EDDY.V · 2017-03-01

Power Americas Signs Letter of Intent to Acquire the Farellon Cobalt, Copper, Gold Project.

Mergers & Acquisitions Property Options & Staking

TSX VENT TURE EXCHAN NGE: PAM FRANKFURT: VV0

NEW WS RELEASE E

POWER R AMERICAS S SIGNS LETT TER OF INTENT TO ACQU UIRE THE FA ARELLON CO OBALT, COPP PER, GOL LD PROJECT.

Vancouve er, British Col lumbia March

h 1, 2017 –Po

ower America as Minerals C

Corp. (“Power Americas” o or the has signed a Letter of Inte ent (the”LOI”) with "Company") (TSX‐V: “P PAM”) is plea ased to announce that it h Red Meta e exercise of three separate options a al Resources Ltd. (“Red M Metal”) to ac cquire on the a one hundred p percent (100% %) interest in n the Farellon n Property, a one hundred d percent (100 0%) interest in the operty and a one hundred Perth Pro d percent (10 00%) interest in the Mate eo Property. T The three pro ojects e, in the prolif copper‐gold (IOCG) are locate ed 150 km southwest of Copiapo, Chile fic Candelaria a iron oxide c al Cordillera, host to the belt of C Chile's coasta e Mantoverd de mine and d Lundin Min ning Corpora ation's Candelaria mine.

Option Te erms

Pursuant to the LOI, Power Amer ricas can acq quire 100% o of Red Metal l’s Farellon, Perth, and M Mateo Properties in exchange e for aggrega ate consideration of twent ty‐five million n (25,000,000

0) common s shares of Power Americas Min nerals Corp. a and a one‐tim me payment o of US$250,000 0.

The comp pletion of the transaction i is subject to a a number of conditions in ncluding, but not limited to o, TSX Venture E Exchange (“TS SXV”) approva al.

Power Am mericas may exercise the first option (the “First O Option”) to acquire a one e hundred pe ercent (100%) interest in the Farellon Prop perty by issuin ng ten million n (10,000,000

0) common sh hares in the c capital of Power Americas and d making a one‐time cash payment of US$250,000 to Red Metal within 5 bus siness days of re he “TSXV”) to eceiving accep ptance by the e TSX Venture e Exchange (th

the transact tion.

Provided Power Amer ricas exercises the First Op ption it may exercise an a additional op ption (the “Se

econd Option”) and earn an undivided 10 00% interest in the Perth P Property by is ssuing to Red d Metal ten m million (10,000,000) common 0,000,000) Special n shares in t the capital o of Power Am mericas or ten million (10 Warrants within six mo onths from th he date the First Option ha as been exerc cised. Each Sp pecial Warran nt will be exercis sable into one e common sh hare in the capital of Powe er Americas w without furthe er considerati ion.

Subject to

Power Ame ericas exercis sing the Seco ond Option it t may exercis se the final o option (the “ “Third

Option”) and earn an u undivided 100 0% interest in n the Mateo P Property by is ssuing to Red d Metal five m million (5,000,000) common s shares in the c capital of Pow wer Americas s or five millio on (5,000,000

0) Special War rrants within six x months from m the date the Second O Option has be een exercised

d. Each Special Warrant w will be er Americas without further consideration. exercisable into one c common share in the cap pital of Powe There are e no work com mmitments with any of the e Property Op ption Agreem ments.

Suite 1400, 1111 West Geo orgia Street, V Vancouver, BC C V6E 4M3 778 www.vi ictoryventure Tel: 604‐ ‐687‐4719 Fax x: 604‐687‐47 es.ca TSX‐V: P PAM The Farellon Property is drill ready for immediate definition drilling and the potential estimation of a mineral resource. Power Americas will focus future exploration drilling on the cobalt (“Co”) and silver (“Ag”) potential of the property, in addition to the copper (“Cu”) and gold (“Au”) potential of the property. Cobalt has never been a primary focus of exploration and not all drill holes were analyzed for cobalt. Significant intercepts in drill holes that were analyzed for cobalt include: FAR‐96‐010 3m @ 1.3% Cu, 0.37g/t Au and 0.55% Co and FAR‐11‐001 3m @ 6.08% Cu, 0.58g/t Au and 0.13% Co.

Farellon Property

The Farellon Property includes a 100% interest in six claims and an option to earn a 100% interest in two additional claims. Two claims on the Farellon Property have remaining payments of US$75,000 each to the underlying vendors. The property is located 150 km southwest of Copiapo, Chile, and consists of a total of 1,234 hectares in the Carrizal Alto mining district, more precisely 3 km southwest of the historic Carrizal Alto mine. It is easily accessible year‐round by dirt roads and is located in close proximity to power, water and a major urban centre, Copiapo, with a readily available mining workforce. The eight mining claims have net smelter royalties (“NSR”) of 2.5% registered to a variety of holders, with an option to buy back up to 1.5% of all NSR’s for an aggregate payments of US$3,850,000.

Historical records indicate that copper mining commenced at Carrizal Alto in the 1820s and continued on a significant scale, mostly by British companies until 1891 when disastrous flooding occurred and the mines were closed. Historical reports indicate that the larger mines were obtaining good grades over significant widths in the bottom workings at the time of closure. It is estimated that during this period, over 3 million tonnes of mineralized material with grades in excess of 5% copper and widths of 8 m were extracted, including a large quantity of direct shipping mineralized material at 12% copper (Source: Ulriksen, C. (1991), Carrizal Alto Mining District, Vallenar, III Region, Chile, 7 p.).

Work completed to date on the Farellon Property has been focused on a 1.6 kilometre stretch of mineralized veins hosted in a 10 to 25‐metre‐wide shear zone, a further 2.5 kilometres of this shear zone have been explored on surface and show similar geology and mineralization on surface as the zone that had been previously drilled. A total of 6,992 metres of drilling has been completed in three programs along a 1.3 km strike length. The property has been primarily explored for copper and gold, but there is unexplored potential for cobalt and silver on the property. The following table summarizes some of the best results obtained to date.

HOLE ID _	From	To	Length	Cu	Au
	(m)	(m)	(m)	(%)	(g/t)
FAR‐96‐007 25 34 9 1.05 0.38
FAR‐96‐009 62 65 3 2.24 0.67 FAR‐96‐009 72 83 24 1.01 0.57 FAR‐96‐010 45 48 3 1.3 .37 FAR‐96‐015 59 79 20 .98 .99 FAR‐96‐022 29 39 10 1.31 1.53 FAR‐96‐022 100 108 8 2.49 3.72

HOLE ID _	From	To	Length	Cu	Au
	(m)	(m)	(m)	(%)	(g/t)
FAR‐96‐023 132 147 15 1.42 0.60 FAR‐96‐024 33 36 3 2.89 0.94 FAR‐96‐025 65 85 20 1.22 0.97 FAR‐09‐B 75 86 11 0.67 1.35 FAR‐09‐C 77 82 5 4.16 2.57 FAR‐11‐001 36 49 13 2.51 0.35 FAR‐11‐001 36 44 8 3.95 0.53 FAR‐11‐001 37 43 6 5.09 0.64 FAR‐11‐006 80 112 32 1.35 0.99 FAR‐11‐006 84 96 12 2.18 2.10 FAR‐13‐002 47 54 7 2.15 0.28

The table above shows grades and widths of mineralization which are consistent with historic drilling results and have also given valuable geological information showing multiple veins and the potential for wide zones of economic mineralization. The true width of the drill hole intersections cannot be determined from the information available, as it was RC drilling.

In 2014, Red Metal entered into a contract with a Chilean artisanal miner allowing the artisanal miner to mine on the Farellon property in return for a 10% net sales royalty. In January 2015, the artisanal miner began selling mineralized material to ENAMI, a Chilean national mining company, and to date has sold approximately 10,000 tonnes of sulphide mineralized material grading 1.82% Cu, 6.56 g/t Ag and 0.25 g/t Au, as well as 1,813 tonnes of oxide mineralized material grading 1.56% Cu. Silver grades recovered during the mining operations demonstrates the unexplored potential for silver on the property. (Source: RMES Annual and Quarterly Reports).

In April 2015, the artisanal miner received all the necessary permits allowing them to increase their operations from 500 tonnes per month to 5,000 tonnes per month. Continued expansion of the Farellon property’s small‐scale mining operation, through minimal capital expenditures, could significantly increase revenues and provide important geological and metallurgical information.

Perth Property

The Perth Property consists of 12 mining claims totaling 2,245 hectares in the Carrizal Alto mining district. It is contiguous to the Farellon Property, but geologically different. The property has a 2.5% NSR on it with an option to buy back up to 1.5% of the NSR for aggregate payments of US$1,000,000.

The property has been known to host gold and copper mineralization since the early 1900’s when it was part of the Carrizal Alto mining complex. Modern exploration on the property started in 2008 and multiple surface mapping, trenching and drilling programs have been completed. More than 12 mineralized veins have been identified on the property. Significant results obtained from surface channel sampling are listed in the table below.

	Sample	Northing	Easting	Elevation	Length	Au g/t	Cu %
	ID
778 6895914.00 308888.00 772 Reconnaissance 16.50 2.87 1962 6893308.58 308065.74 648 1.10 15.26 0.93 1977 6895153.72 308780.84 714 2.10 14.43 0.72 2938 6895006.00 308352.00 888 0.50 14.00 3.62 1960 6893313.57 308068.57 648 1.10 9.77 1.36 2975 6894308.00 308364.00 727 0.40 8.92 1.84 1903 6892715.11 307888.80 588 0.60 8.52 1.56 1952 6892720.24 307889.38 588 1.50 8.37 2.14 1961 6893307.92 308066.42 647 1.10 8.14 2.83 1923 6893265.79 308261.54 622 0.30 7.60 1.04 1921 6893260.81 308515.88 638 0.40 7.38 2.43 1913 6893501.66 308143.50 687 0.60 6.73 7.16 252 6892373.78 307952.33 581 0.35 6.48 1.32 1821 6896660.00 309450.00 671 1.10 5.86 4.09 1813 6896586.00 310019.00 584 1.30 5.71 2.88 3037 6895254.00 308254.00 901 0.30 5.26 8.76 2951 6894414.00 308406.00 741 0.55 4.89 2.08 1972 6895140.00 308797.00 778 1.20 4.75 1.68 1975 6895151.55 308790.60 757 1.40 4.47 5.90 2007 6897060.00 309956.00 563 1.50 4.07 3.78 1905 6893092.03 308001.35 660 0.80 3.13 3.98

Mateo Property

The Mateo Property is a copper‐gold‐silver project consisting of mining 7 claims totalling 500 hectares located approximately 10 km east of Vallenar.

The property has undergone limited modern exploration including surface and underground RC drilling and artisanal mining on three separate mine sites, the Irene, Margarita and Santa Theresa mines.

In 2011, Red Metal carried out an in‐depth geological mapping and sampling program on the property. A total of 138 reconnaissance samples were collected. The highest assay values returned from reconnaissance samples were 21 g/t Au and 10.3% Cu, with more common values ranging between 1‐3 g/t Au and 1‐3% Cu. Detailed mapping identified nine significant mineralized zones where further work is recommended.

About Power Americas Mineral Corp

Power America’s acquisition strategy focuses on acquiring affordable, cost effective and highly regarded mineral properties in areas with proven geological potential. These areas include historical and currently producing mines with existing infrastructure. This strategy includes acquiring 100% interests in mineral properties, with no payment terms or work program commitments that would threaten a junior mining company’s financial stability. The Company believes it can create maximum shareholder value efficiently and cost effectively implementing this acquisition strategy.

The Company believes that the demand profile for Cobalt, Lithium, Copper, and other essential power related materials will be fundamentally led by the growing adaptation of electric vehicles, renewable energy and increased production of super alloys. With a focus on identifying and developing ethically sourced materials within the Americas, the Company intends to address the growing demand for energy metals that are being driven by innovation and the introduction of new technologies.

Power Americas Minerals Corp. is a Canadian‐based junior mining exploration company focused on the procurement, exploration and development of cobalt, lithium, copper and other energy metals in North and South America. The Company’s shares are listed and posted for trading on the TSX Venture Exchange under the symbol "PAM" and on the Frankfurt Exchange under the symbol “VV0”.

This transaction is subject to standard closing conditions including a 60‐day due diligence period, the parties completing a definitive agreement and the receipt of TSX Venture Exchange (“TSXV”) approval.

The technical content of this news release has been reviewed and approved by James Place, P. Geo., a director of the Company, and a qualified person as defined by National Instrument 43‐101.

On behalf of the Board of Directors: For more information please contact:

Howard Milne V.P. Business Development “Jeffrey Cocks” Tel: (604) 377‐8994 Email: [email protected]

Website: www.victoryventures.ca Jeffrey Cocks President

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

NOT FOR DISSEMINATION IN THE UNITED STATES

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