Power Metals Intersects 1.81% Li2O and 136.10 ppm Ta Over 17.0 m at Case Lake

VANCOUVER, Jan. 5, 2018 /CNW/ - Power Metals Corp. ("Power Metals Corp." or the "Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTC:AOUFF) is pleased to announce that drill holes intersected, for assays received to date, more impressively wide high-grade lithium (Li) and tantalum (Ta) mineralized intervals for the Main Dyke at Case Lake, east of Cochrane, Ontario.

• PWM-17-33: 2.19 % Li₂O and 195.27 ppm Ta over 6.0 m (5.0 to 11.0 m)
• PWM-17-33: 2.11 % Li₂O and 259.31 ppm Ta over 11.0 m (22.0 to 33.0 m)
• PWM-17-34: 1.81 % Li₂O and 136.10 ppm Ta over 17.0 m

Drill hole PWM-17-33 has impressive lithium and tantalum mineralization (Figures 1 and 2). Lithium grades are up to 3.02 % Li₂O over 2.0 m and 2.84 % Li₂O over 4.0 m in PWM-17-33. Tantalum grades are up to 554.0 ppm Ta over 2.0 m in PWM-17-33. The high-grade coarse-grained spodumene inner intermediate zone from 5.0 to 11.0 m is followed by a very coarse-grained white K-feldspar and pure quartz core (11.0 to 22.0 m) and by another high-grade coarse-grained spodumene inner intermediate zone from 22.0 to 33.0 m. This indicates that the high-grade spodumene pegmatite zone is concentrically zoned around the quartz core. The Main Dyke in this hole has a narrow low-grade outer pegmatite zone and the total width of the Main Dyke in PWM-17-33 is 32.65 m.

Drill hole PWM-17-34 also has an impressive width of 17.0 m of continuous lithium and tantalum mineralization. Lithium grades are up to 2.59 % Li₂O over 1.0 m and 2.42 % Li₂O over 2.0 m. Tantalum grades are up to 264.25 ppm Ta over 4.0 m. The Main Dyke in this hole has a second high grade lithium zone of 1.79 % Li₂O over 3.0 m. Including the narrow low-grade outer pegmatite zone and the total width of the Main Dyke in PWM-17-34 is 27.5 m.

The Main Dyke is consistently 30-35 m exposed on surface and in shallow drill holes. With depth, the Main Dyke becomes multiple spodumene pegmatite dykes separated by tonalite, but still within the same 30-35 m envelop of mineralization. Additional high-grade lithium intervals include:

• PWM-17-16: 1.12 % Li₂O and 119.03 ppm Ta over 7.0 m
• PWM-17-19: 2.56 % Li₂O and 47.50 ppm Ta over 1.14 m
• PWM-17-22: 2.95 % Li₂O and 255 ppm Ta over 1.0 m
• PWM-17-22: 2.40 % Li₂O and 35.45 ppm Ta over 2.0 m

Assay highlights for assays > 0.5 % Li₂O holes PWM-17-02 to 34 are given in Table 1. Assays for drill holes PWM-17-01, 04, 08, 09 and 10 are given in Power Metals press release dated Nov. 2, 2017. Drill hole collar locations are given in Table 2.

Figure 1 Main Dyke, PWM-17-33, boxes 1 to 4, 0.0 to 16.3 m. Note high grade lithium zone in boxes 2 and 3.

Figure 2 Main Dyke, PWM-17-33, box 5 to 8, 16.3 to 33.3 m. Note high grade lithium zone in boxes 6, 7 and 8.

Table 1 Assay highlights for PWM-17-02 to 34.

Drill holes PWM-17-05, 06, 07, 11, 12, 13, 25, 26, 27, 28, 29, 30 have no significant lithium values. Assays for PWM-17-31 and 32 are still pending. Drill holes intersected the pegmatite dykes at almost 90 degrees, so intervals are close to true widths.

Power Metals is setting up a 2,000 metre drill program on the Northeast Dyke and drilling should start within a week. Grab sample assays from the surface sampling on the Northeast Dyke range from 6.04% to 7.14% Li₂O (see press release dated Dec. 4, 2017).

Dr. Selway, VP of Exploration stated "We are impressed by the high-grade lithium and tantalum mineralization drill holes PWM-17-33 and 34. We are expecting to receive more high-grade assays from the drill program on the Main Dyke in the next couple of weeks. We are looking forward to seeing the drill core from the first drill hole from the Northeast Dyke after the recent discovery of abundant very coarse-grained spodumene on surface."

Quality Control

The drill core was sampled so that 1 m of the Case Batholith tonalite host rock was sampled followed by 1 m long samples of the pegmatite dyke and 1 m of the Case Batholith. The sampling followed lithology boundaries so that only one lithology unit is within a sample, except for the < 20 cm pegmatite veins in tonalite which were merged into one sample. The drill core samples were delivered to Actlabs preparation lab in Timmins by Power Metals' geologists. The core was crushed and pulverized in Timmins and then shipped to Actlabs analytical lab in Ancaster 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% was prepared by sodium peroxide fusion with analysis by ICP-OES with a detection limit of 0.01 % Li₂O.

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 dykes: North, Main, South, East and Northeast Dykes. The Northeast Dyke contains very coarse-grained spodumene. Power Metals has an 80% interest with its 20% working interest partner MGX Minerals Corp.

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.

Table 2 North, Main and South Dyke 2017 drill program collar locations. UTM NAD 83, Zone 17. NQ core.

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, including zeolites. 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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Power Metals. There are numerous risks and uncertainties that could cause actual results and Power Metals' plans and objectives to differ materially from those expressed in the forward-looking information, including other factors beyond Power Metals' control. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Power Metals assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

SOURCE Power Metals Corp.