Sovereign Metals Sets the Standard for Sustainable Critical Mineral Development in Malawi

• Sovereign Metals appoints experienced Lead ESG Officer Marco Da Cunha to advance its ESIA for the Kasiya Rutile-Graphite Project in Malawi
• The ESIA will comply with Malawian and international standards to set a global benchmark in Climate Smart Mining
• Sovereign initiates a Conservation Farming Program in Malawi as part of its ESG strategy to support local communities and food security
• The farming program, previously implemented by the team at First Quantum Minerals in Zambia, aims to train smallholder farmers on sustainable techniques to increase crop yields
• Sovereign is taking a proactive ESG approach as it advances the tier-one Kasiya project toward development

About Sovereign Metals

Sovereign Metals Limited (ASX:SVM; AIM:SVML) is an emerging producer of critical minerals, focused on developing its flagship Kasiya Rutile-Graphite Project in Malawi. Kasiya is potentially the largest undeveloped natural rutile deposit in the world as well as a significant graphite resource.

Sovereign's ambition is to set a new global standard in sustainable, Climate Smart Mining by bringing its low carbon footprint critical minerals to market while generating tangible environmental and social benefits. The Company is actively taking steps to ingrain strong ESG practices into the development process at this early stage.

Experienced ESG Leadership Appointed

In February 2024, Sovereign announced the appointment of Mr. Marco Da Cunha as its Lead Environmental, Social and Governance (ESG) Officer. This key hire brings almost two decades of experience in environmental and social management for mining projects in Africa.Most recently, Mr. Da Cunha was part of Rio Tinto's Simandou iron ore project team in Guinea, the largest undeveloped iron ore project in the world. There he provided expert support on social management strategy for the massive greenfield mine and infrastructure development.

Mr. Da Cunha's appointment will enable Sovereign to advance the Environmental and Social Impact Assessment (ESIA) for Kasiya. The ESIA is being undertaken to meet both Malawian regulations and international guidelines such as the IFC Performance Standards, World Bank EHS Guidelines, and Equator Principles.

Sovereign's Managing Director Frank Eagar commented: "Our ambition, with the development of Kasiya, is to set the global standard in Climate Smart Mining by bringing our low carbon footprint rutile and graphite products to market, while realising real-world community and environmental benefits. In order to achieve this, we have attracted the best talent and experience in the ESG field."

Investing in Sustainable Agriculture

As part of its ESG strategy, Sovereign has commissioned a Conservation Farming Program aimed at supporting local smallholder farmers in Malawi. According to the United Nations, up to 5.4 million people in Malawi face food insecurity. Maize is the major staple crop.The initial program will train 90 farmers, at least half of them women, on sustainable farming techniques to increase yields, protect soil health, and enhance food security. Conservation farming focuses on minimum soil disturbance, permanent soil cover, and crop diversification.

This initiative builds on the success of a similar program implemented by Sovereign's owner's team for First Quantum Minerals in Zambia. That effort engaged over 7,000 farmers and substantially boosted crop production over a three year period.Supporting local communities in addressing their own social priorities is a core tenet of Sovereign's ESG approach. Expanding sustainable agricultural practices has the potential to make a meaningful difference in the livelihoods of smallholder farming families.

Rutile & Graphite: Critical Minerals for a Net Zero Future

The rutile and graphite at Kasiya are vital mineral inputs for rapidly growing clean energy technologies. Natural rutile is used to make titanium dioxide pigment, a non-toxic and environmentally safe whitening agent, as well as titanium metal used in aerospace, medical and hydrogen storage applications.

Graphite is the primary anode material in lithium-ion batteries for electric vehicles and stationary storage. Expanded graphite also has applications in thermal management and fire retardancy.As the world strives to transition to net zero emissions, demand for these critical minerals is expected to soar. Kasiya has the potential to be a globally significant source of responsibly produced natural rutile and graphite to supply these burgeoning markets.

Proactive Stakeholder Engagement

Sovereign recognizes that to earn and maintain a social license to operate, open and ongoing engagement with local communities and stakeholders is essential. The Company is laying the groundwork for positive long-term relationships through its actions.

In addition to initiatives like the Conservation Farming Program, Sovereign will follow a structured and culturally appropriate approach to consultation and participation embedded in the ESIA process. The aim is to build mutual understanding, surface and respond to community concerns, and create shared value.

Transparent communication with the investor community is also a priority. Sovereign will provide regular updates on its ESG performance alongside disclosure of traditional business and operational metrics. The Company's goal is to be a leader in ESG within the critical minerals sector.

The Road Ahead

With the appointment of its Lead ESG Officer and launch of the farmer training program, Sovereign has taken meaningful early steps to integrate sustainability at Kasiya. As the project advances, the Company will build on this foundation.

Key milestones on the horizon include completion of the ESIA, continued expansion of community programs, construction of a pilot plant, and delivery of an enhanced scoping study. Sovereign is targeting a final investment decision on the full-scale project in late 2024 or early 2025.

For investors, Kasiya offers a rare opportunity to gain exposure to the enormous market opportunity in critical minerals while supporting best-practice ESG. Sovereign's proactive and purposeful approach to sustainability sets it apart from other early stage companies.

As the green energy transition accelerates, those miners able to bring new supply online rapidly and responsibly stand to create substantial stakeholder value. Sovereign Metals has the asset quality, ESG commitment and experienced leadership to potentially deliver rutile and graphite to global markets in a Climate Smart way.

The bottom line is that Sovereign Metals is striving to be part of the solution – enabling transformational clean technologies through responsible mineral development. For investors looking to make an impact, Sovereign is a company to watch. With its focus on doing things the right way from the outset, Sovereign is laying a strong ESG foundation to underpin long-term success for the Kasiya project and its stakeholders.