Sovereign Metals Partners with Rio Tinto to Unlock Value at World's Largest Rutile Project

• Sovereign Metals secured over $40 million investment from Rio Tinto to develop world's largest rutile deposit.
• The company is developing the Kasiya project in Malawi, which contains the largest rutile deposit and significant graphite resources.
• Rio Tinto's investment is focused on both the rutile and graphite components of the project.
• Rio Tinto's interest is attributed to their expertise in titanium dioxide and battery minerals, aligning with Sovereign Metals' strategic goals.
• Rio Tinto's involvement includes technical expertise, marketing exposure, and potential operational roles, and the partnership signifies significant value for the project.

About Sovereign Metals

Sovereign Metals (ASX: SPM) is an Australian mineral exploration company focused on developing the world-class rutile deposit at their Kasiya project in Malawi, Africa. Kasiya is poised to become a globally significant source of rutile, a key titanium feedstock, and also hosts a large natural graphite resource. Sovereign aims to capitalize on the forecast supply deficit in the rutile market through the development of Kasiya.

Interview with Chief Commercial Officer, Sapan Ghai

Rio Tinto Invests Over $40M in Sovereign

Sovereign recently secured a transformational partnership with diversified mining giant Rio Tinto (ASX: RIO), who invested over $40M to acquire a 15% stake in Sovereign. Rio Tinto also has options to increase their interest up to ~20% and take over operational management of Kasiya.

Rio Tinto's investment validates the enormous potential of Kasiya. Their technical expertise and financial backing significantly derisks project development and unlocks value for Sovereign shareholders.

Kasiya Rutile Resource Amongst the World's Largest

Kasiya’s Mineral Resource Estimate (MRE) is 1.8Bt at 1.0% rutile resulting in 17.9Mt tonnes of contained natural rutile and 24.4Mt of contained graphite. This makes Kasiya  the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile.

At a planned production rate of ~250ktpa rutile, Kasiya could supply ~20% of global rutile demand over its 25-year mine life. This is a globally significant new source of supply in a market facing an impending deficit as existing operations mature.

Natural Graphite to Complement Rutile Production

In addition to its world-class rutile resource, Kasiya also hosts a very large 790Mt at 7.2% TGC natural graphite resource, providing significant upside.

Rio Tinto has explicitly highlighted their interest in Sovereign for exposure to battery-grade graphite used in electric vehicle lithium-ion batteries. Natural graphite production can complement rutile mining, enhancing Kasiya's outstanding economics.

Strong Outlook with Rio Tinto Partnership

With its PFS due in the coming months, Sovereign is poised to fast-track Kasiya to production in partnership with Rio Tinto. Rio Tinto's technical and marketing capabilities will be invaluable in unlocking Kasiya's full value proposition.

Sovereign's leadership believes Kasiya's development is fully-funded through to a decision to mine with Rio Tinto's investment and subsequent exercise of their options. The company is in a strong position to capitalize on the forecast rutile supply deficit.

The Rio Tinto partnership validates Kasiya as a world-class project and provides Sovereign with an optimal development pathway. Sovereign represents a compelling investment opportunity in the rutile and natural graphite markets.

5 Key Takeaways for Investors

1. World's largest rutile deposit - Kasiya hosts the largest rutile resource globally with over 6 billion tonnes, poised to be a major new source of supply.
2. Strategic partnership with Rio Tinto - Validation from a Tier 1 mining company, providing technical expertise and over $40M investment. Significantly derisks development.
3. Fully funded through to Final Investment Decision (FID)- Rio Tinto's investment fully funds Kasiya through to a final investment decision as per management guidance. No need to dilute shareholders pre-FID.
4. Natural graphite upside - Kasiya hosts a very large graphite resource complementing the rutile, provides leverage to the EV battery market.
5. Near-term production potential - With the PFS due in coming months, Sovereign is on the cusp of transitioning Kasiya into development and production. Immense value creation opportunity.

Sovereign offers exposure to a world-scale, company-making rutile and graphite project with a clear pathway to production in partnership with a Tier 1 mining company in Rio Tinto. An extremely compelling investment case for exposure to critical minerals.

Conclusion

Sovereign Metals offers exposure to a globally significant, world-class rutile and graphite project on the cusp of development. With backing from a Tier 1 partner in Rio Tinto, Sovereign is primed to create immense value for shareholders as they progress Kasiya towards production. Investors should strongly consider Sovereign given the tremendous upside on offer.