12 March 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Power Arabia Limited ("Power Arabia") Update

Power Metal Resources PLC (AIM:POW), the London listed exploration company with a global project portfolio, is pleased to update shareholders on the progress being made through its 100% owned subsidiary company, Power Arabia Ltd ("Power Arabia").

Highlights:

·    Memorandum of Understanding ("MoU") signed with Ministry of Investment of the Kingdom of Saudi Arabia ("MISA") at Future Minerals Forum, as announced on 12 January 2024

·    Power Arabia has been established to encompass all of POW's activities across the Arabian Gulf (the "region"). This could also include projects outside the Gulf in joint venture with entities domiciled within the region

·    Several binding MoUs for potential joint ventures on existing exploration licences are currently in the final stage of negotiation and, assuming execution of one or more of these, initial groundwork is expected to commence in April, after Ramadan and Eid al-Fitr.

·    Power Arabia is currently undergoing a pre-IPO financing round to fund activities in the region with a view to a listing on the London capital markets in due course

·    Conversations are progressing with investors, both from the Gulf and internationally, who have indicated significant interest in a regionally focused investment vehicle

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

"I am very pleased to update shareholders on the progress we are making in this exciting part of our business. We have now made several trips to the region and are establishing ourselves as a credible partner for a number of existing licence holders. We are currently looking at formal arrangements to acquire suitable exploration opportunities with various separate entities, of which several are currently close to execution. It is clear that our successful incubator model has resonated with regional investors and we are intending to shortly complete a financing round for Power Arabia with a view to completing transactions in the region and getting started on meaningful exploration work.

As has been the case with previous portfolio transactions, POW is expected to retain a significant shareholding in Power Arabia, giving our shareholders substantial upside potential from discoveries, but without diluting their shareholding in POW and asking them to fund all of the exploration costs.

Whilst there is never complete certainty of a successful outcome, of either the pre-IPO financing or the listing of Power Arabia on the London capital markets, we are very excited to bring this IPO to London and strongly believe that our model will be successfully replicated across the Arabian Gulf region and will deliver significant value to shareholders."

For further information please visit https://www.powermetalresources.com/ or contact:

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM: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.