Sovereign Metals' Advances Flagship Kasiya Project with Successful Backfilling & Pilot Mining

• Sovereign Metals completed a successful pilot mining phase at its Kasiya rutile-graphite project in Malawi, validating the viability of dry mining methods and demonstrating land rehabilitation practices.
• Rio Tinto invested approximately $60 million to become a 19.9% strategic investor in Sovereign Metals, providing a strong endorsement of the Kasiya project's potential.
• Sovereign Metals appointed experienced African mining executive Frank Eagar as its new Managing Director and CEO to lead the next phase of development at Kasiya.
• Outstanding results from downstream testwork confirmed Kasiya's graphite is suitable for premium battery anode production, presenting opportunities for ex-China supply chains.
• Sovereign Metals is well-funded with approximately $43 million cash and no debt to advance the world-class Kasiya rutile-graphite project following Rio Tinto's investment.

Sovereign Metals Limited is an ASX, AIM and OTCQX listed company focused on the development of its flagship Kasiya rutile-graphite project in Malawi. Kasiya is the world's largest rutile deposit and one of the largest flake graphite deposits globally, positioning Sovereign Metals to be a major supplier of two critical minerals - natural rutile and graphite. The company is committed to sustainable development with a strong ESG framework and active community engagement in Malawi.

Completed Pilot Mining Phase at Kasiya

Sovereign Metals successfully completed pilot mining operations at Kasiya, excavating a trial pit to 20m depth. The pilot demonstrated that the ore can be efficiently mined using conventional dry mining methods. A hydraulic mining trial is now underway. Alongside the pilot mining, Sovereign demonstrated agricultural land rehabilitation practices, a key commitment to sustainability. Land will be progressively rehabilitated and returned to communities post-mining without loss of a cropping season.

Downstream testwork confirmed Kasiya's unique graphite is ideal for lithium-ion battery anodes, achieving specifications comparable to industry-leading Chinese producers. This presents an opportunity for ex-China supply chain development. An infill drilling program commenced targeting an upgrade of Kasiya's mineral resource in the initial production area from Indicated to Measured category.

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2024 Milestones

Corporate

• Rio Tinto Investment: In a significant endorsement, global mining giant Rio Tinto invested approximately $60 million to become a 19.9% strategic shareholder in Sovereign Metals. The investment funds will be used to advance development of the Kasiya project.
• Management Appointment: Sovereign appointed experienced African mining executive Frank Eagar as its new Managing Director and CEO in October 2023. Mr Eagar's expertise in developing projects in Africa will be invaluable as Kasiya progresses.
• U.S. OTCQX Listing: Sovereign commenced trading on the OTCQX Market in the U.S. in July 2024, increasing its exposure to North American investors.

Financial

• Strong Cash Position: Sovereign is well-funded with approximately $43 million cash and no debt following Rio Tinto's investment. This provides a robust financial foundation to progress development.
• Increased Liquidity: Rio Tinto's investment and the OTCQX listing have increased trading liquidity in Sovereign's shares across multiple global exchanges.

Conclusion

Sovereign Metals achieved significant milestones in 2024, advancing its world-class Kasiya rutile-graphite project in Malawi. The successful pilot mining phase validated Kasiya's viability for conventional dry mining, while demonstrating Sovereign's commitment to sustainable land rehabilitation practices.

The cornerstone investment by Rio Tinto provides a strong endorsement of Kasiya's potential and gives Sovereign a solid financial base to progress development. Together with the appointment of Frank Eagar to lead as the new MD and CEO, Sovereign is well positioned to accelerate Kasiya.

Additionally, battery anode testwork confirming the suitability of Kasiya's unique graphite for lithium-ion batteries opens significant commercial opportunities in ex-China supply chains.

With one of the world's largest rutile and graphite deposits, a strengthened leadership team, and a strategic investment from Rio Tinto, Sovereign Metals offers strong exposure to two critical minerals essential for the global energy transition. As Kasiya moves through development, Sovereign is an emerging producer for investors to watch.