REG - Power Metal Res. - Strategic investment and MoU signed with Greyridge

Power Metal ResourcesAnnouncement

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RNS Number : 8135U  Power Metal Resources PLC  02 March 2026

2 March 2026

Power Metal Resources PLC

("Power Metal" or the "Company")

Strategic investment and MoU signed with Greyridge Exploration

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed mineral
exploration company and project incubator with a global project portfolio, is
pleased to announce a strategic investment of US$1.5 million for an initial
4.6% shareholding in Greyridge Exploration Corp ("Greyridge"), the
Canadian-based mineral exploration company focused on the discovery of copper
and gold deposits in the Kingdom of Saudi Arabia ("KSA" or "Saudi Arabia").

In conjunction with the investment, Power Metal has signed a Memorandum of
Understanding ("MoU") with Greyridge to establish a non-binding framework that
sets out the basis for the Company's majority-owned subsidiary, Power Arabia
Limited ("Power Arabia"), and Greyridge  to explore the option to enter into
joint ventures or similar collaborative agreements, such as earn-in
agreements, across Greyridge's projects in the KSA and any future licences
that it obtains.

Highlights:

·      Strategic investment of US$1.5 million in Greyridge as part of an
up to US$10.0 million financing with leading global investors, following which
Power Metal is expected to hold an approximately 4.6% interest in Greyridge

·      MoU establishes a non-binding framework under which Power Arabia
and Greyridge can explore collaborative arrangements, including:

o  the establishment of joint ventures, farm-in or earn-in agreements on
Greyridge's licences - providing a potential project pipeline for Power Arabia

o  the exchanging of technical, geological, commercial and strategic
information, joint desktop studies, and preliminary discussions with Saudi
governmental authorities, regulators, and potential local partners

·      Greyridge is one of the largest foreign holders of exploration
licences in Saudi Arabia, holding a 100% interest in 25 licenses covering
1,817 square kilometres of highly prospective terrain

·      The investment by Power Metal will be used to advance exploration
work and carry out drill programmes at Greyridge's Ad Dawadimi and Al Amar
projects

·    Potential to further enhance Power Metal's exposure to Saudi Arabia's
US$2.5 trillion of untapped mineral resources

Sean Wade, CEO of Power Metal Resources, commented:

"The Kingdom of Saudi Arabia has made a concerted effort over the last few
years to increase the investment into its mining sector as part of its Vision
2030 initiative, reflecting the growing global interest in critical mineral
supply chains. Its efforts are already taking shape as the country rises in
the ranks of the Fraser Institute's Attractiveness Index, moving to 23(rd) in
2024 ahead of many leading mining jurisdictions, including Chile, Kazakhstan
and Zambia.

"Power Metal, through Power Arabia, has established itself in the region with
one MoU already signed and ongoing discussions for further licence options, as
well as ongoing exploration activities in the Arabian Shield. Now, with this
strategic investment and MoU with Greyridge, we can draw on our in-country
expertise to further strengthen our position in this rapidly advancing market.

"We're excited to build a strong partnership with Greyridge and unlock the
opportunities within their extensive exploration portfolio. Combined with our
track record of crystallising value from high‑potential projects, this
collaboration strengthens our regional presence and provides a gateway to the
development of a long‑term growth pipeline in Saudi Arabia."

Brendan Cahill, CEO of Greyridge Exploration Corp, said:

"We are delighted to welcome Power Metal as a leading investor in Greyridge
and look forward to leveraging Power Arabia's extensive experience and
expertise in the Arabian-Nubian Shield.

"The Kingdom of Saudi Arabia is quickly becoming one of the best jurisdictions
in the world for mineral exploration, with superior security, infrastructure
and government support, and a geology that is one of the very few in the world
that remains relatively untested.

"Our extensive licence package, totaling over 1,800 square kilometres, is some
of the first ground granted as foreign companies were given a broader
opportunity to invest and explore the Kingdom, and represents a true,
first-mover advantage to access exceptional porphyry and VMS terrain.

"In recent months we have moved from holding three highly-prospective projects
to identifying numerous high-priority targets for copper-gold porphyry,
epithermal gold, orogenic gold and VMS systems. We have a full team
in-country, we are leveraging some of the leading porphyry minds globally and
we are integrating cutting-edge AI innovation into our discovery process.
Power Metal's investment and collaboration add yet further horsepower to this
leading exploration story."

Further information

As part of the investment, Power Metal will invest US$1.5 million in cash as
part of an up to US$10.0 million financing, following which Power Metal is
expected to hold an approximately 4.6% interest in Greyridge. The investment
and broader financing will help advance the exploration programmes at
Greyridge's Ad Dawadimi intrusion-related copper-gold project and Al Amar
gold-enriched VMS project, including geophysical surveys, infill geochemical
sampling, and drilling of immediate high priority targets.

Greyridge and Power Metal share a mutual strategic interest in identifying and
developing mineral exploration and development opportunities in KSA, with a
particular focus on precious and base metals.

Under the terms of the MoU agreement, Power Arabia, Greyridge, and their
respective exploration teams would identify and produce a project pipeline,
with Power Arabia having the option to discuss and explore the possibility of
entering into a joint venture or earn-in agreement with Greyridge to advance
these exploration opportunities.

About Greyridge

Greyridge is a Canadian-based mineral exploration company focused on
discovering copper and gold deposits in Saudi Arabia. Greyridge is one of the
largest foreign holders of exploration licences in Saudi Arabia, with 25
licenses covering 1,817 km(2) of highly prospective and underexplored terrain
in Ad Dawadimi, Al Amar and Wadi Wassat. Greyridge's team has a proven track
record of major discoveries and has a diverse range of technical, capital
markets, and legal expertise, alongside a highly experienced Saudi-based
exploration team.

Greyridge acquired the licences in October 2024 from Eurasian Resources Group,
one of the first large international mining companies to enter Saudi Arabia,
and therefore holds a strong, early-mover advantage within the country.

Ad Dawadimi

The Ad Dawadimi project ("Ad Dawadimi") comprises 14 licences totaling 1,048
km(2) approximately three hours west of Riyadh.  The project covers
approximately an 80 km strike of potential intrusion related copper-gold
prospects, which were previously held by Ma'aden and host immediate drill
targets.

Exploration to date has identified multiple intrusions driving mineralisation,
and surface sampling that indicates a large copper system with the potential
to host precious metals. Rock chip sampling has returned numerous results of
over 0.5% copper, over a 1km x 1km area on licence AD025, including up to
4.99% copper with additional expansion potential along untested outer ridges.

Recent work on licence AD030, immediately south of AD025, and AD036 and AD037
has identified an area of porphyry/iron oxide copper-gold spectrum
mineralisation and epithermal gold mineralisation. No modern exploration work
has occurred to test the depth and source of the exposed structures. AD036 and
AD037 host multiple strikes up to two kilometres of epithermal quartz
stockwork, resembling Ma'aden's Mahd Ad Dhahab mine and the peripyhery of an
intrusion-related copper-gold system.

Al Amar

The Al Amar project ("Al Amar") comprises 9 licences over 609 km(2),
approximately two hours southwest of Riyadh. The project is located along
strike from Maaden's gold/copper producing Al Amar mine (hybrid gold
overprinting VMS), the Khnaiguiyah VMS deposit and the historical Umm Ad Dabah
deposit. The licences surround part of the exploration joint venture between
Ma'aden and Ivanhoe Electric, with ongoing geophysical surveys producing large
anomalies over prospective and unexplored ground.

These bordering licences showcase the potential to identify further copper and
gold deposits. The Al Amar mine hosts mineral resources of 1.59 million tonnes
("Mt") at 4.24 g/t gold, 0.39% copper and 4.33% zinc (as reported by Ma'aden
as of 31 December 2024
(https://axvpvthrjz64.compat.objectstorage.me-jeddah-1.oraclecloud.com/maaden-website-assets/reports/annual-reports/2024-annual-report.pdf)
). Khnaiguiyah hosts proven and probable reserves of 26.1Mt at 0.24% copper
and 3.3% zinc (as reported by Alara Resources as of 31 December 2014
(https://api.investi.com.au/api/announcements/auq/79c10936-5ed.pdf) ) and is
currently being advanced under a joint venture between Ajlan & Bros and
Moxico Resources.

Greyridge's work to date has focussed on licence AL12 and AL02.  AL12 hosts a
1km diameter magnetic low anomaly with a coincident potassic high that is
associated with numerous copper-oxide and sulphide bearing veins to the
southwest and a large skarn to the northeast that has been mapped over a 1km
strike and has delivered copper grades up to 1.42% with additional, strong
molybdenum results. Additional geophysical analysis is ongoing, in preparation
for a drilling program commencing in mid-2026.

AL02 hosts a potential orogenic gold target in the southwest of the licence
that has been identified over a 700 metre strike, along with a rapidly develop
porphyry target on southeast. The orogenic target, identified through
prospecting and mapping,  is illustrative of the opportunities that remain
prevalent in KSA relative to other jurisdictions, where similar targets would
already have been exhaustively field-tested. Greyridge is planning additional
geophysical analysis to support the commencement of drilling as early as
mid-year 2026.

Wadi Wassat

The Wadi Wassat copper-gold project holds two licences over 160km(2) in
south-western KSA, approximately 55km and 88km, respectively, north of Najran.
The southern licence (WW038) is 7km southeast and directly onstrike from
AMAK's Al Masane VMS mine, which hosts mineral resources of 6.37Mt at 0.61%
copper, 3.20% zinc, 0.76 g/t gold and 27 g/t silver (as reported by AMAK on as
of 31 August 2024
(https://amak.com.sa/wp-content/uploads/2025/05/AMAK_Arqaam-Investor_Presentation_May25_Posted.pdf)
). Initial remote sensing, geophysics and field visits have identified strong
trends of potential mineralization on both licences, with follow-up work in
planning for later in 2026.

From acquisition in late 2024 to present, Greyridge has moved from holding
three large projects to rapidly advancing multiple high-priority prospects
towards drilling in mid-2026 for:

·    copper-gold porphyries (4+)

·    epithermal gold (multiple veins/stockworks)

·    orogenic gold (700m prospect)

·    skarn gold (1km mapped on surface) and

·    VMS copper-gold

Opportunity in Saudi Arabia

As part of its Vision 2030 initiative, Saudi Arabia has increased investment
and updated regulatory procedures to help establish itself as a global hub for
mineral resources. The IMF has labelled KSA as one of the fastest growing
global investment hubs since 2020 and it placed as the best improved country
for investment risk in the World Risk Report 2023.

KSA is one of the largest importers of mineral products globally, creating a
well‑established domestic market for minerals.

The Arabian-Nubian shield, in which Power Arabia and Greyridge operate, is
host to world-class gold, silver, and copper deposits and represents one of
the most underexplored geological regions globally. The geological structures
found in the region are comparable with other world-class regions, including
the Canadian Shield, Australia's Western Goldfields, Africa's Goldfields, and
the Andean continental margin in Chile.

Saudi Arabia already benefits from advanced national infrastructure with 10
seaports, 73,000km of road, 4,500km of railroads and 28 airports across the
country, with additional mega-projects in the pipeline that represent the
country's growth ambitions.

 

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/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources PLC
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 SP Angel Corporate Finance LLP (Nomad and Joint Broker)
 Ewan Leggat/Jen Clarke                                                          +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                                               +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)

 Rachael Brooks/Alastair Roberts                                                 +44 (0) 20 7138 3204

 

NOTES TO EDITORS

Power Metal Resources PLC (AIM: POW, OTCQB: POWMF) is a London-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, Saudi Arabia, Oman 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 distributions of assets.

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