Sovereign Metals Regulatory News (SVML)

SOVEREIGN METALS LIMITED

NEWS RELEASE I 1 JUNE 2022

SOVEREIGN INITIATES MAJOR PFS DRILL PROGRAM AT KASIYA

· 12,000m drilling program commenced at Kasiya to upgrade higher-grade Mineral Resource areas to underpin conversion to Reserves as part of the planned PFS

· Deeper drilling to target extensions to Indicated zones at depth to base of saprolite (~25m)

· Expansion of the overall mineralised footprint through extensional and regional hand-auger drilling will continue with multiple drill teams

· Updated Scoping Study incorporating the current resource is due for completion in the coming weeks

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the commencement of its Pre-feasibility Study (PFS) drilling program across the Kasiya Rutile Project (Kasiya). This is the first significant work program for the PFS to commence as the Company completes the updated Scoping Study due in the coming weeks.

ENQUIRIES

KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD

In April 2022, the Company announced an updated Mineral Resource Estimate (MRE) of 1.8 billion tonnes @ 1.01% rutile which confirmed Kasiya as a Tier 1 deposit and a potential major source of low CO2 footprint critical raw materials natural rutile and natural graphite.

The updated MRE positioned Kasiya as the largest rutile deposit in the world with more than double the contained rutile of its nearest rutile peer, Sierra Rutile. Additionally, the graphite by-product MRE at Kasiya confirms it as one of the largest flake graphite deposits in the world.

The MRE has broad zones of very high-grade rutile occurring contiguously across a very large area of over 180km2. Rutile mineralisation lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded.

The deposit is expansive with high-grade rutile mineralisation commonly grading 1.2% to 2.0% in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole where it remains open at depths >10m.

DRILLING PROGRAM

Based on the updated MRE, a number of areas remain open at depth and mineralisation is expected beyond the limit of previous drilling with many holes showing +1% rutile at bottom of hole.

A 10,000m air-core (AC) drilling program was designed to extend Indicated zones at depth to base of saprolite ~25m, from the current ~14m average drill depth. Drilling will be on a 200m x 200m grid to target Indicated classification which should convert to Probable Reserves as part of the forthcoming PFS.

The Company is also commencing a core (push-tube) drilling program across Inferred areas of the MRE. This in-fill program is targeting nearer-surface, high-grade areas for conversion to Indicated and Measured resources.

In parallel to these mechanical drill programs, the Company is continuing extensional and regional hand-auger drilling with multiple drill teams active across the Company's extensive target areas at Kasiya with the aim to expand the overall mineralised footprint and identify further high-grade rutile zones.

The low cost and low impact hand-auger drilling technique has proven to be a very effective exploration tool in the initial delineation of the Kasiya rutile and graphite MRE.

UPDATED SCOPING STUDY

The Company is nearing completion of the updated Scoping Study which will build on the initial Scoping Study released in December 2021. The updated Scoping Study will incorporate the significant increase in the MRE tonnage as announced in April, assessing higher grade throughput, increased production rates and longer mine life. The updated Scoping Study is expected in the coming weeks.

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.

Competent Persons Statement

The information in this announcement that relates to the Mineral Resource Estimate is extracted from the announcement dated 5 April 2022. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this report have not been materially changed from the announcement.

The information in this announcement that relates to Production Targets, Processing, Infrastructure and Capital and Operating Costs, is extracted from the announcement dated 16 December 2021 entitled 'Kasiya Scoping Study Confirms Globally Significant Natural Rutile Project'. Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this presentation have not been materially modified from the announcement.

The information in this announcement that relates to Metallurgy is extracted from the announcement dated 7 December 2021. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this report have not been materially changed from the announcement.

This ASX Announcement has been approved and authorised for release by the Company's Managing Director, Dr Julian Stephens.

To view this announcement in full, including all figures and illustrations, please refer to www.sovereignmetals.com.au.