Communicators

22 June 2020 – Sovereign Metals Limited (“the Company” or “Sovereign”) is pleased to report further exceptional drilling results from Kasiya, the Company’s large, high-grade rutile deposit located in Malawi. The results continue to grow the mineralised footprint and show increased areas of very high-grade rutile from surface. These results will be incorporated into a maiden JORC Mineral Resource Estimate due in late Q3, 2020.

HIGHLIGHTS

-          Phase 4 drilling results demonstrate high-grade rutile in the south-east area of the mineralised envelope, with key results from a total of 17 holes:

-          14m @ 1.24% rutile inc. 4m @ 1.95% rutile from surface

-          13m @ 1.13% rutile inc. 4m @ 1.86% rutile from surface

-            9m @ 1.00% rutile inc. 4m @ 1.46% rutile from surface

-          12m @ 1.23% rutile inc. 3m @ 1.43% rutile from surface

-          12m @ 1.07% rutile inc. 8m @ 1.26% rutile from surface

-          Exceptionally high rutile grades from surface substantially enhance the economic potential of Kasiya

-          A significant number of rutile drill intercepts remain open at depth where mineralisation is interpreted to extend to the base of the soft saprolite estimated at approximately 25m vertical

-          The mineralised zone is now +5.5km strike length with surface widths up to 3km and continues to be open along strike and laterally to the east

-          QEMSCAN mineralogy analysis shows excellent rutile liberation and particle size distribution with d50 averaging 129µm – comparable or better than other leading natural rutile products

-          Maiden JORC Mineral Resource Estimate remains on track for late Q3 2020

Sovereign’s Managing Director Dr Julian Stephens commented:

“The drilling results from Kasiya continue to be exceptional. The footprint of high-grade rutile mineralisation continues to expand and displays what we believe to be some of the highest-grade, thickest and spatially expansive rutile drill-intercepts globally. New QEMSCAN mineralogy results show that rutile is very well liberated with excellent sizing characteristics suggesting it should be suitable for all major end-use markets. Kasiya is emerging as a truly special discovery within the Company’s broader licence package where we have identified a new, potentially globally significant rutile province.”

Figure 1. Kasiya drill plan showing extents of rutile mineralisation with the new extended areas defined by the Phase 4 drill-holes. Pending holes are also shown.

KASIYA EXTENSIONAL DRILL PROGRAM – PHASE 4

Results for Phase 4 drilling comprise a further 17 hand-auger holes for 175m over four drill-lines. This brings the total number of holes reported to 79 (Phases 1 through 4 combined).

The Phase 4 results show high-grade and thick rutile drill intercepts as predicted by the Company’s now refined geological exploration targeting model. Importantly, the highest-grade intercepts are almost always from surface. The mineralised footprint continues to grow and take on definition at +5.5km strike length with surface widths up to 3km. The results reported also show the high-grade envelope bifurcates into two zones toward the southern extent of reported drilling. The mineralised envelope continues to be open in both directions along strike and laterally to the east.

High-grade rutile has been encountered as deep as 14m below surface in some holes (the depth limit of hand-auger drilling) but generally has an average thickness of approximately 7m to 8m. The current geological interpretation is that high-grade, free-dig rutile mineralisation is likely to continue vertically to the base of saprolite in the areas where holes terminated in mineralisation. This depth of mineralised saprolite can be reasonably assumed from existing geological knowledge to be around 25m from surface. However, deeper drilling techniques such as air-core, diamond-core or sonic will need to be employed to confirm this at Kasiya.

Key Phase 4 drilling results received from the total of 17 holes include:

-          14m @ 1.24% rutile inc. 4m @ 1.95% rutile from surface

-          13m @ 1.13% rutile inc. 4m @ 1.86% rutile from surface

-          9m @ 1.00% rutile inc. 4m @ 1.46% rutile from surface

-          12m @ 1.23% rutile inc. 3m @ 1.43% rutile from surface

-          12m @ 1.07% rutile inc. 8m @ 1.26% rutile from surface

Figure 2. Cross section 8479200mN showing the broad, high-grade mineralisation with multiple holes open at depth.

KASIYA – EXCELLENT PARTICLE SIZE DISTRIBUTION

QEMSCAN mineralogy analysis on the non-magnetic fraction of heavy mineral concentrates (HMCs) from routine drill samples in the 45µm to 600µm fraction show clean and well liberated rutile grains with a particle size distribution d50 averaging 129µm. This is comparable or better than other leading natural rutile products in the market.

Particle size distribution is an important consideration for end-users of natural rutile since it influences efficiency and performance in downstream applications. The favourable particle size distribution of rutile from Sovereign’s Kasiya deposit demonstrates the potential to produce commercial rutile specifications suitable for all three major rutile end-use markets including pigment, titanium metal and welding flux.

FORWARD PLAN

Sovereign has identified a potentially globally significant rutile deposit at Kasiya in Malawi. Rutile mineralisation identified to date has generally not been spatially constrained by drilling and the potential is thought to be immense.

Sovereign’s ongoing rutile work programs for Kasiya and its other rutile prospects within the Malawi Rutile Province include;

-         Step-out and regional drilling at Kasiya and the broader surrounding area to identify extensions and satellite mineralised zones

-         Work toward the maiden JORC Resource Estimate for Kasiya which is on target for late Q3 2020

-         Bulk-scale metallurgical test-work is well underway on a 1 tonne representative sample from Kasiya

-         Push-tube drilling at Kasiya to twin hand-auger holes and to obtain cored samples for specific gravity (SG) determination and initial geotechnical analysis

-         Mining and tailings studies are ongoing in order to feed in to a future Scoping Study

-         A regional desktop targeting exercise using all available knowledge and datasets is continuing with the goal of discovering more high-grade, Kasiya-like rutile mineralisation further afield

Figure 3. Drill plan showing Phases 1, 2, 3 and 4 of reported and pending shallow hand-auger holes at Kasiya.

COVID-19 UPDATE

Drilling and sample preparation activities have recommenced on a limited basis with a reduced and safe personnel level.

The Company is actively evaluating the situation for all risks to employees, communities and general operational safety and will make any required adjustments as the situation evolves, or as required by the Government of Malawi.

Figure 4. Map of the broader Kasiya and Bua Channel area showing the multiple targets discovered.

DRILL RESULTS

Shallow drilling results from Phase 4 at Kasiya are shown below in Table 2.

*Significant results are reported at 0.5% rutile lower cut-off.

Sovereign Metals Limited | ASX : SVM

Enquires: Julian Stephens/Sam Cordin (Perth): +61 8 9322 6322  |  Sapan Ghai (London): +44 207 478 3900

Email: info@sovereignmetals.com.au

www.sovereignmetals.com.au

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

Competent Persons’ Statements

The information in this report that relates to Exploration Results and QEMSCAN Results are 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 and unlisted options in Sovereign Metals Limited. 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 the report of the matters based on his information in the form and context in which it appears.

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, Julian Stephens.

APPENDIX 1: DRILL HOLE DATA

* All holes were vertical.