Placing to Raise A$40m

Sovereign Metals (ASX:SVM; AIM:SVML; OTCQX: SVMLF) has received firm commitments for a placement of 47,058,824 new fully paid ordinary shares at an issue price of A$0.85 per share (New Shares) to raise gross proceeds of A$40m (gross).

Highlights include:

> Use of Proceeds: Funds are allocated for Kasiya Rutile-Graphite Project development, including permitting and studies.

> Investor Confidence:  Strong support from new and existing shareholders, including large global institutional investors

> Market Position:  Enhances Sovereign's financial position and ability to advance key projects