Sovereign Metals Concludes Mining Trials & Reports Breakthrough at its Kasiya Rutile-Graphite Project

• Sovereign Metals has successfully concluded hydraulic and dry mining trials at its Kasiya Rutile-Graphite Project in Malawi.
• The mining trials confirm the friable Kasiya orebody can be efficiently mined using various methods, including standard excavators and trucks.
• Very high quality battery anode material has been produced from Kasiya graphite, with performance comparable to top Chinese manufacturers.
• An infill drilling program is upgrading the already large Kasiya resource, with results expected to increase measured resources and proven reserves.
• With A$41 million cash, no debt, and a partnership with Rio Tinto, Sovereign is well-positioned to advance Kasiya, the world's largest rutile and 2nd largest graphite deposit.

Sovereign Metals Limited (ASX:SVM) is an exploration and development company focused on becoming a leading global supplier of two vital minerals - natural rutile (titanium) and graphite. Its flagship Kasiya Rutile-Graphite Project in Malawi is the world's largest rutile deposit and second-largest flake graphite deposit, positioning Sovereign to become a major low-cost, low-emissions producer of both premium titanium and graphite.

Mining Trials Successfully Demonstrate Kasiya's Potential

Sovereign has announced the successful completion of mining trials at Kasiya as part of its ongoing Pre-Feasibility Study (PFS) Optimisation work. Dry mining trials using conventional excavators and trucks confirmed the weathered, friable ore at Kasiya can be efficiently extracted without drilling or blasting. A test pit covering 120m x 110m was mined to a depth of 20m.

Subsequently, hydraulic mining trials conducted by global industry leader Fraser Alexander further demonstrated the orebody's amenability to efficient extraction. Material was readily slurried and pumped from the pit to holding cells for later processing and rehabilitation testwork.

The results highlight Kasiya's potential for simple, low-cost mining compared to typical hard rock titanium and graphite deposits. With homogeneous, consistent mineralization from surface, Sovereign expects substantially lower mining costs and CO₂ emissions than peers.

Battery Anode Breakthrough

In a major breakthrough, very high quality battery anode material has been produced using Kasiya's unique natural flake graphite. Coated Spherical Purified Graphite (CSPG) produced by leading German consultancy ProGraphite achieved first cycle efficiency (FCE) up to 95.8% and initial capacities over 360mAh/g - meeting top tier specifications and performing comparably to market leaders.

China currently dominates battery graphite supply chains, but with auto giants like Ford sourcing directly from tier-1 producers, demand is soaring for high quality ex-China graphite supply. Kasiya aims to become a major supplier of choice, with its weathered, low-impurity ore presenting compelling advantages for low-cost purification and CSPG production.

Discussions are advancing with potential offtakers in the battery and industrial graphite sectors. With the EU recently adding both natural graphite and titanium to its Critical Raw Materials list, Sovereign is ideally positioned to provide secure, traceable supply of two key strategic minerals.

Resource Upgrade Drilling to Boost Kasiya's Already Leading Scale

During the quarter, Sovereign completed an infill drilling program aimed at upgrading resources in the southern portion of Kasiya to the Measured category, allowing conversion of Ore Reserves to Proven status. This area represents the first 8 years of forecast production.

With over 66% of the current 1.8Bt resource already in Indicated status, results are expected to further enhance Kasiya's position as the world's largest natural rutile and second-largest flake graphite deposit. Assays are expected in early 2025.

Kasiya's near-surface, high-grade and laterally extensive mineralization presents the opportunity for a multi-decade, low-strip operation producing premium critical minerals. The current resource covers just 49km2 of Sovereign's 605km2 tenement holding, highlighting the potential for significant further growth.

Partnership, Financial Strength & Sustainability Focus

Sovereign's strategic partnership with global mining major Rio Tinto brings significant technical and financial heft to the Kasiya Project. Rio has invested A$19 million to date and is working closely on project optimization via a joint Technical Committee.

Sovereign Metals exited the quarter with a robust A$41 million in cash and no debt, fully funded through the Definitive Feasibility Study (DFS).

Alongside its economic studies, Sovereign continues to prioritize sustainable development as it advances Kasiya. Demonstrations of progressive land rehabilitation are underway, including backfilling of the trial mining pit and preparation of demonstration farms on rehabilitated areas. The company aims to be a leader in community engagement and ESG, targeting a carbon neutral operation from inception.

Next Steps: PFS Optimization, Graphite Qualification & Community Initiatives

Sovereign Metals is currently focused on completing its Pre-Feasibility Study (PFS) Optimization work, which includes the pilot-scale mining and rehabilitation trial conclusion. This detailed study phase will refine key project parameters ahead of launching the Definitive Feasibility Study (DFS). As part of the pilot program, additional bulk samples will be collected for further product qualification testwork. The trial mining pits will also be backfilled and rehabilitated, providing a tangible demonstration of Sovereign's commitment to sustainable mining practices.

In parallel, Sovereign will continue to advance discussions and testwork to qualify Kasiya's graphite for use in the premium lithium-ion battery and traditional graphite markets. Results from this work are expected to underpin offtake negotiations. The Mineral Resource Estimate upgrade, anticipated in early 2025, should see a greater portion of the already large resource converted to the Measured category. Sovereign also plans to update the market on ongoing project optimization initiatives being advanced alongside Rio Tinto through the joint Technical Committee, as well as its community engagement and social development programs in Malawi.

Conclusion

With the world's largest natural rutile endowment, the second-largest flake graphite resource, successful mining trials and a battery anode breakthrough, Sovereign Metals is rapidly advancing a globally significant critical minerals project.

Results from the current resource upgrade and continued ESG leadership should provide strong upcoming catalysts as Sovereign advances this unique project through the DFS stage in partnership with Rio Tinto. For investors looking for exposure to the booming demand for critical minerals, Sovereign Metals presents a highly leveraged opportunity. The homogeneous, near surface and friable nature of the Kasiya deposit presents the opportunity for a large-scale, low-cost and low-carbon mining operation over many decades. With a top-tier partnership, a strong balance sheet and a solid sustainability focus, Sovereign is well placed to become a major ex-China supplier of choice for both the titanium pigment and lithium-ion battery industries.