Sovereign Metals Ltd (ASX:SVM & AIM:SVML) September 2022 Quarterly Report

Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 30 September 2022.

Kasiya Rutile Project PFS well underway with all major programs commenced

· Sovereign is progressing the Pre-Feasibility Study (PFS) on the Kasiya Rutile Project (Kasiya), an industry-leading major source of critical raw materials in Malawi.

· The PFS will build on the Expanded Scoping Study (ESS) which confirmed Kasiya as one of the world’s largest and potentially lowest cost producers of natural rutile and natural graphite with a carbon-footprint substantially lower than other current and planned producers.

· The PFS is on track to be completed in H1 2023 with all major works packages now well underway.

Air-core drilling identified high-grade mineralisation at depth

·       Drilling results from the Company’s deeper air-core (AC) program confirmed rutile-graphite mineralisation extends at depth beneath previously designed ESS mining pit shells.

·       Substantial zones of high-grade rutile mineralisation to depth beneath initial planned open pit shells (main areas averaging ~15m depth).

· These newly defined high-grade rutile and graphite mineralisation at depths >15m is consistent and occurs in coherent blocks.

·       Identification of high-grade mineralisation at depth is expected to contribute to the Mineral Resource Estimate (MRE) update targeted for Q1 2023.

Offtake MoU and Market Alliance with major Japanese trader

· In July 2022, Memorandum of Understanding ( MoU ) (non-binding) signed with Mitsui & Co Ltd (Mitsui), one of the largest global trading and investment companies in Japan.

·       The MoU establishes a marketing alliance and offtake for 30,000 tonnes of natural rutile per annum. The alliance will allow Sovereign to leverage off Mitsui’s extensive network and their market-leading understanding of the titanium industry and global logistics.

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