Communicators

Sovereign Metals Limited (“the Company” or “Sovereign”) is pleased to report that a regional soil sampling program has identified six new areas of rutile at surface. Hand auger drilling at these new targets is underway to determine recoverable grades and potential dimensions of rutile mineralisation hosted within soft, free-dig saprolite.

HIGHLIGHTS

-         Six new zones of rutile mineralisation have been identified in western parts of Sovereign’s large >4,000km2 ground holding in Malawi

-         Soil sampling at ~10km line spacing has identified rutile mineralisation in soil lines with along-line widths of up to ~2.2km

-         All zones of rutile mineralisation identified in the soils remain open laterally in both directions with the orientation of mineralised zones still to be determined

-         Initial hand auger drilling has shown significant visual rutile hosted in soft saprolite material beneath the soil anomalies

-         Samples with substantial visual rutile mineralisation have been sent to Australian laboratories for independent quantitative analysis

Ongoing work programs:

-         Continued hand auger program across the six high priority targets to test the extension of the rutile mineralisation

-         Ongoing regional soil sampling in order to identify further priority targets

-         Continued metallurgical test-work designed to optimise the metallurgical flowsheet and further validate commercial rutile product specifications

Sovereign’s Managing Director Dr Julian Stephens commented:

“The prospectivity of our large ground-holding in Malawi continues to evolve with these soil sampling results showing very widespread rutile at surface in numerous areas. Initial hand auger drilling shows significant visual mineralisation in the underlying saprolite and validates the soil sampling technique. We are rapidly advancing our numerous rutile prospects and expect to be in a position to commence deeper aircore drilling in the coming months.”

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

SOIL SAMPLING RESULTS

As part of Sovereign’s previously announced accelerated rutile strategy, intensive exploration and metallurgical work was commenced to further assess the potential scale and grade of rutile mineralisation across Sovereign’s large ground holding in Malawi. Additionally, the recoverability and specifications of a commercial rutile product will be further assessed following on from the previous high-purity rutile product produced.

A key component of the exploration strategy was an extensive regional soil sampling program in order to identify new areas of rutile mineralisation. The program utilised on-site wet-tabling, magnetic separation and hand-held XRF analysis to identify recoverable rutile mineralisation to a semi-quantitative level. As Sovereign controls a very large and strategic ground holding, this systematic soil sampling technique was determined to be the most efficient method to identify priority targets.

An initial program focusing on the western areas of the Company’s large ground position has identified six new zones of rutile mineralisation (see Figure 1). The program involved 649 soil samples taken on notionally ~10km spaced lines at ~200m sample spacing.

Figure 1: Project map showing newly identified rutile mineralisation zones discovered by soil sampling

Semi-quantitative results have to date shown these six new zones of surface rutile have along-line widths ranging of up to ~2.2km with strike length and true orientation of rutile mineralisation still to be determined. All rutile mineralisation zones identified in the soils remain open laterally in both directions.

Soil sampling over large regional areas is ongoing in order to identify further priority targets.

INITIAL DRILLING

Initial hand auger drilling of 35 holes in total over the six targets is now complete. Hole depth was up to 17m and averaged 10m. All hand auger samples were processed through the on-site laboratory to determine which samples are likely to have potentially economic grades of recoverable rutile. Samples deemed to have significant recoverable rutile mineralisation have been air freighted to a globally recognised Australian-based independent laboratory for quantitative mineralogical determination.

Further hand-auger drilling across the six newly identified targets continues in order to test the extents of the rutile mineralisation.

IN-COUNTRY LABORATORY

Since discovering rutile mineralisation in 2018, Sovereign has been developing its on-site processing capabilities in order to be able to achieve semi-quantitative rutile results in real time. The on-site laboratory facilities include:

-                      Hand-held XRF for establishing TiO2 content in raw samples and heavy mineral fractions

-                      Desliming stations with a combined ~30 sample per day throughput capacity

-                      A fully-equipped wet table for producing heavy mineral concentrates (HMCs)

-                      High quality weighing and screening equipment

-                      Laboratory magnets for separating the magnetic (ilmenite and iron oxides) and non-magnetic (rutile) fractions of the HMCs

-                      High quality stereo-microscope for visual verification of rutile in the non-magnetic HMC fractions

ONGOING METALLURGICAL TEST-WORK

In parallel with the exploration activities, the Company has continued bench-scale metallurgical test-work on larger samples of 200 – 300kg. This test-work is aimed at assessing the recoverability and specification of commercial rutile product, and to optimise and validate the metallurgical flowsheet.

Figures above: Laboratory activities in Malawi

Competent Persons’ Statements

The information in this report 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 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.