Sovereign Metals Confirms Extensions to Rutile & Graphite Mineralisation at World-Class Kasiya Project

• Wide-spaced regional reconnaissance drilling identifies an 8km extension of mineralisation to the south of the current Mineral Resource Estimate (MRE) area.
• Kasiya's current MRE of 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite is already the world's largest natural rutile deposit and second largest flake graphite deposit.
• The Kasiya Pre-Feasibility Study (PFS) demonstrates compelling economics with a post-tax NPV8 of US$1.6 Billion and post-tax IRR of 28% over an initial 25 year life-of-mine.
• Sovereign Metals continues to test the extent of regional mineralisation via low-cost hand-auger drilling, which has the potential to increase the already very large Kasiya Resource.
• The company's current focus remains the ongoing Optimisation Study alongside strategic investor Rio Tinto and permitting work streams with the Malawian Interministerial Committee.

About Sovereign Metals

Sovereign Metals Limited (ASX:SVM; AIM:SVML) is an exploration and development company focused on its globally significant Kasiya Rutile Project in Malawi. The company aims to become a leading low-cost producer of natural rutile, a key ingredient in the production of titanium pigment, welding rods, and titanium metal. Alongside rutile, Kasiya also hosts a large flake graphite deposit, positioning Sovereign to produce two critical minerals from a single operation.

Exciting Discovery Expands Mineralisation to the South

In an exciting development, Sovereign Metals has announced that wide-spaced regional reconnaissance drilling outside the current JORC (2012) compliant Mineral Resource Estimate (MRE) area has identified an 8km extension of mineralisation to the south of Kasiya. This mineralisation remains open along strike and at depth, highlighting the immense scale of the deposit.

These results demonstrate the potential for a future increase in Kasiya's already massive MRE, which currently stands at 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite across an area of over 201km2. Notably, Kasiya is already the world's largest natural rutile deposit and the second largest flake graphite deposit globally.

Compelling PFS Economics Point to a World-Class Project

The recently completed Pre-Feasibility Study (PFS) for Kasiya delivered outstanding results, confirming the project's potential to become a major global supplier of natural rutile and graphite. Highlights of the PFS include:

• Average annual production of 222kt of rutile and 244kt of graphite over an initial 25-year life-of-mine
• Low upfront capital cost of US$505 million and competitive operating costs, positioning Kasiya in the lowest quartile of the global cost curve
• Compelling economics with a post-tax NPV8 of US$1.6 Billion and a post-tax IRR of 28%
• Rapid payback period of just 3.2 years post-construction
• Potential to generate over US$16 Billion of revenue and an average annual EBITDA of US$415 Million

Importantly, the PFS was based on only a 25-year mine life, with the Probable Ore Reserves of 538Mt representing just 30% of the total Mineral Resource Estimate, providing significant upside potential.

Ongoing Exploration Continues to Unlock Value

Sovereign Metals continues to actively explore the broader region surrounding Kasiya, with low-cost hand-auger drilling proving to be an effective tool in identifying new areas of mineralisation. The recent drilling results confirming the 8km extension to the south of the existing MRE underscore the immense potential to further grow the resource base.As exploration progresses, the company will look to update the Mineral Resource Estimate, which could significantly enhance the already impressive project economics outlined in the PFS.

Focus on Optimisation & Permitting to Drive Kasiya Towards Development

In parallel with ongoing exploration, Sovereign Metals is progressing key workstreams to advance Kasiya towards development. The company is currently undertaking an Optimisation Study alongside strategic investor Rio Tinto, which aims to refine the project parameters and identify opportunities to further enhance value.

Additionally, permitting activities are underway in collaboration with the Malawian Interministerial Committee. Securing the necessary approvals and licenses will be crucial in moving the project forward.

Conclusion

Sovereign Metals represents a compelling investment opportunity, with its world-class Kasiya Rutile Project in Malawi offering exposure to two highly sought-after critical minerals - natural rutile and graphite. The company's recent exploration success, highlighting the potential for further resource growth, coupled with the outstanding PFS results, positions Sovereign as an emerging low-cost producer of these strategic commodities.

As the company continues to advance Kasiya through optimisation studies and permitting, while concurrently exploring the broader region for additional mineralisation, investors can look forward to a steady stream of news flow and value creation. With a strong management team, supportive strategic investors, and a clear path to development, Sovereign Metals is well-placed to deliver significant returns for shareholders as it progresses its world-class asset towards production.