Southern Palladium: Strategically Positioned for Growth in the Bushveld Complex

• Southern Palladium has a large platinum group metals deposit in South Africa with 25 million ounce resource, including 5 million ounces indicated. Surrounded by major producers with existing infrastructure.
• Completed phase 1 drilling campaign, adding 1.3 million ounces to resource. Recently updated to include additional metals, now 25 million ounce 7E resource.
• Submitting mining right application, moving from exploration to development phase. Geotech and metallurgy results expected soon.
• Second resource update coming in Oct/Nov 2022, with goal of converting more inferred to indicated. Will feed into updated scoping study in Jan 2023.
• Valuation does not reflect size and quality of deposit compared to neighboring projects. Well positioned on cost curve with high grades and no dilution.

About Southern Palladium

Southern Palladium is a mining exploration company focused on the discovery and development of platinum group metals in South Africa's Bushveld Complex. The company's flagship project is the Bengwenyama project, located on the eastern limb of the Bushveld Complex. The tenement covers 5,140 hectares and contains shallow PGMs mineralization amenable to open pit mining. Southern Palladium is led by experienced mining executives and is strategically positioned amongst major PGM producers including Impala Platinum, Anglo American Platinum and Sibanye-Stillwater.

Interview with Johan Odendaal, Non-independent Non-executive Director & MD of Southern Palladium Ltd.

Advancing Exploration at Bengwenyama

In August 2022, Southern Palladium commenced its maiden drilling program at Bengwenyama focused on the shallow portions of the project area. Initial drilling intersected the targeted UG2 reef and led to the discovery of a new mineralized zone called the Far East block, adding 1.3 million PGM ounces to the project's resources. In June 2023, the company completed an interim resource update, increasing total resources by 34% to 25 million PGM ounces including 5 million ounces in the indicated category. The resource was estimated for 6PGMs versus the previous 4PGMs, capturing the value of rhodium, iridium and ruthenium.

Southern Palladium is continuing its staged drilling program with the goal of converting more of the current inferred resources into the indicated category. This will support an updated scoping study planned for release in November 2023. The company has increased its number of drill rigs to seven and expects to complete its second resource update in October/November 2023 which will feed into the updated scoping study. Concurrently, Southern Palladium is advancing permitting and plans to submit its mining right application soon.

Valuation Upside Potential

Southern Palladium is exploring one of the few remaining shallow PGM projects on the Bushveld Complex. With 25 million ounces of PGMs in resources, the deposit is similar in scale to Anglo American Platinum's Mogalakwena mine. However, Southern Palladium has a market capitalization of only AUD$25 million compared to AOG's AUD$7 billion valuation.

The upcoming scoping study and pre-feasibility study will demonstrate the project's value potential based on factors including:

• Shallow mineralization amenable to low-cost open pit mining
• Existing infrastructure minimizing capital costs
• Solid chrome seam resulting in lower mining dilution
• Favorable PGM breakdown comparable to neighboring mines
• Low forecast all-in sustaining costs based on initial studies

With palladium prices stabilizing and a positive supply-demand outlook, Southern Palladium represents an attractive investment opportunity in the PGM sector. The company offers exposure to a sizable resource located in a premier mining jurisdiction, with significant valuation upside as it systematically derisks its project.

Conclusion

Southern Palladium holds an attractive shallow PGM project surrounded by major producers in South Africa's Bushveld Complex. With over 25 million ounces in resources and exploration ongoing, the company has a clear path towards feasibility studies and mine development. Upcoming catalysts include a resource update and scoping study that will showcase the project's economic potential. Patient investors could benefit from significant share price upside as Southern Palladium executes on its strategic vision of transforming from explorer to developer in a rising PGM price environment.