Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the Company) is pleased to provide its quarterly report for the period ended 31 December 2025 including advances made at its Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi.

HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER

Strategic Rare Earths Recovered at Kasiya

·    Sovereign recovers heavy rare earth monazite concentrate from Kasiya rutile tailings stream

·    Preliminary analysis confirms Kasiya monazite to contain exceptionally elevated levels of heavy rare earth elements Dysprosium – Terbium (DyTb) and Yttrium, materially exceeding those of the five largest producers globally, which account for 70% of the world’s rare earth production

·    DyTb and Yttrium are of paramount importance to nations seeking to secure and protect rare earth supply chains

o  DyTb: heavy magnet rare earths essential for high-temperature permanent magnets used in advanced technology, including defence systems and precision weapons

o  Yttrium: high-impact rare earth element critical for aerospace, thermal barrier coatings, radar and laser systems, alloy strengthening and semiconductor manufacturing

·    Monazite by-product has potential to add third revenue stream to Kasiya for near-zero incremental cost, with basic monazite concentrate currently selling for over US$8,500/t delivered to China

World Bank Group’s IFC to Collaborate with Sovereign on Sustainable Development for Kasiya

·    Collaboration Agreement signed with International Finance Corporation (IFC), a member of the World Bank Group, to support the sustainable development of Kasiya

·    Collaboration with IFC – world’s largest global development institution – is expected to lay the foundation for international project financing for Kasiya

·    IFC to provide Environmental & Social expertise, supplementing Rio Tinto’s significant input. The Kasiya Definitive Feasibility Study (DFS) and Environmental and Social Impact Assessment (ESIA) will seek to integrate IFC’s Performance Standards on Environmental and Social Sustainability

·    IFC secures financing rights to fund Kasiya: right to act as lender, mandated co-lead arranger, and/or investor in securities for project financing. IFC’s financing rights are subject to Rio Tinto’s rights under the Investment Agreement

Kasiya’s Growing Strategic Importance Emphasised During and Subsequent to Quarter

·    During the quarter, the US State Department’s Deputy Assistant Secretary Nick Checker visited Sovereign’s facilities in Malawi as part of a broader engagement with strategically significant critical minerals projects in Africa

o  The U.S. Government remains committed to partnering with Malawi to promote trade and investment for shared prosperity

·    In January 2026, China announced strengthened export controls on dual-use items to Japan, effective immediately. Beijing is tightening export licensing for heavy rare earths including dysprosium, terbium, and yttrium

·    Monazite by-product complements Kasiya’s rutile and graphite – three critical minerals serving Western defence and clean energy supply chains from a single operation

Next Steps

Over the quarter ending March 2026, Sovereign will:

·    Continue to advance the Kasiya DFS;

·    Advance rutile and graphite offtake discussions;

·    Undertake further work to characterise the monazite mineralisation at Kasiya including detailed mineralogical characterisation of monazite occurrence and distribution within the Kasiya orebody;

·    Evaluate the potential scale of rare earth production as a by-product and associated economics; and

·    Continue the Company’s community and social development programs in Malawi. 

Enquiries
Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 140 3190
Sapan Ghai, CCO London +44 207 478 3900

 

Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP	+44 20 3470 0470
Ewan Leggat  Charlie Bouverat
Joint Broker
Stifel	+44 20 7710 7600
Varun Talwar
Ashton Clanfield