Sovereign Metals Secures Validation for Kasiya's Rutile High Quality Applications & Conservation Farming Program

• Toho Titanium, Japan's premier titanium metal producer, has validated that natural rutile from Sovereign Metals' Kasiya project meets specifications for high-performance titanium products without any processing issues.
• Japan controls over 15% of global titanium production capacity and more than 60% of non-sanctioned aerospace-grade titanium manufacturing, excluding China and Russia from the qualified supplier base.
• Global defense spending increased 7.4% year-over-year to $2.46 trillion in 2024, with titanium consumption in aerospace forecast to grow at 7% CAGR over the next decade, doubling to 132,000 tonnes by 2034.
• Sovereign's expanded Conservation Farming Program achieved four-fold crop yield improvements for 350 participating farmers in Malawi, demonstrating the company's community development commitment alongside project advancement.
• Kasiya represents the world's largest known natural rutile deposit, positioning Sovereign Metals as a potential cornerstone supplier to critical industries during supply chain realignments away from geopolitically sensitive regions.

Sovereign Metals Limited (ASX:SVM) is developing the world's largest known natural rutile deposit through its Kasiya Rutile-Graphite Project in Malawi. The company has established itself as a future supplier of premium titanium feedstock to global aerospace and industrial manufacturers, with operations focused on sustainable development and community engagement in a stable African jurisdiction.

Japanese Validation Confirms Premium Quality Standards

The technical endorsement from Toho Titanium Company Limited represents a significant milestone for Sovereign Metals' market positioning. Toho Titanium's analysis concluded that Kasiya's rutile "is of a quality that can be used without any issues," surpassing requirements for TiO₂ grade above 95%, low deleterious elements, minimal radiation values, and appropriate particle size distribution.

Toho Titanium, established in 1953, produces 25,000 tonnes of titanium metals annually, excluding an additional 15,000 tonnes from a joint venture facility in Saudi Arabia. The company operates advanced manufacturing facilities supplying critical materials for aerospace and industrial markets, including major commercial aircraft manufacturers Boeing and Airbus.

Managing Director and CEO Frank Eagar emphasized the validation's strategic importance:

"The validation by Toho Titanium - one of the world's most respected titanium producers - once again confirms Kasiya's rutile as a premium and purest form of titanium feedstock for the titanium metals industry."

Strategic Market Position in Titanium Supply Chain

Toho Titanium, alongside Japan's other major producer Osaka Titanium Technologies, accounts for over 15% of global titanium production capacity and more than 60% of non-sanctioned, aerospace-grade titanium metal production. This excludes China, which is not qualified to produce aerospace-grade titanium, and Russia, which faces ongoing sanctions.

The geopolitical landscape has intensified focus on secure titanium supply chains, creating strategic opportunities for alternative suppliers. Recent developments include NATO's December 2024 designation of titanium as a defense-critical strategic mineral and various critical minerals cooperation agreements, including those signed during President Trump's May 2025 visit to Saudi Arabia.

Eagar noted the intersection of market forces:

"With the world's largest known rutile deposit, Sovereign is uniquely positioned to capitalise on the intersection of resource security, aerospace supply chain realignment, and national defence priorities."

Technical Specifications for Market Suitability

Bulk scale metallurgical testing by Allied Mineral Laboratories has confirmed that premium-grade rutile can be produced through conventional processing without flotation or acid leaching requirements. World-class specification rutile products ranging from 95.0% to 97.2% TiO₂ have been achieved with exceptional metallurgical recoveries up to 100%.

Kasiya's rutile specifications show 95.7% TiO₂ content with low impurity levels across all measured constituents. The premium chemical parameters and particle sizing (d₅₀ 126μm, 8.6% <75μm) indicate suitability for all major end-use markets, particularly as feedstock for superior, high-performance titanium metal products.

The confirmation establishes Sovereign Metals as a credible future supplier to the global titanium industry's most demanding customers, with technical endorsement supporting the company's position in the strategic supply chain.

"On-Time, To Standard, No Wastage, with Joy"

Sovereign's Conservation Farming Program demonstrates the company's commitment to sustainable development alongside project advancement. In 2025, 350 farmers participated in the program, with 50% female participation, achieving four-fold yield improvements over conventional farming methods.

The top-performing farmer harvested 12.8 tonnes per hectare, representing a ten-fold increase compared to conventional methods. Top performers have met household food requirements while selling surplus crops, using proceeds to upgrade housing and invest in trading businesses. The conservation farming teaches, promotes and monitors responsible land stewardship based on the principles of on-time, to standard, no wastage, with joy.

In the company news release, Eagar commented on the program's broader impact:

"The success of our Conservation Farming Program near Kasiya demonstrates a scalable solution to food insecurity and otherwise perpetual land degradation in Malawi. By restoring soil health and significantly improving yields, the program promotes lasting self-reliance for local communities."

For Investors

Sovereign Metals has positioned itself at the intersection of critical mineral supply security and growing industrial demand. The technical validation from Japan's leading titanium producer, combined with Kasiya's scale as the world's largest known rutile deposit, provides a foundation for long-term value creation.

Growing Titanium Demand

Global defense spending reached $2.46 trillion in 2024, representing a 7.4% real-terms increase as nations respond to escalating security challenges. This expenditure surge drives unprecedented demand for titanium-intensive military platforms, including advanced fighter aircraft, naval vessels, and precision weapons systems.

Titanium's exceptional strength-to-weight ratio, corrosion resistance, and high-temperature performance make it irreplaceable in conventional and advanced military systems. Consequently, titanium has been classified as a critical mineral by the United States, European Union, United Kingdom, Canada, Australia, and Japan.

The commercial aerospace sector represents one of the fastest-growing titanium demand sources. Each modern commercial aircraft contains 15-20 tonnes of titanium components in critical structural elements, engine components, and landing gear systems. Boeing Commercial Airplanes' revenue increased 30% in 2023, with tier 1 suppliers GE Aerospace, Rolls-Royce, and Safran reporting revenue increases exceeding 20%.

Key Takeaway

The convergence of aerospace industry growth, defense spending increases, and supply chain realignments away from geopolitically sensitive regions creates a favorable market environment for qualified titanium feedstock suppliers. Sovereign's commitment to sustainable development through community programs adds an ESG dimension that aligns with institutional investor requirements.

Eagar emphasized the strategic positioning:

"Kasiya's exceptional scale and quality, combined with Malawi's stable jurisdiction, offers unparalleled exposure to one of the most strategic and rapidly growing mineral markets of our time."

For investors evaluating Sovereign Metals, the company offers exposure to a critical mineral market experiencing structural demand growth, supply constraints, and geopolitical realignments that favor alternative suppliers in stable jurisdictions. The technical validation, resource scale, and strategic location in Malawi position Sovereign as a potential cornerstone supplier to the global titanium industry during a period of unprecedented market opportunity.