#POW Power Metal Resources – Uranium Portfolio Update – Athabasca Basin Canada

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a uranium portfolio update from its properties surrounding the Athabasca Basin in Saskatchewan, Canada.

Through its wholly owned Canadian operating companies Power Metal holds seven 100% owned uranium focused properties (see Table 1) covering an area of 417.24 km² (41,724 hectares).

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:

“Power Metal recently retained a UK-based geological consultant with extensive Athabasca Basin experience to help push forward the Company’s various initiatives and projects within the exciting uranium space. The consultant previously completed a M.Sc. thesis from the University of Ottawa where they researched the geochemistry, alteration, and structural geology of one of the many world-class unconformity-related uranium deposits located within the Athabasca Basin.

We have been able to accelerate our Athabasca technical review work and have now completed  the technical review of historical data for four of our seven Athabasca properties.  All four properties show considerable uranium prospectivity which is notable.

At Reitenbach, we have decided to move expeditiously into the production of a NI 43-101 technical report, which is an important step should we wish to utilise the property within a corporate transaction.

We see considerable value within our uranium interests, and through a combination of ground exploration, technical review and corporate activities we intend to maximise that value.”

Reitenbach Uranium Property

–  Power Metal has engaged Dahrouge Geological Consulting Ltd., out of Edmonton, Alberta, to undertake a National Instrument 43-101 compliant report on the 100% owned Reitenbach uranium Property.

–  Commissioning, and completion of the report will better position Power Metal to enable potential commercial transactions with the Reitenbach Property in the future.

Cook Lake Property Overview

–  The Cook Lake Property (“Cook Lake”) covers a total of 980 hectares (c. 9.8 km²) located in north-eastern Saskatchewan, Canada. It is located less than 50 km southeast from the Athabasca Basin edge, within the prospective Wollaston Domain – a historically underexplored geological belt. Saskatchewan ranked third in the most recent 2020 Fraser Institute Investment Attractiveness Index rankings of global mining jurisdictions.¹

–  Cook Lake is centred around six Saskatchewan Mineral Deposit Index (“SMDI”) uranium occurrences. Of these, four are boulder uranium occurrences with reported uranium results of up to 1% to 3% Uranium (U),² and a further two outcrop uranium occurrences are also present within the Property.

–  Historical work at Cook Lake, collated by Power Metal, has identified elevated U-in-lake sediment results, extensive uraniferous boulder fields, multiple instances of elevated uranium values in soils coincident with elevated scintillometer readings and prospective lithologies without outcrop. The encouraging historical results compiled will help guide Power Metal as it plans for future work programmes on the Property.

–  Cook Lake is considered by the Company to be prospective for basement-hosted unconformity related, as well as intrusive and pegmatite-hosted uranium mineralisation.

E-12 Property Overview

–  The E-12 Property (“E-12”) covers a total of 1,300 hectares (c. 13 km²) and is located 58 km to the west of the Cook Lake Property. E-12 is less than 20 km from the Athabasca Basin edge.

–  The Saskatchewan 905 Provincial Highway passes through the property, allowing for easy and efficient access for exploration crews during future work programmes.

–  E-12 is centred around two SMDI occurrences, including boulder results up to 0.17% U (1,700ppm U). Historical work has highlighted elevated U-in-lake sediment results within the northern part of the property, as well as extensive uraniferous boulder fields coincident with elevated scintillator readings within nearby soils and shallow gravels.

–  E-12 is considered by the Company to be prospective for basement-hosted unconformity related, as well as intrusive and pegmatite-hosted, uranium mineralisation.

COMPILATION TECHNICAL INFORMATION

Power Metal recently completed in-depth historical data compilation across its entire uranium property portfolio surrounding the prolific Athabasca Basin, Saskatchewan, creating a robust fully-digitised database covering all historical work programmes completed across the various properties, including the Cook Lake Property.

A total of 9 historical reports were digitised from work programmes covering at least some part of the Cook Lake Property. These cover all the documented exploration works relating to the Cook Lake, undertaken between 1969 and 1988, the last time any known work was carried out.

The E-12 Property is similarly underexplored, being the subject of 11 work programmes between 1964 and 1979, with only two minor exploration programmes completed in 1993 and 2011.

Cook Lake Property Data Compilation

A map highlighting some of the results from the historical data compilation completed on the Cook Lake Property can be found below at the following links:

https://www.powermetalresources.com/cook-lake-property-overview-map/

–  Power Metal has identified 43 northeast–southwest oriented uranium-rich boulder trains with elevated scintillator readings (>1,000 counts-per-second (“CPS”)) within the Cook Lake Property. This NE-SW orientation direction is consistent with the general direction of ice movement within the region (SW). A SMDI point on the Cook Lake Property highlighted a significant historical boulder result between 1%-3% U (10,000ppm – 30,000ppm U) alongside elevated thorium (Th) and molybdenum (Mo) values, located in the northern part of the Property.² Historical reports have highlighted the presence of a boulder which assayed 0.6% U (6,000ppm U), located in the eastern part of Cook Lake.³ Significantly, historical prospecting demonstrates that the boulders are composed of lithologies that have been identified within outcrops on the Cook Lake Property, suggesting the boulders could be derived from, or local to Cook Lake.

–  Marling Oil Corporation (1980) defined numerous areas of at Cook Lake with elevated U-in-soil values that were coincident with elevated scintillometer readings (>100 CPS) in soils potentially due to radioactive shallowly buried gravels and boulders.³ These locations are coincident with extensive boulder trains identified at Cook Lake and suggest that the surficial expression of mineralisation is widespread and potentially local. In addition, two instances of boulder fields with elevated scintillometer readings (>250 CPS) in the north of Cook Lake have been identified³.

–  Historical radiometric surveys have highlighted several elevated airborne radiometric results across Cook Lake.  Many of these are coincident with interpreted electro-magnetic (“EM”) geophysical conductors, which are commonly associated with unconformity related uranium deposits within the Athabasca Basin.

–  A review of historical work has identified two promising outcrop occurrences; These include a pegmatite which assayed 640ppm (0.06%) U and frost heaves of felsic metasediments, which contained radioactive pegmatitic veins.

–  A total of 5 historical lake sediment results were digitised within the Cook Lake Property, with one result >90^th percentile (14.2ppm U), and one >95^th Percentile (25.6ppm U) compared to regional lake sediment data.

E-12 Property Compilation

A map highlighting some of the results from the historical data compilation completed on the E-12 Property can be found below at the following links:

https://www.powermetalresources.com/e-12-property-overview-map/

–  Power Metal has identified a 36 uranium-rich boulder trains, trending in a northeast–southwest direction, within the E-12 Property. Seven elevated boulders trains (>1,000 CPS) are located within the northern part of the E-12 Property, including localised, anomalously enriched boulders with scintillator results up to 8,000 CPS (>95^th percentile of regional data).

–  L.A. Bayrock (1980) defined numerous areas on E-12 with elevated scintillometer readings (>250 CPS), these locations are close to the uraniferous boulder trains identified by Power Metal.⁵

–  Historical geophysical surveys have highlighted multiple elevated airborne radiometric anomalies localised within the northern and central parts of the E-12 Property.⁴  In addition, E-12 hosts multiple EM conductors, which are commonly associated with unconformity related uranium deposits within the Athabasca Basin.

The Company continues to uncover exciting historical results from its uranium portfolio within Saskatchewan, Canada. These results, and the fully digitised dataset now held by Power Metal, continue to add value to the portfolio. Additional news releases highlighting these findings will be released to the market over the coming weeks and months as and when they become available.

Uranium Property Holding Structure

Power Metal has a wholly owned 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 Saskatchewan uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

For further information please visit https://www.powermetalresources.com/ or contact: