Strategic Financing Raising £1.3 million

Power Metal Resources PLC (AIM:POW), the London listed exploration company with a global project portfolio, announces a financing raising £1.3million ("Financing").

HIGHLIGHTS:

§ Power Metal has raised £1.3m in a strategic financing through the issue of 130,000,000 new ordinary shares of 0.1 pence each ("Ordinary Shares") at an issue price of 1.0 pence per Ordinary Share, representing a premium of approximately 3.09 per cent. to the closing mid-market price of 0.97 pence per Ordinary Share on 31 January 2024, being the latest practicable date prior to the publication of this announcement. There are no warrants to be issued in conjunction with the Financing.

§ The Financing was cornerstoned by UK-based high net worth investors and a strategic Saudi Arabian investor.

§ The Financing demonstrates the ability of the Company to secure direct funding from strategic investors, helping to move the shareholder register to include a greater proportion of longer term and institutional holders.

§ The Financing will be applied to the acceleration of high impact exploration initiatives and corporate activities across the Power Metal group.

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

"Power Metal is highly active in its exploration and corporate activities and we expect to announce further important news from across our varied business interests in the near term.

Corporately, we have been seeking to augment our shareholder register with strategic high net worth and institutional investors, to further strengthen the ownership of the Company and achieve a greater proportion of the Company's shares in the hands of long term investors.

This process, started in May 2023 with the involvement of Rick Rule's investing vehicle, continues with this announcement today, with the Financing cornerstoned by UK-based high net worth investors and, for the first time, a strategic Saudi Arabian investor.

Importantly, we are also demonstrating the Company's ability to secure funds from new sources, giving our shareholders confidence in the ability of the Company to robustly finance its ambitious plans."

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 130,000,000 Ordinary Shares to be admitted to trading on AIM which is expected to occur on or around 7 February 2024 ("Admission"). The Financing Shares will rank pari passu in all respects with the existing Ordinary Shares currently traded on AIM.

Following Admission, the Company's issued share capital will comprise 2,213,468,324 ordinary shares of 0.1 pence each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.