Communicators

Sovereign Metals: Very Wide Zones of High Grade, Saprolite-Hosted Graphite from Malingunde

Sovereign Metals Limited (“the Company” or “Sovereign”) is pleased to report the second batch of assay results from the 2017 aircore drilling program completed at the Malingunde saprolite-hosted flake graphite deposit in Malawi.

Aircore drilling was conducted in late 2017, with 210 holes for 6,212 metres completed. The drilling program was designed to further define and upgrade the JORC resource classification levels for inclusion in the Malingunde Pre-feasibility Study, as well as to test graphite mineralisation at Malingunde South Extension Zone and other targets.

The results for a further 68 holes show very wide and high-grade zones of saprolite-hosted flake graphite mineralisation with excellent consistency along strike, as well as substantial vertical thicknesses. The Company expects an updated JORC resource estimate will be delivered in Q2 2018.

HIGHLIGHTS:

-        Assays for the second batch of aircore samples (68 of 210 holes, with 36 previously reported) have been received. These holes focused on infilling the central and northern zones of the resource at Malingunde.

-        Results show very wide and high-grade zones of saprolite-hosted flake graphite mineralisation with excellent consistency along strike, as well as substantial vertical thicknesses.

-        Results include:

-         MGAC0240: 16m @ 14.7% TGC inc.   5m @ 26.9% TGC

-         MGAC0241: 17m @ 16.0% TGC inc. 10m @ 21.5% TGC

-         MGAC0268:   14m @ 14.6% TGC inc.   6m @ 20.7% TGC

-         MGAC0281: 18m @ 19.3% TGC inc.   8m @ 24.8% TGC

-         MGAC0290: 15m @ 14.7% TGC inc.   8m @ 19.4% TGC

-        Results for the 106 remaining aircore holes, from the central and northern parts of the Main Zone, as well as from the new discovery at the South Extension Zone, are expected to be delivered over the coming weeks, and will be provided to the market when received.

Sovereign’s Managing Director Dr Julian Stephens commented, “These results continue to show very wide, high-grade saprolite-hosted graphite mineralisation with up to ~200m cumulative surface width. The infill drilling has also highlighted excellent continuity of a number of very high-grade zones circa 12% to 20% TGC. The combination of grade, flake size and the soft nature of the host saprolite create a fantastic platform to develop a low cost, high margin graphite operation.”

ENQUIRIES

Julian Stephens

Managing Director

Dominic Allen

Business Development Manager

+618 9322 6322

Infill Aircore Drilling Results

The 2017 infill drilling program comprised 210 aircore holes for 6,212 metres of drilling. Results for the first 36 aircore holes were reported on 17th January 2018, with results received for a further 68 holes from the southern and central zones of the main deposit. Assays for a further 106 holes are expected over the coming weeks.

The latest results show very wide (up to 200m cumulative surface widths) and high-grade zones of saprolite-hosted flake graphite mineralisation with excellent consistency along strike, as well as substantial vertical thicknesses averaging 20-25m. Additionally, the infill drilling has highlighted good continuity of a number of very high-grade zones circa 12% to 20% TGC. The Company expects an updated JORC resource estimate incorporating the new drilling results will be delivered in Q2 2018.

Selected results from the 68 aircore holes reported are listed below, with full results listed in Table B.

-          MGAC0233: 26m @ 12.2% TGC inc.   7m @ 21.0% TGC

-          MGAC0236: 21m @ 12.7% TGC inc. 12m @ 15.4% TGC

-          MGAC0240*: 16m @ 14.7% TGC inc.   5m @ 26.9% TGC

-          MGAC0241*: 17m @ 16.0% TGC inc. 10m @ 21.5% TGC

-          MGAC0246: 18m @ 11.2% TGC inc.   7m @ 16.2% TGC

-          MGAC0254: 28m @ 10.5% TGC inc.   9m @ 15.3% TGC

-          MGAC0268*:   14m @ 14.6% TGC inc.   6m @ 20.7% TGC

-          MGAC0281*: 18m @ 19.3% TGC inc.   8m @ 24.8% TGC

-          MGAC0282: 22m @ 10.6% TGC inc.   5m @ 18.1% TGC

-          MGAC0290*: 15m @ 14.7% TGC inc.   8m @ 19.4% TGC

  *denotes results that are also reported in highlights on front page

Figure 1. Infill cross-section showing high-grade, saprolite-hosted graphite mineralisation.

Figure 2. Map showing selected, recently received drilling results over mineralised zones at Malingunde.

Competent Person Statement

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 shares, options and performance rights 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.

The information in this announcement that relates to previous Exploration Results is extracted from announcements 18 January 2017, 21 February 2017, 15 March 2017 and 17 January 2018. These announcements are available to view on www.sovereignmetals.com.au. The information in the original announcements that related to Exploration Results were based on, and fairly represents, information compiled by Dr Julian Stephens, a Competent Person who is a member of the Australasian Institute of Geoscientists (AIG). 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'. 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 announcements.

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.

To view entire news including tables and JORC-Code, please follow the link:

https://www.asx.com.au/asxpdf/20180220/pdf/43rqcpmpdd5sxh.pdf