Fermi Exploration: Acquisition of Pardoe

11 December 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Fermi Exploration: Acquisition of Pardoe Uranium Property

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed exploration company with a global project portfolio, is pleased to report the acquisition by mineral claim staking of the Pardoe Uranium Project ("Pardoe" or the "Project"), located in northern Saskatchewan, Canada.

HIGHLIGHTS:

·    Pardoe acquired by direct mineral claim staking undertaken by the Fermi Exploration technical team, through the Mineral Administration Registry Saskatchewan ("MARS") electronic registry system. Further information on the staking process can be found in the 'Further Information' section below.

·    Pardoe is located 35 km southeast of the Athabasca Basin, in an area with over 33 km of inferred geophysical linear constructors and multiple historical uranium occurrences. The Project has never been subject to significant targeted or systematic exploration.

·    Following a review of historical exploration data, five target areas on the Project have been identified with fieldwork proposed for summer 2025.

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

"It is very pleasing to be able to report another successful staking and the increase of our uranium footprint in and around the Athabasca Basin.

"We look forward to updating further on this and our other high impact exploration programmes in due course."

FURTHER INFORMATION

ACQUISITION OF PARDOE

The mineral claims constituting the Pardoe Property (Figure 1) were 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. Claim area 'reopenings' are often highly competitive with many parties attempting to acquire the newly available land.

The total cost of staking the 9,593.14 Ha area of the Pardoe Project was Canadian $6,116.94, the newly staked licences come with a two-year term with no minimum spend requirement, which can then be extended for subsequent years by spending a minimum of Canadian $143,897.10 per annum.

Figure 1 - Map of the Pardoe Project

PARDOE PROPERTY OVERVIEW

Located 4 km from the Provincial Highway 905, 640km northeast of Saskatoon, and around 10km from an established privately operated field camp. Pardoe has been explored sporadically since 1966, with historical work including: reconnaissance prospecting; lake sediment sampling; and airborne radiometric, magnetic, Very Low Frequency ("VLF"), and electromagnetic ("EM") geophysical surveys.

The Project is located 34km southeast of the Athabasca Basin and straddles the structural contact between the Wollaston and Peter Lake geological domains - both areas of intense uranium exploration.

From the variety of historical work^1,2 completed on the Project, the Project hosts over 33 km of inferred linear geophysical conductors, split into two parallel zones - these conductors are key targets for uranium exploration both within and outside the Athabasca Basin. The Project has a regional and project specific, mapped geology of metasedimentary gneisses, with minor mylonite (rock formed in major fault zones) to the east of the property. The Project is cut by major north-south faults, close to which historical exploration³ has outlined the enrichment of uranium. Despite this prospective geology, Pardoe has received minimal recent ground exploration.

Located in an area of ongoing exploration, Pardoe is bordered along trend to the southwest by veteran explorers Fission Uranium Corp and to the northeast by Skyharbour Resources Ltd (TSX.V: SYH). ALX Resources Corp (TSXV: AL) border to the northwest of the Project.

Nearby uranium deposits include ACKIO⁴ (operated by Baselode Energy: TSXV:FIND) 28 km to the northwest. The Falcon Point uranium deposit (Inferred Resource, dated 2015, totalling 6.96 Mlbs U3O8 within 10.4Mt at an average grade of 0.03% U3O8 (at a 0.01% U3O8 cut-off) with significant quantities of rare earth element oxides (REO)⁵ is operated by Skyharbour Resources Ltd , and located 44km to the south-west of Pardoe.

Target Areas

A comprehensive 'data room' has been set up to support future exploration of the Project. Future exploration will target basement-hosted uranium mineralisation, such as that found at McArthur River, Rabbit Lake, and the nearby ACKIO deposit. Following a review by the Fermi technical team, the following  initial target areas for future exploration have been established:

·    Grant Lake: Situated in the northeast of the property, this target features multiple VLF and EM geophysical responses, along with elevated uranium in lake sediment results³; this area has previously received prospecting and soil sampling, which found anomalous results in uranium and copper, although they were never followed up.

·    Johnson Lake: Situated in the northwest of the property, with three radiometric anomalies, plus anomalous uranium, copper, lead, molybdenum, nickel and zinc in lake sediments, the Johnson's Lake target site in a structural prospective location, with significant north-south faulting, and encompassing around 6km of conductive lithologies.

Previous work has defined a small (600 m x 250 m) radiometric anomaly centred within a lake; however, the area to the southeast - and 'down' inferred conductors was never studied in detail, and the mapped geology³ to the southeast comprises faulted pelitic units, with mylonites. Elsewhere, both inside and outside the Athabasca Basin, mylonites have been inferred as fluid pathways^6,7, alongside fractured pelitic units, and thus these units offer a potential target for future exploration.

·    Pardoe Bay:  Second highest radiometric response on the property, coincident with an inferred geophysical conductor which displays minor weakening, north-south trending faulting, and magnetic low, with multiple anomalous Uranium in lake sediment results 'downstream' of the target area³. This target has received minimal work from previous operators.

·    Johnson Narrows - Area of complex structural geology, within an area of mylonitic geology, and a weakened conductor. Previous exploration identified radioactive boulders 1km 'down ice' of the target, but minimal work has been completed on the target itself⁹.

·    Pardoe Central - Localised elevated radiometric response⁸, associated with a weakening of the geophysical conductor, that may be related to hydrothermal alteration. No work has been carried out directly on the target, although ground geophysics and soil sampling was carried out 600 m to the west³ identified anomalous uranium and lead, with elevated copper, zinc and nickel associated with conductive lithologies.

The property is considered under-explored; as around only 5km of the 33km strike length of conductive lithologies on the Project have been examined by previous operators, and there are only two instances of 'boots on the ground' fieldwork^3,8 (most recently in 1979). There is also potential on the Project to host base metal (zinc/copper) mineralisation and pegmatite-hosted rare earth element (REE) mineralisation.

Proposed Exploration

Thanks to the extensive historical geophysical work acquired by Fermi Exploration, the Project does not currently require airborne EM surveying, and thus the fieldwork will likely include ground testing of target areas through systematic sampling.

REFERENCES

1:             Star Uranium Corp, 2008, 2007 VTEM® Airborne Geophysical Survey Pardoe Lake Property, 74H08-0040

2:             Phalanx Disposition Management Ltd. 2013, REPORT on Geotech VTEM Survey On The Pardoe Lake Property S-111882 And S-111943 Northern Mining District Saskatchewan, Canada, MAW00164

3:             Marline Oil Corporation, Permit 1 and Internal Claims Saskatchewan, Detailed Reports on Field work Summer 1979, 1979, J. Descarreaux, 74H08-0033

4:             Baseload Energy Corporate Presentation, 9 October 2024:

https://baselode.com/site/assets/files/3963/baselode_energy_corporate_presentation_2024_10_09.pdf

5:             Technical Report on the Falcon Point Uranium Project Northern Saskatchewan, Skyharbour Resources Ltd., dated 20 March 2015:

https://skyharbourltd.com/_resources/SYH%202015%2043101%20report%2015%2003%2020%20Falcon%20Point.pdf

6:             Benedicto, A., Abdelrazek, M., Ledru, P., MacKay, C. and Kinar, D., 2021. Structural controls of uranium mineralization in the basement of the Athabasca Basin, Saskatchewan, Canada. Geofluids, 2021(1), p.3853468.

7:             Abdelrazek, M., Benedicto, A., Gerbeaud, O. and Ledru, P., 2021. Reactivation mechanisms and related-porosity enhancement of shear zones in the context of basement-hosted uranium mineralization: case of the Spitfire discovery in the Patterson Lake corridor, Canada. Geochemistry: Exploration, Environment, Analysis, 21(3), pp.geochem2020-082.

8:             Park Exploration Geophysics, 198, Airborne Radiometric and VLF Surveys Cairns Lake  Permit 1 Extension Projects Saskatchewan, 64E-0005

9:             Partridge EF, 1967, Prospecting Notes, Johnson River Area, 74H08-NE-0001

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, MAusIMM, FGS), who is a qualified geologist and acts as the Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie