Each Unit will consist of one common share and one common share purchase warrant

{00656948;1}

POWER METALS CORP.

Suite 545, 999 Canada Place

Vancouver, British Columbia

Canada V6C 3E1

Telephone: (604) 687-7741

Facsimile: (604) 681-0796

N E W S R E L E A S E

Vancouver, British Columbia, January 6, 2017 - Power Metals Corp. (the “Company”)

(TSX-V: PWM) – further to its news release dated December 19, 2016, the Company

announces that it has received TSX Venture Exchange approval to the closing of its

private placement. The Comp any has raised an aggregate $1,0 00,000 via two tranche

closings through issuance of 7,103,334 units (“Units”) at a price of $0.075 per Unit in the

first tranche closing and issuance of 6,229,999 Units in the second tranche closing.

Each Unit will consist of one common share and one common share purchase warrant

(“Warrant”). Each Warrant will entitle the holder to purchase one additional common

share for a period of two (2) years at a price of $0.15 per common share.

Finder’s fees of (i) $16,798, (ii) 96,827 Units and (iii) 10,640 finders’ warrants

exercisable at $0.15 per share were paid to three finders.

The securities issued in relation to this private placement are subject to regulatory four -

month hold period expiring April 21, 2017, and May 4, 2017.

The net proceeds of the financing will be used to undertake work on its various mineral

property interests and for general working capital.

ON BEHALF OF THE BOARD

Johnathan More

Chief Executive Officer

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.