NEWS RELEASE I 5 MARCH 2025

SUCCESSFUL REHABILITATION OF KASIYA TEST PIT

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announce that rehabilitation of the land at the test pit site mined during the Pilot Mining and Land Rehabilitation Program (Pilot Phase) at its Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi has been substantially progressed. Soils remediation work was concluded in December 2024 with landowners accessing the site between December 2024 and January 2025 to plant and cultivate crops without missing a planting season.

Managing Director and CEO Frank Eagar commented: "The successful return of farmers to their land within such a short time and without missing a single planting season after mining and backfilling 170,000m³ is an excellent outcome. This demonstration of responsible mining and land rehabilitation will build on our positive community relationships. The pilot phase of 90 farmers selected for our Conservation Farming program has been increased to 350 for this season. Early indications are that the second season of this program will exceed the 300% yield increases achieved in the pilot phase. The empirical data collected from these trials will feed directly into our Definitive Feasibility Study designs for mine closure and land rehabilitation."

Figures 1 & 2: Maize and bamboo intercrop with different levels of maturity (February 2025)

All soil remediation works as well as planting was done by hand with the use of a grader and tractor to prepare the soils. Sovereign appointed the local landowners to work with us in both the soil remediation and planting work, so they were able to directly experience and learn about our rehabilitation work on their land.

Sovereign is working closely with the landowners to ensure that the crops provide a good yield in 2025, while simultaneously testing a variety of rehabilitation crops. This includes the intercropping of giant bamboo with maize, which will be retained by the landowners.

Sovereign is committed to ensuring that all mined-out land is appropriately rehabilitated to support sustainable farming practices after closure. The soil remediation methods aim to revitalise the soils within a two-to-three-year timeframe and to ensure that soils can be sustainably farmed in the long term. The remediation of soil to a depth of 1 metre from surface, will ensure the land can support small-scale or full-commercial farming operations.

As part of the Pilot Phase, the Company has constructed small rehabilitation demonstration pits that will be used to illustrate multiple and ongoing rehabilitation processes.

Rehabilitation Approach

The rehabilitation approach has been based on agronomic principles, including promoting sustainable farming practices and providing various land uses post mining activities.

Rehabilitation is underway through a five-step process:

Step 1: Introduce Lime (Complete)

The soil remediation commenced with the application and incorporation of locally sourced dolomitic lime (calcium and calcium-magnesium-carbonate) to improve naturally low PH levels.

Step 2: Introduce Carbon and Basic Nutrients (Complete)

Sovereign augmented the mined area with organic carbon and basic nutrients. Tests include the application of biochar (to provide carbon) and fertiliser (in the form of potash (MOP), phosphate (MAP) and a blend of nitrogen, potash and sulphur (NPK) 15:23:16).

Step 3: Grading, Ripping and Discing (Complete)

Lime, biochar, and fertiliser were incorporated into the soil through grading, ripping, and discing using graders and locally sourced farming equipment. This ensured that the land was level along with safe working conditions. 

Step 4: Planting of Rehabilitation Crops (In Progress)

Since December 2024, Sovereign has progressively been planting various rehabilitation crops to maximise the benefit of the coming summer rainfall. Giant bamboo has been introduced in 4 by 8-metre blocks, which will act as the primary crop to enhance carbon and bio-activity in the remediated soils. Maize and other cover crops have been intercropped between the giant bamboo within re-organised farm blocks.

Step 5: Monitoring and Evaluation (In Progress)

Sovereign continues to monitor soil remediation, plant growth and crop yields. As part of stakeholder engagement, the Company is working with local farmers to improve results through conservation farming, composting operations, testing new seed varieties and establishing an indigenous, fruit and farming nursery. This is serving as a live demonstration of rehabilitation and timely return of land to a pre-mining state.

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.