Power Metal Resources PLC announced a commercial update from its 100% owned Tati Gold Project located on the Tati Greenstone Belt near Francistown, Botswana. A share option agreement ("Option" or the "Agreement") has been entered between Power Metal, Tati Greenstone Resources PTY LTD ("TGR") a company incorporated in Botswana held as a 100% owned subsidiary of Power Metal, and Tuscan Holding PTY LTD ("Tuscan") a company incorporated in Botswana. Subject to exercise of the Option, Power Metal, through TGR, will retain a 25% interest free carried to production in Prospecting Licence 049/2022 (which covers the Cherished Hope Mine) and from which it is intended that TGR will become a material dividend paying entity from net cash flow generated from gold production.

Power Metal will retain the right to a 100% interest in other prospecting licences held by TGR other than PL049/2022. Share Option Agreement Terms: Tuscan is granted under the Option a 730 day period to undertake prospecting, exploration and evaluation work (collectively the "Work") over Prospecting Licence ("PL") 049/2022 (the "Licence") which covers the historical Cherished Hope Mine ("Cherished Hope"). Costs associated with the Work will be borne by Tuscan and may include but is not limited to: Fly drone lidar/photogrammetry.

Handheld lidar of the excavations in order to create a 3D model of the current underground working if access and safety permit. Sink a shaft to an approximate depth of 60m. Drilling with the goal of establishing a mineral resource suitable for a Feasibility Study.

Furthermore during the 730 day Option period should Tuscan determine that the mineralised gold asset contained within the Licence merits commercial exploitation it shall draft a Feasibility Study at its own expense (the "Study). Following the completion of the Study, and subject to Tuscan being fully responsible to finance the construction and completion of a processing plant and associated mine infrastructure required to produce gold within the Licence, Tuscan may exercise the Option to subscribe for 75% of the shares of TGR. For clarity the Agreement relates to PL049/2022 only.

The two other licences held by Power Metal at Tati (PL126/2019 and PL127/2019) are excluded. If these or any other licences are held within TGR during the time period when Tuscan exercises the Option, Power Metal reserves the right to transfer those licences to another subsidiary company held 100% by Power Metal. Following the exercise of the Option, the shareholders of TGR, namely Power Metal and Tuscan, will be bound by a Shareholders' Agreement.

Shareholders' Agreement Terms: A board will be put in place which is determined by the pro-rata ownership of TGR at the time after the Option exercise. The Parties envisage that TGR shall be self-financed from its own cash flow from gold mining operations. In the event TGR requires additional finance to meet its working capital requirements, it shall in the first instance seek loan facilities from its bankers or other third parties on normal commercial terms, and following that will be funded pro-rata based on the ownership of TGR namely 75% Tuscan 25% Power Metal.

The intention is for TGR to become a dividend generating company to be paid to the shareholders on a pro-rata basis from surplus cashflow from the gold mine.