Spectacular Drill Results See Mineralised Footprint Increase

15 March 2022

 Latest drill results increase the drill-defined rutile mineralised envelope by 28% to 165km2

 Kasiya and Nsaru deposits have now coalesced into the Kasiya-Nsaru rutile deposit - a single, very large, coherent, high-grade body of near surface rutile and graphite mineralisation

 New drilling has encountered the highest-grade rutile results to date at Nsaru and at a new

 Discovery of numerous extensions and new blocks of mineralisation expected to add substantially

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to report results from its H2 2021 drilling program at Kasiya-Nsaru, the Company's flagship, very large, high-grade rutile deposit in Malawi.

The results, including numerous spectacular intercepts, will underpin the pending Mineral Resource Estimate (MRE) upgrade which is expected to significantly increase in both the Indicated and Inferred categories.

ForThe most recent core and auger drilling has now expanded the total mineralised envelope to 165km2, up 28%. The previous MRE included just 49km2 of the mineralised envelope, hence significant resource tonnage growth can be expected.

Sovereign's Managing Director Dr Julian Stephens commented: "The results of the latest drilling program have surpassed all of our expectations. Not only did we encounter the highest rutile grades to date, but the coalescing of the Kasiya and Nsaru deposits supports our belief that we have the single largest rutile deposit in the world on our hands. We are looking forward to announcing the updated Mineral Resource Estimate in the coming weeks."

Sovereign Metals Limited | ASX:SVM AIM:SVML

T: +61 8 9322 6322 | F: +61 8 9322 6558 | E: info@sovereignmetals.com.au | www.sovereignmetals.com.au

Level 9, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427

KASIYA-NSARU

onlySovereign now has a total of ~165km2 of drilled, high-grade rutile mineralisation with the latest results succeeding in joining Kasiya and Nsaru into a single deposit (Figure 1).

Rutile mineralisation lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded. The Kasiya-Nsaru deposit is expansive with high-grade mineralisation commonly grading 1.2% to 2.0% rutile 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 areas.

useKasiya-Nsaru is a strategic and globally significant natural rutile deposit with substantial additional resource growth expected. Kasiya's current Mineral Resource Estimate is 605Mt at 0.98% rutile (0.7% cut-off, Indicated + Inferred, Table 1).

The core and auger drilling program at the Kasiya-Nsaru rutile deposit was completed from July to September 2021. This very large and expansive drilling program targeted significant MRE expansion as well as infill core drilling designed to bring known high-grade areas into the Indicated resource category.

A total of 712 drill-holes for 6,832m are reported (Figure 4). Of these, 96 were core holes for 999m, and personal616 are hand-auger holes for 5,833m.

For

Figure 1: Kasiya-Nsaru drill defined mineralised footprint in relation to the current MRE

SPECTACULAR RESULTS

Results from 400m x 400m core and auger resource drilling at the large and high-grade Nsaru deposit including those listed below, with full results listed in Table 2:

Figure 2: DL650 push-tube core drilling rig in operation at Kasiya-Nsaru

DRILLING RESULTS

onlyThe Kasiya and Nsaru rutile deposits have now coalesced into one very large, coherent, high-grade zone of near surface rutile and graphite mineralisation believed to be the single largest rutile deposit in the world.

The drilled mineralised footprint has now grown to 165km2, an increase overall of 28% from previously. Importantly, the drilling has also substantially increased the area of mineralisation drilled at 400 x 400m r greater density and thus it is expected that substantial tonnages will be able to be added in the upcoming MRE, due to be reported in the coming weeks. For reference, the previous MRE covered just

49km2 of the mineralised footprint.

useNumerous new areas have also received drilling at 400 x 400m or greater density and are expected to be able to be incorporated into the upcoming the MRE upgrade.

In many of the high-grade zones identified by drilling rutile mineralisation persists and remains open at depth, at the limit of the current drilling (Figures 5 & 6). It is therefore considered likely that rutile mineralisation should occur down to approximately the base of the saprolite zone, which is estimated to

lie at about 25m vertical depth. These deeper zones represent the key targets for the planned 2022 air- personalcore drilling program.

Coarse flake graphite is present in all holes in broad association with rutile mineralisation. Graphite grades average about 1% TGC through the mineralised area.

For

CONCLUSION

The significant 2021 H2 drilling program at Kasiya and Nsaru accomplished the following;

useThe updated JORC MRE is due in the coming weeks and will serve as the basis for an updated Scoping Study targeted for completion in Q2 2022. This updated Study will build on the December 2021 Study, with the new MRE likely to allow higher grades to be mined, or increased production rates or increased mine life, or a combination.

personalFor

Figure 4: Kasiya-Nsaru drilling location map showing the very large areas of drilling outside the current MRE.