Power Group Provides an Update on Exploration Activities for the Muddy Gullies Property

Power Group Provides an Update on Exploration Activities for the Muddy

Gullies Property

NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA

October 11, 2022 – Vancouver B.C. - Power Group Projects Corp. (TSXV: PGP) (the "Company") is

pleased to provide an update on recent exploration activities. The Company is active on multiple high

potential poly metallic properties in Northern British Columbia and Newfoundland and Labrador.

Muddy Gullies Property

The Muddy Gullies Property is located 28 kilometres northeast of the town of Gander, NL. Route 330

affords easy access to the property as does Muddy Gullies access road which runs east from route 330.

Recent work completed on the property by the Company concentrated on the main platinum+palladium

target and includes line cutting, mapping and prospecting, a LiDAR and photogrammetry survey, and a

helicopter-borne magnetometer survey.

Program Highlights:

The mapping and sampling program identified an extensive area of pyroxenite outcrop. Thirty-one samples

of pyroxenite were collected and analytical results ranged from 0.007 to 0.299 ppm Pt (average 0.064 ppm)

and 0.003 to 0.407 ppm Pd (average 0.077 ppm). These values are comparable to historic sampling on the

property and confirm the excellent potential for the discovery of significant Pt+Pd mineralization on the

property. The samples were analyzed by ALS Canada Ltd, in North Vancouver, BC. After crushing and

pulverizing, the samples were analyzed using ALS’s PGM -ICP23 method. This method analyzes for Pt,

Pd and Au with a 30g fire assay and ICP finish.

The LiDAR and Photogrammetry surveys were conducted by drone equipment and covered 20.7 km². The

data collected will be a useful aid in the compilation of data fro m all the various surveys on the property.

This work, as well as the helicopter -borne magnetometer survey, was contracted to RPM Aerial Surveys,

of Holyrood, NL.

The helicopter-borne magnetic survey comprised approximately 265 line -kilometers, covering t he entire

property. The interpretation of the magnetic susceptibility data identified several strongly anomalous zones

that coincided with very low resistivity modelled from data collected by a VTEM survey in 2012. From

this interpretation, four high priority drill targets have been identified.

All the necessary permits for a planned 1,000-metre, four-hole, drill program are in place.

About the Muddy Gullies Property:

The Property comprises 113 claim units (8 licences) covering 28.25 km². The Property is host to several

historical platinum, palladium, copper and gold showings, as indicated by the Mineral Occurrence Database

System, Department of Natural Resources, Newfoundland & Labrador. The Property is underlain by a

portion of the Gander Riv er Ultramafic Belt (GRUB LINE) which consists of pyroxenite and lessor

serpentinite, magnesite, amphibolite, hornblendite, and gabbro.

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The mafic and ultramafic rocks of the GRUB LINE are considered to be an ophiolitic suite of volcanic and

plutonic rocks which have tectonically emplaced over the Gander Groups.

Local and Regional Geology

The Muddy Gullies property straddles the contact between the Dunnage and Gander tectonostratigraphic

zones. The Gander River Complex (GRC), originally termed the Gander River Ultrabasic Belt (GRUB

Line) defines the eastern edge of the Dunnage Zone and und erlies most of the property. The GRC is a

north-northeast trending belt of pyroxenite, mafic volcanics, gabbro, tonalite, serpentinite and other

ultramafic lithologies. The geology is characteristic of an ophiolite suite of igneous rocks which were

deposited on the ocean floor and now form the base of the Dunnage Zone.

The GRC stratigraphy has been the subject of mineral exploration since the 1950’s with the initial focus

being on asbestos, chromium and base metals. Subsequent exploration programs betw een 1986 and 2013

have focussed on gold, copper and platinum group elements (PGE). Highlights from assessment reports on

the area include the outline of a significant PGE target in a coarse grained pyroxenite, south of Muddy

Gullies Pond and the outlining of northeast trending gold (± copper) mineralization across the central block

of claims and including the Main Zone trend and the Weirs Pond showing.

Power Group Projects acknowledges the financial support of the Muddy Gullies project by the Government

of Newfoundland and Labrador, through the Department of Industry, Energy and Technology Junior

Exploration Assistance Program.

Qualified Person

Chris M. Healey, P.Geo., Technical Advisor to the Company and a Qualified Person ("QP") as defined by

National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the

scientific and technical information reported in this news release.

For further information, please contact:

Aleem Nathwani

Chief Executive Officer and Chairman

Tel: (604) 290-7073

Email: [email protected]

Cautionary Statement on Forward-Looking Information

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.

This news release contains certain "forward-looking information " within the meaning of applicable securities law s. Forward

looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate",

"estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions

"may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates

of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that

could cause actual events or results to differ materially from those projected in the forward-looking information. For a description

of the risks and uncertainties facing the C ompany and its business and affairs, readers should refer to the Company’s

Management’s Discussion and Analysis. The Company undertakes no obligation to update forward -looking information if

circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place

undue reliance on forward-looking information.