Sovereign Metals : 1.8Bt MRE Confirms Kasiya as the Largest Rutile Deposit Ever

5 April 2022

1.8 BILLION TONNE JORC RESOURCE CONFIRMS KASIYA AS THE LARGEST RUTILE DEPOSIT EVER DISCOVERED

JORC MINERAL RESOURCE ESTIMATE UPDATE

1.8 Billion Tonnes @ 1.01% Rutile

(Ind. + Inf.)

18 Million Tonnes Contained Rutile

•  Updated mineral resource estimate (MRE) confirms Kasiya as the world's largest rutile deposit and second largest graphite deposit

•  Contained rutile at the Kasiya mega-deposit now stands at 18 Mt - tripling the previous MRE

•  Contained flake graphite by-product now stands at 23 Mt

•  High global resource grade @ 1.64% RutEq.* (recovered rutile + recovered graphite)

•  662 Mt (37%) of the total MRE reports to the Indicated category with remainder in Inferred category

•  Scoping Study to be updated to reflect the substantial MRE scale increase to examine the impact of higher grades, increased production volumes and increased mine-life

Figure 1: Major rutile dominant resources (Sources: refer to Appendix 1)

*Formula: Rutile Grade x Recovery (97%) x Rutile Price (US$1,346/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,346/t). All assumptions taken from the Company's 2021 Scoping Study released 16 December 2021

Sovereign Metals Limited | ASX:SVM AIM:SVML

T: [phone] | F: [phone] | E:[e-mail]| www.sovereignmetals.com.au Level 9, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427

Figure 2: Major listed global flake graphite resources

(Sources: refer to Appendix 1)

Table 1: Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off

Mineral Resource

CategoryMaterial Tonnes (millions)Rutile (%)Rutile Tonnes (millions)

TGC (%)

TGC Tonnes (millions)

RutEq. Grade*

(%)

Indicated

Inferred

662 1,113

1.05% 0.99%

6.9

11.0

1.43% 1.26%

9.5

14.0

1.73% 1.59%

Total

1,775

1.01%

18.0

1.32%

23.4

1.64%

* RutEq. Formula: Rutile Grade x Recovery (97%) x Rutile Price (US$1,346/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,346/t). All assumptions taken from the Company's 2021 Scoping Study released 16 December 2021 ** Any minor summation errors are due to rounding

Sovereign's Managing Director Dr Julian Stephens commented: "It is a really remarkable achievement by our team to have made the largest natural rutile discovery ever in just two years since initial identification. The JORC MRE of this scale and grade is clearly highly strategic, Tier 1 and of global significance in a market where natural rutile is in extreme supply deficit.

The step-change in scale will now allow us to examine potentially higher-grade throughput, increased production levels and a longer mine life in the upcoming Scoping Study update. The Company is targeting a large-scale, low carbon-footprint and environmentally sustainable natural rutile and graphite operation which will also positively impact the environmental footprint of titanium pigment and other industries, and provide a significant contribution to the economy of Malawi."

ENQUIRIES

Dr Julian Stephens (Perth)	Sam Cordin (Perth)	Sapan Ghai (London)
Managing Director	[phone]	[phone]
[phone]

KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce its updated Mineral Resource Estimate (MRE) for Kasiya confirming it as a Tier 1 natural rutile deposit and a potential major source of low CO2 footprint critical minerals natural rutile and graphite.

The updated MRE now places Kasiya as the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile (Tables 1, 2 & 3, Figure 1). Additionally, the graphite by-product MRE at Kasiya places it as the second largest flake graphite deposit in the world.

Figure 3: Kasiya map showing rutile grades in the uppermost part of the block

The MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of over 180km2 (Figure 3). Rutile mineralisation lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded.

Overall, the new MRE shows a number of new large, but generally discrete high grade rutile zones, particularly in the southern parts and eastern parts of the resource area. The discovery and delineation of these new high grade mineralised zones has been the dominant factor in the tripling of the resource base.

A Total of 662 Mt (37%) of the total MRE reports to the Indicated category @ 1.05% rutile and 1.43% TGC, with a recovered grade of 1.73% RutEq.

The deposit is expansive with high-grade rutile mineralisation commonly grading 1.2% to 2.0% in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole where it remains open at depths >10m in numerous drill-defined, N to NE-striking zones.

Graphite is generally depleted near surface in the top 3-5m with grades commonly in the 0.1% to 0.5% total graphitic carbon (TGC) range. Graphite grades generally increase with depth to about 8m, then remain constant ranging from 1% to 8% TGC. A number of higher-grade graphite zones at depth have been identified which are generally associated with higher grade rutile at surface. Some of these zones have graphite grades at depth >8m in the 4% to 8% TGC range and represent very significant coarse flake graphite tonnages.

The highlighted cut-off of 0.70% presents 1.8 billion tonnes at a rutile grade of 1.01% with high-grade components providing over 352 Mt at a rutile grade of 1.44% at a 1.20% cut-off (Table 2). The overall recovered rutile equivalent grade for the MRE at the global 0.7% cut-off is 1.64% RutEq. (Table 1).

Table 2: Kasiya Total Indicated + Inferred Mineral Resource Estimate at various rutile cut-offs

Cut-off (rutile)ResourceRutile GradeContained RutileGraphite Grade

(Mt)

(%)

(Mt)

(%)Contained Graphite

(Mt)

0.40% 0.50% 0.60%

2,825 2,503 2,155

0.84% 0.89% 0.95%

23.8

22.4

20.4

1.26% 1.30% 1.33%

35.5

32.5

28.6

0.70%

1,775

1.01%

18.0

1.32%

23.4

0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40%

1,391 1,024 727 516 352 241 165

1.09% 1.17% 1.26% 1.35% 1.44% 1.53% 1.62%

15.1

12.0

9.2

7.0

5.1

3.7

2.7

1.24% 1.09% 0.92% 0.76% 0.55% 0.46% 0.43%

17.3

11.2

6.7

3.9

1.9

1.1

0.7

Figure 4: Kasiya MRE footprint showing the Indicated and Inferred areas zones

Figure 5: Core drilling at Kasiya