.

The Authier North Property shares an extended claim border with Sayona Mining's Authier lithium project which hosts a JORC (Joint Ore Reserves Committee) compliant Total Reserve of 12.1Mt at 1.0% Li2O (Lithium Oxide).

Sayona Mining's shareprice (ASX: SYA) has increased eight-fold within the last year and currently has a AUD$393 million market capitalisation. Sayona Mining published a Definitive Feasibility Study ('DFS') on 11 November 2019 covering their flagship Authier Lithium Project. This DFS highlighted a net present value (discount factor 8%) of CAD$216 million and a pre-tax internal rate of return at 33.9%.

Additionally, in January 2021, Sayona announced a strategic partnership and offtake agreement with Piedmont Lithium Limited (ASX:PLL, Nasdaq:PLL) which includes a 25% ownership stake in Sayona Quebec (a wholly owned subsidiary of Sayona Mining), as well as an offtake agreement for 60,000 tpa or 50% of future production (whichever is the greater) from the Authier lithium project.

Sayona's Authier lithium project consists of a spodumene pegamatitic intrusion which dips to the north and it is postulated into the Authier North Property.

Very little historic exploration has been completed on the Authier North Property, with reports of five short boreholes (four of which returned elevated lithium and nickel assays) and only 4 rock samples which returned strongly anomalous chromium and nickel results (up to 0.42% Cr203 (Chromium (III) Oxide), and 0.21% nickel).

The Company's planned exploration will include geophysical surveys which aim to model the possible down dip extension of the lithium bearing pegmatite onto the Authier North Property.

Duval East Property

The Duval East Property consists of one (1) mineral claim covering an area of approximately 20-hectares and is located 3km east of the Authier North Property. Duvel East is immediately adjacent to and holds the postulated eastern extension to, a lithum bearing pegnamtite dyke that was drilled over an open 600ft strike length in 1955.

The pegmatite dyke trends in a northwest-southeast direction and remains open on its eastern end which falls within the Duval East Property boundary. The Company's planned exploration on the property may include diamond drilling testing for extensions of the lithium bearing pegmatite dyke within the Duval East Property.

Contact:

Paul Johnson

Tel: +44 (0) 7766 465 617

Notes to Editors

Power Metal Resources plc (LON: POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries.

The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.

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 global metals exploration.

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