Disposal of Victoria Goldfields JV Interest

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed exploration company with a global project portfolio, is pleased to confirm that further to the announcements dated 13 March 2024 (see here: https://tinyurl.com/26ejenby) and 10 June 2024 (see here: https://tinyurl.com/yc6d9ekx) the conditions precedent of the transaction have now either been fulfilled or waived. Accordingly, completion of the disposal of the Company's 49.9% interest in New Ballarat Gold Corporation plc ("NBGC"), which wholly owns Red Rock Australasia Pty Limited ("RRAL"), the local operating company holding exploration interests in the Victoria Goldfields, Australia and in South Australia, will occur within five days of 11 June 2024 (the "Completion").

Following Completion:

• Power Metal will transfer its holding in NBGC to Red Rock Resources plc ("RRR");
• RRR will deliver £250,000 in convertible loan notes ("CLNs"), with a conversion price equal to the price of any placement of new ordinary shares of RRR raising proceeds of over £200,000. Should conversion not be undertaken within six months of 8th March 2024, the CLNs of £250,000 are repayable immediately as cash; and
• RRR will deliver 166,666,667 new ordinary shares in RRR to Power Metal, with accompanying warrants exerciseable at 0.25p per share in RRR.

A further announcement will be made following Completion.

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

"I'm pleased to confirm that Power Metal will be executing the disposal of its interest in New Ballarat Gold Corporation plc to joint venture partner Red Rock Resources plc in the coming days.

"The disposal enables the ownership of NBGC to be focused in one entity which is the optimal holding structure for its continual development. This also reflects the success of the streamlining process of the Power Metal portfolio, with the NBGC interest being converted into a balance sheet investment holding and additional incoming cash.

"For Power Metal, this disposal will further enable the Company to focus and direct its managerial, operational and financial resources on retained high value business interests and new opportunities.

"I would like to wish the RRR team all success with their plans for these licences."