Power Metals Announces Assays Up To 4.43% Li2O From Paterson Lake Mapping Program

VANCOUVER, July 30, 2018 /CNW/ - Power Metals Corp. ("Power Metals Corp." or the "Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTC:PWRMF) is pleased to announce that geological mapping at Paterson Lake, 60 km north of Kenora, northwestern Ontario successfully identified high-grade Lithium (Li) and high-grade Tantalum (Ta) mineralization. The geological mapping program also identified three target areas for follow up exploration:

• Western extension of Marko's Pegmatite
• Rhea's Pegmatite
• Cook's Pegmatite

Paterson Lake grab sample assay highlights from the western extension of Marko's Pegmatite include (Table 1 and Figure 1 and 2):

• Three pure petalite samples (159037, 159201, 159222) with 4.43, 4.17 and 3.90 % Li₂O
• Two petalite dominate samples (159217, 159038) with 3.62 and 3.36 % Li₂O
• Sample 159218 with abundant petalite with 1.57 % Li₂O

Petalite is an ore mineral of Lithium. Petalite (LiAlSi₄O₁₀) is the high temperature lithium aluminosilicate whereas spodumene (LiAlSi₂O₆) is the low temperature/high pressure lithium aluminosilicate.

In addition to Lithium, the western extension of Marko's pegmatite grab samples are also enriched in extremely high-grade Tantalum (Ta) and Cesium (Cs) with:

• Sample 159219 with 1236 ppm Ta and 2473 ppm Cs
• Sample 159221 with 725 ppm Ta and 472 ppm Cs.

Dr. Selway, VP of Exploration, stated "Paterson Lake Property has so many known pegmatites. I am ecstatic that our due diligence mapping has confirmed the presence of petalite and identified three target areas for exploration follow up.  Both the lithium and tantalum grades are extremely high and this gives us great confidence following up these assays with a drill program. Exploration activities on the Paterson Lake Property are ongoing."

The western extension of Marko's pegmatite's grab samples were collected between Marko's petalite pegmatite outcrop to the east and the J-series petalite pegmatite to the west. The grab samples are up to 260 m west of the historically known Marko's pegmatite outcrop. Historical mapping has shown that the Marko's pegmatite occurs along the contact between mafic metavolcanics, gabbro and iron formation. Power Metals grab sampling found the petalite pegmatite samples along strike of Marko's pegmatite along the same lithology contact. Historical mapping has shown that the Marko's pegmatite has a central core of petalite surrounded by blocky pegmatite which hosts Ta-oxide mineralization.

In 2002, historical drilling indicated that the Marko's pegmatite was 170 m long and made up of 2 to 12 m wide boudinaged lenses. The 2002 drilling also intersected North Marko's pegmatite, a 10 to 30 m wide pegmatite dyke, parallel to Marko's pegmatite with an unknown strike length. This historical drilling did not test the western extension of the Marko's pegmatite. Since Power Metals Li-rich grab samples are along strike of the Marko's pegmatite and North Marko's pegmatite, there is an excellent potential for the Marko's pegmatite to extend westward.

Figure 1 Grab sample 159037 of pure petalite from the western extension of Marko's pegmatite, Paterson Lake Property, Ontario.

Paterson Lake grab sample assay highlights from Rhea's pegmatite include (Table 1 and Figure 2):

• Sample 159021 with 2.31 % Li₂O and 111 ppm Ta
• Sample 159022 with 198 ppm Ta.

Cook's pegmatite has elevated Li values up to 0.34 % Li2O and up to 161 ppm Ta. Rhea's pegmatite and Cook's pegmatite are 312 m apart along strike along the contact between mafic metavolcanics, metasediments and mafic tuffs. Rhea's and Cook's pegmatites are along the same contact between mafic metavolcanics and metasediments as other petalite pegmatites historically mapped by Ontario Geological Survey: Draven, Black Bear, Ballpeen, Pegmatites # 5, 6, 7, 8, 9, 10 and 11. The exploration potential is excellent that more petalite pegmatites will be found along this contact on the Paterson Lake Property. The Cook's pegmatite is an enormous pegmatitic granite 420 m long by 140 m wide covered by black lichen. A thorough cleaning of the Cook's pegmatite may result in discovery of lithium mineralization similar to that at Rhea's pegmatite.

Paterson Lake Property occurs within the Separation Rapids Greenstone Belt which is also home to the Big Whopper and Big Mack petalite pegmatites (Figure 2). Separation Rapids Greenstone Belt is known as the Bird River Greenstone Belt in Manitoba which hosts the Tanco pegmatite.

Power Metals' Paterson Lake property consists of 106 cell claims within the Paterson Lake and Treelined Lake Areas. The Property is approximately 7 km x 3 km in size. Power Metals optioned the Paterson Lake property in 2017 because the property has multiple known petalite pegmatite dykes on surface, but yet is still underexplored.

Quality Control

The grab samples were delivered to SGS preparation lab in Red Lake by Power Metals' geologist. The samples were then shipped to SGS analytical lab in Lakefield, Ontario which has ISO 17025 certification. Every 20 samples included one external quartz blank and one external lithium standard. The ore grade Li₂O% was prepared by sodium peroxide fusion with analysis by ICP-OES with a detection limit of 0.002 % Li₂O. A QA/QC review of the standards and blanks for this mapping program indicate that they passed and the assays are accurate and not contaminated.

Paterson Lake

Paterson Lake Property is located in Paterson Lake and Treelined Lake Areas, 60 km north of Kenora, NW Ontario close to the Ontario-Manitoba border. Paterson Lake Property is located within the Separation Rapids Greenstone Belt and hosts multiple petalite-bearing pegmatite dykes. The Property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017). Avalon Advanced Materials Separation Rapids Lithium Project with 8.12 Mt at 1.37 % Li₂O measured + indicated resources as of November 15, 2017 is located 1.2 km from the Paterson Lake Property. Power Metals has an 80% interest with its 20% working interest partner MGX Minerals Inc.

Figure 2 Paterson Lake Lithium Project geology and pegmatite occurrences map.

Case Lake

Case Lake Property is located in Steele and Case townships, 80 km east of Cochrane, NE Ontario close to the Ontario-Quebec border. The Case Lake pegmatite swarm consists of five spodumene dykes: North, Main, South, East and Northeast Dykes on the Henry Dome. All five of the dykes contain spodumene mineralization. Power Metals has an 80% interest with its 20% working interest partner MGX Minerals Inc.

Qualified Person

Julie Selway, Ph.D., P.Geo. supervised the preparation of the scientific and technical disclosure in this news release. Dr. Selway is the VP of Exploration for Power Metals and the Qualified Person ("QP") as defined by National Instrument 43-101. Dr. Selway is supervising the exploration program at Case Lake. Dr. Selway completed a Ph.D. on granitic pegmatites in 1999 and worked for 3 years as a pegmatite geoscientist for the Ontario Geological Survey. Dr. Selway also has twenty-three scientific journal articles on pegmatites. A National Instrument 43-101 report has been prepared on Case Lake Property and filed on July 18, 2017.

About Power Metals Corp.

Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop and acquire high quality mining projects.  We are committed to building an arsenal of projects in both lithium and high-growth specialty metals and minerals. We see an unprecedented opportunity to supply the tremendous growth of the lithium battery and clean-technology industries.  Learn more at www.powermetalscorp.com

ON BEHALF OF THE BOARD,

Johnathan More, Chairman & Director

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This press release contains forward-looking information based on current expectations, including the use of funds raised under the Offering.  These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Power Metals assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.

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SOURCE Power Metals Corp.