Sovereign Metals Delivers Optimised Pre-Feasibility Study Results for Kasiya Rutile-Graphite Project

• The Kasiya project has been confirmed as the world's largest natural rutile deposit and the second-largest flake graphite deposit globally. This makes it a globally significant source of two critical minerals.
• Sovereign Metals has completed an Optimised Pre-Feasibility Study (PFS) for the Kasiya project, following the successful completion of a pilot scale trial mining and processing program.
• The Optimised PFS demonstrates outstanding projected economics for Kasiya, with a pre-tax NPV8 of US$2.3 billion and IRR of 27% over an initial 25-year mine life confirms Kasiya's potential as a Tier 1 project.
• The PFS estimates average unit operating costs of US$423/t for Kasiya, which positions it to be one of the lowest cost rutile and graphite producing operations globally.
• With the PFS now complete, upcoming milestones for the Kasiya project include the delivery of a Definitive Feasibility Study (DFS), which is targeted for completion in Q4 2025. Other key workstreams include product qualification, offtake discussions and permitting.

Sovereign Metals Limited (ASX:SVM) is a rutile and natural graphite developer focused on its wholly-owned Kasiya project in Malawi. Kasiya is the world's largest rutile deposit and the second largest flake graphite deposit globally. Sovereign is aiming to become a leading low-cost producer of these two critical minerals.

Optimised PFS Outstanding Project Metrics

Sovereign announced the results of the Optimised Pre-Feasibility Study (PFS) for Kasiya. The PFS was completed with input from Rio Tinto's subject matter experts under the oversight of the Sovereign-Rio Tinto Technical Committee, following a successful 6-month pilot program.

The PFS confirms Kasiya as a Tier 1 project with the potential to become the largest natural rutile and graphite producing operation globally. Over an initial 25-year mine life, the PFS demonstrates exceptional economics including:

• Pre-tax NPV8 of US$2.3 billion and IRR of 27%
• Total revenue of US$16.4 billion and annual average EBITDA of US$409 million
• Low unit operating costs of US$423/t, positioning Kasiya as potentially the lowest cost major rutile and graphite producer

At a throughput rate of 12Mtpa in years 1-4 expanding to 24Mtpa from year 5, Kasiya is expected to produce on average 246kt of rutile and 265kt of graphite per annum in a steady state.

Substantial Remaining Resource Upside

The initial 25-year mine life evaluated in the PFS exploits only 30% of the total Mineral Resource at Kasiya, with 70% remaining unmined. Sovereign therefore sees potential to significantly extend the mine life beyond 25 years in future studies.

The PFS envisages the use of conventional dry mining via truck and shovel along with simple processing methods involving scrubbing, screening, and gravity separation to produce high quality rutile and graphite products.

This flowsheet was successfully demonstrated in the pilot program completed in conjunction with Rio Tinto. Over 6 months, the pilot trial mined and processed 170,000m³ of ore, achieving the desired operational, safety and environmental outcomes.

Premium Products with Tier 1 Specifications

Extensive metallurgical testwork has demonstrated Kasiya will produce premium quality products, with rutile specifications of 95.7% TiO2 and graphite concentrates grading 96-98% TGC across all size fractions.

Notably, battery anode material produced from Kasiya graphite shows performance characteristics comparable to or better than current market leading products, highlighting Sovereign's potential to become a major supplier to the lithium-ion battery supply chain.

In 2024, global mining major Rio Tinto invested A$60M to acquire a 19.9% strategic stake in Sovereign. Rio Tinto is a world leader in titanium dioxide production, and its investment agreement includes the provision of technical support to Kasiya through to a final development decision.

Completion of a positive PFS marks an important milestone in the agreement, with a Definitive Feasibility Study (DFS) now underway.

Rising Titanium & Graphite Demand

Kasiya is expected to come online at an opportune time in the titanium and graphite markets. With limited new supply additions and declining grades at existing operations, rutile feedstock supply is in structural deficit, while demand for high quality flake graphite continues to accelerate driven by the lithium-ion battery sector.

Sovereign is well-positioned to help meet this rising demand, with key upcoming milestones on the path to production including:

• DFS completion, expected in Q4 2025
• Product qualification and offtake discussions
• Permitting approvals and progress

For Investors

Sovereign's large, long-life and low cost Kasiya project represents a compelling opportunity for investors to gain exposure to two of the most critical and strategic minerals for a sustainable future.

The PFS confirms the project's Tier 1 potential, with the upcoming DFS expected to further enhance its world-class economics and scale. Rio Tinto's strategic backing and Sovereign's highly experienced management team provide strong foundations for successful development.

With demand for both natural rutile and graphite set to soar over the coming decades, Sovereign Metals is ideally positioned to become a major supplier of these essential critical minerals to global markets.