SOVEREIGN METALS LIMITED

NEWS RELEASE I 25 AUGUST 2023

ISSUE OF SHARES

Further to Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM, AIM:SVML) announcement on 23 August 2023, the Company advises that it has issued 2,932,786 fully paid ordinary shares (Shares) by way of the issue of 439,918 Shares to Rio Tinto and 2,492,868 Shares to SCP Resource Finance, formerly Sprott Capital Partners, as an advisory fee of 3% on the amount of Rio Tinto's initial investment (refer to announcement date 17 July 2023).

An application will be made for the Shares to be admitted to trading on AIM (Admission) and it is expected that Admission will become effective on or around 29 August 2023.

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTRs), following Admission of the Shares, Sovereign will have 556,903,401 Ordinary Shares in issue with voting rights attached. The figure of 556,903,401 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

Following the issue of Shares, Sovereign has the following securities on issue:

·      556,903,401 fully paid ordinary shares;

·      34,549,598 unlisted options exercisable at A$0.535 each on or before 21 July 2024;

·      6,100,000 unlisted performance rights subject to the "Pre-Feasibility Study Milestone" expiring on or before 30 September 2023; and

·      7,810,000 unlisted performance rights subject to the "Definitive Feasiblity Study Milestone" expiring on or before 31 October 2025.

ENQUIRIES