Outstanding Graphite Purification Results & Successful Rehabilitation at Kasiya Project

• Sovereign Metals achieved 99.95% purity using acid purification and 99.98% using alkaline purification on coarse flake graphite from its Kasiya project in Malawi.
• The high-purity coarse flake is suitable for high-margin applications including powder metallurgy, isostatically pressed refractory products, and high-grade expanded graphite products.
• Successful purification via two methods showcases potential for future downstream customers to reduce reagent consumption and waste generation.
• Sovereign substantially progressed rehabilitation of land at the Kasiya test pit site, with landowners able to access the site and plant crops without missing a season.
• The company is working closely with landowners on the rehabilitation program, which aims to revitalize soils within 2-3 years to support sustainable long-term farming.

Sovereign Metals Limited (ASX:SVM) is a mineral exploration and development company focused on its flagship Kasiya Rutile-Graphite Project in Malawi. The company aims to become a leading supplier of natural rutile and graphite to global markets through responsible development of the large, high-grade Kasiya deposit. Sovereign is committed to sustainable practices and positive community engagement in Malawi.

Outstanding Graphite Purification Results

Sovereign announced exceptional purification results for coarse flake graphite concentrate from Kasiya. Testwork conducted by ProGraphite GmbH demonstrated that the >180 micron flake can be upgraded to 99.95% loss on ignition (LOI) purity using acid purification and 99.98% LOI purity via an alkaline process.

Typical purification targets for coarse flake used in high-end applications are >99% LOI. However, the Kasiya flake achieved these purities using processing conditions far less aggressive than normally required to reach battery-grade (>99.95%) specifications.

According to Sovereign's Managing Director and CEO Frank Eagar in the news release,

"These are truly outstanding results - effectively achieving battery grade purities of +99% and less than 0.05% ash under conditions that typically result in under 1% ash. For our future customers, this has the potential to significantly reduce reagent consumption and waste generation in the production of high-purity flake or targeted high-end applications."

The ultra-high purity levels open up high-value markets for Kasiya's coarse graphite flake, including:

• Powder metallurgy: Manufacturing of high-strength precision metal parts
• Isostatically pressed refractory products: Used in high-temperature furnace linings
• High-grade expanded graphite: Production of graphite foil, sheets and other expandable products

Reduced reagent usage and waste generation in purification could provide significant benefits in operating costs and sustainability for Sovereign's future downstream customers. In particular, the successful alkaline purification indicates potential to minimize usage of hydrofluoric acid, an expensive and hazardous chemical typically required to remove silicates from natural graphite.

The company believes these results significantly expand the commercial optionality of Kasiya's graphite co-product, complementing the project's status as one of the world's largest natural rutile developments.

"We are delighted with the significant commercial optionality it brings to the Kasiya Rutile and Graphite Project," said Mr. Eagar.

Successful Rehabilitation Demonstration

Sovereign also reported substantial progress on rehabilitation of the pilot mining test pit at Kasiya. Backfilling of the site was completed and soil improvement works concluded in December 2024, allowing landowners to access and plant crops on their land between December and January without missing the 2024-2025 planting season.

The rehabilitation program aims to demonstrate that mined land can be quickly returned to productive agricultural use, an important factor for community support of the project. Sovereign is working closely with landowners, providing support and training to improve crop yields through techniques like conservation farming which have already tripled yields for some farmers.

A range of rehabilitation crops are being trialed, including giant bamboo, sunhemp, groundnuts and mung beans, intercropped with staple maize on the remediated land. Monitoring of crop performance will help optimize the rehabilitation approach.

"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," said Mr. Eagar in the news release. "This demonstration of responsible mining and land rehabilitation will build on our positive community relationships."

The five-step soil remediation process being implemented aims to revitalize soils within a 2-3 year timeframe to enable sustainable long-term farming:

1. Application of dolomitic lime to improve pH
2. Addition of organic carbon (biochar) and nutrients (fertilizers)
3. Grading, ripping and discing to incorporate amendments
4. Planting of rehabilitation crops, including giant bamboo to enhance soil carbon and bio-activity
5. Ongoing monitoring and evaluation, engaging with farmers to test cropping approaches

For Investors

The successful purification and rehabilitation results further demonstrate the quality and responsibility of Sovereign's Kasiya project. Ultra-high graphite purities enabling premium markets, along with rapid and effective return of land to farming, strengthen the value proposition and sustainability of the project. For investors, the results showcase significant potential in both the rutile and graphite aspects of Kasiya, as Sovereign progresses the major natural rutile and graphite development.