Disposal of Kavango Resources Shares for Cash

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company announces the disposal of its entire holding of 69,500,000 shares of Kavango Resources plc ("Kavango") at a price of 0.8p per share raising cash of £556,000 for the Company.

Power Metal retains 60,000,000 warrants to subscribe for new Kavango shares with 30,000,000 warrants at an exercise price of 4.25p and 30,000,000 warrants at an exercise price of 5.5p, both with an expiry date of 8 January 2025.

In addition, Power Metal holds a 1% net smelter return royalty ("NSR") in respect of the project licence footprint in the Kalahari Copper Belt and Ditau Camp projects previously held in joint venture with Kavango.

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

"I am pleased to announce this disposal bringing an additional £556,000 cash into the Company which will be deployed into the Company's high impact exploration initiatives.

"Whilst we would describe our holding in Kavango as non-core our disposal does not reflect any negative view of their business or their ambitions and we wish them well in their endeavours.

"Our priority however is deploying financial resources into Power Metal core projects whilst also streamlining the diverse interests of the Company and demonstrating our ability to raise cash for operations through means other than equity financings which dilute investor holdings.

"The funds raised will add to our significant existing cash balances and will be utilised for accelerated exploration, including drilling of certain high impact retained exploration projects targeting large-scale metal discoveries. Further information to follow in respect of specific exploration programmes."