Communicators

Sovereign Metals Limited (the Company or Sovereign) is delighted to announce its maiden Mineral Resource Estimate (MRE) for Kasiya, a major technical milestone for the Company’s flagship, large, high-grade rutile deposit in Malawi.

644Mt @ 1.01% rutile (0.7% cut-off, Inferred)

including a high-grade component of

137Mt @ 1.41% rutile (1.2% cut-off, Inferred)

HIGHLIGHTS

-        The maiden MRE establishes Kasiya as a strategic and globally significant natural rutile discovery and confirms it as one of the largest natural rutile deposits in the world.

-        Scoping Study well underway to unlock this large-scale natural rutile project with a focus on ESG and sustainability.

-        All mineralisation within the MRE occurs in a single, large, and coherent deposit with much of the high-grade material occurring within the top ~5 metres from surface.

-        Substantial additional resource growth is expected with the maiden MRE covering 49km2 or just 43% of the total 114km2 (Kasiya 89km2 + Nsaru 25km2) drill-defined rutile-mineralised footprint.

-        The rutile market is in supply deficit with prices rising steadily over the last 12 months. This is due to increased demand coupled with existing global rutile reserves being in overall decline and limited additional supply forecast to come online in the near to medium term.

-        Kasiya could significantly impact the titanium industry with the potential to displace carbon, energy and waste-intensive alternatives (synthetic rutile and titania slag).

Sovereign’s Managing Director Dr Julian Stephens commented:

“It is a remarkable result to achieve the maiden JORC mineral resource estimate of this scale, grade and global significance in under 18 months since discovery. We believe this maiden resource is just the beginning and expect to upgrade and expand the resource over the coming quarters. The Company is surging forward with the Kasiya Scoping Study which will target a large-scale natural rutile operation to help address the supply deficit and reduce the titanium industry’s environmental footprint.”

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 JORC Mineral Resource Estimate

The Kasiya MRE is presented at various cut-off grades below. As indicated in Table 1 and Figure 1 below, the MRE has broad zones of very high-grade rutile which occurs contiguously across large areas. The highlighted cut-off of 0.70% presents a rutile grade of 1.01% which places Kasiya as one of the largest known rutile deposits in the world and as directly comparable to its closest peer Sierra Rutile.

Table 1: Kasiya Maiden MRE. All mineralisation is classified as Inferred.

Figure 1: Drill density map over the Kasiya MRE showing rutile grades in the uppermost part of the MRE block model.

Global Significance

Natural rutile is traditionally a by-product or co-product from mineral sands mining where ilmenite is commonly the dominant mineral in the assemblage, alongside lesser natural rutile and zircon. Natural rutile is considered to be a genuinely scarce commodity, with no other known large rutile dominant deposits being discovered in the last half century.

Comparing Kasiya to the other major rutile-dominant resources, it sits within the top two alongside Sierra Rutile. Further near-future resource growth could see Kasiya potentially become the largest and pre-eminent rutile deposit globally, with central Malawi potentially becoming the largest rutile province in the world.

Sources: Refer to Table 2

Figure 2: Major rutile dominant resources.

Current sources of natural rutile are in decline as several operations’ reserves are depleting concurrently with declining ore grades. These include Iluka Resources’ (Iluka) Sierra Rutile and Base Resources’ Kwale operations in Kenya. Recent announcements by Iluka advising of the potential suspension of operations at Sierra Rutile may cause significant additional product to be removed from the market in the near to medium term. Additionally, there are limited new deposits forecast to come online, and hence supplies of natural rutile are likely to remain in structural deficit.

Table 2: Summary of major rutile dominant resources.

Notes:

1. Projects selected with rutile contributing over 30% of the in-situ value

2. The Balranald Project is being investigated for underground mining by Iluka

Sources:

Base Resources – Kwale: Updated Kwale North Dune and maiden Bumamani Mineral Resource Estimate (released on ASX 19/02/2021)

Iluka Resources – Sierra Rutile: Iluka Resources Limited’s 2020 Annual Report (released on ASX 25/02/2021)

Iluka Resources – Balranald: Iluka Resources Demerger Briefing Presentation (released on ASX 10/09/2020)

Figure 3: Drone photo above Kasiya showing the generally flat terrain.

Growth potentiaL

The Company now has a total of ~114km2 of drilled, high-grade rutile mineralisation (Kasiya 89km2 + Nsaru 25km2). The area covered by the Kasiya MRE is just 49km2 or 43% of the 114km2 drilled mineralised footprint. The opportunity to significantly expand on the maiden MRE in the near to medium term is therefore substantial.

The peripheral zones at Kasiya with nominal 800m x 800m drill spacing will be infilled to allow this material to be included in a future MRE. The Nsaru deposit also requires further infill and extensional drilling before it can be brought in to the MRE.

Step-out drilling at Kasiya and Nsaru is continuing with multiple field drilling teams deployed. Additional rutile mineralisation delineated should result in further future additions to the MRE.

At Kasiya, a two rig, ~150 hole infill core drilling program is due to commence this week with the aim of bringing the central high-grade zone into the Indicated resource category so that it can form the basis of the Scoping Study.

Figure 4: Kasiya MRE with the remaining mineralisation footprint.

RUTILE MARKET

Natural rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium pigment and producing titanium metal. Titanium pigments are used in paints, coatings and plastics. Titanium also has specialty uses including in welding, aerospace and military applications.

The global titanium feedstock market is over 7.4Mt of titanium dioxide with the majority of this been consumed by the pigment industry. Natural rutile’s high purity classifies it as a high-grade titanium feedstock. The high-grade titanium feedstock market consumes approximately 2.6Mt of contained titanium dioxide with strong demand driven from the pigment, welding and metal industries.

The lack of supply of natural rutile, due to its genuine scarcity, prompted the titanium industry to develop energy and carbon intensive processes to upgrade ilmenite (low-grade titanium mineral) to high-grade titanium feedstock products that can be used as substitutes for natural rutile (i.e. synthetic rutile and titania slag).

Figure 5: High-grade titanium feedstocks (+80% TiO2) by supply type (Source: TZMI/Iluka, based on 2018 data)

Natural rutile requires no upgrading for direct use as titanium pigment feedstock, eliminating the upgrading step required for ilmenite, resulting in zero additional CO2 emissions. Up to 2.8 tonnes CO2 eq. for each tonne of natural rutile utilised could be saved compared to the upgrading/beneficiation of ilmenite, via smelting and chemical processes, to high-grade titanium feedstocks like titania slag and synthetic rutile.

The downstream processes (i.e. pigment production) rely heavily on the use of upgraded titanium feedstocks such as synthetic rutile and titania slag, each having an associated substantial environmental impact. Due to growing environmental pressures, and with the significant carbon footprints of numerous industry players related to pyrometallurgical ilmenite upgrading operations, Sovereign’s natural rutile product is well positioned to impact the titanium supply chain with the ability to potentially displace and reduce the use of carbon and waste-intensive upgraded alternative titanium feedstocks.

The rutile market fundamentals continue to be robust with current and forecast pricing remaining very strong. In 2021, the market has rebounded strongly with pigment plant utilisation rates returning to pre-pandemic levels. Major producers have noted that very strong demand in the welding market is outstripping supply.

High-grade titanium feedstock supply is tight with limited new projects coming online in the short to medium term. Iluka has recently announced the potential suspension of its Sierra Rutile operations. Sierra Rutile is the largest global producer of natural rutile, currently contributing over 20% of the total natural rutile market with production of about 150ktpa.

A resurgence in demand for titanium pigment and from the welding sector combined with concurrent supply shortages has led the CIF China spot prices sharply upwards toward US$1,800 per tonne (Figure 6). In the quarter ended 31 March 2021, Iluka achieved rutile prices of US$1,199 per tonne with the majority of Iluka’s sales under take-or-pay contracts.

Figure 6: Rutile benchmark price over the last 18 months (Source: Ruidow)

NEXT STEPS

The major milestone of delivering the maiden MRE at Kasiya positions it as one of the largest and pre-eminent rutile deposits in the world.

This globally significant rutile province is located in Malawi, a stable, transparent jurisdiction known as “the Warm Heart of Africa”. Malawi is increasingly attracting international investment with substantial potential for mining to contribute to the country’s economic growth and development. Central Malawi boasts excellent existing infrastructure including grid power and an excellent sealed road network. Kasiya is strategically located in close-proximity to the capital city of Lilongwe, providing access to a skilled workforce and mining and industrial services. The location provides access to the operating Nacala Rail Corridor linking to the Indian Ocean deep water port of Nacala in Mozambique, providing a low-cost transport solution and access to major international markets.

The Company’s objective is to develop a large-scale, long life rutile operation, with the Scoping Study well underway and focusing on developing an environmentally responsible, sustainable and socially uplifting operation.

Sovereign is rapidly continuing its work programs with the following near and medium-term targets and developments:

-         Appointment of key members of the Scoping Study owner’s team, including a lead Study Manager and a highly experienced African mineral sands Technical Manager.

-         Aggressive drilling programs are planned and already underway with expansion, extensional and infill drilling continuing to enable future resource upgrades and extensions which are targeted for Q4 2021. Including:

-         Two core drilling rigs are set to be mobilised next week, with a planned +150 hole core program with the aim of upgrading the central, high-grade parts of Kasiya to JORC Indicated category; and

-         Continued step-out hand-auger drilling at Kasiya and Nsaru to expand the overall JORC resource with multiple drill teams mobilised across the Company’s +2,600km2 ground package.

-         Kasiya’s Scoping Study is targeted for completion in late 2021 with multiple components well underway, including:

-         Mining method and pit optimisation studies which now incorporate the outcomes of the MRE;

-         Tailings disposal design and methodology studies;

-         Continued metallurgical test-work now focused on variability;

-         Investigation of a potential graphite by-product; and

-         Commencement of the environmental and social impact studies.

KASIYA MRE TECHNICAL DETAILS

The Kasiya MRE has been prepared by independent consultants, Placer Consulting Pty Ltd (Placer) and is reported in accordance with the JORC Code (2012 Edition).

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 high-grade zones appear to be geologically continuous with limited variability along and across strike. The mineralisation style is illustrated best in Figures 7 & 8 below.

Figure 7: Kasiya Deposit block model sliced section map, oblique view looking Northwest.

Figure 8: Kasiya Deposit block model heat map, oblique view looking Northeast, showing top block within the inferred resource model.

The inferred resource remains open to the northeast, east, and southwest. Wide spaced exploratory drilling has confirmed the mineralised rutile footprint extends beyond the current constraints of the inferred resource boundary.

Figure 9: Cross-sections across the mineralisation footprint in the high-grade areas. See Figure 8 for legend and section lines.

Figure 10: Grade Cut-off versus Tonnage Curve.

ummary of resource estimate reporting critera

As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary of the material information used to estimate the MRE is detailed below.

Geology

Regional Geology

The greater part of Malawi is underlain by crystalline Precambrian to lower Paleozoic rocks referred to as the Malawi Basement Complex. In some parts these rocks have been overlain unconformably by sedimentary and volcanic rocks ranging in age from Permo-triassic to Quaternary. The Basement complex has undergone a prolonged structural and metamorphic history dominated by uplift and faulting resulting in the formation of the Malawi Rift Valley.

Kasiya is located on the Lilongwe Plain which is underlain by the Basement Complex paragneisses and orthogneisses which are part of the Mozambique Belt. The bulk of the gneisses are semi-pelitic but there are bands of psammitic and calcareous rocks that have been metamorphosed under high pressure and temperature conditions to granulite facies. Interspersed within the paragneiss units are lesser orthogneisses, often cropping-out as conspicuous tors, as well as amphibolites, pegmatites and minor mafic to ultramafic intrusions.  Foliation and banding in the gneisses have a broad north-south strike over the general area. Thick residual soils and pedolith with some alluvium overlie the gneisses and include sandy, lateritic and dambo types.

Figure 11: Drone photo above the Kasiya Deposit showing the open flat terrain and the numerous all-weather unpaved roads in the area.

Project Geology

Sovereign’s tenure covers 2,682km2 over an area to the north, west and south of Malawi’s capital city covering the Lilongwe Plain. The topography is generally flat to gently undulating and the underlying geology of the is dominated by paragneiss with pelitic, psammitic and calcareous units.

A particular paragneiss unit is rich in rutile and graphite (PGRG) and is the primary source of both of these minerals in the area. This area was deeply weathered during the Tertiary and in the PGRG zones rutile concentrated in the upper part of the weathering profile forming a residual placer, such as the Kasiya Deposit. Once this material is incised and eroded, it is transported and deposited into wide, regional braided river systems forming alluvial heavy mineral placers such as the Bua Channel.

Figure 12: Rutile deposit model showing residual saprolite hosted mineralisation and the various traditional sand hosted deposit types.

Kasiya Deposit Geology

The high-grade rutile deposit at Kasiya is best described as a residual placer, or otherwise known as eluvial heavy mineral deposit. It is formed by weathering of the primary host rock and concentration in place of heavy minerals, as opposed to the high-energy transport and concentration of heavy minerals in a traditional placer.

The highly aluminous nature (kyanite) and the presence of carbon (graphite) in the host material suggest that the protolith was of sedimentary origin. The protolith likely started with a 0.5-1.5Ga basin that also experienced consistent influx of titanium minerals.

These sedimentary rocks were subject to granulite facies metamorphism under reduced conditions in the Pan-African Orogeny at circa 0.5-0.6Ga. The reduced environment, relatively high titanium content and low iron content, resulted in rutile being the most stable titanium mineral under these conditions. Slow exhumation and cooling then resulted in in crystallisation of paragneisses containing coarse rutile and graphite.

The final and most important stage of enrichment came as tropical weathering during the Tertiary depleted the top ~10m of physically and chemically mobile minerals. This caused significant volume loss and concurrent concentration of heavy resistate minerals including rutile and kyanite.

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 high-grade rutile zones appear to be geologically continuous with limited variability along and across strike. Accessory graphite mineralisation is depleted near surface, with much higher grades occurring from 6m and deeper.

Table 3: Typical weathering and rutile/graphite grade profile encountered in the residual saprolite hosted mineralisation at Kasiya.

Sampling and Sampling Techniques

Spiral hand-auger (HA) samples were obtained at 1m intervals generating on average approximately 2.5kg of drill sample. HA samples are manually removed from the auger bit and sample recovery visually assessed in the field. As samples become wet at the water table and recovery per metre declines the drill hole is terminated.

Samples are collected on a metre by metre basis. Each 1m sample is sun dried, logged, weighed and pXRF analysed. Samples are then composited based on the logged weathering zone. Care is taken to ensure that only samples with similar geological characteristics are composited together. An equal mass is taken from each contributing metre to generate a 1.5kg composite sample. Sub-samples were carefully riffle split to ensure representivity.

Composite samples are always greater than 1m and do not exceed 5m in width. This sampling and compositing method is considered appropriate and reliable based on accepted industry practice.

Sample analysis methodology

Heavy mineral concentrates (HMC) were generated onsite via wet-tabling or at Diamantina Laboratories in Perth via heavy liquid separation.

The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where a HMC is generated.

The HMC is then subject to magnetic separation at Allied Mineral Laboratories Perth (AML) in Perth by Carpco magnet @ 16,800G (2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.

The NM fractions were sent to either ALS Perth or Intertek Perth for quantitative XRF analysis. Intertek samples received the standard mineral sands suite FB1/XRF72. ALS Samples received XRF_MS.

Sovereign uses internal and externally sourced wet screening reference material inserted into sample batches at a rate of 1 in 20. The externally sourced, certified standard reference material is provided by Placer Consulting.

An external laboratory raw sample check duplicate is sent to laboratories in Perth, Australia as an external check of the full workflow. These duplicates are produced at a rate of 1 in 20. 

Accuracy monitoring is achieved through submission of certified reference materials (CRM’s). ALS and Intertek both use internal CRMs and duplicates on XRF analyses. Sovereign also inserts CRMs into the sample batches at a rate of 1 in 20.

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative. Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) triggers re-assay of the affected batch.

Precision and accuracy assessment has been completed on all alternate workflow methodologies and a consistent method has been recommended by Placer Resource Geologists. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. Rutile determination by alternate methods showed no observable bias.

Acceptable levels of accuracy and precision are displayed in geostatistical analyses to support the resource classifications as applied to the estimate.

QEMSCAN of the NM fraction shows dominantly clean and liberated rutile grains and confirms rutile is the only significant titanium species in the NM fraction (Figure 13). Recovered rutile is therefore defined and reported here as: TiO2 recovered in the +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e. recoverable rutile within the whole sample.

Figure 13: QEMSCAN image of Sovereign’s premium rutile product from Kasiya.

Drilling Techniques

HA drilling has been used extensively at the Kasiya Deposit by Sovereign to define mineralisation and to obtain rutile assay information in the upper sections of the weathering profile.

A total of 507 HA holes for 4,820m and 36 PT (push-tube core) holes for 437m have been drilled at Kasiya since 2019. The drilling programs to date show a mineralised envelope, defined nominally by >0.5% rutile, of approximately 89km2 with numerous areas of high-grade rutile defined. An additional 25km2 rutile mineralised envelope has been drill-defined at the nearby Nsaru Deposit.

HA collars in the Inferred MRE area are spaced on a nominal 400 x 400m grid and infill lines completed at a 200m hole spacing. All extensional holes are designed to provide systematic strike and width extension of the anomalous lines of HA drilling previously reported along this same trend.

It is deemed that these holes should be broadly representative of the mineralisation style in the general area. More work is required to accurately determine the variability of the mineralisation in the Kasiya region.

All holes were drilled vertically on an east-west cross-sectional grid as the nature of the rutile mineralisation is broadly horizontal. No bias attributable to orientation of drilling has been identified.

Figures 14 & 15: Left: Sovereign team’s hand augering with the SOS bit

Right: Core rig in action at Kasiya.

HA drilling was executed by SVM field teams using a manually operated enclosed-flight Spiral Auger (SP / SOS) system and produced by Dormer Engineering in Queensland, Australia. The HA bits are 62mm and 75mm in diameter with 1m long steel rods. Each 1m of drill advance is withdrawn and the contents of the auger flight removed into bags and set aside. An additional 1m steel rod is attached and the open hole is re-entered to drill the next metre. This is repeated until the drill hole is terminated often due to the water table being reached, and more rarely due to bit refusal. The auger bits and flights were cleaned between each metre of sampling to avoid contamination. 

Core-drilling is undertaken for twin drilling analysis using a drop hammer Dando Terrier MK1. The drilling generated 1m runs of 83mm PQ core in the first 2m and then transitioned to 72mm core for the remainder of the hole. Core drilling is oriented vertically by spirit level.

Placer has reviewed SOPs for HA and push-tube drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE.

Classification

The HA collars are spaced at nominally 400m x 400m in the Inferred area of the resource.

The PT core twin holes are selectively placed throughout the deposit to ensure a broad geographical and lithological spread for the analysis. 

The drill spacing and distribution is considered to be sufficient to establish a degree of geological and grade continuity appropriate for the MRE.

Variography and kriging neighborhood analysis completed using Supervisor software informs the optimal drill and sample spacing for the MRE. Based on these results and the experience of the Competent Person, the data spacing and distribution is considered adequate for the definition of mineralisation and adequate for mineral resource estimation.

Classification of the MRE has been conservative and reflects the uncertainty that remains in data spacing and down-hole sample interval definition and grade determinations.

A high-degree of uniformity exists in the broad and contiguous lithological and grade character of the deposit. Open-hole drilling technique has been expertly applied and data collection procedures, density assessments, QA protocols and interpretations conform to industry best practice.

Assay, mineralogical determinations and metallurgical test work conform to industry best practice and demonstrate a rigorous assessment of product and procedure. The development of a conventional processing flowsheet and marketability studies support the classification of the Kasiya Resource.

Estimation Methodology

Datamine Studio RM and Supervisor software was used for the resource estimation with key fields being interpolated into the volume model using the Inverse Distance weighting (power 3) method. Dynamic Anisotropy search ellipses, informed by variography and kriging neighbourhood analysis, were used to search for data during the interpolation and suitable limitations on the number of samples, and the impact of those samples, was maintained.

Interpolation was constrained by hard boundaries (domains) that result from the geological interpretation.

The average parent cell size used was approximately equivalent to half the average drill hole spacing over the bulk of the deposit (200m x 200m). Cell size in the Z-axis was established to cater for the varied sample and composite sample spacing. This resulted in a parent cell size of 200m x 200m x 3m for the volume model with 5 sub-cell splits available in the X and Y axes and 3 in the Z axis to smooth topographical and lithological transitions.

Extreme grade values were not identified by statistical analysis, nor were they anticipated in this style of deposit.  No top cut is applied to the resource estimation.

Validation of grade interpolations was done visually in Datamine by loading model and drill hole files and annotating, colouring and using filtering to check for the appropriateness of interpolations.

Statistical distributions were prepared for model zones from both drill holes and the model to compare the effectiveness of the interpolation. Distributions of section line averages (swath plots) for drill holes and models were also prepared for each zone and orientation for comparison purposes.

The resource model has effectively averaged informing drill hole data and is considered suitable to support the resource classifications as applied to the estimate.

Density is calculated by the water immersion technique using core from geographically and lithologically diverse sample sites throughout the project. This methodology delivers an accurate density result that is interpolated in the MRE for each host material type.

Density data are interpolated into the resource estimate by geological domain. An average density of 1.39 t/m3 for the soil (SOIL) domain, 1.60 t/m3 for the ferruginous pedolith (FERP) domain, 1.65 t/m3 for the mottled (MOTT) domain, 1.68 t/m3 for the pallid saprolite (PSAP) domain, 1.63 t/m3 for the saprolite (SAPL) domain, and 1.93 t/m3 for the laterite (LAT) domain were calculated.

Cut-off Grades

The resource is reported at a range of bottom cut-off grades in recognition that optimisation and financial assessment is outstanding.

A nominal bottom cut of 0.4% rutile is offered, based on preliminary assessment of resource value and anticipated operational cost.

Mining and Metallurgy Factors

Conventional dry mining methods are assumed at this stage and will likely include a combination of loader and dozer feed to a mobile, in-pit mining unit. It is recognised that wet mining (hydro-mining) may be possible for this deposit style, though the Company will need to progress further studies to determine its potential applicability for Kasiya. It is considered that the strip ratio would be zero or near zero.

Dilution is considered to be minimal as mineralisation commonly occurs from surface and mineralisation is generally gradational with few sharp boundaries.

Recovery parameters have not been factored into the estimate. However, the valuable minerals are readily separable due to their SG differential and are expected to have a high recovery through the proposed, conventional wet concentration plant.

Sovereign have announced two sets of metallurgical results to the market (24 June 2019 and 9 September 2020), relating to the Company’s ability to produce a high-grade rutile product with a high recovery via simple conventional processing methods. Sovereign engaged AML to conduct the metallurgical test work and develop a flowsheet for plant design considerations. The work showed a premium quality rutile product of 96.3% TiO2 with low impurities could be produced with recoveries of about 98% and with favourable product sizing at d50 of 145µm.

Figure 16: Photo-micrograph of Sovereign’s premium rutile concentrate.

Cut-off: 0.7% rutile

Competent Person’s Statement

The information that relates to Mineral Resources is based on, and fairly represents, information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. Mr Stockwell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, 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 Stockwell consents to the inclusion of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Julian Stephens, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Stephens is the Managing Director of Sovereign Metals Limited and a holder of ordinary shares, unlisted options and performance rights in Sovereign. Dr Stephens 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'. Dr Stephens consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Metallurgical Results (rutile) is extracted from an announcement on 9 September 2020 This announcement is available to view on www.sovereignmetals.com.au. The information in the original announcement that related to Metallurgical Results was based on, and fairly represents, information compiled by Mr Gavin Diener, a Competent Person who is a member of the AusIMM. Mr Diener is the Chief Operating Officer of TZMI, an independent mineral sands consulting company and is not a holder of any equity type in Sovereign Metals Limited. Mr Diener 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'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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 announcement has been approved and authorised for release by the Company’s Managing Director, Julian Stephens.