Half-year Results

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed natural resources exploration company and project incubator with a global project portfolio, announces its unaudited interim results for the six-month period ended 30 June 2026 (the “Period”), for the Company and its subsidiaries (together the "Group").

KEY DEVELOPMENTS IN THE HALF YEAR TO 30 JUNE 2026

• Balthaga Project, Saudi Arabia: Under the terms of the mutually binding earn-in agreement with RIWAQ Al-Mawarid for Mining (“RIWAQ”), announced 26 March 2024, Power Arabia Limited (“Power Arabia”) continued to conduct exploration work on the Balthaga Project in the Kingdom of Saudi Arabia (“Saudi Arabia”) during the Period.

In January, Power Arabia fulfilled the initial expenditure requirement to achieve a 20% stakeholding in the Balthaga Project, completing a comprehensive data review and prospectivity re-assessment. This identified new prospective targets for rare earth and critical elements and planned further exploration activities and delineated 12 revised targets.

In February, Power Arabia commenced the $150,000 exploration expenditure required to increase its shareholding to 30%. This next stage of exploration is focused on defining drill targets in a two-phase programme. The first phase will focus on mapping and rock sampling, whilst phase two will involve an infill soil geochemistry sampling programme over the Hugban intrusion corridor.

• Tati Project, Botswana: At Power Metal’s 100%-owned Tati Gold Project, key permitting and access milestones were achieved during the Period, paving the way for the commencement of on-site technical work.

The Environmental Management Plan was formally approved, removing a key permitting milestone required to advance on-site activities, including drilling, and the access agreement was signed, providing formal access to the licence area to support the planned work programme.

The planned work programme, which includes Rotary Air Blast drilling and will be managed by Tuscan Holding Pty Ltd (“Tuscan”) at no cost to Power Metal, commenced post Period-end.

• Uranium Joint Venture: During the Period, significant progress was made at a number of properties that constitute Power Metal’s uranium-focused joint venture (the “Joint Venture” or “JV”) with UCAM Ltd (“UCAM”), known as Fermi Exploration (“Fermi”), which comprises POW's entire portfolio of uranium licences:

Reitenbach: Significant pegmatite-hosted uranium targets were delineated on the property following soil and radon sampling, with three target areas selected as high-priority. Reitenbach hosts four further, mostly untested, anomalous areas, with significant scope for further work to determine additional targets.

Perch River: A fertile structure for uranium mineralisation was delineated within the property, following a combined geochemical and mineralogical review of results from additional drill core samples. This data fundamentally upgrades the prospectivity of the property and transforms Perch River into the highest priority target for follow-up drilling.

Badger Lake: A four-hole, 1,922 metre (“m”) diamond drilling programme was completed during the Period, successfully testing fault structures and analogies of major deposits. Favourable geologic conditions for uranium mineralisation were confirmed, validating the geological model, although no elevated radioactivity was encountered.

East Hawkrock: A nine-hole, 2,120.4 m diamond drilling programme was also completed during the Period, confirming a highly favourable geological setting for hosting unconformity-related uranium mineralisation. Results from a comprehensive laboratory analysis are expected in Q4 2026 and will guide future exploration.

- Greyridge Strategic Investment: In March, Power Metal announced a strategic investment of US$1.5 million in Greyridge Exploration Corp (“Greyridge”), a Canadian-based mineral exploration company focused on the discovery of copper and gold deposits in Saudi Arabia, for an initial 4.6% shareholding. The Company, through its majority-owned subsidiary Power Arabia, also signed a Memorandum of Understanding with Greyridge to explore collaborative arrangements. This may include the establishment of joint ventures, farm-in or earn-in agreements on Greyridge's licences, providing a potential project pipeline for Power Arabia and exposure to Saudi Arabia’s US$2.5 trillion of untapped mineral resources.

• Next Minerals Investment: Later in March, Power Metal announced a strategic investment of US$1 million via a subscription agreement for a 2.6% shareholding in Next Minerals S.A. (“Next Minerals”), a Chile-based mining company focused on the development of medium-scale copper operations. This investment is set to provide exposure to the mine-ready Comahue underground copper mine in the coastal copper belt in Antofagasta, which has a Phase 1 Mineral Resource Estimate of 9.91 million tonnes at 0.81% copper and Life of Mine (“LoM”) revenue of US$495 million.
• Share Capital Reduction: At the beginning of the Period, the Company’s intended reduction in its share capital became effective. Following shareholder approval at Power Metal’s General Meeting in November 2025, the issue of a court order and registration at Companies House in December 2025, the share capital reduction was put into place in January 2026.

KEY DEVELOPMENTS POST-PERIOD

• Molopo Farms Project, Botswana: Shortly after Period-end, the prospecting licences were renewed for a further two years at Molopo Farms and drilling commenced on a 1,600 m programme, targeting an initial five high-interest geological and geophysical targets. The first hole has been completed and intersected suspected nickel mineralisation within the target structure. Sampling and assaying of the mineralised intersect is in progress, and drilling continues on the remaining targets.
• Tati Project, Botswana: After Period-end on-site work commenced at the Tati Gold Project with the initial phase of work comprising of Rotary Air Blast drilling to test the mineralisation and scale of the targets. Results from the drilling programme will feed into a desktop feasibility study.
• Uranium Joint Venture: Following the Period-end, Power Metal agreed to increase its interest in the Fermi Exploration uranium joint venture from 30% to 45% through a £1.9 million Phase 2 exploration funding agreement with UCAM.

FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 30 JUNE 2026

• Loss for the Period, attributable to owners of the parent, of £0.31 million (30 June 2025: Profit of £5.4 million), resulting in loss per share of 0.27 pence (30 June 2025: profit per share of 4.71 pence);
• Total assets of £27.45 million at the Period end (31 December 2025: £27.65 million); and
• Net assets of £25.12 million at the Period end (31 December 2025: £25.88 million).

Sean Wade, Chief Executive Officer of Power Metal, commented: “I have been pleased by the operational advances achieved across our portfolio thus far this year, building on the work of a momentous FY2025. The Fermi Exploration team continues to deliver strong technical progress and encouraging results across its suite of highly prospective uranium licences. As we look to progress our drilling and exploration works, I expect to provide the market with further positive updates.

“Our Power Arabia subsidiary continues to further its work and collaborate with exploration leaders in Saudi Arabia, a country with US$2.5 trillion of untapped mineral resources. The Balthaga Project offers excellent exposure to rare earth and critical elements in the Kingdom, so I’m delighted to have achieved a 20% stakeholding, which we are working to increase to 30%.

“The Tati Project in Botswana passed a number of key milestones during the Period and offers low-risk exposure to a booming gold market, with technical works set to commence at no cost to Power Metal.

“Last year’s exit from our stake in GMET for a close to 12 times total return on investment – a key crystallisation event – not only served to validate our project incubation model, but also provided us with the capital to invest in a number of new, exciting projects, which we expect to yield strong results for our shareholders.

“Two such investments were announced during H1 and provide exposure to world-class jurisdictions. Greyridge has a proven track record and shares our belief in the potential of Saudi Arabia as an exploration hotspot, making the potential for collaborative agreements a source of excitement. Next Minerals, meanwhile, provides exposure to a mine-ready copper project in a tier-one jurisdiction with attractive economics. Minestarters continues to build towards a full-scale launch, and I believe as strongly as ever in its potential to reshape mining finance.

“I would like to express my gratitude to our teams across the Group for their commitment and hard work. I look forward to keeping shareholders informed on the advancement of our investment opportunities and the continued progress of our diversified portfolio in the months ahead.”

POWER METAL INTERESTS AT TODAY’S DATE

The latest updated review of Power Metal’s business interests is provided in the Company’s investor presentation which can be accessed here:

LATEST POSITION OF POWER METAL INTERESTS AND TARGETED OBJECTIVES FOR 2026

Priority Exploration and Potential Exploration Project Joint Ventures

Investment Holdings and Disposals Planned/Underway

Note: other project packages within the Power Metal portfolio are also in earlier stages of disposal and/or spin-out preparations in addition to those listed below.

Items that will or may be reclassified to profit or loss:

(Loss)/profit per share from continuing operations attributable to the ordinary equity holder of the parent:

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT

Reporting entity

Power Metal Resources plc is a company domiciled in the United Kingdom. The unaudited consolidated interim financial report for the period ended 30 June 2026 comprises the results of the Company and its subsidiaries (the “Group”). The Group primarily is involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada and the Middle East.

• Basis of preparation
• Statement of compliance

As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.

The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 31 December 2026.

These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards, and Interpretations (collectively “IFRS”) issued by the International Accounting Standards Board as endorsed for use in the United Kingdom, and these principles are disclosed in the Financial Statements for the year ending 31 December 2025.

The Annual Report and Financial Statements for 2025 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2025 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The interim results were approved by the Board of Directors on 30 September 2026.

Judgements and estimates

Preparing the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense. Actual results may differ from these estimates.

In preparing this consolidated interim financial report, significant judgements made by management in applying the Group’s accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ending 31 December 2025.

Going concern

The interim financial report has been prepared on a going concern basis. The Directors, having considered all available information, including the Group’s proven ability to raise additional equity funding from its supportive shareholder base, believe the Group has sufficient resources to meet its expected committed and contractual expenditure for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the six months ended 30 June 2026.

Significant accounting policies

The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ending 31 December 2025.

Earnings per share

Basic earnings per share

The calculation of basic earnings per share is based on the loss attributable to ordinary shareholders of the parent of £0.311 million (30 June 2025: profit of £5.44 million), and a weighted average number of ordinary shares in issue of 115,610,437 (30 June 2025: 115,610,437).

Issues of Equity

At the period end, the Company had 115,610,437 Ordinary Shares in issue (31 December 2025: 115,610,437).

At the date of this interim report, the Company had 115,610,437 Ordinary Shares in issue.

Post balance sheet events

On 28 August 2026, the Group announced the commencement of on-site operations at the Tati Gold Project in Botswana. The event does not impact the amounts recognised in these interim financial statements and accordingly no adjustment has been made.

On 28 September 2026, the Group announced funding for Phase 2 of the Fermi Exploration uranium project in Saskatchewan, Canada. Under the agreement, Power Metal will increase its interest in the joint venture from 30% to 45% by funding the next exploration phase. The £1.9 million programme, which will be funded through the exercise of existing UCAM-held warrants and a Company contribution, will support drilling at the Perch River Project and a geophysical survey at the Reitenbach Uranium Property. UCAM will retain a 55% interest and, following the warrant exercise, become Power Metal's largest shareholder.

There have been no other material post balance sheet events.