Athabasca Basin, Strategic Uranium Property Staked

Power Metal Resources PLC (AIM:POW), the London-listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update concerning its uranium property portfolio focused on the Athabasca Basin area in Saskatchewan, Canada.

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

"I am very pleased to report this additional staking to our already significant uranium portfolio focused on the Athabasca Basin area. Competition remains extremely high for these properties, and I am very grateful to the technical team for their skilful management of the staking process. With the addition of Richards Lake, an in-basin property, we have further augmented our uranium footprint, one that we believe will add considerable value for our shareholders as corporate and investor interest in the Athabasca Basin area continues to increase."

HIGHLIGHTS:

§ Newly acquired Richards Lake Uranium Property ("Richards Lake" or the "Property") was acquired by direct mineral claim staking undertaken by the Power Metal technical team. The Property was staked during the most recent Mineral Administration Registry Saskatchewan ("MARS") electronic registry system claim reopening on 31 January 2024, with the licences granted a few days later. Additional information on the staking process can be found in the further information section below.

§ Richards Lake project area covers a total 3,109.26 hectares (31.09 km2) within the northern edge of the Athabasca Basin. Richards Lake is surrounded by claims held by uranium-focused companies, including ALX Resources, ATHA Energy Corp and Skyharbour Resources Ltd (see Figure 1).

§ Property has been subject to minimal historical exploration, but previous operators have noted east-west trending Electromagnetic ("EM") geophysical conductors which extend through the centre of the Property1. The Property is located 14km south of the Fond du Lac Uranium deposit.

§ Richards Lake acquisition further supplements the Company's Athabasca uranium portfolio. With the addition of Richards Lake the portfolio now consists of eighteen uranium properties, including two conditional disposals, with a combined total area of 1,043.40 km2.

The mineral claim constituting Richards Lake was acquired directly through the Mineral Administration Registry Saskatchewan ("MARS") electronic registry system.

Where a previous claim owner is unable to satisfy the claim maintenance requirements, that ground is reopened to third party staking at a set time each month. Select reopenings are highly competitive with many parties attempting to acquire the newly available land.

The total cost of staking was Canadian $1,865.56. The newly staked licences come with a two-year term with no minimum spend requirement and which can then be extended for subsequent years by spending a minimum of Canadian $46,638.90 per annum.

The Richards Lake Uranium Property

Richards Lake is located within the prolific Athabasca Basin, approximately 14km from the Basin's northern edge. Based on nearby borehole records, the sandstone-basement unconformity on the Property is expected to be at around 200m depth. The property is crossed by two inferred northwest-southeast trending faults.

The Property has never been subject to detailed geophysical analysis, being part of a larger Electromagnetic survey in the mid-2000s. The property has also not received geochemical sampling or drilling, and thus represents a greenfield uranium project in a prolific uranium district.

URANIUM PROPERTIES - HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power Canada"), which acts as the holding Company for certain Canadian project operations. Power Canada has a wholly-owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company's Athabasca uranium portfolio.

The Power Metal Canada Uranium Property Map is presented in Figure 2, below.

Media

Figure 1: Richards Lake Uranium Property Overview Map

Figure 2: Power Metal Canada Uranium Property Map

NOTES

Glossary:

EM Geophysical Conductors: In the Athabasca Basin area, uranium mineralisation is often associated with graphitic fault conductors within the crystalline basement. Graphite and faults are more conductive than the surrounding rocks, and thus offer a proven geophysical target for future exploration.

Reference:

1Fission Energy Corp, 2008, Report on 2007 Summer Exploration Of The Davy Lake Property (West, East And North Blocks), Northern Saskatchewan, Report No: 74J13-0010