Sovereign Metals : Kasiya Indicated Resource to Support Scoping Study

KASIYA JORC MINERAL RESOURCE ESTIMATE OVERVIEW

onlyThe Kasiya updated MRE is presented below (Table 1, Figure 1). The MRE has broad zones of very high- grade rutile which occur contiguously across large areas.

Rutile mineralisation lies in laterally extensive, near surface, flat "blanket" style bodies in areas where the weathering profile is preserved and not significantly eroded. At Kasiya, high-grade mineralisation commonly grading 1.2% to 2.0% rutile occurs 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 in numerous drill-defined,NE-striking zones.

Cut-off: 0.7% rutile, includes topsoil, TGC = total graphitic carbon

Figure 1: Drill density map over the Kasiya MRE showing rutile grades in the uppermost part of the MRE block model.

RESOURCE GROWTH POTENTIAL

onlySovereign now has a total of ~129km2 of drilled, high-grade rutile mineralisation (Kasiya 89km2 + Nsaru 40km2). The area covered by the Kasiya Indicated component is just 23km2 of the 129km2 drilled, mineralised footprint. Further core drilling results are expected in the coming months and are expected to contribute to additional Indicated tonnage at Kasiya.

Most peripheral and extensional mineralisation at Kasiya previously drilled on an 800m x 800m drill spacing has now been infilled to 400m x 400m spacing. These samples have been dispatched from Malawi and are in transit to Australian laboratories for final analysis. The results are expected to contribute to additional Inferred tonnage at Kasiya.

useInfill and extensional hand auger and core drilling at the nearby Nsaru deposit is now also complete with all samples well advanced through processing at Australian laboratories. It is anticipated that these results will contribute to a component of the Nsaru maiden MRE being classified in the Indicated category.

Kasiya's high-grade,NE-striking rutile corridors that extend to depth beyond 15m continue to present a significant target for the Company and have been marked for detailed 200 x 200m infill drilling to test short range variability of the mineralisation. The results of this program will inform the need for additional infill

into the future, and for targeting drilling to depths of ~25m which will offer potential significant additional

personaltonnage.

Expansion of the Kasiya MRE and a maiden Nsaru MRE is advancing with completion expected in Q1 2022.

For

Figure 2: Kasiya updated MRE areas with the remaining mineralised footprint.

KASIYA MRE TECHNICAL DETAILS

onlyThe Kasiya MRE has been prepared by independent consultants, Placer Consulting Pty Ltd (Placer) and is reported in accordance with the JORC Code (2012 Edition).

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Figure 3: Plan view and cross-sections across the mineralisation footprint in the high-grade areas.

SUMMARY OF RESOURCE ESTIMATE REPORTING CRITERA

As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary of the material information used to estimate the MRE is detailed below.

Geology

Regional Geology

ForThe greater part of Malawi is underlain by crystalline Precambrian to lower Paleozoic rocks referred to as the Malawi Basement Complex. In some parts these rocks have been overlain unconformably by sedimentary and volcanic rocks ranging in age from Permo-triassic to Quaternary. The Basement complex has undergone a prolonged structural and metamorphic history dominated by uplift and faulting resulting in the formation of the Malawi Rift Valley.

Kasiya is located on the Lilongwe Plain which is underlain by the Basement Complex paragneisses and orthogneisses which are part of the Mozambique Belt. The bulk of the gneisses are semi-pelitic but there are bands of psammitic and calcareous rocks that have been metamorphosed under high pressure and temperature conditions to granulite facies. Interspersed within the paragneiss units are lesser orthogneisses, often cropping-out as conspicuous tors, as well as amphibolites, pegmatites and minor mafic to ultramafic intrusions. Foliation and banding in the gneisses have a broad north-south strike over the general area. Thick residual soils and pedolith with some alluvium overlie the gneisses and include sandy, lateritic and dambo types.