Sovereign Metals Limited: Further Aircore Drilling Confirms Significant Pit Expansion Potential at Depth

-          Drilling results from the Company’s targeted deep air-core (AC) program extend substantial zones of high-grade rutile mineralisation to depth beneath initial planned open pit shells (main areas averaging ~15m depth).

-          This newly defined high-grade rutile and graphite mineralisation at depths >15m is consistent and occurs in coherent blocks.

-          Highlights include:

-          28m @ 1.07% inc. 5m @ 1.52% rutile

-          26m @ 1.04% inc. 5m @ 1.48% rutile

-          24m @ 1.02% inc. 6m @ 1.42% rutile

-          23m @ 1.05% inc. 3m @ 1.69% rutile

-          23m @ 1.03% inc. 5m @ 1.26% rutile

-          23m @ 1.01% inc. 5m @ 1.18% rutile

-          22m @ 1.08% inc. 5m @ 1.68% rutile

-          21m @ 1.06% inc. 5m @ 1.51% rutile

-          20m @ 1.23% inc. 5m @ 1.70% rutile

-          20m @ 1.22% inc. 3m @ 1.95% rutile

-          20m @ 1.18% inc. 6m @ 1.58% rutile

-          18m @ 1.26% inc. 8m @ 1.39% rutile

-          Kasiya’s Pre-Feasibility Study (PFS) and Environmental and Social baseline workstreams are advancing with all major project work programs already underway.

26 October 2022 - Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to report further significant results for 61 AC holes from the Kasiya Rutile Project (Kasiya), the world’s largest rutile deposit.

The results confirm that rutile and graphite mineralisation is continuous from surface down to the top of saprock generally at 20-25m vertical depth in key mineralised areas. Results highlight the potential for the mining pits to be extended at depth.

Sovereign’s Managing Director Dr Julian Stephens commented: “We’re really pleased with the continued success from the deep air-core program which is confirming the potential for several pit expansions at depth. It remains a very busy time for the Company as we continue to receive drilling results and our PFS is approaching a peak level of activity”.

ENQUIRIES

Dr Julian Stephens (Perth)

Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)

+61(8) 9322 6322

Sapan Ghai (London)

+44 207 478 3900

KASIYA AIR CORE DRILLING

The completed 191-hole AC drilling program was divided into an initial 32-hole sighter phase with results previously reported (refer ASX announcement on 8 September 2022) and a second more expansive 159-hole phase.

These results of 61 holes (of 159) for 1,298m are the first batch of the expansive phase with results for the remaining 98 Holes for 2,548m pending.

Figure 1: Kasiya AC drilling location map showing the drilling concentrated within proposed mining pits.

The sighter phase AC drilling program focused on mineralised corridors where high-grade rutile mineralisation was hypothesised to persist at depth. Once validated, the company shifted its focus to a second phase concentrating on depth extensions to the early-scheduled mining pit shells.

Pit 15 revealed the most pronounced, deep mineralised corridor, illustrated in the 1.4km long section (Figure 3). Rutile and graphite mineralisation is seen to be pervasive throughout the saprolite zone.

Figure 2: Kasiya Pit Shell 15 showing AC drilling collars.

Figure 3: Pit 15 long section 544,400mE including KYAC0078 to KYAC0079 and KYAC0089 to KYAC0092.

Pit 13 is proposed to be the first block in the mining schedule. This pit shows considerable rutile mineralisation outside and below the current block model and optimised pit shell.

Further results from deep drilling are expected in the coming months.

Figure 4: Kasiya Pit Shell 13 showing AC drilling collars.

Figure 5: Pit 13 cross section 8,472,000mN including KYAC0050 to KYAC0042.

KASIYA PRE-FEASIBILITY STUDY PROGRESS

Sovereign is progressing the PFS which will build on the June 2022 Expanded Scoping Study (ESS) that confirmed Kasiya as one of the world’s largest and lowest cost producers of natural rutile and natural graphite with a carbon-footprint substantially lower than current alternatives.

The 2022 AC drilling program is the first major PFS activity completed. The program was designed to extend Indicated zones at depth to base of saprolite ~25m, from the current ~14m average drill depth. Drilling was completed on a 200m x 200m grid to target Indicated classification which after receiving the final batch assays will be modelled to update the JORC resource estimate which is planned for Q1 2023.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource Estimate is extracted from the announcement dated 5 April 2022. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcement.

* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price (US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken from this Study ** Any minor summation inconsistencies are due to rounding

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

This ASX Announcement has been approved and authorised for release by the Company’s Managing Director, Dr Julian Stephens.

Appendix I – DRILL RESULTS

Rutile and graphite drilling results from Kasiya are shown below in Table 2.

APPENDIX II: DRILL HOLE COLLAR DATA – TABLE 3