Power Metals Announces $3 Million Bought Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 15, 2017) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Power Metals Corp. ("Power Metals" or the "Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTC:AOUFF) is pleased to announce that it has entered into a letter of engagement with Eight Capital, under which Eight Capital has agreed to purchase 6,000,000 units of the Company (the "Units"), on a "bought deal" private placement basis, subject to all required regulatory approvals, at a price per Unit of $0.50 (the "Offering Price"), for total gross proceeds of $3,000,000 (the "Offering"). Each Unit shall consist of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.70 for a period of 24 months following the Closing Date.

The Company has granted Eight Capital an over-allotment option to purchase up to an additional 900,000 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to 48 hours prior to the closing of the Offering. If this option is exercised in full, an additional $450,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be up to approximately $3,450,000.

The Company intends to use the net proceeds of the Offering for exploration and drilling at their Case Lake Project, as well as working capital and general corporate purposes.

The closing date of the Offering is scheduled to be on or about January 5, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

As consideration for its services, Eight Capital will receive a cash commission equal to 6% of the gross proceeds of the Offering. The Company will also issue to Eight Capital compensation warrants in an amount equal to 6% of the number of Units sold pursuant to the Offering. Each compensation warrant will exercisable to purchase one Unit at an exercise price of $0.50, for a period of 24 months.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.