Sovereign Metals' Q4 2024 Performance Reaffirms Kasiya Project's Globally Strategic Significance

• Sovereign Metals' Optimised PFS, completed with oversight from the Sovereign-Rio Tinto Technical Committee, reaffirms the Kasiya Rutile-Graphite Project's potential to become the largest and lowest-cost producer of natural rutile and natural flake graphite.
• The Pilot Phase at Kasiya was successfully advanced to the rehabilitation stage during the quarter after completing mining trials and backfilling the test pit.
• Preliminary test results confirmed that graphite concentrate from Kasiya exhibits characteristics required for selling into the refractory materials sector, a key traditional market for natural graphite.
• An infill drilling program was completed at Kasiya to support an upgrade of the Mineral Resource Estimate, with results expected in early 2025.
• Sovereign remains well-funded with A$34 million cash and no debt as it progresses the Definitive Feasibility Study, community programs, and offtake discussions.

Sovereign Metals Limited (ASX:SVM) is an Australia-based company focused on the exploration and development of its flagship Kasiya Rutile-Graphite Project in Malawi. Kasiya is the world's largest rutile deposit and second-largest flake graphite deposit, positioning Sovereign to become a globally significant supplier of critical minerals. In its December 2024 quarterly report, the company shared several key milestones that further validate the project's technical and economic strengths.

Optimised PFS Results

In January 2025, Sovereign Metals completed an Optimized Pre-Feasibility Study (OPFS) for the Kasiya Project with oversight from the Sovereign-Rio Tinto Technical Committee, established following Rio Tinto's initial strategic investment in 2023. The OPFS reaffirmed Kasiya's potential to become the largest and lowest-cost producer of natural rutile and natural flake graphite while generating exceptional economics.

Managing Director & CEO Frank Eagar commented:

"The Optimised PFS is a significant milestone for Sovereign, validating the world-class nature of the Kasiya Project. We are excited to progress the Definitive Feasibility Study and move closer to developing this globally strategic asset."

The OPFS incorporated several optimisations compared to the 2023 Pre-Feasibility Study (PFS), including a change to dry mining using draglines, an owner-operated model with leased equipment, and an optimised plant configuration and location. These changes have resulted in reduced tailings volumes, water requirements, and power costs while maintaining the 25-year initial mine life and production targets.

Pilot Phase Progress

During the quarter, Sovereign advanced the Pilot Phase at Kasiya to the rehabilitation stage following successful mining trials and backfilling of the test pit. The mining trials, which involved extracting 170,000m3 of material using a conventional excavator fleet, confirmed the suitability of the proposed mining method.

The backfilled pit is now undergoing soil remediation and land rehabilitation activities to test Sovereign's proposed approach and demonstrate the potential for mined land to support sustainable farming post-closure. This progress showcases the company's commitment to responsible development and environmental stewardship.

Graphite Testwork Results

In November 2024, initial test results from downstream testwork conducted at ProGraphite GmbH in Germany confirmed that graphite concentrate from Kasiya exhibits characteristics required for selling into the refractory materials sector. This traditional market for natural graphite, primarily tied to the steel and automotive industries, values graphite's resistance to oxidation, chemical inertness, and thermal conductivity. Chief Commercial Officer Sapan Ghai stated:

"Confirming the suitability of Kasiya's graphite for the refractory market is an important step in demonstrating the project's ability to serve key traditional demand segments. We look forward to further testwork results and progressing offtake discussions with potential customers."

Additional evaluation of Kasiya's coarse flake graphite for expandable and other applications is ongoing, with results expected to support offtake discussions in the coming months.

Resource Upgrade Drilling

Sovereign completed an infill drilling program at Kasiya during the quarter to support an upgrade of the Mineral Resource Estimate (MRE). The drilling, focused on areas expected to provide ore feed during the first eight years of production, is expected to result in the conversion of Ore Reserves from Probable to Proved category and an upgrade of the MRE from Indicated to Measured category.

With over 66% of the current MRE already in the Indicated category, the pending upgrade is expected to further enhance confidence in the Kasiya deposit, which is already the world's largest rutile deposit and second-largest flake graphite deposit.

Next Steps

Sovereign Metals remains well-funded to progress key workstreams, with A$34 million cash and no debt as of December 31, 2024. In the coming months, the company plans to provide updates on the Pilot Phase rehabilitation, MRE upgrade, graphite testwork, offtake discussions, community programs, and progress of the Definitive Feasibility Study (DFS), which is targeted for completion by Q4 2025.

For investors, Sovereign Metals presents a compelling opportunity to gain exposure to the critical minerals sector through a world-class, strategically significant asset. The Kasiya Project's scale, low-cost profile, and strong economics, as reaffirmed by the Optimised PFS, position the company to become a leading supplier of natural rutile and graphite to global markets. With a clear path to development, experienced management team, and commitment to sustainable practices, Sovereign is well-placed to deliver long-term value for shareholders.