Mr. Johnathan More reports

POWER METALS SIGNS LOI WITH SINOMINE RESOURCE GROUP LTD. TO DEVELOP CESIUM, LITHIUM AND TANTALUM ASSETS

Power Metals Corp. has entered into a letter of intent with Sinomine Resource Group Co. Ltd. of Beijing, China, whereby Sinomine will partner with Power Metals to further the exploration and development of Power Metals' mineral property interests in Canada. Sinomine is principally interested in Power's Case Lake, Paterson Lake and Gullwing-Tot Lakes properties, which are prospective for cesium, lithium and tantalum elements.

The LOI contemplates that Sinomine will finance Power's further exploration, either through a potential direct investment or joint venture, for the development of its mineral properties, on terms to be negotiated, along with (i) establishing an operating committee to set work programs and budgets, (ii) the right for Sinomine to have representation on Power's board, (iii) the right for Sinomine to participate in any future financings undertaken by Power and (iv) a right of first refusal to match any unsolicited third party offer to acquire the shares of Power. The company is also discussing the possibility of Power working jointly with Sinomine to explore and develop some of Sinomine's mineral properties in Canada.

Johnathan More, chairman of Power Metals, states: "Every shareholder should share in our excitement on this major development for Power Metals. Sinomine are industry giants for producing and processing cesium, lithium and tantalum. We now look forward to the next steps in developing our assets jointly with Sinomine and also the potential joint development of Sinomine's Canadian assets. I want to thank our team for this significant accomplishment as well as the opportunity presented by Sinomine."

Wang Pingwei, chairman and president of Sinomine, said: "We are pleased to sign this LOI with PWM. Sinomine's goal is to find further mineral resources for commercial mining other than Tanco, such as cesium, lithium et cetera, through this strategic partnership with PWM. We look forward to seeing the results of our co-operation soon."

On June 28, 2019, Cabot Corp. sold its specialty fluids business including the Tanco lithium, cesium, tantalum mine, Manitoba, to Sinomine (Hong Kong) Rare Metals Resources Co. Ltd., a wholly owned subsidiary of Sinomine. The Tanco mine is located about 180 kilometres east-northeast of Winnipeg, close to the Manitoba-Ontario border. The Tanco pegmatite has been mined for tantalum ore concentrates, pyroceramic spodumene, pollucite and rubidium since the late 1960s.

In January, 2020, Power Metals' strategic review committee decided to focus on its cesium mineralization in the spodumene pegmatites at Case Lake. Cesium is valuable as there are only three cesium mines in the world and Power Metals owns three of the five cesium occurrences in Ontario: West Joe, Tot Lake and Marko's pegmatites. Power Metals' West Joe dike at Case Lake was discovered in August, 2018, at the end of a drill program. The 2018 drill program intersected high-grade cesium mineralization in six drill holes at West Joe: PWM-18-111, 112, 116, 123, 124 and 126, with up to 14.7 per cent cesium oxide over one metre in drill hole PWM-18-126 (Power Metals press release dated Oct. 9, 2018, and Nov. 13, 2018). Case Lake has a 12 km long lithium mineralization trend from West Joe pegmatite to main dike pegmatite to northeast dike to Dome 9 to the newly acquired Abbotsford dome. Cesium mineralization has been identified in drill core at West Joe dike, new dike below main dike and northeast dike. Elevated Cs contents have also been identified in surface samples on Dome 9.

Dr. Julie Selway stated: "I am pleased with Power Metals' upcoming co-operation with Sinomine. There is a lot of potential for synergy between the two companies."

All terms are subject to negotiation and due diligence investigations by Sinomine. There is no assurance a definitive agreement will be reached on the terms outlined herein, or at all.

Quality control

The drill core was sampled so that one m of the Case batholith tonalite host rock was sampled followed by one m long samples of the pegmatite dike and one m of the Case batholith. The sampling followed lithology boundaries so that only one lithology unit is within a sample, except for the less-than-20-centimetre pegmatite veins in tonalite, which were merged into one sample. The drill core samples were delivered to SGS preparation lab in Cochrane by Power Metals' geologists. The core was then shipped to SGS analytical lab in Lakefield, Ont., which has ISO 17025 certification. Every 20 samples included one external quartz blank, one external lithium standard and one core duplicate. The ore grade Li2O per cent was prepared by sodium peroxide fusion with analysis by ICP-OES with a detection limit of 0.002 per cent Li2O. A quality assurance/quality control review of the standards and blanks for this drill program indicate that they passed, and the drill core assays are accurate and not contaminated.

Case Lake

The Case Lake property is located in Steele and Case townships, 80 km east of Cochrane, Northeast Ontario, close to the Ontario-Quebec border. The property is 10 km by 9.5 km in size with 14 identified tonalite domes. The Case Lake pegmatite swarm consists of six spodumene dikes: north, main, south, east and northeast dikes on the Henry Dome and the West Joe dike on a new tonalite dome. The Case Lake property consists of 556 cell claims in Steele, Case, Scapa, Pliny, Abbotsford and Challies townships, Larder Lake mining division. The Case Lake property is owned 100 per cent by Power Metals. The claims have enough available exploration reserve to keep them in good standing for the next four years.

Paterson Lake

The Paterson Lake property is located in Paterson Lake and Treelined Lake areas, 60 km north of Kenora, Northwest Ontario, close to the Ontario-Manitoba border. The Paterson Lake property is located within the Separation Rapids greenstone belt and hosts multiple petalite-bearing pegmatite dikes. The property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017).

Gullwing-Tot Lakes

The Gullwing-Tot Lakes property is located in Drope and Webb townships, 30 km northeast of Dryden, Northwest Ontario, with excellent road access. Gullwing and Tot Lakes' pegmatites contain spodumene. The property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017). The property is located 5.5 km northeast of Pioneer Resources' Mavis Lake spodumene pegmatite field.

Qualified person

Dr. Selway, PhD, PGeo, supervised the preparation of the scientific and technical disclosure in this news release. Dr. Selway has verified the data included in this news release. Dr. Selway is the vice-president of exploration for Power Metals and the qualified person as defined by National Instrument 43-101. Dr. Selway is supervising the exploration program at Case Lake. Dr. Selway completed a PhD on granitic pegmatites in 1999 and worked for three years as a pegmatite geoscientist for the Ontario Geological Survey. Dr. Selway also has 23 scientific journal articles on pegmatites. A National Instrument 43-101 report has been prepared on the Case Lake property and filed on July 18, 2017.

About Power Metals Corp.

Power Metals is a diversified Canadian mining company with a mandate to explore, develop and acquire high-quality mining projects. It is committed to building an arsenal of projects in both lithium and high-growth specialty metals and minerals. It sees an unprecedented opportunity to supply the tremendous growth of the lithium battery and clean-technology industries.

We seek Safe Harbor.