Sovereign Metals' Sustainable Farming Initiative Triples Crop Yields, Demonstrating Proactive ESG Approach

• Sovereign Metals' Conservation Farming Program in Malawi is seeing promising early results, with maize crop yields tripling compared to traditional farming techniques
• The program aims to improve livelihoods of local communities around the Kasiya Rutile-Graphite Project by creating successful smallholder farmers
• 90 farmers are currently participating, with plans to scale up to 300 farmers next season to further validate the program's impact
• Sovereign is proactively executing its ESG strategy and delivering tangible benefits to local communities even before the Kasiya project is in production
• The Conservation Farming Program represents an attractive initiative for investors who value strong ESG practices alongside project development

About Sovereign Metals Limited

Sovereign Metals Limited (ASX:SVM; AIM:SVML) is an emerging producer of critical minerals, currently advancing the world-class Kasiya Rutile-Graphite Project in Malawi. The Company is committed to sustainable development, actively implementing Environmental, Social, and Governance (ESG) initiatives in parallel with progressing the Kasiya Project towards production. Sovereign recognizes its responsibility to create shared value and deliver positive impacts for all stakeholders.

Sustainable Farming Initiative Showing Promising Results

As part of its ESG strategy, Sovereign has launched a Conservation Farming Program aimed at improving agricultural productivity and livelihoods of local communities around the Kasiya Project. The Program trains smallholder farmers on sustainable, low-input-cost, high-yield farming techniques.

Early results from the Program are highly encouraging. Preliminary yield estimates based on cob counts and sizing indicate maize yields of approximately 3.2 tonnes per hectare from participating farmers. This represents a tripling of crop yields compared to average conventional farming methods in the region. Notably, this substantial increase has been achieved in a year when overall crop yields in Malawi are expected to be 22.5% lower than average due to drought conditions caused by the El Niño weather pattern.

The 90 farmers currently in the Program are eagerly anticipating a bumper harvest in May 2024 when they begin collecting their crops. Sovereign plans to quantify the increases in maize production and surplus in the coming months as the harvest season progresses.

Scaling Up for Continued Community Impact

Given the early success, Sovereign is already working to expand the Conservation Farming Program. An additional 300 farmers are planned to be onboarded during the 2024 planting season, more than tripling the Program's current participants. The increased scale will enable the Company to further validate the Program's positive impacts during its upcoming Definitive Feasibility Study for the Kasiya Project.

Sovereign's vision is for the Program to ultimately enable smallholder farmers to generate surplus crops and sustainable household income. The Company has maintained a focus on equal opportunity, with the current 90 participants comprising 50% women and 10% people in vulnerable situations. This inclusive approach will continue as the Program grows.

Experienced Team Driving Sustainable Initiatives

Sovereign's on-the-ground team in Malawi brings valuable experience in successfully implementing similar programs. They previously ran a highly impactful conservation farming program at First Quantum Minerals Limited's Zambian operations from 2010. Under their leadership, the program at First Quantum expanded to over 7,000 farmers and increased harvest crops by 67% between 2020 and 2022.

The principles of conservation farming being applied by Sovereign aim to protect soil health and boost crop yields through practices such as minimum soil disturbance, maintaining permanent soil cover, and diversifying plant species. These techniques are proving especially crucial in Malawi, where maize is the predominant crop, making up two-thirds of the national calorie intake.

Proactive Approach to ESG & Community Development

Sovereign's proactive approach to community development and ESG initiatives, exemplified by the Conservation Farming Program, sets the Company apart. By delivering tangible benefits to local communities before the Kasiya Project even enters production, Sovereign is demonstrating its genuine commitment to being a responsible corporate citizen.

The Program is envisioned to be a cornerstone of the Company's livelihood restoration and improvement initiatives in the medium to long term. As the Kasiya Project advances, Sovereign plans to progressively roll out the Conservation Farming Program to deliver sustainable shared value.

Conclusion

Sovereign Metals' early success with the Conservation Farming Program highlights the Company's proactive and effective approach to ESG. By delivering tangible community benefits in parallel with advancing the world-class Kasiya Project, Sovereign is demonstrating its ability to create shared value for all stakeholders.

The Program's promising results, even in a drought year, showcase the potential for Sovereign to generate lasting positive impacts in Malawi. As the Company scales up the Program and further quantifies the agricultural and livelihood improvements, investors can look forward to Sovereign continuing to set best practices in sustainable development.

With an experienced management team, a proactive ESG strategy, and a world-class rutile-graphite asset in the Kasiya Project, Sovereign Metals represents a compelling opportunity for investors seeking exposure to critical minerals and strong ESG practices. As the Company continues to deliver on its sustainable development objectives and advance the Kasiya Project, it is well-positioned to create substantial value for shareholders and local communities alike.