SOVEREIGN METALS LIMITED

NEWS RELEASE I 5 APRIL 2023

KASIYA INDICATED RESOURCE INCREASED BY OVER 80%

·     Kasiya Indicated Resource now stands at 1.2 Billion tonnes at 1.0% rutile and 1.5% graphite

·     Updated Mineral Resource Estimate (MRE) moves over 0.5 Billion tonnes from Inferred to Indicated - an increase of 81% to the Indicated category

·     Over 66% of total MRE now in the Indicated category

·     Kasiya's global MRE over 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite

·     Kasiya remains the world's largest natural rutile deposit and second largest flake graphite deposit

·     Updated MRE to underpin the mining inventory and mine plan for the forthcoming Pre-feasibility Study (PFS)

Sovereign's Managing Director Dr Julian Stephens commented: "The increase of over 80% in the Indicated component at a one-for-one conversion from Inferred is an outstanding outcome. The conversion rate confirms the very consistent geological and grade continuity and is testament to the high-quality and robustness of the deposit. Kasiya is poised to become a major long-term supplier of the critical minerals natural rutile and graphite, with both forecast to be in near-term and significant supply deficit. The PFS work program on this highly strategic and globally significant project is progressing well and approaching its final stages. The Company is looking forward to presenting the outcomes of the PFS in the coming months."

ENQUIRIES

KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the updated MRE for its world-class Kasiya rutile-graphite deposit in Malawi. Kasiya is a Tier 1 deposit and a potential major source of low carbon footprint critical minerals natural rutile (TiO₂) and graphite.

The updated MRE has further defined broad and contiguous zones of high-grade rutile and graphite which occur across a very large area of over 201km². Rutile mineralisation is concentrated in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded. Graphite is depleted near surface with grades improving at depths generally >4m to the base of the saprolite zone which averages about 22m.

Sovereign's 2022 drill program at Kasiya used push tube (PT) core holes to in-fill and convert Inferred mineralisation into the Indicated category. The consistency and robustness of the geology allowed for an efficient conversion of this previously Inferred material on a near-identical one-for-one basis to the Indicated category.

A total of 66% of the MRE now reports to the Indicated category @ 1.0% rutile and 1.5% TGC - up from 33% previously. Overall, the new Indicated components show coherent, broad bodies of mineralisation that have coalesced very well with the additional infill drilling results.

Further advancement in this MRE update was the application of air-core (AC) drilling to define the depth of mineralisation in a number of selected higher-grade areas. As expected, this drilling shows that high-grade rutile and graphite mineralisation extends to the base of the soft saprolite unit terminating on the saprock basement averaging about 22m depth. This AC drilling targeted early-scheduled mining pits mainly in the southern areas of the MRE footprint.

A number of higher-grade graphite zones at depth were identified which are generally associated with higher grade rutile at surface. Some of these zones have graphite grades at depths >6m in the 4% to 8% TGC range and appear to represent significant contained coarse flake graphite tonnages.

The highlighted cut-off of 0.7% rutile presents 1.8 billion tonnes at a rutile grade of 1.0%. (Table 2). The overall recovered rutile equivalent grade for the MRE at the global 0.7% cut-off is 1.65% RutEq*.

* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price (US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken from the Expanded Scoping Study (ESS) released in June 2022.

KASIYA MRE TECHNICAL DETAILS

The Kasiya MRE has been prepared by independent consultants, Placer Consulting Pty Ltd (Placer) and is reported in accordance with the JORC Code (2012 Edition).

Rutile mineralisation lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded. The high-grade zones are relatively geologically consistent with limited variability along and across strike. The mineralisation style is illustrated best in Figures 5 & 6 in the full announcement on the website.

SUMMARY OF RESOURCE ESTIMATE REPORTING CRITERA

As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary of the material information used to estimate the MRE is detailed below.

Geology

Regional Geology

The greater part of Malawi is underlain by crystalline Precambrian to lower Palaeozoic rocks referred to as the Malawi Basement Complex. In some parts these rocks have been overlain unconformably by sedimentary and volcanic rocks ranging in age from Permo-Triassic to Quaternary. The Basement complex has undergone a prolonged structural and metamorphic history dominated by uplift and faulting resulting in the formation of the Malawi Rift Valley.

Kasiya is located on the Lilongwe Plain which is underlain by the Basement Complex paragneisses and orthogneisses which are part of the Mozambique Belt. The bulk of the gneisses are semi-pelitic but there are bands of psammitic and calcareous rocks that have been metamorphosed under high pressure and temperature conditions to granulite facies. Interspersed within the paragneiss units are lesser orthogneisses, often cropping out as conspicuous tors, as well as amphibolites, pegmatites and minor mafic to ultramafic intrusions.  Foliation and banding in the gneisses have a broad north-south strike over the general area. Thick residual soils and pedolith with some alluvium overlie the gneisses and include sandy, lateritic and dambo types.

Project Geology

Sovereign's tenure covers 1,386km² over an area to the north, west and south of Malawi's capital city covering the Lilongwe Plain. The topography is generally flat to gently undulating and the underlying geology is dominated by paragneiss with pelitic, psammitic and calcareous units.

A particular paragneiss unit is rich in rutile and graphite and is the primary source of both of these minerals in the area. This area was deeply weathered during the Tertiary and rutile concentrated in the upper part of the weathering profile forming residual placers, such as the Kasiya Deposit. Once this material is incised and eroded, it is transported and deposited into wide, regional braided river systems forming alluvial heavy mineral placers such as the Bua Channel.

Kasiya Deposit Geology

The high-grade rutile deposit at Kasiya is best described as a residual placer, or otherwise known as eluvial heavy mineral deposit. It is formed by weathering of the primary host rock and concentration in place of heavy minerals, as opposed to the high-energy transport and concentration of heavy minerals in a traditional placer.

The presence of abundant kyanite and graphite in the host material suggest a meta-sedimentary protolith. The protolith likely started with a 0.5-1.5Ga basin that also experienced consistent influx of titanium minerals.

These sedimentary rocks were subject to granulite facies metamorphism under reduced conditions in the Pan-African Orogeny. The metamorphic facies, reduced environment, relatively high titanium content and low iron content resulted in rutile being the most stable titanium mineral under these conditions. Slow exhumation and cooling then resulted in re-crystallisation as paragneisses containing coarse rutile and graphite.

The final and most important stage of rutile enrichment came as tropical weathering during the Tertiary depleted the top ~8m of physically and chemically mobile minerals. This caused significant volume loss and concurrent concentration of heavy resistate minerals including rutile and kyanite.

Rutile mineralisation therefore lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved. The Kasiya deposit shows widespread, high-grade mineralisation commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to the base of the soft saprolite unit to generally 20-30m depth where it terminates on the hard saprock basement.

Graphite generally occurs in broad association with rutile. However, it is depleted in the top 3-5m and therefore can often show an inverse grade relationship with rutile in the near-surface zones. At depths generally greater than 5m, graphite is not depleted, and rutile is not particularly enriched, so a more consistent grade relationship exists.

Drilling Techniques

Spiral hand-auger (HA) drilling and Push-tube core (PT) drilling has been used extensively at the Kasiya Deposit by Sovereign to define mineralisation and to obtain quantitative rutile and graphite (TGC) assay information. For the MRE update, Aircore (AC) drilling has been applied in some high-grade areas to determine rutile and graphite grade potential at depth and to establish basement elevation and composition. Additional HA and PT drilling has been applied to extend, infill and upgrade resource confidence in more prospective regions.

A further 152 HA holes for 1,253m were drilled to extend the Kasiya Rutile Deposit and to obtain samples for quantitative determination of recoverable rutile and TGC. The total HA dataset incorporated in the MRE update is now 1,357 holes for 12,643m.

HA drilling was executed by Sovereign field teams using a manually operated enclosed-flight Spiral Auger (SP / SOS) system produced by Dormer Engineering in Queensland, Australia. The HA bits are 62mm and 75mm in diameter with 1m long steel rods. Each 1m of drill advance is withdrawn and the contents of the auger flight removed into bags and set aside. An additional 1m steel rod is attached and the open hole is re-entered to drill the next metre. This is repeated until the drill hole is terminated often due to the water table being reached, and more rarely due to bit refusal (2% of the resource HA drill database). The auger bits and flights are cleaned between each metre of sampling to avoid contamination. 

The HA collars are nominally spaced at a 400m-by-400m spaced array with the PT holes similarly spaced at an offset, infill grid. This results in a 200m by 200m drill spacing (to the strike orientation of the deposit).

PT drilling is undertaken using a drop hammer Dando Terrier MK1 and a drop hammer DL650 by Geo-consult and Thompsons Drilling. A total of 488 holes for 4,669m contribute to the MRE. The drilling generated 1m runs of 83mm PQ core in the first 2m and then transition to 72mm core for the remainder of the hole. Core drilling is oriented vertically by spirit level.

A total of 182 AC holes for 4,404m were completed in six locations across the MRE deemed likely to fall into mining pit areas.

AC drilling was completed by Thompson Drilling utilising a Smith Capital 10R3H compact track-mounted drill. The drilling is vertical and generates 1m samples with care taken in the top metres to ensure good recoveries of the high-grade surface material. To achieve this the bit is initially pushed down ~200mm then air is slowly introduced with slow rotation rpm, once sample begins flowing freely air and rpm is increased to full volume as the hole deepens.  Whilst sample size was reduced in surface samples, there was insignificant bias attributed to the AC method when compared with results from a dedicated programme of twin PT holes.

The AC sample is collected by the on-board cyclone into heavy-duty RC sample bags. Drilling continues until bit refusal onto basement ~20-30m. Sample bags are immediately transported back to Sovereign's field laydown yard where they are processed.

AC drilling is on a nominal 200m by 200m pattern. The drill spacing is deemed to adequately define the mineralisation in the MRE. There is no apparent bias arising from the orientation of the drill holes contributing to the MRE, with respect to the orientation of the deposit.

The drilling programs to date show a mineralised envelope, defined nominally by 0.7% rutile cut-off, of approximately 201km² with numerous areas of high-grade rutile and graphite defined.

The PT and AC twin and density sample holes are selectively placed throughout the deposit to ensure a broad geographical and lithological coverage for the analysis. 

Placer has reviewed Standard Operating Procedures (SOPs) for HA, PT and AC drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE.

Sampling Techniques

HA samples are obtained at 1m intervals generating on average approximately 2.5kg of drill sample. HA samples are manually removed from the auger bit and sample recovery is visually assessed in the field. As samples become wet at the water table and recovery per metre declines, the drill hole is terminated.

Each 1m sample is sun dried, logged and weighed. HA samples are composited based on regolith weathering boundaries defined by expert logging. Each 1m of sample is dried, lightly pressed to remove soft aggregates and riffle-split to generate a total sample weight of 3kg for analysis, generally at 2 - 5m intervals (average 2.8m for the total resource drill database). This primary sample is then riffle split again to provide a 1.5kg sample each for rutile and graphite analyses.

PT samples are predominantly from HQ sized core (63.5mm diameter). Half core 1m samples are sun dried, logged and weighed. Samples are then lightly pressed and composited over 2m intervals. An equal mass is taken from each contributing metre to generate a 1.5kg composite sample.  Individual recoveries of core samples are recorded on a quantitative basis. Core recovery is very good overall at >95%.

AC samples are collected in 1m increments. AC samples are dried, riffle split, lightly pressed and composited. Samples are collected and homogenised prior to splitting to ensure sample representivity. ~1.5kg composite samples defined by the regolith boundaries are processed. An equivalent mass is taken from each primary sample to make up the composite.

This sampling and compositing method is considered appropriate and reliable based on accepted industry practice. Placer completed an on-site audit of sampling and sample processing and deemed the processes fit for purpose. Minor suggested sampling and processing adjustments were implemented.

Sample analysis methodology

All samples arrive at Sovereign's Malawi laboratory where they are sorted and checked in. Graphite samples are identified and prepared for export, while the equivalent rutile samples begin the sample workflow prior to export to Perth, Western Australia.  Audit of the laboratory premises, staff, sample analysis and QA procedures were highly commended during the audit by Placer Consulting in 2022.

Rutile

Samples are dried in a commercial oven for 1 hour at 105℃ and a dry raw samples mass is recorded.

Samples are soaked in 1% TSPP solution overnight and then lightly agitated prior to wet screening.

Wet screening occurs at 5mm, 600µm and 45µm to remove oversize and slimes (-45µm) material. Each +45µm retained fraction is dried, logged and weighed.

The resulting SAND fraction +45µm -600mm is oven dried for 1 hour at 105℃ after which its dry weight is recorded.

The SAND fraction is then passed over a Gemeni wet shaking table at a constant feed rate to generate a heavy mineral concentrate (HMC).

Heavy Liquid Separation (HLS) at Diamantina Laboratories in Perth was initially trialled as a preferred separation method but was quickly superseded (supported by QA analysis) by wet-table separation on account of substantial near-density gangue material reporting to the HM sink for the HLS technique. The HLS analyses represent 11% of the MRE assay dataset.

The wet-tabled HMC is then subject to magnetic separation @ 16,800G (2.9Amps) producing a magnetic (M) and non-magnetic (NM) fraction. The separation is performed using a Mineral Technologies Reading Pilot IRM (Induced Roll Magnetic) purchased by Sovereign and located at the Company's laboratory in Malawi. Pre-2022 this step was completed by Allied Mineral Laboratories Perth (AML) in Perth, Western Australia.

The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where the NM concentrate (containing the rutile) is produced.

The routine NM fractions are air freighted to ALS Metallurgy Perth for quantitative XRF analysis. The samples receive the XRF_MS sample suite which includes TiO₂ and common impurities. Check QAQC samples are sent to Intertek Perth where they receive and equivalent standard mineral sands suite FB1/XRF72.

Several generations of QEMSCAN analysis of the NM and MAG fractions performed at ALS Metallurgy show dominantly clean and liberated rutile grains and confirm rutile is the only titanium species in the NM fraction.

Recovered rutile is defined and reported here as: TiO₂ recovered in the SAND +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e recoverable rutile within the whole sample. Raw rutile results are also available.

Graphite

Once secured samples arrive at Intertek Johannesburg, South Africa, a split of each raw sample is dissolved in dilute hydrochloric acid to liberate carbonate carbon. The solution is filtered using a filter paper and the collected residue is then dried to 425°C in a muffle oven to drive off organic carbon. The dried sample is transported to Perth, Australia where it is then combusted in an Eltra CS-800 induction furnace infra-red CS analyser to yield total graphitic or elemental carbon (TGC).

QAQC

Accuracy monitoring is achieved through submission of certified reference materials (CRM's). Sovereign uses internal and externally sourced wet screening reference material inserted into samples batches at a rate of 1 in 20. The externally sourced, certified standard reference material for HM and Slimes assessment is provided by Placer Consulting.

ALS and Intertek both use internal CRMs and duplicates on XRF and TGC analyses. Sovereign also inserts its customised CRMs into all sample batches at a rate of 1 in 20.

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative. Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 2SD from the mean) initiates investigation and may trigger re-processing of the affected batch.

Precision and accuracy assessment has been completed on all alternate workflow methodologies and a consistent method has been decided, in consultation with Placer Resource Geologists. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. Rutile determination by alternate methods showed no observable bias.

Acceptable levels of accuracy and precision are displayed in geostatistical analyses to support the resource classifications as applied to the estimate.

Classification

A nominal 200m-by-200m-by-2m drill sample array is deemed to adequately define the Indicated mineralisation for the MRE, with a predictable grade distribution and consistent host stratigraphy.

The PT twin and density sample holes are selectively placed throughout the deposit to ensure a broad geographical and lithological spread of material types for the analysis. 

Renewed kriging neighbourhood analysis, completed using Supervisor software, has confirmed the drill and sample spacing applied to the MRE update. Variography has also confirmed the optimal search distances and orientations. Based on these results and the experience of the Competent Person, the data spacing, and distribution is considered adequate for the definition of mineralisation classification and adequate for the MRE.

The HA and PT drilling methods applied to define the Kasiya Deposit (HA and PT) are not able to retrieve reliable samples once the bit is 3 to 5m below the water table and each terminate at an average depth of about 9.5m in the resource dataset. Application of AC drilling has confirmed the continuation of material rutile and graphite grade to depth and defined the basement horizon at the saprock interface. Elsewhere, mineralisation remains open at depth and substantial additional tonnages could be anticipated.

High grade sample results are constrained adequately by the search parameters and interpolation method applied to the MRE. High-grade results are confirmed by an audit analysis program.

Regolith stratigraphy is uniform and rutile and graphite mineralisation is predictable across the Kasiya Deposit. Open-hole drilling and infill PT/AC drilling techniques have been expertly applied and data collection procedures, density assessments, QA protocols and interpretations conform to industry best practice.

Assay, mineralogical determinations and metallurgical test work conform to industry best practice and demonstrate a rigorous assessment of product and procedure. These and the development of a conventional processing flowsheet and marketability studies support the classification of the Kasiya Resource.

Estimation Methodology

Datamine Studio RM and Supervisor software are used for the data analysis, variography, geological interpretation and resource estimation. Key fields are interpolated into the volume model using a range of parameters and interpolation methods to establish best fit for the deposit. For the Kasiya MRE update, the Inverse Distance weighting (power 4) method was seen to perform a superior interpolation of informing data and replication of the high-value and thin, surface (SOIL/FERP) grade distribution. This was assisted by the application of a Dynamic Anisotropy search, informed by the results of variography. Suitable limitations on the number of samples and the impact of those samples, was maintained.

Interpolation was constrained by hard boundary domains that result from the geological interpretation. The construction of an upper soil ("SOIL" 0-1m) and ferruginous pedolith ("FERP", 1-4m) domain referred to as the Soil/Ferp domain reduces the dilution of resource grade from the underlying, less mineralised mottled ("MOTT", 4-7m), pallid saprolite ("PSAP", 7-9m) and saprolite ("SAPL", 9-25m) or collectively the Mott/Sapl domain.

A Topsoil horizon has been defined at 0.3m thickness throughout the Indicated Resource area to support anticipated ore reserve calculation and mining studies. Topsoil is disclosed separately but remains in the MRE in recognition of advanced investigations by SVM on synthetic topsoil generation for rehabilitation.

The average parent cell size used is equivalent to the average drill hole spacing within the Indicated Resource (200m*200m).  Cell size in the Z-axis was established to cater for the composite sample spacing and definition of the Topsoil domain. This resulted in a parent cell size of 200m x 200m x 3m for the volume model with 5 sub-cell splits available in the X and Y axes and 10 in the Z axis to smooth topographical and lithological transitions.

Both parent and sub-cell interpolations were completed and reconciled spatially against each other. The parent cell and sub cell interpolations produced near identical global tonnages and grades. The sub-cell interpolation was seen to provide a better graduation of informing drill hole data through intermediate model cells and to conform more sympathetically to the geological interpretation. Whilst both are available, in this instance and as a geological resource, the sub-cell interpolation was applied to the MRE. 

The resource model has been constrained by the drill array plus one drill interval. This applies a buffer of 200*200*2.7m in X, Y and Z axes. Only those areas drilled by AC allow the accurate generation of a basement horizon, elsewhere the base of the MRE hovers within the saprolite and reflects only the depth of effective drilling by HA and PT methods where they terminate due to excess water ingress. Substantial additional mineralisation is anticipated below this depth in these areas, as demonstrated by the limited  AC drilling to date.

Extreme grade values were not identified by statistical analysis, nor were they anticipated in this style of deposit. No top cut is applied to rutile or graphite in the resource estimation.

Validation of each interpolation method and of the reported grade interpolation was done visually in Datamine by loading model and drill hole files and annotating, colouring and using filtering to check for the appropriateness of drill data interpolation.

Statistical distributions were prepared for model zones from both the drill hole file and the model to assess how well the interpolation represents informing data. Model-drilling reconciliation was also performed by generating swath plots to measure drilling support against interpolation performance in all three primary orientations. Where data population is adequate, the resource model has effectively averaged informing drill hole data and is considered suitable to support the resource classifications as applied to the estimate.

Density is determined on a 10cm segment of complete core through a simple cylinder volume calculation on both wet in-situ weight and an oven dry weight. The in-situ state of the core is carefully preserved prior to selection. After the segment is chosen, it undergoes measurement and weighing. Subsequently, it is subjected to oven-drying for a specific duration, and its weight is once again determined. This method is applied to samples that represent different weathering domains found in various drill holes throughout the project site.

This methodology delivers an accurate density result that is interpolated in the MRE for each host material type.

Density data are applied to the resource estimate by weathering domain. Minor adjustments were made for the MRE update on the receipt of additional density data. Averaged density results of 1.39 t/m³ for the soil (SOIL) domain, 1.58 t/m³ for the ferruginous pedolith (FERP) domain, 1.66 t/m³ for the mottled (MOTT) domain, 1.69 t/m³ for the pallid saprolite (PSAP) domain, 1.97 t/m³ for the saprolite (SAPL) domain and 1.95 t/m³ for the laterite (LAT) domain were calculated. Density data are interpolated into the resource estimate by the nearest neighbour method.

Cut-off Grades

All results reported are of a length-weighted average of in-situ grades. The resource is reported at a range of bottom cut-off grades in recognition that optimisation and financial assessment is in process.

A nominal bottom cut of 0.7% rutile is offered, based on preliminary assessment of resource product value and anticipated cost of operations. As a by-product of a rutile operation, graphite is not considered for top or bottom cuts.

Mining and Metallurgy Factors

Hydro-mining has been determined as the optimal method of mining for the Kasiya Rutile deposit. The material is loose, soft, fine and friable with no cemented sand or dense clay layers rendering it amenable to hydro-mining. It is considered that the strip ratio would be zero or near zero.

Dilution is considered to be minimal as mineralisation commonly occurs from surface and mineralisation is generally gradational with few sharp boundaries.

Recovery parameters have not been factored into the estimate. However, the valuable minerals are readily separable due to their SG differential and are expected to have a high recovery through the proposed conventional wet concentration plant, as demonstrated by metallurgical test work.

Sovereign has announced three sets of metallurgical results to the market (24 June 2019, 9 September 2020 and 7 December 2021), relating to the Company's ability to produce a high-grade rutile product with a high recovery via simple conventional processing methods. Sovereign engaged AML to conduct the metallurgical test work and develop a flowsheet for plant design considerations. The work has shown a premium quality rutile product ranging from 95.0% to 97.2% TiO₂ with low impurities could be produced with recoveries of about 94% to 100% and with favourable product sizing at d50 of 118µm (Kasiya North) and 128µm (Kasiya South).

Gravity separation was effective at concentrating graphite to a "light mineral pre-concentrate" due to its low specific gravity (~2.2 t/m³) providing an upgrade of graphite grade to the flotation circuit to about three times the run of mine grade.

A program at SGS Lakefield in Canada was undertaken in order to confirm that the graphite gravity pre-concentrate can be upgraded into a coarse flake graphite by-product via a conventional graphite flotation flowsheet.

The test-work was extremely successful, and a very coarse-flake graphite concentrate at 96.3% TGC was produced. Greater than 60% of the graphite concentrate is in the large to super-jumbo fractions, suggesting a high combined basket value. The overall graphite recovery from the raw sample to product was 62%.

Further graphite flotation testwork to define the PFS flowsheet has been undertaken at ALS in Perth, Western Australia. Test work results are being finalised, however as with all other Kasiya metallurgical test work to date, minimal variation is expected from previous results.

MRE TABLES

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereign's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Competent Persons Statement

The information in this announcement that relates to Mineral Resources is based on, and fairly represents, information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. Mr Stockwell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stockwell consents to the inclusion of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares, unlisted options and performance rights in Sovereign. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Metallurgical test-work Results - Rutile & Graphite is extracted from the announcement dated 24 June 2019, 9 September 2020 and 7 December 2021. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this report have not been materially changed from the announcement.

Qualified Person

Information disclosed in this announcement has been reviewed by Dr Julian Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, a Qualified Person for the purposes of the AIM Rules for Companies.

To view the announcement in full including all illustrations and figures, please refer to the full announcement at http://sovereignmetals.com.au/announcements/.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

APPENDIX 1 - JORC CODE, 2012 EDITION - TABLE 1

SECTION 1 - SAMPLING TECHNIQUES AND DATA

SECTION 2 - REPORTING OF EXPLORATION RESULTS

SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES

Glossary