Mr. Jeffrey Cocks reports

POWER AMERICAS SIGNS LETTER OF INTENT TO ACQUIRE THE FARELLON COBALT, COPPER, GOLD PROJECT

Power Americas Minerals Corp. has signed a letter of intent with Red Metal Resources Ltd. to acquire, on the exercise of three separate options, a 100-per-cent interest in the Farellon property, a 100-per-cent interest in the Perth property and a 100-per-cent interest in the Mateo property. The three projects are located 150 kilometres southwest of Copiapo, Chile, in the prolific Candelaria iron-oxide-copper-gold (IOCG) belt of Chile's coastal Cordillera, host to the Mantoverde mine and Lundin Mining Corp.'s Candelaria mine.

Option terms

Pursuant to the letter of intent, Power Americas can acquire 100 per cent of Red Metal's Farellon, Perth and Mateo properties in exchange for aggregate consideration of 25 million common shares of Power Americas Minerals and a one-time payment of $250,000 (U.S.).

The completion of the transaction is subject to a number of conditions, including, but not limited to, TSX Venture Exchange approval.

Power Americas may exercise the first option to acquire a 100-per-cent interest in the Farellon property by issuing 10 million common shares in the capital of Power Americas and making a one-time cash payment of $250,000 (U.S.) to Red Metal within five business days of receiving acceptance by the TSX-V to the transaction.

Provided Power Americas exercises the first option, it may exercise an additional option and earn an undivided 100-per-cent interest in the Perth property by issuing to Red Metal 10 million common shares in the capital of Power Americas or 10 million special warrants within six months from the date the first option has been exercised. Each special warrant will be exercisable into one common share in the capital of Power Americas without further consideration.

Subject to Power Americas exercising the second option, it may exercise the final option and earn an undivided 100-per-cent interest in the Mateo property by issuing to Red Metal five million common shares in the capital of Power Americas or five million special warrants within six months from the date the second option has been exercised. Each special warrant will be exercisable into one common share in the capital of Power Americas without further consideration. There are no work commitments with any of the property option agreements.

The Farellon property is drill ready for immediate definition drilling and the potential estimation of a mineral resource. Power Americas will focus future exploration drilling on the cobalt and silver potential of the property, in addition to the copper and gold potential of the property. Cobalt has never been a primary focus of exploration, and not all drill holes were analyzed for cobalt. Significant intercepts in drill holes that were analyzed for cobalt include FAR-96-010 (three metres of 1.3 per cent copper, 0.37 gram per tonne gold and 0.55 per cent cobalt) and FAR-11-001 (three metres of 6.08 per cent copper, 0.58 gram per tonne gold and 0.13 per cent cobalt).

Farellon property

The Farellon property includes a 100-per-cent interest in six claims and an option to earn a 100-per-cent interest in two additional claims. Two claims on the Farellon property have remaining payments of $75,000 (U.S.) each to the underlying vendors. The property is located 150 kilometres southwest of Copiapo, Chile, and consists of a total of 1,234 hectares in the Carrizal Alto mining district -- more precisely, three kilometres southwest of the historical Carrizal Alto mine. It is easily accessible year-round by dirt roads and is located in close proximity to power, water and a major urban centre, Copiapo, with a readily available mining work force. The eight mining claims have net smelter royalties of 2.5 per cent registered to a variety of holders, with an option to buy back up to 1.5 per cent of all net smelter royalties for an aggregate payments of $3.85-million (U.S.).

Historical records indicate that copper mining commenced at Carrizal Alto in the 1820s and continued on a significant scale, mostly by British companies, until 1891, when disastrous flooding occurred and the mines were closed. Historical reports indicate that the larger mines were obtaining good grades over significant widths in the bottom workings at the time of closure. It is estimated that during this period, over three million tonnes of mineralized material with grades in excess of 5 per cent copper and widths of eight metres were extracted, including a large quantity of direct shipping mineralized material at 12 per cent copper (source: C. Ulriksen (1991), Carrizal Alto mining district, Vallenar, III region, Chile, page 7).

Work completed to date on the Farellon property has been focused on a 1.6-kilometre stretch of mineralized veins hosted in a 10-metre-to-25-metre-wide shear zone; a further 2.5 kilometres of this shear zone have been explored on surface and show similar geology and mineralization on surface as the zone that had been previously drilled. A total of 6,992 metres of drilling have been completed in three programs along a 1.3-kilometre strike length. The property has been primarily explored for copper and gold, but there is unexplored potential for cobalt and silver on the property. The attached table summarizes some of the best results obtained to date.

Hole ID                 From          To      Length          Cu          Au
                          (m)         (m)         (m)         (%)       (g/t)

FAR-96-007                25          34           9        1.05        0.38
FAR-96-009                62          65           3        2.24        0.67
FAR-96-009                72          83          24        1.01        0.57
FAR-96-010                45          48           3         1.3        0.37
FAR-96-015                59          79          20        0.98        0.99
FAR-96-022                29          39          10        1.31        1.53
FAR-96-022               100         108           8        2.49        3.72
FAR-96-023               132         147          15        1.42         0.6
FAR-96-024                33          36           3        2.89        0.94
FAR-96-025                65          85          20        1.22        0.97
FAR-09-B                  75          86          11        0.67        1.35
FAR-09-C                  77          82           5        4.16        2.57
FAR-11-001                36          49          13        2.51        0.35
FAR-11-001                36          44           8        3.95        0.53
FAR-11-001                37          43           6        5.09        0.64
FAR-11-006                80         112          32        1.35        0.99
FAR-11-006                84          96          12        2.18         2.1
FAR-13-002                47          54           7        2.15        0.28

The attached table shows grades and widths of mineralization that are consistent with historical drilling results and have also given valuable geological information showing multiple veins and the potential for wide zones of economic mineralization. The true width of the drill hole intersections cannot be determined from the information available as it was reverse circulation drilling.

In 2014, Red Metal entered into a contract with a Chilean artisanal miner, allowing the artisanal miner to mine on the Farellon property in return for a 10-per-cent net sale royalty. In January, 2015, the artisanal miner began selling mineralized material to ENAMI, a Chilean national mining company, and to date has sold approximately 10,000 tonnes of sulphide mineralized material grading 1.82 per cent copper, 6.56 grams per tonne silver and 0.25 gram per tonne gold, as well as 1,813 tonnes of oxide mineralized material grading 1.56 per cent copper. Silver grades recovered during the mining operations demonstrates the unexplored potential for silver on the property (source: Red Metal Resources' annual and quarterly reports).

In April, 2015, the artisanal miner received all the necessary permits allowing it to increase its operations from 500 tonnes per month to 5,000 tonnes per month. Continued expansion of the Farellon property's small-scale mining operation, through minimal capital expenditures, could significantly increase revenues and provide important geological and metallurgical information.

Perth property

The Perth property consists of 12 mining claims totalling 2,245 hectares in the Carrizal Alto mining district. It is contiguous to the Farellon property but is geologically different. The property has a 2.5-per-cent net smelter return royalty on it, with an option to buy back up to 1.5 per cent of the net smelter return royalty for aggregate payments of $1-million (U.S.).

The property has been known to host gold and copper mineralization since the early 1900s when it was part of the Carrizal Alto mining complex. Modern exploration on the property started in 2008, and multiple surface mapping, trenching and drilling programs have been completed. More than 12 mineralized veins have been identified on the property. Significant results obtained from surface channel sampling are listed in the attached table.

Sample ID                   Length            Au            Cu  
                                            (g/t)           (%)

778                 Reconnaissance          16.5          2.87
1962                           1.1         15.26          0.93
1977                           2.1         14.43          0.72
2938                           0.5            14          3.62
1960                           1.1          9.77          1.36
2975                           0.4          8.92          1.84
1903                           0.6          8.52          1.56
1952                           1.5          8.37          2.14
1961                           1.1          8.14          2.83
1923                           0.3           7.6          1.04
1921                           0.4          7.38          2.43
1913                           0.6          6.73          7.16
252                           0.35          6.48          1.32
1821                           1.1          5.86          4.09
1813                           1.3          5.71          2.88
3037                           0.3          5.26          8.76
2951                          0.55          4.89          2.08
1972                           1.2          4.75          1.68
1975                           1.4          4.47           5.9
2007                           1.5          4.07          3.78
1905                           0.8          3.13          3.98

Mateo property

The Mateo property is a copper-gold-silver project consisting of mining seven claims totalling 500 hectares located approximately 10 kilometres east of Vallenar.

The property has undergone limited modern exploration, including surface and underground reverse circulation drilling and artisanal mining on three separate mine sites: the Irene, Margarita and Santa Theresa mines.

In 2011, Red Metal carried out an in-depth geological mapping and sampling program on the property. A total of 138 reconnaissance samples were collected. The highest assay values returned from reconnaissance samples were 21 grams per tonne gold and 10.3 per cent copper, with more common values ranging between one to three grams per tonne gold and 1 per cent to 3 per cent copper. Detailed mapping identified nine significant mineralized zones where further work is recommended.

About Power Americas Mineral Corp

Power Americas Minerals is a Canadian-based junior mining exploration company focused on the procurement, exploration and development of cobalt, lithium, copper and other energy metals in North America and South America.

This transaction is subject to standard closing conditions, including a 60-day due diligence period, the parties completing a definitive agreement and the receipt of TSX-V approval.

The technical content of this news release has been reviewed and approved by James Place, PGeo, a director of the company and a qualified person as defined by National Instrument 43-101.