Kasiya Definitive Feasibility Study Results

DFS Confirms Potential for Sovereign to Redefine Titanium Metal and Graphite Supply Chains

Rio Tinto Technical Expertise | Real-World Pilot Mining Validation

OUTSTANDING FINANCIAL RETURNS

-          Steady State annual EBITDA US$476M and Free Cash Flow (pre-tax, unlevered) US$452M

-          Total revenue of US$16.2Bn over 25-year initial mine life, with potential for mine life extensions

-          Pre-tax NPV₈ of US$2.2 billion

-          NPV/Capex ratio of 3.0x – capital expenditure to first production of US$727 million

-          Operating cost of just US$450/t product (FOB Nacala) – underpinning strong margin resilience across commodity cycles

GLOBAL LEADER ACROSS TWO CRITICAL MINERALS SUPPLY CHAINS

-          Positioned to become the world’s largest producer of both natural rutile (222ktpa) and natural flake graphite (275ktpa)

-          Lowest-cost graphite producer globally at or beyond pre-feasibility stage – including China

-          Titanium and graphite both designated as Critical Minerals by the United States and the European Union, highlighting their strategic importance to Western supply chains

-          Free-dig orebody requiring no pre-strip, drilling or blasting with a simple low-energy processing flowsheet

-          Established export infrastructure: hydropower grid, heavy-haul rail, port at Nacala

BANKABLE DEVELOPMENT PATHWAY

-          DFS completed under the oversight of the Sovereign–Rio Tinto Technical Committee

-          Data obtained from Pilot Mining Program, completed with technical input from Rio Tinto, provided real-world inputs across key DFS workstreams

-          DFS incorporates environmental and social workstreams aligned with IFC performance standards; World Bank/IFC Collaboration Agreement in place as potential co-lead mandated lead arranger for project financing

-          Non-binding offtake MOUs covering over 50% of Stage 1 rutile production (Mitsui) and over 35% of coarse flake graphite sales (Traxys)

HEAVY RARE EARTH POTENTIAL NOT INCLUDED IN DFS – EVALUATION UNDERWAY

-          Monazite concentrate recovered from rutile processing circuit with exceptionally elevated levels of heavy rare earths Dysprosium, Terbium and Yttrium

-          Potential third revenue stream at minimal incremental cost — all three elements subject to Chinese export restrictions

-          Dedicated monazite evaluation program now underway to assess scale, recovery and economic potential

April 16th 2026, Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the Company) is delighted to announce the results of the Definitive Feasibility Study (DFS or the Study) for its Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi. The DFS builds on the outcomes of the Optimised Pre-feasibility Study (OPFS) and on empirical data from the Pilot Mining and Rehabilitation Program (Pilot Mining). The DFS was undertaken in accordance with a scope of work approved by, and with technical input and oversight from, the Sovereign-Rio Tinto Technical Committee and, where applicable, conforms to the World Bank Group’s International Finance Corporation (IFC) Performance Standards to enhance bankability of the Project.

Managing Director and CEO Frank Eagar commented:

“The completion of this DFS marks a defining milestone for Kasiya and for the global titanium and graphite supply chains. To deliver a DFS of this quality, depth and confidence, rarely achieved by a pre-production company, reflects the calibre of partnerships that Sovereign has assembled around this project: Rio Tinto's technical expertise, alignment with IFC Performance Standards under our Collaboration Agreement, and offtake interest driven by U.S. and Japanese supply chain security priorities. The successful completion of large-scale field trials, combined with the expertise of our experienced owner’s team and the technical support provided by Rio Tinto, reinforces Kasiya’s potential to be a long-life, low-cost, and reliable source of two critical and globally strategic minerals. Kasiya is not simply a mining project – it is a globally strategic asset.”

TABLE 1: Key DFS Metrics (Steady State)

Note: Steady State is defined as years of operation during which total run-of-mine is at full capacity of 24 Mtpa (i.e., years 5 to 23). All results are presented on a 100% project basis.

DFS CONFIRMS SOVEREIGN TO REDEFINE TITANIUM METAL AND GRAPHITE SUPPLY CHAINS

Kasiya, located in central Malawi, hosts the world’s largest natural rutile deposit and the second-largest flake graphite deposit. Both titanium and graphite are officially classified as Critical Minerals by the United States and the European Union. At steady-state, Kasiya is forecast to deliver approximately 222 kt of rutile and 275 kt of graphite annually – positioning Sovereign as potentially the world’s largest producer of both natural rutile and natural flake graphite.

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Enquiries

Frank Eagar, Managing Director CEO

South Africa / Malawi

+27 21 140 3190

Sapan Ghai, CCO

London

+44 207 478 3900