Commissioning of Sustainable Farming Initiative

NEWS RELEASE I 26 FEBRUARY 2024

SOVEREIGN COMMISSIONS SUSTAINABLE FARMING INITIATIVE IN MALAWI

·      Sovereign has initiated a Conservation Farming Program in Malawi as part of its sustainability initiatives related to the development of Kasiya

·      Local farmers will be trained in sustainable farming techniques to increase maize crop yield; protect soil from erosion and degradation; and to improve long term food security

·      According to the World Food Program, up to 5.4 million people in Malawi are subject to food insecurity, with many Malawians dependent on subsistence agriculture

·      Supporting local communities in addressing their social priorities is a core principle of Sovereign's ESG Strategy as the company advances the development of Kasiya

·      Sovereign's owner's team have previously implemented this program at First Quantum Minerals' Zambian operations where over 7,000 farmers were participating in the program by 2022

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that as part of its Environmental, Social, and Governance (ESG) Strategy in developing its Kasiya Rutile-Graphite Project (Kasiya), it has commissioned a Conservation Farming Program (Program) in Malawi.

Figure 1. Sovereign team members conducting conservation farming training

Malawi's food security depends on maize (corn); it is the major staple food crop in Malawi with 60% of cropped land devoted to its production. Sovereign has commissioned the initial Program for 90 Malawian maize farmers from within the project area, of which at least 50% are female. The Program is to provide training in low-input-cost, high-yield sustainable farming techniques, with the aim to provide a platform for the farmers to increase yield and productivity therefore helping to reduce malnutrition and poverty.

Conservation farming as a system aims to protect soil from erosion and degradation and increase crop yields. It involves three main principles:

1)   minimum soil disturbance, such as no-till farming,

2)   maintenance of a permanent soil cover, such as cover crops or crop residues and

3)   diversification of plant species, such as crop rotation.

According to the United States Agency for International Development, 80% of Malawi's population are smallholder farmers with livelihoods based on agriculture and subsistence farming.

This initiative forms part of Sovereign's ESG Strategy to develop its tier one Kasiya Rutile-Graphite Project while simultaneously restoring and improving the livelihoods of local communities. The Program is being implemented by the Company's experienced team on the ground, which previously ran a very successful initiative for First Quantum Minerals Limited's Zambian operations where its conservation farming program has been effectively operating since 2010. Between 2020 and 2022 harvest crops increased by 67% from 6,000 tonnes to 10,000 tonnes of maize, with over 7,000 farmers in the program at the end of 2022.

Figure 2. Local communities embracing the conservation farming program

ENQUIRIES

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.